My New Car Buying Tips

Questions on how we spend our money and our time - consumer goods and services, home and vehicle, leisure and recreational activities
focusedonwhatmatters
Posts: 70
Joined: Wed Nov 29, 2017 11:49 am

Re: My New Car Buying Tips

Post by focusedonwhatmatters » Fri Dec 15, 2017 10:28 am

I just completed the purchase of a hot new car for my mother using many of the strategies in this thread. I created a new email address specifically for this transaction because I didn't want spam, or to be searched. After doing my research, I composed a succinct email and sent it to 18 dealers in three states. Nearly all of them replied within a day. I quickly narrowed it to five, completed two more rounds of negotiations, and sealed the deal for 3% lower than the TrueCar "Exceptional Price", despite my mother not being flexible on color. I didn't provide my phone number until I had decided who would win the business. I instructed the dealer that my mother (who lives in a different state) would be coming in with a check made out for $XX, and not to up-sell her on extras. They didn't. It was a simple transaction for all. :D

arsenal_fan
Posts: 36
Joined: Tue Nov 17, 2015 8:57 pm

Re: My New Car Buying Tips

Post by arsenal_fan » Sat Dec 16, 2017 8:41 am

focusedonwhatmatters wrote:
Fri Dec 15, 2017 10:28 am
I just completed the purchase of a hot new car for my mother using many of the strategies in this thread. I created a new email address specifically for this transaction because I didn't want spam, or to be searched. After doing my research, I composed a succinct email and sent it to 18 dealers in three states. Nearly all of them replied within a day. I quickly narrowed it to five, completed two more rounds of negotiations, and sealed the deal for 3% lower than the TrueCar "Exceptional Price", despite my mother not being flexible on color. I didn't provide my phone number until I had decided who would win the business. I instructed the dealer that my mother (who lives in a different state) would be coming in with a check made out for $XX, and not to up-sell her on extras. They didn't. It was a simple transaction for all. :D
:) Any email template you can come up with? Some of us struggle with things like that. Congrats!

bbrock
Posts: 382
Joined: Mon Nov 23, 2009 8:55 pm
Location: CA

Re: My New Car Buying Tips

Post by bbrock » Sat Dec 16, 2017 1:04 pm

Great Job focusedonwhatmatters!

I too am using some of the strategies outlined in this thread. I am securing ludicrous pricing on a 2018 Toyota Highlander XLE AWD w/ 2nd row bench, & P 2T all weather mats/cargo liner. So far I’m at 2.65% below true car exceptional/unusually low price.
bbrock

bbrock
Posts: 382
Joined: Mon Nov 23, 2009 8:55 pm
Location: CA

Re: My New Car Buying Tips

Post by bbrock » Mon Dec 18, 2017 9:07 pm

After reaching out to 16 dealerships, three main rounds, we got it for 4.62% percent below the true car exceptional/unusually low price.

The tips/techniques worked quite well. Yes, many of the dealerships wanted to me to supply the Vin or the quote directly to them, but it was those dealerships that took me seriously and provided their quotes that I ended up negotiating with. Too bad my local dealership here never came through. It was such a tug a war with them from them wanting me to come in, to supply them with the quote, and they only finally gave me a quote which was very low an hour before I got to the dealership I bought at.

Anyhow, it all worked out well and we got the preferable color we wanted, which was never a main thing because the deal was more important than color.
bbrock

surveyor
Posts: 250
Joined: Thu Dec 18, 2008 8:05 am

Re: My New Car Buying Tips

Post by surveyor » Tue Dec 19, 2017 8:31 am

6 dealers in my area. Three would give me OTD prices via email. All would meet the OTD price of the others. None would go any further without a competitor's written offer. Tough game they play. Ended up emailing the salesperson at the dealership we did the test drive at (who wouldn't give a OTD price). I gave him a number below the lowest and said I'd be comfortable buying for that price today. He wouldn't counter via email because "he didn't want that used against him". I agreed to negotiate via phone and it was taken care of pretty quickly. I'm pretty sure I did better than if I would have gone in but probably didn't do as well if I could have worked them against each other. I beat Trucar pretty handily and didn't have to go into the dealership.

