Price Negotiations: Attempt #1

Attention Vancouver BC Residents

So this is how my first ever attempt at negotiating for a car went down. I went into the dealer this afternoon to try to negotiate a price for an '09 Access Cab. As soon as I mentioned price, he told me straight out that they don't sell for less than MSRP.

His first offer was $600 trade in for a car that I figure is worth at least $1500, plus he offered to throw in 5 free car washes (2 come with the purchase), and $100 back from his commission. Frustrated, I said I'd have to think about it over night.

The awkward silence kicked in as we waited for the sales manager to return my keys/papers. He asked what it would take for me to sign the papers today, and I told him that I wanted $19,900 (MSRP is $ 20,765, invoice is $19,167). He went again to talk to the sales manager, and came back with the offer of selling it for MSRP plus $1000 for the trade in. Arg.

His final offer was MSRP plus a "Reasonable Amount" of accessories (trade in is now off the table), though he didn't define what a reasonable amount would be. In the end I regrettably had to walk away.

I'm going to hit another dealer tomorrow morning, but if there's any residents of Vancouver, BC, I'd love to know if all Toyota dealers in the area are this stubborn about selling below MSRP?

 

dude, all dealers are like that. it's their primary job to get as much out of you as possible, making it seem tougher than it is.
you can really only achieve below msrp if you are fronting a good bit of down payment, or a better car for trade in.
it's only their second job to move cars off the lot.

good luck man.

 

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Did you really mean to say MSRP; not invoice?, that guy is insulting you, get on down the road; somewhere, anywhere but there.............

 

Man sell your car on craigslist or something & get pre-approved financing before going into the dealer's hornets nest. A better idea is get offers straight up without a trade through the internet sales person before even visiting a dealer especially if you know you want a Tacoma. You can always drive it prior to signing to make sure its the right one for you. Lastly, there were some folks for Canada who say the leasing option is a better deal than in the states. If you do a search on leasing in the search this forum, you might get info on that.

I try to keep the deal as clean as possible, no add-ons from the finance guy (gap insurance, extended warranty, paint protection, etc). Just tell me what you'll sell the truck for, bottom line or take your business somewhere else.

 

Also look at Edmunds.com for what you should be paying. Never mention your trade,until after the deal is made. Also most dealer will give you below wholesale for your trade. DO NOT let the dealer push you around. On edmunds &/or carsdirect, print off the vehicle you want with the options. Take with you to a dealer and use it to look back on. Always finance through your bank or credit union. Dealers can manipulate the numbers so you are paying more than you should. I had one do that to me. I took a calculator & showed how they were screwing me. I walked out. The more you know, the better you are at negotiating. Do lots of reasearch.

Negotiating 101
http://www.edmunds.com/advice/strategies/articles/45993/article.html

Not sure if this works in Canada. Worth a try!
This worked very well when I bought an 03 Tacoma. I used carsdirect.com (the free version). It hooked me up with 4 dealers internet depts. I got quotes through the email. I went to each dealer to check them out. A couple of dealers didn't want to sell a vehicle that day. They were jerking me around. So I just went to the next on my list. They didn't have the vehicle I wanted. They had a better one. So they pulled the carsdirect price for the vehicle & the options I added were also the carsdirect pricing(which was way below retail). I added a trailer hitch w/wiring, bed extender, floor mats, & tailgate lock(kept the bed extender from being stolen). Then I haggled the price down some more from the carsdirect price. I remember the sales person telling me that I got a much better deal with carsdirect than if I walked in off the street. After the deal was made, I said I have a trade, what will you give me for it.

I traded my 03 DC Tacoma for an 05 DC Tacoma. After owning it a year & a half, they gave me $2500 more than I owed!

Good luck,
Sean

 

Yep, after today, that's pretty much what I've decided to do. I've tried to hide the trade in until the end, however they always see you pull into the lot and it's the first thing they want to talk about.

