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Negotiating Good Car Deals...

Discussion in 'Fine Living, Home, Design & Auto' started by Artisan Fan, Sep 10, 2009.

  1. uhurit

    uhurit Senior member

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    So if a guy paid full MSRP, service would cut him a deal? [​IMG]

    Sir, are you trying to be sarcastic or just playing dumb?
     
  2. uhurit

    uhurit Senior member

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    Where's this?

    In the Capital of Copenhagen?[​IMG]
     
  3. Piobaire

    Piobaire Senior member

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    Sir, are you trying to be sarcastic or just playing dumb?

    Well, I'm working with the material I was given. You decide.
     
  4. Despos

    Despos Senior member Dubiously Honored

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    Favorite car buying stories.

    A friend bought a new Mercedes. He knew the price the dealer had paid for the car and decided how much he thought was fair for the dealer to make over that. There were 4 things he wanted done to the car. He told the salesman what he wanted done to the car and handed him a check for the car saying, " call me to let me know when I can pick it up or tear up the check." He got a call in 3 hours with a delivery date.

    I put a deposit on a car on a Saturday and went back to negotiate on Monday. It was midyear on the car and I looked what the same year car was selling for used. I split the difference and went back on Monday offering that price. The salesman got up and said he had to talk to the manager. I told him when he came back I only wanted to hear yes or no, no BS, no counter offer. He came back and threw the keys on the table and scowled at me. I felt pretty good about it.

    Another friend bought/ financed an Accura, made one payment and then paid it off.
     
  5. Christofuh

    Christofuh Senior member

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    I had a week to buy a hot new car with very popular options/color combo.
    (Which wasn't available anywhere within 500 mile radius as I'd learn.)
    So I drive to store X (small timers) where they tell me: Full MSRP, plus however long it may take to special order you desired trim.
    I drive to store Y (small timers) where they tell me: Full MSRP, plus we'd prolly have to do a dealer swap with a store in PA.
    So finally I drive to the biggest local dealership carrying that make.
    The guys says, matter of fact we have what you're looking for coming in next Monday.
    I said, GTFO !
    He goes, I kid you not - then goes and grabs the book to show me what's on the next truck.
    I damn near shat myself [​IMG]
    So I said, could you shave 60% off the mark-up for this deal ? (The balls on me, eh ! )
    I had the invoice @ hand and the checkbook was almost popping out of my shirt pocket.
    He says, lemme talk to the Tower.
    Then comes back and goes, we'd be willing to do 1/2 a mark-up on this car.
    In the end not only have I saved myself a 2 month long clusterfick by the name of build-to-order, but kept 4-figures in my pocket [​IMG]
     
  6. Rambo

    Rambo Senior member

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    I put a deposit on a car on a Saturday and went back to negotiate on Monday. It was midyear on the car and I looked what the same year car was selling for used. I split the difference and went back on Monday offering that price. The salesman got up and said he had to talk to the manager. I told him when he came back I only wanted to hear yes or no, no BS, no counter offer. He came back and threw the keys on the table and scowled at me. I felt pretty good about it.
    What used value did you use, same year or the previous year?
     
  7. Despos

    Despos Senior member Dubiously Honored

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    What used value did you use, same year or the previous year?

    It was the same year car.

    Last car I bought was last October and in hindsight the timing worked for me. I think the dealers were in "don't know what to do" mode due to the economy. Price I paid is what they are asking presently so it looks like I saved 1 years depreciation.
     
  8. Piobaire

    Piobaire Senior member

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    Just wondering. What do people here think the typical vehicle sold in the US depreciates in its first year? 5%? 10%? 30%?
     
  9. gomestar

    gomestar Senior member

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  10. Thomas

    Thomas Senior member

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    Just wondering. What do people here think the typical vehicle sold in the US depreciates in its first year? 5%? 10%? 30%?

    The accountant in me looks at that and thinks...loaded question.

    The dealer will probably depreciate it 20-30% if you trade it in at one year. Then sell it at close to 95% if they can get it. The car is probably worth just north of 90% since nothing will need replacing anytime soon, outside of the consumables, but that's a moving target. The manufacturers also (used to) publish their own depreciation tables for figuring the residual values of a lease, but since they were buying the car back at the end of the lease they could fiddle with the numbers however they liked. Too bad I can't recall specifics on those little beauties.

    I think 15-25% depreciation is pretty common as far insurance numbers go, depending on model.
     
  11. Piobaire

    Piobaire Senior member

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    http://www.allbusiness.com/finance/868133-1.html#reg

    The accountant in me looks at that and thinks...loaded question.