inbox788
Posts: 4880
Joined: Thu Mar 15, 2012 5:24 pm

Re: My New Car Buying Tips

Post by inbox788 » Tue Dec 19, 2017 11:24 am

surveyor wrote:
Tue Dec 19, 2017 8:31 am
6 dealers in my area. Three would give me OTD prices via email. All would meet the OTD price of the others. None would go any further without a competitor's written offer. Tough game they play. Ended up emailing the salesperson at the dealership we did the test drive at (who wouldn't give a OTD price). I gave him a number below the lowest and said I'd be comfortable buying for that price today. He wouldn't counter via email because "he didn't want that used against him". I agreed to negotiate via phone and it was taken care of pretty quickly. I'm pretty sure I did better than if I would have gone in but probably didn't do as well if I could have worked them against each other. I beat Trucar pretty handily and didn't have to go into the dealership.
This is a form of collusion!
Guaranteed profits
Price-match guarantees prevent rather than provoke price wars
https://www.economist.com/news/finance- ... ed-profits
Our findings establish that when costs are symmetric, price-matching guarantees significantly increase market prices. In markets with cost asymmetries, guaranteed prices remain high relative to prices without the use of guarantees, but the overall ability of price guarantees to act as a collusion facilitating device becomes contingent on the relative cost difference. Lesser use of guarantees, combined with lower average prices and slower convergence to the collusive level, suggest that the mere presence of cost asymmetries may curtail collusive behavior.
http://myweb.lmu.edu/jpate/pricematching.pdf
As can be seen in the price-setting game above, for both Home Depot and Lowes, their own best pricing strategy, based on the strategy of the other player, is to price “low.” This is a Nash equilibrium, and it is not the most profitable situation. If the firms could communicate with one another, they could each decide to price at “high,” and make more profit. A price matching guarantee does exactly that— it eliminates the possibility of one firm undercutting another.
http://www.overtcollusion.com/pricing/2 ... ishwa.html
The price-matching guarantee eliminates the dilemma of the classic prisoners’ dilemma. This guarantee communicates both a firm’s desire to price high and also the threat that pricing low won’t steal the market. In this sense, it is tacit collusion- unspoken yet real communication. The only difference between this situation and two executives sitting in a smoke-filled room agreeing to fix the prices of dishwashers at $449.00 is that no physical meeting takes place, and that consumers assume they’re getting a good deal. But according to economic theory, it is collusive activity anyway.

macandal
Posts: 39
Joined: Thu Mar 31, 2016 1:58 pm
Location: San Francisco, CA, USA

Re: My New Car Buying Tips

Post by macandal » Tue Dec 19, 2017 8:21 pm

bbrock wrote:
Mon Dec 18, 2017 9:07 pm
After reaching out to 16 dealerships, three main rounds, we got it for 4.62% percent below the true car exceptional/unusually low price.
So, when I read expressions like this, do you mean below the TrueCar value or below MSRP?

macandal
Posts: 39
Joined: Thu Mar 31, 2016 1:58 pm
Location: San Francisco, CA, USA

Re: My New Car Buying Tips

Post by macandal » Tue Dec 19, 2017 8:28 pm

surveyor wrote:
Tue Dec 19, 2017 8:31 am
None would go any further without a competitor's written offer.
Yes, they do ask to see the other dealer's offer. So far, I haven't shown anyone anything, but, what do you do in these cases? Do you forward them the quote (I'm doing everything via email to start with) or not? What do you do in these types of situations?

I'm a total newbie, looking for tips on how to negotiate.

Thanks.

denovo
Posts: 3994
Joined: Sun Oct 13, 2013 1:04 pm

Re: My New Car Buying Tips

Post by denovo » Tue Dec 19, 2017 11:11 pm

bbrock wrote:
Mon Dec 18, 2017 9:07 pm
After reaching out to 16 dealerships, three main rounds, we got it for 4.62% percent below the true car exceptional/unusually low price.

The tips/techniques worked quite well.

