Help negotiating on a price

[msmith]

I have a question and I hope I'm in the right spot. I'm totally new to this site. After a lot of research, I've decided to get a Yaris. I'm wondering how much I can I talk a dealer down on a new 2012 4-door LE hatchback with only 130 miles? Their sticker price is $16,696 and I want to pay cash. My goal is to go in with $13 or $14,000 and see if they'll take it but is that too low?

[bronsin]

Sounds low but you never know. Its a 2012 and soon the 2014s will be in.

Its like throwing a plate of spaghetti against the wall.

Do it and see what sticks.

Make your offer and if they dont go for it walk out.

Just make sure they have your phone #.

[msmith]

Thanks! I also might bringing a guy friend along. I'm worried, as a woman, they'll think I don't know anything about cars and try to take advantage.

[NEexpat]

One thing I have learned over the years buying cars is to be prepared to get up and walk out the door. Don't feel you have to buy anything.

Don't tell them you need a car, don't tell them you are going to pay cash, nowadays I wouldn't tie up 15k-16k if I am only paying .9% interest etc. But that is up to you. Save the cash thing until you have gotten their best last botton price and then use that to knock it down a little more. Some dealers don't care either way.

There are sites out there that can tell you what the dealer paid for the car, then it it is just a question of how much you're going to pay over their invoice.

And just because you got the price you wanted from the salesman/woman you will then face the finance manager who is going to try to upsell you all kinds of stuff you can/can't live without. Scotchguarding, rustproofing, transparent film paint protectors, extended warranties etc.

Just be prepared to walk if you are not !00% comfortable. Any "deal" only good today will probably be good tomorrow.

Good luck, cheers

[djhuddy2442]

listen anyone who has any quesstions about buying their next car yaris or not i am a car consultant for a dealership i will be glad to help in any way i can looking up VIN to even helping with prices and whats fair

[Septembersrain]

Definitely agree on bringing a guy friend. Either that or go in a really nice decked out suit.
Play hard ball.
The best negotiating tactic is to appear as if you've got plenty of options.
Bring in your patience and best poker face.
Tell them how much you want the car for but aim low first.
Bring in market values, KBB pricing, any other collateral with pricing that fits what you want to pay.
Then as you've already given them a lower price first, You can negotiate up into the middle (With the extras you want) and end up paying right around what you originally could afford.

Don't get too excited about the car even if you really are.
They'll see that.
As a sales person myself, You can definitely gauge how much a person is willing to bend by their want for the item.

I'd suggest going later in the day, The sales people and finance are likely ready to go home.
Buy the car between Monday-Thursday, Less people to contend with as well.
If they are about to close and have had a slow day, They may be more likely to jump through hoops for you.
Just keep in mind that it's okay to walk away.
If you sit on it for a few days and you made sure they knew that you were absolutely serious and sure, 90% they'll call you.

Sneaky tip: Pick out a newer sales person. They'll likely not know exactly how much leeway they've got so they may be easier to get into a negotiation.
They are also trying to prove their worth as the sales industry is full of turn-over, So they'll try to play "Hero" by getting you a better deal than anyone else.

Also, remember cash talks. ;-P

Good luck!

[djhuddy2442]

Originally Posted by Septembersrain

Definitely agree on bringing a guy friend. Either that or go in a really nice decked out suit.
Play hard ball.
The best negotiating tactic is to appear as if you've got plenty of options.
Bring in your patience and best poker face.
Tell them how much you want the car for but aim low first.
Bring in market values, KBB pricing, any other collateral with pricing that fits what you want to pay.
Then as you've already given them a lower price first, You can negotiate up into the middle and end up paying right around what you originally could afford.

Don't get too excited about the car even if you really are.
They'll see that.
As a sales person myself, You can definitely gauge how much a person is willing to bend by their want for the item.

I'd suggest going later in the day, The sales people and finance are likely ready to go home.
Buy the car between Monday-Thursday, Less people to contend with as well.
If they are about to close and have had a slow day, They may be more likely to jump through hoops for you.
Just keep in mind that it's okay to walk away.
If you sit on it for a few days and you made sure they knew that you were absolutely serious and sure, 90% they'll call you.

Sneaky tip: Pick out a newer sales person. They'll likely not know exactly how much leeway they've got so they may be easier to get into a negotiation.
They are also trying to prove their worth as the sales industry is full of turn-over, So they'll try to play "Hero" by getting you a better deal than anyone else.

Good luck!

only problem with the new salesman theory sometimes they are watched like a hawk by their manager and dont get much leeway so yea sometimes good sometimes bad

[Septembersrain]

Originally Posted by djhuddy2442

only problem with the new salesman theory sometimes they are watched like a hawk by their manager and dont get much leeway so yea sometimes good sometimes bad

Good point.
You can't go asking all of them who hasn't reached their quota either. LOL
Who do you recommend in terms of sales person?

[sex]

Ask for AAA/Costco pricing if you're a member

[YarisSedan]

I used to be a car salesman years ago and I can tell you the markup on the base model car is a lot lower than their mid range to high end cars which means they have less room to negotiate on price. Sometimes the markup is only 500 dollars. So after delivery fees the dealer may have actually paid about 16,000 for the car more than likely they arent going to sell it for less than what they paid for it. Some delears you can ask to see the invoice and offer 100 bucks above the dealer cost on on the low end models and they might take it depending on how slow the month is and if they want to push a few cars out to get some newer models. I highly doubt you will get it for 13,000 thats how much my girlfriend paid for her used 09 yaris. Keep in mind you have to pay taxes as well so even if you can get them down to 15k your going to be back up to 16 after taxes and title transfer fees.

