Need help analyzing a deal for a 2017

Bottom Line Up Front, this looks $2K too high.

Dealers assume you have a trade in. That's what that $1100 marketing and $200 nitrogen is. It's all BS to cover the paperwork to pay off and dispose of the trade in you AREN'T forcing them to deal with. No trade in means all that BS should go away now.

Do you have a VIN? What's the build date? How long has this truck been on the lot? If it's an old build and maybe has been there a while, they will be eager to go lower. If it just got unloaded this month, they can let a few more people look. The fact that you are coming from out of town and can't see the lot is a disadvantage. I like to see if the lot is full. If I can see more cars than blacktop, I know they will be eager.

Are you financing this yourself or thru Toyota? I avoid dealer financing but I'll sit in their office and talk numbers all they want.

My suggestion, sit thru all their talks, don't agree to any numbers. Look at some other trucks. They will want to put you thru numerous steps to get you impatient so that when numbers comes up, you'll agree to whatever you see. My guess is that they will come down as much as $2K if necessary to keep the deal. It helps if you have listings of similar trucks at other dealers, especially if they don't have the marketing or nitro fee. Sticker price doesn't matter, just that they don't have the fee, and you get the point across that you've talked to other dealers.

When they show you something that still includes that marketing & nitrogen charge, act pissed off. This is what they use to compensate for having to deal with a trade in, and you showed up with credit and no trade in. Start putting on your coat and finding your way out. They will come down at least the dealer markup, possibly an even $2K.

If they open up with something that comes down a bit, ask open ended questions. "Is that the best you can do?" "Why don't all dealerships add a marketing or nitrogen fee?" Many times they will open up with a lower price just to get you to agree on a price. It won't go any lower unless you ask, the worse that can happen is that they will say no. How long has this communication gone on? Have you put any money down to old the vehicle? Have they asked? If they haven't asked, than trucks aren't exactly flying off the lot.

 

That's a fairly solid deal if they only going to charge $150 doc fees. The TMF is a little high. Mine was more like $500 but that could be a regional thing. The dealership doesn't (shouldn't) set the price for that. It comes on the invoice sheets. Could you do better? Yeah probably but you already doing better than most. If I were in the market for that truck I might would try to chip at that TMF a little but at the end of the day if it was what I wanted I would go for it and feel good about the deal.

 

I'm not sure you read the numbers or the complete post. The truck price is basically $60 lower than the invoice minus TMF. So my questions are basically an exercise of, "are these invoice prices accurate?". Yeah, the nitrogen is bullshit, but the $170 is kibble relative to the overall price.

This is all great advice for the traditional purchase. With the internet and availability of information, most negotiation strategies become antiquated. Now it's more of, "what does this cost you, how much profit do you make, and how do I leave happy". Most everything on this deal is priced at the listed invoice.

 

Are you basing this on the prosperity of a limited number of dealers, or assuming that every dealer is willing to sell used vehicles, or makes / models different than the new vehicles sold by that dealer?

 

The current deal for the truck is basically the invoice total minus the TMF. It's pretty much base truck with options at invoice.

The big question here is what's the difference between our Tacomaworld invoice prices and the mfg base price the dealer gave me?

 

It doesn't seem like you're reading/taking everyone's advice.

People have called out a few things that look sketchy/overpriced and you're quick to say you've think it's fair or common. If you feel that way why are you asking for advice on the deal?
Also if you feel it's a good deal to buy the truck!

Good luck I hope you bring home the truck you're after.

 

It's just a fact of the business that each transaction will net them profit. They ship cars to the auction if they don't sell them on their lot. This may not cover EVERY dealer out there, but I'd put it over 75% try to make money on trade in vehicles as part of the business plan.

 

Fair. I was just trying to clarify the fees and prices as part of the thread. I wasn't trying to be argumentative or sound like I wasn't listening.

 

https://www.tacomaworld.com/threads/so-you-want-to-buy-a-tacoma.475482/

 

IIRC that is another column on the invoice sheet. The Mfg Base, Invoice and MSRP. The mfg base being slightly lower. I tried to find a picture of an actual invoice sheet because I know I've seen them posted up here but couldn't find one. They are hard to come by though, most dealership won't let you look at it.

