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post #1 of (permalink) Old 12-13-2005, 11:46 AM Thread Starter
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new from dealer pricing, lot and custom ordered ?

follow up to the other post on dealer prices...since it may be same price to buy new

how do prices on new vehicles work?
are prices negotiable on new vehicles on the lot?
what about new vehicles that you order custom from them?

i've never bought sometihng new before so this is all news to me

thanks!
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post #2 of (permalink) Old 12-13-2005, 01:18 PM
 
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Re: new from dealer pricing, lot and custom ordered ?

I believe the dealer pays the manufacturer x amount and then the profit they make depends on how much they can sell it for over their cost. I know each month a vehicle sits on the lot they pay on it.

With deals on new vehicles these days and the better financing you can get on a new vehicle it's pointless to buy used. Only people they really get a deal buying used are those paying cash, if your making payments you might as well make payments on something new with a warenty.

edit, fixed it
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post #3 of (permalink) Old 12-13-2005, 01:22 PM Thread Starter
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Re: new from dealer pricing, lot and custom ordere

i think you made a typo and....

yur saying its good or bad to buy new.....

im thinking good with incentives and all that its about he same as that slightly used rubi i was looking at.

so prices are negotiable for new vehicles?
anyone know how much they can vary?
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post #4 of (permalink) Old 12-13-2005, 03:36 PM
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Re: new from dealer pricing, lot and custom ordere

Greg, there are several sites on the web where you can look up the dealer's cost on any new vehicle and get price quotes from several dealers.

Once you have those quotes, visit several dealers and get their price. Tell them that you're a price shopper and won't tolerate any BS. As soon as they start to monkey you around, say "Thanks for your time." and head for the door.

As for how much prices can vary, when you get your quotes over the web they will have a sticker price, sale price, and dealer cost. When I was in the business we would always sell for sticker if we could find someone dumb enough to pay it, but dealer cost plus $100 if we had to.
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post #5 of (permalink) Old 12-13-2005, 03:48 PM Thread Starter
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Re: new from dealer pricing, lot and custom ordere

good advice Jim! thanks!

do you think they would still be wanting to sell if i plan to get all the dealer incentives and financing ?
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post #6 of (permalink) Old 12-13-2005, 04:33 PM
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Re: new from dealer pricing, lot and custom ordere

Of course! That's why they're in the business.

There are two ways to go about it - piecemeal or package - and several theories about which way is better to go.

Personally, I think piecemeal is better. You can shop financing at a couple of banks and credit unions, just like you shop the car at several dealers. Then you can ask about the dealer's financing. If he thinks you'll be financing with him he might cut the price of the Jeep a little more.

Just don't TELL him that you WILL be financing with him, and then not do it. That's underhanded, and if you're going to play that way, he will too. And he's a professional in the game; you're just an amateur.

Another thing to consider is an auto broker. I have a friend whose business is to arrange sales. He's already shopped the dealers and has standing agreements with them for the lowest priced deals available; as low as $100 over the dealer's true cost on some models. He can arrange the deal so that you can walk in, sign the papers and drive out. For that he takes a comission of $100 or $150. You can wind up with a very good deal, and he's made a modest amount for the effort of making a phone call. After setting it up in the first place, of course, which is the hard part.

You might look in the yellow pages for auto brokers, but don't get involved unless you trust him completely. You could wind up with a deal no better than you could get on your own, and still pay him his comission.

If you're going to do that, pick your broker first. He'll tell you which dealer not to visit to pick options, colors and so on. You don't want to go into his dealer to do that because his agreement is that he'll send them sales that they wouldn't get otherwise. If you've already been in there, you're not a new prospect to that dealer.
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