Anyhow, it all worked out well and we got the preferable color we wanted, which was never a main thing because the deal was more important than color.
:sharebeer

Good to know this strategy is still working.
"Don't trust everything you read on the Internet"- Abraham Lincoln

bbrock
Posts: 382
Joined: Mon Nov 23, 2009 8:55 pm
Location: CA

Re: My New Car Buying Tips

Post by bbrock » Tue Dec 19, 2017 11:41 pm

macandal wrote:
Tue Dec 19, 2017 8:21 pm
bbrock wrote:
Mon Dec 18, 2017 9:07 pm
After reaching out to 16 dealerships, three main rounds, we got it for 4.62% percent below the true car exceptional/unusually low price.
So, when I read expressions like this, do you mean below the TrueCar value or below MSRP?
4.62% below the lowest price (exceptional at True Car/unusually low at True Car through CR website) on the bell curve.
This was 12.12% below MSRP, 5.16% below invoice.
bbrock

hudson
Posts: 1353
Joined: Fri Apr 06, 2007 9:15 am

Re: My New Car Buying Tips

Post by hudson » Wed Dec 20, 2017 5:40 am

macandal wrote:
Tue Dec 19, 2017 8:28 pm
surveyor wrote:
Tue Dec 19, 2017 8:31 am
None would go any further without a competitor's written offer.
Yes, they do ask to see the other dealer's offer. So far, I haven't shown anyone anything, but, what do you do in these cases? Do you forward them the quote (I'm doing everything via email to start with) or not? What do you do in these types of situations?

I'm a total newbie, looking for tips on how to negotiate.

Thanks.
Maybe it depends on the vehicle. If the vehicle is scarce or in high demand, the dealer can play games like asking for written offers. I tried the bidding system with a vehicle that I thought that I wanted badly. I found out after calling dealers and researching that there were only a handful of those vehicles in my region. I changed vehicle to something that was plentiful, and the bidding system worked.

If asked for a written competitor's offer, I would thank that dealer and move to another. Maybe that dealer's not ready to sell. I have a local dealer who I would like to deal with that isn't flexible at all; he'll give you one OTD price and that's it. He'll only deal with what's on the lot. Therefore I do my business 30-100 miles away.

When running the bidding system to buy a car, I just communicate by phone. I don't announce that I'm doing the bidding thing. I say that I need a specific kind of vehicle in the next 3 days and I need the lowest OTD price. I save the contact information and repeat with another dealer. I'll include far away dealers. I always get the James Bragg...Fighting Chance Package so that I can get his info package and I can call him on the phone for coaching. I'll go three rounds with any dealer who gives me an OTD price. I am friendly and honest with the salesperson or sales manager; I give out my phone number and email. I am not very chatty; sometimes they ask me if I'm still on the line. I like the dealerships that don't play any games and say, "What can I do to earn your business?"

bbrock
Posts: 382
Joined: Mon Nov 23, 2009 8:55 pm
Location: CA

Re: My New Car Buying Tips

Post by bbrock » Wed Dec 20, 2017 12:21 pm

@macandal. The dealers that wanted my to email them the quote, I just keep emailing and insisting that that was not necessary in order to provide me w/ their best offer. They know it, as do I, that they can provide their quote. Ultimately I attribute it to a stalling technique akin to what denovo was explaining happens when you are in a dealership. I think it is there way to try to wear you down. For instance, my local dealership kept insisting I call them (I never provided a legit phone number until the day off) or come in. The sales internet manager (they are all titled manager but they are not) kept insisting that I provide them the emailed quote. I supplied them some of the email string, but I deleted the senders name, email, identifying details. I gave them some of my email string w/ the lowest bidder at that time. Even after that, they still would not provide their offer. It wasn't until purchase day that the actual sales manager emailed me their bid, but it was too late as I was already at the dealership I was going to purchase at. Regardless, their bid was not the lowest, but rather the new "2nd lowest."

