sticker price vs invoice price

[BloodRayne]

buying a car

it comes down to

2004 Acura RSX

2004 Hyundai Tiburon

2004 Toyota Celica

2003 Honda S2000

my question is do i pay or hassle at sticker price or invoice price

thanx for your help

[curtis73]

Good questions. Every manufacturer does this differently, but I'll tell you my experience in corporate sales for Volvo, Nissan, GMC, Chevy, Honda, and Buick.

It all depends on if you have a trade or not, but some things apply either way. If you have a trade, they are usually willing to come down in price on the new car since they can make more once they sell the trade. It also depends on whether or not your trade is worth reselling or if they're going to wholesale it. Another factor is which vehicle you're buying. My educated guess is that the RSX and S2000 have much higher markups than the Tiburon and Celica. The best thing to do is buy a new car buying guide at the newsstand that publishes invoice prices. Then you can truly compare them all.

If you're dealing with a larger markup car, chances are you will get a better deal if you work from invoice. Vice versa with the smaller markups. Bottom line is, most people walk into a dealership expecting to use the sticker (retail) price as their starting point. If they bargain down $2000, they're happy. In that situation on a Corvette, the dealer still makes $4000 on their sale. On a Cavalier, they may have broken even. If you work from invoice on the 'vette you have a good chance of getting a better deal. If you work from sticker on a Cavalier, you might get it at invoice price.

Also make your deal later in the week in the evening. Most dealerships work on averages. If they've had a good week or good day, they are more willing to make a sale for zero profit to help the numbers. One more sale at no profit looks better on paper for the corporate week. Friday night and Saturday afternoon seem to be great times. The last Saturday of the month is usually best for the buyer.

Ironically, I've owned well over 20 vehicles, but only two were purchased new. The first one was a 1996 Impala SS that I bought on the last Saturday of the month and got for $220 over invoice by paying cash, and the second was a Travel Trailer that was a new leftover that I got for $1100 UNDER invoice by paying cash. The rest were all used and I probably paid too much

The one last factor is minimal impact, but it plays a role. Are you financing through them, financing through your own agent, or paying cash? If you finance through them, they get kickbacks (they are called cooperation incentives, but they are just cash) from the banks. The dealership gives them business, the bank gives them a thank-you check. In this case, they are usually willing to take a touch more off the deal since they'll be getting help from the bank. If you are dealing with cash, they are usually willing to work with you but you have to be persistent. The cash deal is both appealing and reverting to dealers. They want the big money of the bank kickbacks, but the instant cash in their pockets is tempting without all the red tape and waiting associated with bank transactions. Its also a done deal if you pay cash. About one in ten credit deals falls through the next day and you have to take the car back. I've not had much personal dealings with self-finance deals. Most customers just come in assuming to get financing through the dealer. It is easier and often more effective.

In my experience, if you have to finance, it makes sense to do the homework and get your own loan. That way you can write a check for the full value of the car, you have an easily understandable bargaining chip, and you'll get a fair deal.

[BloodRayne]

i was plainning on make a 8,000 down playment rather than a trade in

[drdisque]

you're going to have alot better time negotiating down the Tiburon (because its a hyundai) and the Celica (because its a lame-duck model)

[curtis73]

Originally Posted by BloodRayne

i was plainning on make a 8,000 down playment rather than a trade in

Its good that you have that much cash. It'll help on interest rate, etc. The dealership will spend hours dickering on monthly payments. They avoid talking car price for good reason. Figure up your own numbers and make an offer. Of course you know to ask the interest rate and total length of the term. They HATE it when you have a calculator, but take one anyway. Its easy to multiply your payment by the number of months to see what you're actually paying.

Be persistent and have a good time.