 

1. "what's the difference between "invoice" and "mfg base price"? "

It's on that sheet you opened this thread with: mfg base price is dealers price for the truck (what the dealer pays). Invoice is dealers price for the truck as sold, meaning with all the stuff they add. Still what the dealer pays.

"The reason I ask about invoice is because the dealership gave me a "mfg base price of $34,955"...which is obviously lower than the listed invoice of $35,940 on the beloved Tacomaworld invoice list. "

Bas price will always be lower than invoice; invoice is the truck as it is sold, which almost always has some add-on $$.

Knowing there is still the dealer holdback, how does this deal rate?

Don't forget incentives. You know where I sit on this subject. Plus, isn't there a recall / stop sell on Tacoma's? Play dumb, keep asking the dealer if it applies to this model.

Is there any more room to negotiate or should we take it as is?

Again, negotiate until they say "no". Then ask about something else.

 

Awesome. Thank you!

 

"It's just a fact of the business that each transaction will net them profit."

But it doesn't just happen magically. Selling something for more than the trade in value doesn't consider the space & time on a lot, or the time a salesman spent with customers. I think the biggest variable here is what the dealer handles. People shopping at an Honda / Acura dealer are less likely to trade in an old Geo that stinks of cigarettes.

"They ship cars to the auction if they don't sell them on their lot."

I think this happens much more often than you give it credit for. Time is money, and taking a vehicle (whose history you may know nothing of) is a huge risk - might look good at trade in, but the wipers may stop working when it rains or the power steering may leak in cold weather. I can think of at least three vehicles I've traded in that were shipped off within a few days of trading them in (all in well above average condition, and I've never heard about any of the other trade-ins) . Auction houses exist for this purpose, and that industry doesn't seem to be getting smaller.

"This may not cover EVERY dealer out there, but I'd put it over 75% try to make money on trade in vehicles as part of the business plan."

I think 75% is a bit high. Since you called out the business plan, I'll assume you mean a separate used lot owned by the same entity, instead of 10 or less trade ins that were kept on the lot because of high confidence they would sell fast. The ability to fill a used lot with trade ins is difficult to predict. This is also competing with dedicated used car lots. Dealers do not like competition. Now: I will agree that at least 75% try to move used cars in the form of pre-owned certified or off-lease models. This is predictable in that the dealer knows when a lease should be up, and what condition the car should be in, so they can even advertise it before it is available.

 

You are getting too hung up on all the details of the pricing. If you looked at what others are paying and true car and think this is a fair deal, there is no harm in hedging a little and say you are aware of the recall and all the tacoma problems and will pay $1500-2000 less for a deal right now. Let them think about it and I believe they will knock another $1000 off and then you buy it. Always negotiate further. Always. My 2 cents worth.

Please let us know how it turned out.

 

Will do. I'll know by next week. Thanks!

 

Oh, and i'll be sharing the dealer invoice once I close.

 

That is close to the price I paid for my OR 4x4 loaded $38,300. Then had to add my taxes and license fees which came to about 2500.00

 

This is how I determine a Toyota dealers cost of a vehicle. I learned this after I got bent over backwards on my very first Toyota truck purchase in 1988.

There could be more money flowing between Toyota Corp. and dealers that I'm not aware of but lets take all that out of the equation.

The invoice and MSRP prices are set by Toyota so each Dealership are getting their vehicles for the same price. Is this a regulation? This is a known figure so we can haggle on Bainbridge Island or anywhere else in the country. Lets figure out the dealer cost of the vehicle. First determine the "holdback" cost, I believe it is 2% of the base invoice price. $34,955 x 2% = $699.10 The dealer cost of the vehicle is $38063.90 - $699.10 so $37,364.00. The wildcard is the TMF fee of $1,100.00. The marketing fee can very between regions and dealers.

Is the $38,000 out the door minus TTL?

That number looks pretty good to me. The dealers profit just using those numbers $464. I would say it is a "BUY"...

 

What's your sales tax where u lice?

 

Live