What I take from that is that they could have supplied me their bid throughout the entire process. The tug of war was pointless. The sales manager even admitted in the email that he trains his staff not to give bids via email. They will do whatever it takes to get you to come in or stall the process to shift the power back to them.
bbrock

macandal
Posts: 39
Joined: Thu Mar 31, 2016 1:58 pm
Location: San Francisco, CA, USA

Re: My New Car Buying Tips

Post by macandal » Wed Dec 20, 2017 12:58 pm

bbrock wrote:
Mon Dec 18, 2017 9:07 pm
...exceptional at True Car/unusually low at True Car through CR website...
?

I don't know what CR is. I'm understanding this to be 4.12% below "TrueCar Value," below taxes and fees are added.

macandal
Posts: 39
Joined: Thu Mar 31, 2016 1:58 pm
Location: San Francisco, CA, USA

Re: My New Car Buying Tips

Post by macandal » Wed Dec 20, 2017 1:01 pm

hudson wrote:
Wed Dec 20, 2017 5:40 am
I like the dealerships that don't play any games and say, "What can I do to earn your business?"
Aggggghhh..!!!

I get these emails everyday.

Answer, give me the car at my stated price of $XXXXX!!

focusedonwhatmatters
Posts: 70
Joined: Wed Nov 29, 2017 11:49 am

Re: My New Car Buying Tips

Post by focusedonwhatmatters » Fri Dec 22, 2017 7:03 pm

arsenal_fan wrote:
Sat Dec 16, 2017 8:41 am
focusedonwhatmatters wrote:
Fri Dec 15, 2017 10:28 am
I just completed the purchase of a hot new car for my mother using many of the strategies in this thread. I created a new email address specifically for this transaction because I didn't want spam, or to be searched. After doing my research, I composed a succinct email and sent it to 18 dealers in three states. Nearly all of them replied within a day. I quickly narrowed it to five, completed two more rounds of negotiations, and sealed the deal for 3% lower than the TrueCar "Exceptional Price", despite my mother not being flexible on color. I didn't provide my phone number until I had decided who would win the business. I instructed the dealer that my mother (who lives in a different state) would be coming in with a check made out for $XX, and not to up-sell her on extras. They didn't. It was a simple transaction for all. :D
:) Any email template you can come up with? Some of us struggle with things like that. Congrats!
Sorry, I just saw this. No, I didn't have a template, I just wrote a letter stating what I wanted. I told them I wasn't interested in special offers such as ski passes and oil changes, just give me their best offer. Conducting business by e-mail alone made it easy to "walk away".

Ithrive
Posts: 15
Joined: Sun Apr 02, 2017 8:05 pm

Re: My New Car Buying Tips

Post by Ithrive » Sun Jan 14, 2018 4:08 am

Question: How do you find out the email addresses for the dealerships? There has to be an easier way than calling them all to ask and it's not listed on the webpages I've checked.

Thanks

denovo
Posts: 3994
Joined: Sun Oct 13, 2013 1:04 pm

Re: My New Car Buying Tips

Post by denovo » Sun Jan 14, 2018 6:18 am

Ithrive wrote:
Sun Jan 14, 2018 4:08 am
Question: How do you find out the email addresses for the dealerships? There has to be an easier way than calling them all to ask and it's not listed on the webpages I've checked.

Thanks
Look more carefully. Most have a directory or contact option.
"Don't trust everything you read on the Internet"- Abraham Lincoln

bbrock
Posts: 382
Joined: Mon Nov 23, 2009 8:55 pm
Location: CA

Re: My New Car Buying Tips

Post by bbrock » Sun Jan 14, 2018 10:28 am

Use the KBB (Kelly blue book) app. After u price a new car, the last page gives u an option to contact/email many nearby dealerships. The screen is populated with many dealerships b/c earlier in the process u enter ur zip code.
bbrock

Ithrive
Posts: 15
Joined: Sun Apr 02, 2017 8:05 pm

Re: My New Car Buying Tips

Post by Ithrive » Sun Jan 14, 2018 1:34 pm

bbrock wrote:
Sun Jan 14, 2018 10:28 am
Use the KBB (Kelly blue book) app. After u price a new car, the last page gives u an option to contact/email many nearby dealerships. The screen is populated with many dealerships b/c earlier in the process u enter ur zip code.
Thanks

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