The limits of negotiating

[2+2]

I tried the Fit and it really doesn't impress me. The Hyundai Accent is what I probably should buy because it's so darn cheap. The problem is I test drove several vehicles and I like the Yaris.

So I'm thinking I can email Accent quotes to Yaris sales guys and hopefully they'll cave and only expect a $1500 premium for a Toyota compared to the lowly Hyundai. How much room do they really have to move? Can I get below invoice?

[kmf123kmf]

Below invoice is tough on low margin cars like the Yaris, but it's not unheard of. My local dealer is actually advertising specials on most of their Yaris inventory which is about $500 under invoice on most of them.

Money the dealer is making is the 2% of MSRP holdback from Toyota and their $298 doc fee, which is mostly profit. So if you add those in I figure they're still making a couple hundred bucks despite selling below invoice.

[2+2]

Hey Kmf. I know you from another thread. I never got back to the Honda dealer to test drive a manual Fit. It would have to be quite a bit better than the Yaris to demand the higher cost and I just didn't see it happening.

The Hyundai caught my attention when a "mellow yellow" 09 passed me on the e-way the other day. That's a good looking car imo. But then I test drove it (the dealer only had an automatic avail aarg!!!) It's a major yawn and even though it's a hatchback, there isn't room for much more than groceries in the back.

The Hyundai is probably the best buy from an economic viewpoint but there's more to life than money no? The Yaris ain't exactly living large and yet a fella can have just a tiny bit of fun on his morning commute. I like the forum better too. Yaris owners only seem just a little hapless. And I didn't have to lie too much to join the forum, just a little.

[R2D2]

2+2,

The best way I've found to bottom dollar is to get dealers competing against each other for your sale-get them going back and forth until someone bottoms out. You can get them below invoice this way. I've used this tactic several times to get great prices.

R2

[supmet]

Originally Posted by 2+2

The Hyundai is probably the best buy from an economic viewpoint

Go out and find 10 current or former hyundai owners, and ask them if they think their car is a "deal." Do the same with toyota owners, and let me know if you still think buying a hyundai is a good economic buy. 5 years from now you'll have spent a few grand less, and get a few more grand at trade in with the yaris.

As for haggling, R2D2 pretty much hit it on the head. Bring quotes in to dealers, let them go back and forth, and then go in for the kill at the end of the month when they need their quota.

[jambo101]

Originally Posted by 2+2

The Hyundai is probably the best buy from an economic viewpoint but there's more to life than money no?

It might be a bit cheaper to buy but resale value on that Hyundai will be half of what the Toyota will be,Check out Autotrader and compare 5yr old Hyundai's againt Toyota Yaris/Echo.

[R2D2]

I agree with supmet and jambo101. The extra spent on the Toyota will be a sound investment. Haggle hard and the extra spent up front will minimal.

It is amazing to me how adored the Yaris is by owners. This is not without reason and a big reason I decided to buy one (as well as those listed above).

R2

[Jem_hadar]

Originally Posted by R2D2

2+2,

The best way I've found to bottom dollar is to get dealers competing against each other for your sale-get them going back and forth until someone bottoms out. You can get them below invoice this way. I've used this tactic several times to get great prices.

R2

LOL I *tried* to try this. Unfortunately didnt pan out for moi though.

Neither dealer said they could offer below MSPR bc of how low the profit margin was already and how quickly they were flying off the lots! (this was also back in 06, so im not sure if anything has changed. back then they were in bigtime demand!)

Being where i live, there are only 2 dealers with an hour from me, 1 actually in my town, and 1 an hour or so south of me in a nearby city.

Originally Posted by 2+2

and even though it's a hatchback, there isn't room for much more than groceries in the back.

Just FYI, but the Accent has almost DOUBLE the hatch area space (seats up) than the Yaris does.

Yaris has only 229 litres (8.1 cu. ft.)

While the Accent has 450 litres (15.8 cu. ft.)

[Just Do It]

Plan to visit a lot of Toyota dealers as well as other dealers. Even if you aren't visiting them, tell them you are anyway. I'm also looking to buy either a Yaris or Fit and will be using this in my negotiations in the hopes that someone caves and blows me away with an offer. You have to remember, while it's not likely you'll get the car too much below invoice, all of these dealers have quotas to meet so if the particular dealer is slow in sales they may be more likely to come down in price (even lower than they intend just to get the sale). I'm new to this also but have been trying to read up a ton on tips and tricks to buying a new car. The important thing to remember is you are the one in control. Good luck with your purchase!

[bearda]

I've had better luck not visiting the dealers, but just emailing them instead. Pick the best price you get out of the bunch and send it to all the others, making it clear you're not going to set foot inside their dealership unless they can beat their price.

It might take a couple rounds, but it's a lot lower-pressure than having to deal with a salesperson. For the most part the internet sales guys I've dealt with put a pretty good offer forward, since it's either sell the car and make a little bit of money or never get you in the door and make no money.

[Loren]

Find your car here: http://www.edmunds.com/

That will tell you exactly what the dealer paid for the car, unlikely that they will sell for less than that. On a car like the Yaris, they don't expect to make much, maybe $500-1000. You'll also see what the average sales prices are and such. Edmunds is a great resource.

Don't haggle, don't negotiate, just make them what you feel is a reasonable "lowball" offer. A price that is good for you, but also allows them to make a little bit of profit (that's why they're in business!) Call or email them on one of the last two days of the month when they're eager to sell. Make your offer and just see if they take it.

There are also online dealer resources that will let you look up exactly what cars are in the inventory at each of your local Toyota dealers. You really don't have to play their game at all if you don't want to.

[tomato]

Originally Posted by Just Do It

... The important thing to remember is you are the one in control. Good luck with your purchase!

+1

I bought my car used / Certified from a Toyota dealer (found it online, searched their database for a while, then I found it). I really wanted THAT particular car (after having shopped around for months for a good used car at the time, and not being very successful due to the crappy economy, I think). But doing a bit of homework before hand (finding out what comparable cars are worth, for instance) paid off. I let them make a reasonable profit (gave them the highest dealer value in the KBB) but didn't agree to any more than that, and also stood firm on my old car's trade-in value (I wanted $500 for it, or no deal, b/c there is a demand for these kind of old cars and I probably would have gotten $700 for it on Craigslit). The dealership got me with last minute add ons (an alarm and something else, I forgot) so watch out for that and there was some last minute high pressure tactic to get me to buy the extended warranty (didn't get it, though, too expensive, more than 10% of the value of the car for very little coverage.).

Good luck.

[RUFFSTUFF]

I just bought my 2009 Yaris sedan last week... sticker was about $16,700 (Power package, tinted windows, carpeted mats). I was giving up a 1999 Ford Explorer under the CARS program ($4500) so tax, title, fees, car and all came to about $13,800. Toyota is not offering rebates right now. I said no way. Everyone else is offering rebates on top of CARS like the Nissan Versa, Pontiac G3, etc... (except the Honda Fit I think) anywhere from $1000-2000 off. The salesman asked me how much I was willing to pay, and I said $11,500 OTD. He went to his manager and came back to see what I was really willing to pay, like some middle ground between their offer and mine, and I said $11,500. He went away for a few minutes and came back and said if I gave them the check today I can have it for $11,500. I told him I already have the check on me, it was just a matter if they really wanted the money. Price of the car before fees... $10,061.37.

I'm loving it!