    The dealer will probably depreciate it 20-30% if you trade it in at one year. Then sell it at close to 95% if they can get it. The car is probably worth just north of 90% since nothing will need replacing anytime soon, outside of the consumables, but that's a moving target. The manufacturers also (used to) publish their own depreciation tables for figuring the residual values of a lease, but since they were buying the car back at the end of the lease they could fiddle with the numbers however they liked. Too bad I can't recall specifics on those little beauties.

    I think 15-25% depreciation is pretty common as far insurance numbers go, depending on model.


    Yup, those numbers were right in line with my thinking. Best in class, about 14-15%, worse, 25%+ That's not something the average consumer really wants to believe.

    I can tell you, from my research due to my upcoming lease termination, the beautiful, phoney residuals are not being offered. I mean, we're talking MBs with 36 month, 15k residuals under 50%, when just two years ago, I was getting 60%.
     
  12. Rambo

    Rambo Senior member

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    Yup, those numbers were right in line with my thinking. Best in class, about 14-15%, worse, 25%+ That's not something the average consumer really wants to believe. I can tell you, from my research due to my upcoming lease termination, the beautiful, phoney residuals are not being offered. I mean, we're talking MBs with 36 month, 15k residuals under 50%, when just two years ago, I was getting 60%.
    Oy. I wouldn't touch anything with a <50% residual.
     
  13. Piobaire

    Piobaire Senior member

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    Oy. I wouldn't touch anything with a <50% residual.

    Nearly impossible to find these days, at 36 months, 15k miles. Check out www.ridewithg.com for great leasing info.
     
  14. Rambo

    Rambo Senior member

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    Nearly impossible to find these days, at 36 months, 15k miles. Check out www.ridewithg.com for great leasing info.
    Really? Are we talking advertised or bargained down at the dealership. Haven't helped out on a lease in a while but residuals have never been too much of a sticking point. There isn't a wide spread but you can usually negotiate a few points.
     
  15. DNW

    DNW Senior member

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    Really? Are we talking advertised or bargained down at the dealership. Haven't helped out on a lease in a while but residuals have never been too much of a sticking point. There isn't a wide spread but you can usually negotiate a few points.
    You CANNOT negotiate the residual value on a lease. You can negotiate the finance rate (i.e. the money factor), but the residual value is set in stone by the finance company. After your lease is up, however, you can in fact negotiate a buy price that's lower than the residual value. Residual values for cars are in the shitter right now because there's so much inventory floating around, and demand is not going to come back for several years to come. This combination depresses resale values of vehicles coming off lease, and nobody with enough cash (or cojones) to subsidize lease financing now like they used to.
     
  16. Piobaire

    Piobaire Senior member

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    You CANNOT negotiate the residual value on a lease. You can negotiate the finance rate (i.e. the money factor), but the residual value is set in stone by the finance company. After your lease is up, however, you can in fact negotiate a buy price that's lower than the residual value.

    Residual values for cars are in the shitter right now because there's so much inventory floating around, and demand is not going to come back for several years to come. This combination depresses resale values of vehicles coming off lease, and nobody with enough cash (or cojones) to subsidize lease financing now like they used to.


    What he said. Out of three things in a lease, the residual, the cap cost, and money factor, you can only change the second two. The best lease will be when the car maker is giving a subsidized residual and money factor. Then you beat up on the dealer for the cap cost.
     
  17. Rambo

    Rambo Senior member

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    What he said. Out of three things in a lease, the residual, the cap cost, and money factor, you can only change the second two. The best lease will be when the car maker is giving a subsidized residual and money factor. Then you beat up on the dealer for the cap cost.
    I was thinking money factor and confused it with residual. Been a while since I helped out on a lease. I usually tell everyone to buy used. That ridewithg site shows several benz models with 36month >50% residuals. I'm confused.
     
  18. Piobaire

    Piobaire Senior member

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    I was thinking money factor and confused it with residual. Been a while since I helped out on a lease. I usually tell everyone to buy used.

    That ridewithg site shows several benz models with 36month >50% residuals. I'm confused.


    We got a 60% on my wife's ML550, 36 month, 15k December 07.

    Riding With G:

    I was thinking of a GL550:

    Now, the GL450 is at 53%, but I wanted that honking engine in the 550. *sigh*
     
  19. Christofuh

    Christofuh Senior member

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    My nay-buh has a new GL550. It's a goddamn schoolbus. The guy always takes up a spot and a 1/2 whenever he parks this thing.
    Other than that, the truck itself is pretty jazzy looking.
     
  20. CDFS

    CDFS Senior member

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    In the Capital of Copenhagen?[​IMG]

    Serious question. I know it's not so in the capital of Copenhagen aka The Netherlands. Also, I watch Top Gear and know it's not so in GB. So I just wondered if you got your facts straight...
     

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