Last post on Nov 08, 2013 at 3:09 PM
You are in the Prices Paid - Buying & Leasing Experiences
What is this discussion about?
Hyundai Sonata, Sedan
#8569 of 8898 Re: looking to buy [thetriplei]
Nov 15, 2012 (4:13 pm)
I usually sell my cars myself instead of trading it in. Having said that, a couple of times I have traded it in to the dealer. But only after negotiating the new car price first. When I start to negotiate the new car price, when they ask if there is a trade in, I say No.
After we come to an agreement on the new car price, I then say, "How about give me a price on the trade in". I do my research first to determine what is a fair price.
Then you can weigh the pros and cons of their price compared to the true price you think you can get privately. When I did actually trade in the car, the price we agreed on was close enough to what it should be, so I did it. Most times, they low ball you, so I just say No to the trade and just buy the new car. I've sold many cars over the years on craigslist.
I've never leased a car, so I really can't suggest how to handle that.
Hope this helps.
Nov 15, 2012 (11:38 pm)
I did some research and found out the following info:
Factory Invoice: $19952
Dealer Holdback (3%): - $599
Manf to Dealer Incentive: - $1500 (min); Is this $1500-$2000 ?
TRUE DEALER COST: $17853
True Dealer cost: $17853
Dealer fair profit: $714 (3%). It can be 3-5%. Max 5%.
TOTAL FAIR PROFIT NEW CAR OFFER: $18567.
Plus Destination fee + Tax, Title, License fees + State tax/fees.
Minus $1000 HM Finance Cash back; $500 Loyal Customer Offer; $400 Recent Grad. I hope all three offers can be combined.
I have requested quotes from a number of online websites. Looking forward to hear from few dealers with their offers.
Does $18567 sound right ? It appears that one can avoid documentation fee, right ? Any comments ? TIA.
#8571 of 8898 Re: 2012 Sonata GLS AT [unlv_rebels]
Nov 16, 2012 (9:15 am)
I wouldn't worry about "dealer fair profit". Really I never do.
They have so many ways to make money even after the sale such as end of month bonus, end of quarter bonus, other manufacturer to dealer incentives that the public never knows about.
Also, I never ask the sales rep for a quote. I tell them what I want to pay. They can counter-offer, of course. Then you decide if their offer is close enough.
Starting with $17,853, I like to deal in nice round numbers. I would offer $18,000 even !
Don't tell the dealer how you arrived at that number.
Say that you will buy now if they meet your price and that you will call other dealers.
As for doc fee, I always fight it. I have successfully bought cars with either $0 doc fee or a 50% reduced doc fee. If they say that the doc fee is printed on the sales order form, just tell them to reduce your agreed upon price by the amount of the doc fee. I've done that twice. You gotta be assertive with these people.
#8572 of 8898 Re: 2013 Hyundai Sonata Limited w/ Premium Package [saz25]
Nov 16, 2012 (5:27 pm)
As a sales representative I have dealt with your type many times. Never do i squirm, and I will not go get my SM if your attitude is crap and you think you should get a brand new car and the dealer give up holdback. The dealer does pay the invoice price on a new vehicle when it is shipped to them (or bank). When the car sells the dealer then sends in a claim for holdback. There are costs to having all those cars in stock such as inventory tax, interest on inventory, clean up crew, advertising, commissions, LOCAL CHARITIES,office clerks. I find it interesting you have no issue paying the title fee that goes to the state but say hell no to a document fee. Unless the car has been in stock for over a year, or is a demo there is no way I will ever bring a offer like that to my SM. At that price I already know it is a $100 flat commission and likely a bad CSI score, and if you are out of town I will not get your service business or referrals. There is no upside for me or the dealer just to sell a car. There used to be a couple smaller dealers in my area that cant afford to lose money on a deal and YES that is what happens when they give up holdback. They are no longer in business. They had the best service and reputation but locals would go 20 miles to save $500 bucks. It is sad you dont attempt to see what paying a little extra to by near you might be paying for. After all it is about VALUE in the end.
#8573 of 8898 Re: looking to buy [thetriplei]
Nov 16, 2012 (5:45 pm)
You need to find out if they have early lease incentives. Now for full disclosure I am a sales rep. I often read these forums to get an idea what the trends are. As for your trade. Some dealers are different. You can do it either way but I can assure you the numbers would come out the same either way. They may sell a car very very little profit but I promise you they will not give over fair value for a trade. Nothing wrong with that. If you are going to pay wholesale then expect wholesale for trade. 90% of leases are not worth buying at end of lease because they add buyout fees up to 2500 and depending on your lease you may have a termination fee that would have to be concidered as well. If your lease is not a hyundai they might have a competitive early lease incentive at Hyundai. I know Ford does.
#8574 of 8898 Re: 2013 Hyundai Sonata Limited w/ Premium Package [benrey23]
Nov 16, 2012 (6:17 pm)
First of all I always deal with a sales rep with respect. Never am I rude. It's pure business.
But one policy that I have, never changes. I do not, and I repeat, do not believe anything a car sales rep says. Nothing....
With all due respect, have a nice day.
I have been buying cars for myself, friends, and family for years. No one gets a better deal than I do. I have taught many people to do the same.
#8575 of 8898 Re: 2013 Hyundai Sonata Limited w/ Premium Package [benrey23]
Nov 17, 2012 (7:10 am)
I felt that I needed to add to my previous reply as I don't think this individual is helping others on this forum. Does he want you all feel sorry or compassion for the dealership and make sure they make a substantial profit? It shouldn't be our (buyers) responsibility to make sure they make a profit. If they don't agree to the deal, so be it. End of story.
Does he think I am kidding when I say I do this all the time and it works. Here are 3 recent examples of cars I bought for myself or family members:
2013 Sonata Limited with $30,000 MSRP, I paid $25,000. No doc fee
2013 Lexus RX350 with $50,000 MSRP, I paid $44,000 with $400 doc fee (reduced from $600). (Note: I agreed to the $400 doc fee because I knew it was a very good overall deal)
2012 Toyota Prius with $29,300 MSRP, I paid $26,400 with no doc fee.
These were all below the invoice as well the hold-back.
To illustrate how easy this is, I could have gotten the Sonata from 2 different and very large south Florida dealers. Yes, I called 6, but 2 agreed to my deal.
As for the Lexus, I called 5 dealers in NH and MA, one agreed to my price, but 3 others were close enough (within $700) that I would have bought from them except that I choose the lowest price. My local/closest dealer will service it and be happy getting the service and warranty business.
Don't believe anything a car sales rep says. Besides, should car sales reps supposed to even be on this forum?
#8576 of 8898 Re: 2013 Hyundai Sonata Limited w/ Premium Package [saz25]
by kyfdx@Edmunds HOST
Nov 17, 2012 (12:30 pm)
Besides, should car sales reps supposed to even be on this forum?
As long as they aren't soliciting, they are welcome in the forums..
#8578 of 8898 Re: 2012 Sonata GLS AT [saz25]
Nov 17, 2012 (4:51 pm)
Quick question regarding your strategy for a target price. When you talk about subtracting at least $1500 from the invoice price - hold back would that $1500 take into account any incentives, or would those be extra subtracted on top of everything else?