New Car Buying: "you should get a screaming deal"

[steven johnson]

Looks like now is a good time to drive a hard bargain on a new car.

Wall Street Journal
MAY 13, 2009 Final Frontier: Below Dealer Cost Article

By JONATHAN WELSH

Plunging auto sales are making this one of the worst times ever to sell cars. But if you're one of the relatively rare consumers shopping for a new vehicle, you're already in the driver's seat.

Many dealers have unusually high inventories they want to sell in a hurry, so buyers willing to research price trends, visit numerous dealers and negotiate assertively can pick up a set of wheels at discounts unheard of just a few months ago.

But for shoppers, the potential savings are substantially greater. Auto makers are offering generous deals, including cash-back offers and low financing rates, across a wide range of vehicles. Many that once sold at a markup are suddenly available for well below the sticker price -- and often less than dealer cost. Flashy new cars, even some 2010 models, already come with low lease rates and hundreds or thousands of dollars in rebates.

The Internet continues to grow as an aid to shoppers looking for the best deals. TrueCar, which launched last month, uses dealer sales data to show how much people are actually paying for vehicles. The goal, the company says, is to give shoppers the most realistic starting point for negotiation. Eventually, says Mr. Painter, TrueCar hopes send car salesmen "the way of the travel agent."

Final Frontier: Below Dealer Cost

[flvegan]

1. My brother

bought a brand new BMW :eyes: last month. Got one hell of a trade on his car, got $8k off the sticker and 0% financing for the life of the loan. Came with the full paid scheduled maintenance deal and everything.

He totally worked the dealer and leveraged their piss-poor sales records of late. Now IS a good time to try to get a bargain on a new car.

[imdjh]

2. I find the TrueCar site to be contrary to my experience

When I went to buy my Toyota, I took Edmund's "TMV (true market value" as the MOST I was going to pay- OUT THE DOOR.
So I drove my junker up there with $2 worth of gas in it, told the salesman I wanted to be out the door, including everything for the (TMV) price, which is less than TrueCar says. He squirreled an extra $300 out of me before it was over, but if you pull out taxes paid then it was $2000 less than true car says a person should expect to pay.

And I don't believe for a minute they didn't make money on the deal. So "below dealer cost" doesn't mean squat to me.

Oh, and I told him he could do his "talk to my manager" thing, that I knew he had a routine that he had to do, but that if I wasn't out of there in two hours I was leaving and never coming back. I was out of there in an hour and 45 minutes.

[imdjh]

3. BTW, do not waste your time with the "internet sales department"

You will never get an offer from the internet sales department. Their job is only to get you to come into the dealership so a seasoned salesman can have a shot at you.