Auto dealership Jargon?

[SloppyJ]

Last truck I bought, I was not in a good position. I was taking my Chevy to the shop to get the transmission serviced when it dropped a lifter. This was before the recall and they were still buying them back. It would end up being 10k for a new motor or the local Toyota dealership would buy it from me for $5k under book as a trade on a 2023 Tundra.

I went the Tundra route and have warranty until 120k miles. I didn't get a great deal but it sure could have been a LOT worse as I had no bargaining power.

 

[McCrapper]

As someone also in the car business, alot of good advice in here.

One thing I will do for my next personal purchase is have some type of loaner agreed and worked into the deal if I buy outside of my own brand again. With the amount of service issues/delays across all manufactuers these days, do not count on a loaner from any dealership, period. If you find a dealership that does loaners stick with them.

Another note on the purchasing side, I can get the best deal possible, I sell everyday, I know every angle. Its a hassle and frankly not worth it for someone in the industry. Calling/emailing around to get the best price and cross shopping other stores works great if you live in an area that will quote you figures. Alot of dealerships push back or wont even give you prices like that. When you finanlly get two stores to compete you can find the "bottom dollar" or close to it. The absolute best deals are made in person and require in person presence and at least two stops on competing like for like products and multiple hours of your time. That sucks and I watch people take years off their life grinding for the best deal.

 

[3forks]

To the guys who are in the industry, what is the typical amount a dealer needs to make on the sale of a vehicle?

I know dealers get incentives and most base their business model on volume, but when you consider all the different scenarios and add ons a dealership is trying to use to pad their profit - if you’re not buying any of that and just want the vehicle… what do they need to make on a car? $500? $1000?

I don’t have a problem paying a dealership what they need to make on a sale, but what’s the typical number and how do you get the true invoice number?

 

[McCrapper]

To the guys who are in the industry, what is the typical amount a dealer needs to make on the sale of a vehicle?

I know dealers get incentives and most base their business model on volume, but when you consider all the different scenarios and add ons a dealership is trying to use to pad their profit - if you’re not buying any of that and just want the vehicle… what do they need to make on a car? $500? $1000?

I don’t have a problem paying a dealership what they need to make on a sale, but what’s the typical number and how do you get the true invoice number?

Thats going to vary per store, per car, per day.... An example, if you want a new Corolla, the difference between invoice/MSRP is less than $1000, we paid someone to tint the car/put dealer add ons on there. The store makes a gross profit of like $600 selling at sticker. If you walked into any dealership and told them I will pay invoice for your car/truck they will take the deal. Except for high end/specialty cars, Raptor Rs, TRD Pros, ZO6 Vettes Etc...

If you are in store and you ask for the invoice they will provide it. You want invoice minus manufactuer rebates for your price. You may lose rebates for special finance rates.

60000 MSRP
56000 invoice
-3000 manufacturer rebate
53000 your price -- plus taxes


Edit to add: Most dealerships advertise their vehicles at invoice on their website.

 

[wapitibob]

Local dealer has a no haggle price, take it or leave it. I got there just after they unloaded the f150 off the truck, as covid was ramping up. Still had the transport plastic on the inside and out, 1 mile on the odometer. Never haggled a bit, got $9000 off with incentives and cash.

 

[rookieforever33]

Ive noticed new cars dont seem to have as much negotiating room anymore from advertised prices. They instead play the numbers on your trade in. Like take off more from the vehicle but give you less for your trade in. If you buy without a trade in you get a much better idea of what you are actually paying. I usually negotiate the new vehicle first, then if I dont like the trade offer I dont trade it in. I will take a little bit of loss on trade in to not hassle with selling my used car. But not a huge one. Outfits like carvana and carmax make knowing what your current cars value really is.

 

[Fisherhahn]

Ive noticed new cars dont seem to have as much negotiating room anymore from advertised prices. They instead play the numbers on your trade in. Like take off more from the vehicle but give you less for your trade in. If you buy without a trade in you get a much better idea of what you are actually paying. I usually negotiate the new vehicle first, then if I dont like the trade offer I dont trade it in. I will take a little bit of loss on trade in to not hassle with selling my used car. But not a huge one. Outfits like carvana and carmax make knowing what your current cars value really is.

When it comes to trades, at least in NY, you’re usually better off with a slightly lower trade in from the dealer. I wanted to sell my Tacoma for 17k and use the cash as a downpayment. I found that by using it as a trade, the amount came off of the new vehicle price so I paid less sales tax. I took 16k as a trade and ended up getting a total of 17300 off of the final price, because is was paying 1300 less in sales tax. With cash down, the tax is still charged on the original price. Not sure if every state works that way.

 

[Billy Goat]

IMO, don’t buy the loaner. I’d rather have a vehicle never driven by “who knows how many idiots” lol.

I'm that idiot.

When building engine's, I was told break it in like you plan to drive it.

Hell, they mechanical parts, I don't think they really know the difference except a few temp sensitive parts. Kinda like properly stress relieved barrel.



Just drive the SOB the way you plan on using it.

 

[Pharmseller]

Work in an industry that gives you a company car.

 

[tx_basser]

What do you want your payment to be? - Bend Over