Right now, I'm looking at a 3 year lease. I figure it should cost me $50-$100 more to lease, then buy it out at the end. It will lower my monthly payments by about $100, and allow me to put some extra cash in the bank for emergencies or to buy it out at the end, which ever comes first. I'm told you can haggle on price of a lease too, but have never tried.

This is really good advice. Keep it clean and to the point. I'll be sure to do this tomorrow.

 

I keep reading that Canada does vehicle sales a bit different then the States. Try asking this ? over on ToyotaNation. Seems to be several canucks there.

 

Nice looking Tacoma! I like the Blue..

My 05 is worth about $17,500 -$18,000, even with 91,000 miles.

 

One of the questions I asked my dealer was "How much did you (The dealer) pay for the vehicle,and could you show me please".Once we had established that,I told them that I understood that they were in the business of making profit,and all I'm able to pay over thier price was $X......The strategy of presenting it as only having a certain budget versus debating the value prevented anyone's feelings from being hurt and dialogue remained open.It's a legitimate question to ask how much profit the dealer is generating,and if they aren't forthcoming,find one who is....Let them make big bucks on the next guy.

 

Thanks. They hold their value very well. Not a single problem since I bought it. You will be happy with yours. How many miles is on your 05?

 

@YOYo, no man it doesn't suck. I see the OP took my advice too. Both sites offer good information and people too.

 

That's what I was hoping to do, came in with the invoice price from CarCostCanada.com and all, but he insisted that 8.5% markup was the "industry standard" and very reasonable... that the dealership could not live off off less... gave the speech that you don't haggle over a pair of pants or groceries. He was acting like he had never tried to work out a deal below MSRP, so it could have been an act, or it could be that all the dealerships in the area have agreed not to sell below MSRP. He was just a young guy, not any older than myself, so who knows. I'll go around to a few more dealerships, maybe take a drive out to the country and see if they might be different.

 

Just my 2 cents...I talked them down $3000 off MSRP.

 

I've found the internet departments to be much more forthcoming. Also, you'll be surprised how much they make on a vehicle outside of cost markup. Holdback, quantity bonuses, etc. I paid $25k out-the-door (including 6% tax and tags) from an MSRP of $28k-ish. The guys in the internet departments are used to dealing with saavy buyers it seems and are usually a little more forthcoming. My salesman even pulled up edmunds.com on his computer for me. I might have gotten a better deal still if I was willing to really haggle a typical salesman, but I think I did ok.

Also, plan to buy at the end of the month. If they are struggling to meet their monthly quota (and in turn a steep bonus) they'll throw a car at you at a loss.

Of course... all of this may be different in Canada!

 

2009 Pyrite Mica, Double Cab, 4x4, TRD O-Road, Roof Rack, Bed Extender, 6CD Changer, Wheel Locks, Carpet Mats, Door sill BS as well as the super cheesy Frist Aid Kit (alot of these were "Thrown in" during negotiations.

I just paid $28441 ($1079 below invoice) of $29520. OTD with tax, and all the other BS fees it was a total of $30112.58. As I see it - I basically got a good deal.
Did I do okay, average, pretty well.......get hosed...?

Thanks.

 

You did good for an 09.

 

Offer 2 - 2 1/2% over invoice. Do not even talk "trade in" until you have settled on a price of the truck. Right now Tacomas are hot.

A friend in Massachusetts recently came off a lot that was selling Tacomas $2800 over Tundras - both vehicles loaded, 4 door, 4 WD, AT, etc. Mileage and fuel costs are currently dictating prices.

Good luck.

 

Yep, I could have also gotten into a Tundra cheaper than a '09 Taco.
Lots of Tundras sitting in the dealers lots, but not alot of Tacos.
I pick up my '09 tomorrow, will post pics

 

If you can get the truck for the sticker price out the door then you have got a good deal. Just tell the salesman that you only have X number of dollars and stay firm on that. Dont be afraid to walk away. Also, the best times to go to the dealerships are at night near the end of the week, or even better, the end of the month.

 

I recommend going through their internet department and dealing with a company and their competition. I got a great deal through price wars between the two.