Buying under Invoice

JerseyDirt · 06-03-2004, 11:20 AM

To you guys who bought under invoice, how did you do it? What was your negotiating tactic? Did you haggle over dealer holdback? Someone wrote that they got a Titan $1000 under invoice? How is this dealer making money? I'm aware of the $1000 rebate for June so lets leave that out of the equation.

JD

Keven · 06-03-2004, 11:27 AM

Hiyas ...

I bought a demo and got well under invoice (a very well appointed 2WD '04 LE). Dealerships can do deals and "lose money" on demos - they expect to.

The mileage was low, the demo was driven by the dealership owner - so all the kinks and problems were worked out before ownership came to me. The dealership agreed, at purchase, to fix a couple of dings and scratches on the truck - which they have done.

I'm very happy with the deal I got and it saved me about $6,000 (a few thousand of that being "under invoice"). The way I see it: I bought "the LE truck" and got the nav (with necessary sunroof and side air bags), XMradio, mats, bed tubes, utilitrack divider and big tow package for free.

It might be an avenue you want to check into.

VShortt · 06-03-2004, 11:32 AM

Quote:

Originally Posted by JerseyDirt

To you guys who bought under invoice, how did you do it? What was your negotiating tactic? Did you haggle over dealer holdback? Someone wrote that they got a Titan $1000 under invoice? How is this dealer making money? I'm aware of the $1000 rebate for June so lets leave that out of the equation.

JD

I hate to admit this, but I always walk through the doors wielding both fists. I truly feel that there is an initial point whereby the seller is going to try and establish immediate dominance. I simply work to remove that variable by doing so first. I bought my truck for more than 1200.00 under invoice. I did this by giving my saleman the impression that I had very little interest in the truck. I also pointed out that I could get an F150 outfitted in virtually the same manner for much less (big lie). I told him that if Nissan were interested in competing, they were going to have to sell an initial allotment for little or no profit in order to establish market share. Lastly, I wrote a number on a piece of paper and a small note under it stating that I would buy the truck right now if they would commit to the number. I then signed it. Truth is, I don't make a practice of walking through life being a jerk, its just that if you allow yourself to "be had" on a deal, you are only screwing yourself. The guy who made a commission as a result of your purchase, had long spent his money by the time you even make your first payment. He has forgotten all about you by now, yet you still have the burden of an inflated monthly payment. I should also point out that they are much more willing to put up with an a$$h-le if you allow them to run your credit and show them that you are even financially capable of the purchase.

Slick50 · 06-03-2004, 12:06 PM

Quote:

Originally Posted by JerseyDirt

To you guys who bought under invoice, how did you do it? What was your negotiating tactic? Did you haggle over dealer holdback? Someone wrote that they got a Titan $1000 under invoice? How is this dealer making money? I'm aware of the $1000 rebate for June so lets leave that out of the equation.

JD

Really, there is no secret or single process that will get you a price under invoice. Many different approaches will work. I never, never buy a vehicle above invoice, simply because you don't have to. You should know what you want, including options and the invoice price for all items "before" you ever step foot on the dealer's lot. Always remember the Golden Rule of business: "He who has the gold makes the rules". You have the gold, and the dealer wants it. Do not let him think for a moment that you "must" have the Titan, or will take advantage. You must be willing to walk out the door if they are not willing to strike a deal on your terms. They will not "usually" let you go so easily.

You should realize that the dealer must make a profit to stay in business, but that your job is to reduce that profit on your sale to the bare minimum, say $300.

You should understand also how the dealer gets paid for selling the vehicles on his lot. Realize that he is paid a "holdback" from the manufacturer (usually 2 - 3% of MSRP) for selling the vehicle, which goes to the dealer, not the salesman.

Realize that the supposed "invoice cost" that we can get from edmund's or kelly's is not what the dealer's cost is for the vehicle. Realize that most vehicles are "floor-planned" (i.e., financed) by the dealer.

Do not trade in your older vehicle with the dealer--sell it yourself.

Bottom line: let the dealer know that you will buy from him if and only if he can sell you the vehicle you want for whatever number under invoice you think you can get. I bought for $450 under invoice when Titans were selling for about $1,000 or more above invoice. Of course, rebates should not weigh into this equation until you have agreed to a final sell price. Then deduct any rebate from that price.

Also, check out www.carbuyingtips.com

Just a few pointers.

slick50

smoketitan · 06-03-2004, 12:28 PM

told him what I got at carsdirect--which usually is invoice, and since I had to drive 3 hrs to the dealeship he said he would beat the carsdirect price. So just go in with the cars direct printout for the truck with options off the website, and if nothing else MOST dealershops will match that. to get under invoice that is up to your negotiaiting skills

JerseyDirt · 06-03-2004, 12:35 PM

Thanks to everyone so far for the great replies. Its good to be armed with knowledge. You guys rock.

talltom · 06-04-2004, 06:10 AM

I got a LE for about $1000, below invoice two months ago. I walk away from a deal once at the dealer. The truck on the lot for 3 months, that help and I came back on the last day of the month. I was not in a hurry to get the truck and stuck to a low ball price until they agreed. I was surprised that they did but as I said I was not in a hurry to get the Titan and they were in a hurry to get it off the lot.

hawkeye680 · 06-04-2004, 09:20 AM

Quote:

Originally Posted by smoketitan

told him what I got at carsdirect--which usually is invoice, and since I had to drive 3 hrs to the dealeship he said he would beat the carsdirect price. So just go in with the cars direct printout for the truck with options off the website, and if nothing else MOST dealershops will match that. to get under invoice that is up to your negotiaiting skills

This is a good idea- read some reviews on this and it seems to be legit.

raltenhofen · 06-04-2004, 09:42 AM

I got my SE for invoice minus holdback by doing what others have described.

