Is the price shown on the site the final price or are there discounts on the msrp shown on the site? Want to upgrade from a Honda to a nicer car. Honda offered around 2K off the MSRP around a couple of years ago, want to understand how is it with these brands before i get in touch with them. Don’t wanna leave contact details with the dealers just yet.
Few dealers are stubborn (like autonation), however your job is to shop around. I was able to get 7k off my merc GLC300 (a highly sought after suv around its launch). I also bought my last Audi for more than 6% below MSRP. BMW also negotiates. I was able to negotiate around 5k off X1 but did not buy.
Research what is invoice price of the car. Target that value on the base, that’s what dealers pay to company. All other add ons are rip off, tell them you don’t want anything. dealers install those as soon as the cars are in their inventory to make heavy profit on accessories. Also dealers get about 6-8% of the invoice price per sale as commission, some high sale dealers offer cost lower than invoice because they sometimes lower their margin to get your business. If they already have installed the accessories tell them to remove them( which they can’t, I asked them to remove wheel locks and mud guards charged at $400, they ended offering for free because mudguards require drilling hole in wheel wells, they can’t sell car with drilled hole legally). Bargain like your life depends on it.
Thanks! This is really helpful.
I worked for a large car distributor/accessorizer few years ago. Few insights - 1. Dealers get dividends as a percent of tiered sales they make every month on "core" accessories. So they will push to buy certain accessory packages for example navigation, leather etc. This dividend is on top of any other other profits they make on invoice price. So in a real buyers' market some dealers can even go below their invoice price to liquidate their inventory. 2. Dealers get some cash back on each car sold from distributor or car company (in case of direct distribution). This is a play on the cash flow cycle by the distributor and is also a guaranteed "holdback" or sort of commission to the dealer after they sell their pool of allocated cars. This is also on top of invoice price. 3. Dealers push "dealer fitted" accessories on you. Rare on brand new luxury cars but not impossible. In short there is always room for negotiation. You may ask the dealer to show you their invoice price, and then negotiate based on that. Some dealers may show you an original invoice and some may just show you an internal invoice citing their "policy". But you must get as much information you can get to negotiate better. To illustrate - Car1 MSRP - 40,000 Invoice - 38,000 Accessories dividend- $250 each for 100 cars $450 each for 100 to 200 cars And $550 each for cars sold above 200. Assume the dealer sells only 100 cars with core accessories. He already has a profit of $250 on the core accessory sold to you on top of invoice. Also let's say dealer get 2% holdback at end of month. So 0.02* 38000 = $760. That's a total of $1110, more or less guaranteed profit for him. Also I've seen holdbacks to be on the north of 5%. I just took 2% conservatively.
Thanks for sharing. Really helpful
Every dealer has internet sales department which directly competes with the onsite physical sales dept, get in touch via email, you will get deeper discounts
Yeah, sending out a few fishing emails
Yep hit up internet sales. Do your research and find the car you want. Then reach out to many dealers for their best price. Don't be afraid to drive to pick up the car. Once you get a lower price, ask the other dealers to match or beat it. Keep resetting the lowest until no one goes down more. Ideally, you should be able to get 10% off of MSRP
and that’s the reason my friends, why I love Blind!
Me too 😄
Usually for luxury brands, you can easily score 10% off. If you do your research, sometimes 20%. Usually I would aim for 15% off.
20% I think would be impossible. I am shopping for Q5 Prestige and maximum dealers are willing to go down is 3.5k off the price of 56k Is it coz the 2018 model is refreshed?
2018 is in market since Jan 2017. I negotiated loaded premium plus with nav+virtual cockpit+heat and cold package+ hitch and other small accessories to 47800. 2019 model might not have much updates but is due late summer. From 54 to 48. Still confused between q5 and sq5
I am also aiming for somewhere between 10-15%
A lot of the % off MSRP comes down to timing. Find out when your manufacturer runs it's best specials of the year. Let dealers know you are buying before the end of the month (like on the last day). Even better if on 12/31. I just picked up a vehicle from one of these manufacturer for recently. Got them down from 77 and change to around 63. Roughly 18% down
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If you pay MSRP, the dealer ripped you off