[Hershey]

Go to KBB , Edmunds , and NADA to get a used trade in value of the car . Put in the current mileage , condition as Excellent , etc.. Then get an average price of all 3 sites as a purchase point ( ex. $13,850 + $ $14,780 + $15,200 divided by 3 , thus $14,610 ) . You'll see a big dip when driving off the lot . If they won't move , then go elsewhere . I believe YARIS sales are down and would work to your advantage . Good Luck .

[Foot]

I called around to 5.. different dealers all within a 100mile radius when I looked. Local dealer wanted 15.5k for a new 2010 base model with the package of 15rims, and few other things. Would not budge on price... none zero... after an hour of talking I left. Went on a 70mile trip and got the exact same car for 13k out the door. IF they want you to come in for a price, hang up and call someone else.

[nookandcrannycar]

Originally Posted by YarisSedan

I used to be a car salesman years ago and I can tell you the markup on the base model car is a lot lower than their mid range to high end cars which means they have less room to negotiate on price. Sometimes the markup is only 500 dollars. So after delivery fees the dealer may have actually paid about 16,000 for the car more than likely they arent going to sell it for less than what they paid for it. Some delears you can ask to see the invoice and offer 100 bucks above the dealer cost on on the low end models and they might take it depending on how slow the month is and if they want to push a few cars out to get some newer models.

True, but what matters is what the dealer effectively paid for the car, and this would include the monetary arrangement between the manufacturer (or distributor) and the dealer known as a 'holdback'. Any holdback will effectively reduce the amount the dealer is paying for the car (if a holdback exists for that model or trim level). The holdback isn't reflected on the invoice.

I would read Absolutely Red 12's posts re his purchases. Figure out the percentage he paid below the sticker (I figured it out when I was advising someone else, but I threw away my calculations... I may have included them on a post though). If your trim level, etc is different from his, just take the same percentage and apply it to the FACTORY sticker on the car you want and then offer the dealer that amount. If they say no, say "Why. I know someone who paid this amount". If they don't change the amount to match the calculation, contact another dealer. You have to negotiate from a position of strength and be willing to walk away. Absolutely Red 12 did this, and he never even visited any of the dealerships .

[nookandcrannycar]

To the OP --- oops, I only read Yaris Sedan's post and didn't realize you were talking about a 2012 . However, my advice is still the same because I would wonder why a 2012 with 130 miles on it was on the lot. I'd try looking into what I mentioned in my post above re a 2013. Absolutely Red 12 just bought his son a 2013 Yaris, so I imagine he got a similarly great deal on the 2013. My ex- girlfriend's dad used to be able to get his Nissans for $50 (IIRC) over dealer cost INCLUDING the holdback because he bought 7 Nissans in a row from the same dealership (having as many as 4 at one time), got all of the maintenance and any needed repairs done at the dealership, and used that fact to hammer out the price he did.

[TRD15L]

just go in an ask who wants to make a sale today.
I am a buyer not a looker an see who wants to make some commission this month.

[Septembersrain]

Originally Posted by TRD15L

just go in an ask who wants to make a sale today.
I am a buyer not a looker an see who wants to make some commission this month.

I go in as a looker, If they treat me good knowing I'm not buying, imagine how they'll treat me when I do buy. ^_^

[jambo101]

Be aware that dealers dont make that much profit on their economy cars, expecting them to lower their price by $2-$3K is wildly optimistic. But i guess it doesnt hurt to try.
I'd be really concerned about that 130 mile already on the car. When you ask why they'll probably say it had to be transferred from another dealer,at that point you say 130 miles makes that a used car,i'll give you $13K for it.
I'd also get it checked out by an independent mechanic to eliminate the possibility it wasnt in a wreck,if the dealer doesnt let you get it inspected dont even think of buying this car.
If a deal at a dealer doesnt go to your liking you have the final option of walking out the door and taking your business/money elsewhere.

[nookandcrannycar]

Originally Posted by NEexpat

One thing I have learned over the years buying cars is to be prepared to get up and walk out the door. Don't feel you have to buy anything.

. Or hang up the phone without making a purchase if you are doing the whole thing by phone/fax as Absolutely Red 12 did.

Don't tell them you need a car, don't tell them you are going to pay cash, nowadays I wouldn't tie up 15k-16k if I am only paying .9% interest etc. But that is up to you. Save the cash thing until you have gotten their best last botton price and then use that to knock it down a little more. Some dealers don't care either way.

The only thing is, if you finance the car, then you have to spend the extra money to get collision and would only come out ahead if the after tax return on the money the car cost represents = more than the cost of adding collision insurance. I'd rather pay cash, not have collision, and rely on my driving skill to keep me free of damage to the car....betting that I won't need to write a check for damage or a new car. However, I probably wouldn't feel as I do if I had to drive during the winter in your area.

There are sites out there that can tell you what the dealer paid for the car, then it it is just a question of how much you're going to pay over their invoice.

Invoice doesn't include any holdback arrangement between the manufacturer and the dealer (if there is one), but knowing the invoice price is definitely better than not knowing.

And just because you got the price you wanted from the salesman/woman you will then face the finance manager who is going to try to upsell you all kinds of stuff you can/can't live without. Scotchguarding, rustproofing, transparent film paint protectors, extended warranties etc.

LOL. The upsell person (not the finance manager) re my Yaris looked like Kate Upton....and I had an older saleswoman directly before that....and the dealership I purchased from is in a fairly conservative area.

Just be prepared to walk if you are not !00% comfortable. Any "deal" only good today will probably be good tomorrow.

Good luck, cheers