1. Know what you want. For me, this meant, going through the front door and test driving various vehicles, doing reserach on the internet, etc. Familiarize yourself with the option packages because chances are you won't be offered exactly what you want.
2. Towards the end of the month, send emails to 3 or 4 fleet managers. They are easy to find at edmunds.com and even the manufacturer's website. Tell them exactly what you want. Look at the dealer's inventory. Make sure they have what you want. Otherwise, the fleet manager will say he has what you want but you'll find out it has a number of options that you may or may not want. (See Item 1.)
3. Sit back and let the bidding war begin. The first guy will offer you $500 over invoice. The next $250 over invoice. The third will say they'll beat anyone elses. And so on.
4. Keep this up until you find the deal that you want. And then take it.

The great part about this process is YOU ARE IN CONTROL. You never have to darken the door of a dealer until you have the deal you want.

In my case I was trading in another vehicle. The fleet manager even quoted me a trade in over the phone. I was surprised and said so. He said as long as I had not misrepresented the truck, he would honor the offer when I brought it in. And he did.

This was the first vehicel purchase where I used this method (many websites describe it.) It worked for me. It was actually enjoyable. How many people can say that?

Half Shovel · 06-04-2004, 10:50 AM

I think what have been posted so far are all excellent strategies. I do want to offer one possible piece of counterpoint, however.

I paid "invoice" for my Titan, meaning the dealer made some dough on the transaction. I didn't push past that point, because I was hoping to establish a good working relationship with the dealer and service department.

Now some will say "doesn't matter what you pay". That may be true (I'm no expert). However, I made a point of getting to know the sales manager and salesperson, and letting them know that I wanted to have a good working relationship with them after the sale. I had the sales manager introduce me to the service manager at the time of sale. During my whole research and sales process (about 3 months), I killed 'em with kindness and let them know that I would bring others to their dealership if they treated me well. These guys might be trained salesmen, but they're also human.

In the past, this has been a good thing for me. As an example, when I had my Tundra, I had a paint issue (lousy paint that chipped really easily). I took it to the dealer (with whom I had also established a good relationship), and requested that something be done to limit damage to the paint. They went to Toyota, who would do nothing for me (or any other member of Tundrasolutions.com). Following that disappointment, the service and sales manager agreed that this wasn't acceptable, so they put a 3M film kit on my Tundra for free. I can't say for sure, but I don't think they would have done that if I would have stormed the place like an ogre, demanding lots under invoice at the time of sale.

My Titan dealer has already given me a free set of rubber floor mats, AFTER the sale, at my request.

So there it is, my .02

HS

itsachopperbaby · 06-04-2004, 11:03 AM

Just bought my Titan on Friday. Been looking at them for over 1 month. Dealers are getting high on inventory and need to start turning them over. The dealer offered a Memorial Day sale of $4000 off MSRP. Went in there the Friday before and said I wanted the $4k off right now. Picked out the truck I wanted (Big Tow, SE Utility, and Fosgate stereo {that is another story}).

Got it for $1220 off of invoice. No haggling. You can actually buy XE's for well under $20k now in Austin (no options of course). Not certain how they can go over $1000 under invoice with a 2.5% holdback, but then again, I really don't care. They are making tons of $'s anyway, or else they wouldn'y be in business.

As I was walking in to start the paperwork, "a guy" came over and said he wanted that Titan. My sales guy said that I was first in line and that if I didn't want it, he could have it. Not certain if this was a set up or not. I told the dealer that there was another Titan just like it from a dealer 40 miles away (with the standard stereo). I'd go there if needed.

Just find what you want and also look at the other inventories at the other dealers. Tell them what you'll give them and be ready to walk if need be. This is the best economy to be buying a Titan, so you should get a good deal if you take control. If the dealer senses that you "need" the truck, you have already lost.

TrojanDan · 06-04-2004, 11:03 AM

Quote:

Originally Posted by Half Shovel

I can't say for sure, but I don't think they would have done that if I would have stormed the place like an ogre, demanding lots under invoice at the time of sale.

Some places might not respond to it, but I've learned that this method really works. My uncle taught me how to use this method - you wouldn't believe all the free stuff and upgrades that he's received, not by being an a**hole, but by being a rough customer who only wants exactly what he paid for/will pay for. Many car dealers respond to this as well, as many of the people who've reponded in this thread have mentioned. There's a fine line between being an a**hole and being a stern customer that just want things right/what their hard earned money paid for. Once you find that line, it'll really help you! Although, if you've found this method works fine for you HS, by all means stick with it!!!

Kyle · 06-04-2004, 01:08 PM

We and everyone else in our area do not sell anything under invoice. We are a business after all... The dealers that do that are stupid and hurt the whole industry. It's aggravating, because consumers don't walk in anywhere else (for the most part) and immediately expect a discount.

my0my0my · 06-04-2004, 07:42 PM

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Using fighting chance's system
+

my0my0my · 06-04-2004, 07:49 PM

Lets try that again.
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I used fighting chance's systems for a -$100 (under invoice deal). It worked great. I had dealers bidding against each other for my business. Apparently there are a number of "stupid" dealers out there because it wasn't that hard. Certainly an "at invoice deal" was widely available. It was easier than my wife and I's usual good cop - bad cop routine, much less time and hassle. Just walked signed the deal. This was on a ordered vehicle also.