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Anyone pay close to MSRP for immediate delivery? Looks like 3000 to 4500 above MSRP is the going rate here in So Cal.
ay caramba! I hate those games. For others out there who don't want to play the game, show up with a personal check, and/or financing from another institution. The five buckets of profit for dealers are: trade-in, selling price, interest rate, add-ons, extra fees. The more you can fill in the buckets yourself the better. Private sale of your used car, buy at MSRP and below, find your own financing, you don't have to buy extended warranty then, and watch out for dealer prep and advertising fees. I'm a pit bull in the finance office. Once they figure out that you knwo what you're talking about and won't budge, they relent. My line is "Maybe we should have the branch mgr at the table and you can explain to him/her why you won't let me buy this car. I'm ready to write the check NOW" Works every time. Hell, with a Prius, they're getting MSRP. That alone brings them enough profit.G. McCurdy said:I was also shocked in So. CA when I looked in mid-August when gas was climbing. The one I ended up buying from in Valencia ('cause the damn 11 year old trade-in was on it's last leg getting there) didn't say anything about the ridiculous mark-up "hot item" surcharge until we started playing the 4-square game on paper. When I saw the $3000 added and questioned it, I got the "Big Story." I simply got up and began to walk out, but they got me back in the hot seat and rubber-hosed me some more.
I got them down to $500 over but it was a struggle and it was getting close to midnight (they stay open as long as it takes, or to make you feel guilty from keeping them awake all night). Then you need to watch the percentage game on the 4-square sheet. Numbers don't always add up right. I dunno, but it seems whatever they can get out of you and submit to Toyota Financial Services will be okay with corporate - and maybe the salesman's pocket. I always try and figure $20 on $1000 as a rough approximation for the loan. Sometimes it just doesn't add up.
However, they had the one I wanted in stock (they had a bunch too, maybe 45!) and I wasn't keen about driving the old bucket home at midnight (100 miles or so). Guess it could have gone worse, but I had my new car all in the same evening. God, I hate playing the new car buying game though!
The trade-in game is just about as bad too in their 4-square game sheet. Fwiw, I was told over a year prior by a Dodge dealer in eastern LA that they only offered $500 on any vehcile over 5 years old on trade-in as they did not want cars older than that on their used car lot (too many problems, etc.). They sold them off to a salvage broker and got rid of them. The Toyota dealer was also consistent in offering me the same $500 one year later. It could have been worse as the engine was knocking badly now.
Watch out with their 4-square sheet (game) though! Every square is on there to screw you over. Oh, it can't help to take a laptop with a financial calculator software program along. They really hate that! It forces them to be honest -- to an extent. The Dodge dealer was really horrible in math!
:wink:
Oh, here's an interesting link (more in the sidebar too):
http://www.consumeraffairs.com/news04/2 ... uging.html
You misunderstood me. Let me explain it another way:DanMan32 said:If the wholesaler takes it for 500, it is the WHOLESALER that makes $4500 profit, not the dealer.
Dealer: 500 from wholesaler, minus what they gave you, net $0
Wholesaleor: Assume sells for $5000, minus $500 they gave dealer, net $4500.
Not sure where $4000 came from.
If the dealer appraised your trade-in for $5000 and sold it to a wholesellerCGameProgrammer said:You misunderstood me. Let me explain it another way:DanMan32 said:If the wholesaler takes it for 500, it is the WHOLESALER that makes $4500 profit, not the dealer.
Dealer: 500 from wholesaler, minus what they gave you, net $0
Wholesaleor: Assume sells for $5000, minus $500 they gave dealer, net $4500.
Not sure where $4000 came from.
I can try to sell my current car to someone for $6000 or just avoid the hassle and trade it in to a dealer for $5000. The dealer thus takes $1000, in the sense that they can sell the car to someone for $6000 and make $1000 profit (since they gave me $5000 for it). Or they can give it to a wholesaler which makes $500 profit, leaving the dealer with just a $500 profit.