My mother in law is interested in replacing her old car with a new 4 door
She spoke with me about it because I am the car nut and wrench turner in the
I stopped by a local dealer Friday. They must be running out of 2006 models
and just starting to get 2007 models on the lot.
I got a quote on a 2006 sedan that is being used as a salesman's car with
about 6,000 miles. I also got a quote on a 2007 version of the same car. I
wasn't very impressed with the price quote on the 2006 , considering the
amount of miles on the car. They padded the 2007 cars they had on the lot by
adding a dealer installed phony wood trim package she really has no use for.
I really hate playing the price game at the dealers. What is an honest and
fair price to offer for a new car today.. Invoice plus what percent or MRSP
minus what percent ? A dealer is entitled to make a profit and pay the bills
but I don't want the little old lady to get reamed.
Well, It does vary by how bad the dealer wants to move a vehicle, how many
they have of a model, how popular the model is etc. I just bought a 2006
Chevy pickup, Z71. The sticker was $35,500.00 and I ended up negotiating the
final sale price at $29,300.00 plus tax and title. I also got them to
included a 6 year 100,000 mile extended warranty for that price, and it was
when they had the 0% APR for 72 months going on last month.
The amount that I bought it for was about 3% below invoice. I had to go to
three dealers that day to get the price I wanted, what I've learned in the
years that I've bought cars is that you have to be prepared to leave the
dealer and don't get emotional about the vehicle.
Another thing to consider is whether the dealer makes his profit on
volume of vehicle sales or if he has to make some certain profit on each
vehicle. I bought my 2006 Silverado Z71 at a DFW Chevy dealer who sells
300 to 400 vehicles per month. My Silverado listed at 30,643 and I
bought it for 22,711.01 plus t&t. This includes all incentive from GM
and the dealer discount.
Even if you pay invoice, the dealership is still making a couple hundred
(it's called dealer holdback), but good luck trying to find a car at
invoice (perhaps on an '06 model that's in a not popular color). I
think a fair price is invoice plus $500. True, the dealership makes
most of its money on used car sales, warranty work, repair work, but
still $500 over invoice seems fair to me. They have alot of expenses
-- salesman's commissions, salaries, paying for the building, upkeep,
workmen's compensation, utilities, taxes, etc.. Number one rule in car
sales: don't be afraid to walk if the price isn't right or if they're
jerking you around or being aggressive.
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