Yet Another Vehicle Question...

[JENNR8R 0]

I've never bought a new car before. It's a long story about why I'm considering it now, so I'll spare you the details.

Costco has an auto buying program. This is the end of the model year, end of the month, with Costco price, and dealer incentives. I figure it is probably as good a time as any to buy new.

The car I'm looking at is $31,105 MSRP. They are offering to sell it to me for $26,000. Am I to assume that is a good price and there is no need to try to make them go lower?

What do you call a beautiful, sunny day that comes after two cloudy, rainy
ones? -- Monday.

[DeNReN 0]

not enough info to give advise

[TangoCharlie77 0]

Never assume anything about buying a car. Car dealers are in business to make money. I recommend going to some consumer oriented sites such as www.edmunds.com and gathering information on the market value of cars based on your location. Inform yourself as much as possible about the car you want prior to making contact with any dealers. The more informed you are, the less they can take advantage of you.

[1969912 0]

Check this site, as well as Consumer Reports, for info on what the dealer (or Costco) actually pays for the car.

http://www.edmunds.com/

If you do end up going to a traditional dealer, the read the article below. Gawain posted it a few weeks ago. Its an eye-opener. Edmunds had a guy go undercover and work as a salesman at a couple dealerships, then write the article.

http://www.edmunds.com/advice/buying/articles/42962/article.html


EDIT: Fixed the clickies.

"Once we got to the point where twenty/something's needed a place on the corner that changed the oil in their cars we were doomed . . ."
-NickDG

[Thanatos340 1]

Gotta Agree with www.edmunds.com. Great site that is fair and balanced.

Another site is www.kbb.com but they are heavily biased towards the dealer.

Look for Edmunds True Market Value and dont pay a penny more. If that dealer will not sell to you at that price, Find another dealer.

Also go over the final invoice carefully. Do not pay Advertising Fees or other such overhead items that is added to the invoice. You will have to pay a Doc fee but refuse if they try to charge more than $300.

[JENNR8R 0]

I've already done the research on the car on those sites and read the article you referred to. I just didn't know if $5,000+ off of MSRP is a good discount for a new car. Low mileage, same model year, used cars are selling for about the same in this area.

I didn't know if anyone has had experience in buying through Costco. They just use local car dealers that they have negotiated with. I didn't know if the dealer could be talked into going lower since it's the end of the model year, and the end of the month... or should I assume it's a good price.

What do you call a beautiful, sunny day that comes after two cloudy, rainy
ones? -- Monday.

[Thanatos340 1]

MSRP is not relevant.

What is actual Dealer Cost plus what Factory incentives has the dealer been offered are what will determining how low they will go.

Check Edmunds TMV. That is what you should pay. IF its more than that, It is too much no matter what price they started at.

[JENNR8R 0]

Thanks!

What do you call a beautiful, sunny day that comes after two cloudy, rainy
ones? -- Monday.

[boinky 0]

There are some sites that you can find the actual sticker of a vehicle. I know you can with Ford. Or...if the dealer really wants to earn your business, they might be willing to show you THEIR invoice.

The markup on vehicles isn't what it was in years gone by. Markup is higher on pre-owned vehicles than new ones nowadays.

You DO need to find out if the price that they are quoting you is already deducting any rebates or incentives though. Those are offered by the manufacturer to try and help the dealer unload leftover new car inventory before the 2008 cars come in. You should get a quote with/without any manufacturer incentives.

Now one word of caution, though. Sometimes the manufacturer offers a choice of incentives. Either a special finance rate of say 0% interest OR a cash back offer of whatever. Sometimes you can't use both. If you are using outside financing and not using the manufacturers finance company (I.E. Ford Credit), then you should be able to use the rebate without worry.

I was a car salesperson for 7+ years. Feel free to pm me if you want some specific answer. If I don't have it, I'll try to get the info from my ex. (he's still in the car business)

Nina

Are we called "DAWGs" because we stick our noses up people's butts? (RIP Buzz)
Yep, you're a postwhore-billyvance

[1969912 0]

Costco may have locked in a price with the car maker (or a delership) months ago. If you were to find a dealer with too many of those cars sitting around, you might get the car for less than Costco could sell it for. the thing is, you need to have a really good idea how much the dealer paid for the car, and if the Mfr. is offering incentives, etc., to dealers to help get rid of the cars. Unless you know what they paid, you can't deal them down to the best price. Are you a Credit Union member? Some CU's will help you find the info you need.

If you don't want to hassle with it, and are happy with the Costco price, find a dealer with lots of the casr you want sitting around, then call and offer $1000 less than the Costco price. See what happens. $1000 less than Costco might be totally unreasonable, I just don't know, but cars siting on the lot (esp. year end one's) are a liability to the dealer. They just sit there and cost money to keep in stock.

Post or PM the exact details on the car you want, and I can ask a friend to check it out.

"Once we got to the point where twenty/something's needed a place on the corner that changed the oil in their cars we were doomed . . ."
-NickDG

[Thanatos340 1]

Quote

if the dealer really wants to earn your business, they might be willing to show you THEIR invoice.

Even that will not tell you the whole story..
For example, I lookd up a Car I am interested in on Edmunds.
2007 Accord Coupe V6 (With Nav).
MSRP is $30,095
Invoice is $27,312
TMV is $26,734

How can TMV be less than Invoice?? Factory Incentives.
What you are not told unless you check a site like Edmunds is that the Factory is Paying the Dealer an Incentive of almost $2,000 for every one of these cars they move.

So even when the dealer pulls out the "Actual Invoice" to show you what a great deal you are getting.. You could still do better.

[boinky 0]

It's only late June...they're not that desperate to get rid of the vehicles yet. I'm betting the lowest they'll go is invoice. And your Factory Offered rebates. But if they can find a way to pocket those factory rebates, they will. That's why you have to ask if they were in the quoted price or not.


AFTER the 2008 models start moving in, which is usually late August or early September, they'll be a lot more eager to go below invoice.

Nina

Are we called "DAWGs" because we stick our noses up people's butts? (RIP Buzz)
Yep, you're a postwhore-billyvance

[sundevil777 102]

Quote

Quote

if the dealer really wants to earn your business, they might be willing to show you THEIR invoice.

Even that will not tell you the whole story..
For example, I lookd up a Car I am interested in on Edmunds.
2007 Accord Coupe V6 (With Nav).
MSRP is $30,095
Invoice is $27,312
TMV is $26,734

How can TMV be less than Invoice?? Factory Incentives.
What you are not told unless you check a site like Edmunds is that the Factory is Paying the Dealer an Incentive of almost $2,000 for every one of these cars they move.

So even when the dealer pulls out the "Actual Invoice" to show you what a great deal you are getting.. You could still do better.

I wonder if the Accord is a bit of a special case right now, since the new generation (not just the next model year) is due out soon.

People are sick and tired of being told that ordinary and decent people are fed up in this country with being sick and tired. I’m certainly not, and I’m sick and tired of being told that I am

[Thanatos340 1]

Quote

I wonder if the Accord is a bit of a special case right now, since the new generation (not just the next model year) is due out soon.

I really just picked that car at Random.
Here is a list of all Factory Incentives. Look at the Marketing Support/ Factory to Dealer list to see Dealer holdback, Factory Incentives and other things the Factories give to dealer beyond the invoice price.