Riptide

Been my experience with new cars as well. After rebates and the cash for clunkers deal on my wife's truck they would only knock 500 off sticker for her focus. That was it. Honda also wouldn't go any lower than 500 off sticker when we looked at civics. Flat out refused.

I've always been told cars are worth what people pay for them. The thing is, what if one person pays way more than another? Then what is it really worth?

83gtragtop

This true and very sad.


For the most part there is more room to haggle on used cars then new cars. Most dealers offer crappy prices for trade ins, so their cost basis in their used autos is pretty low compared to their KBB value, which is what they will list them for.

As far as getting a good deal on a new car goes, it really depends on the economic state of the dealer and the current demand for the car. Some dealers just need to move vehicles as the longer the vehicle sits on the lot the more interest it pays on it (Dealers don't pay cash for new cars, they finance them, usually through Ford Motor Credit). With that in mind, often dealers will sell cars at a loss. Dealers also get rewarded for selling a certain amount of total cars or specific cars by the Manufacturer, depending on the current reward system the manufacturer has in place. Lastly, dealers get holdback from the manufacturer after selling the vehicle. Click this link if you want an excellent description on what holdback is.

My friends and I literally feel like professional car buyers. We have kind of mastered the art of getting a good deal. Not to brag but here are some of our collective accomplishments : (below prices are before Taxes & Fees)

• Got my friends '03 Mach brand new for $22,800.
• Same friend got his '07 Shelby GT for $30,000 even.
• Same friend got a used '03 GTI w/a KBB price of $19,700 for $14,000.
• Got my sister a brand new 2006 Mazda 6 for $14,000.
• Got my 3 for $1,000 under invoice at a time where people were generally paying MSRP or more for the hatch.
• Got my Grandparents the new Lincoln MKT for $41,000 five weeks after they came out. The car MSRP'd for $48,XXX and invoiced for $45,XXX.
• Got my moms CR-V for $2,000 under invoice.
• Got my friends sister a new 1 series for $750 under invoice just after they came out and when people were paying over MSRP for them.
• Got my grandpa his Lincoln Mark LT for $33,000.
• My buddy got a brand new MS3 for $19,600.

There are more but I can't think of them all. Needless to say we get really excited when anyone we know is in the market to buy a new vehicle. We have an advantage over here in the Bay Area because we have alot of dealers and I love getting offers from one dealer and bringing it to another dealer and then back to the original dealer.

Stone629

Appreciate the education, 83. Its always good to get the inside on stuff like this, especially since it involves big money. I've always done good on the used vehicles. I've never paid within 3 grand of the asking price, not once. I know how they play customers on their trades. Bottom line, its all a numbers game. They'll give you less for your trade, then knock more off the asking price, or knock more off the asking price and give you less for your trade. Either way, they end up moving the numbers from one side to the other, depending on where the customer wants to see the gain. Its a bunch of BS. Thats why a lot of peps prefer Carmax. The numbers you see are the numbers you get. Like I said before though, never had much luck with the new stuff, especially if it recently rolled off the truck. I knew about the interest the dealer accrues due to their loans though, which is why I'm surprised they're not more generous and willing to get that shat off the lot. Honestly, I don't know how they stay in business...

Projectquick

IDK about in NC, but in NJ a lot of long time dealers went under because they were'nt willing to move the stuff they had on the lot to get other stuff in there. Most were still stocked up in SUVs since they blew up in popularity.