Hi folks. I’ve been learning A LOT here… Thank you! I’ve been playing around with the calculator plugging in MSRP, MF, RV, etc. for the cars I’m interested in, so I think I have the hang of working out a target deal.
When you contact the dealer, how much of that do you share when making an offer? Target selling price, DAS amount, and monthly payment, or everything, including MF, RV, etc.?
I wouldn’t recommend sharing MF/RV, it often turns away dealers.
Once you already know your target deal (you’re already going know your target selling price) then I would just go off that, and negotiate the best selling price (before incentives) you can. Makes the transaction a lot simpler. Some people like to run all the numbers and then say take it or leave it with a monthly and discount listed and send it to all their local dealers. That works as well, just depends on your style at that point.
There are a couple schools of thought on this, with only 2 that I think have merit.
I don’t think there is any reasonable justification for anything in between. Either remove all ambiguity by breaking down everything or remove all ambiguity by locking down nothing. The moment you try to start controlling some of the variables but not others, you open things up to confusion.
I think that’s fair. That said, I’ve personally found most success negotiating the selling price specifically and then getting into the monthly. Since, I already know the MF, RV, and incentives (and likely they do too), I feel like I don’t need to break it down for them. I negotiate the selling prices before incentives, tell them the incentives I qualify for, and then hope their output matches mine. Has worked for me pretty well. That said, everyone has their own way, to each their own.
The issue there is you’re negotiating the selling price with ambiguity. You’re thinking of the price with buy rate mf and no add ons, and they’re often thinking of the selling price bought back with a marked up mf. You’re often not speaking the same language. Sometimes it works out, but often it doesn’t.
This is true, but I think in most cases for me it has worked out.
I feel like every time I’ve brought up RV/MF and it’s always hit or miss depending on the salesperson. Some people just don’t like the technicals. If someone does come with a higher MF, I usually will bring it up then, and then see if they can do buy rate. Bringing up all the technicals at the beginning, seems hit or miss to me. But alas, I think there’s no one right way.
What’s worked for me is pointing out any factory incentives along with my asking discount to justify my DAS and monthly. As someone mentioned above, I think emails that break everything down with too much details turns off sale people.
I absolutely agree. That’s why just speaking in terms of monthly/das usually works quite well for most situations. Either go all or nothing.
I think that’s fair, but I often see salespeople balk when you come in with just a monthly that seems too low. As opposed to walking them thru it with the negotiation on selling price instead. That’s the reason I prefer the latter.
Too many times, salespeople have said a sub-$300/monthly 50k car, not possible! But when I ask for 11% off, a little push and pull and it works.
As with anything tho, many methods work.
FOLP is real
I guess if you’re a good negotiator, walking them thru the details work. If I step foot into a dealership without a pre-arranged deal, I’m toast. And even after I had a pre-arranged deal, I had a dealer change their mind and say that a $2000 incentive was not available on leases. I got up to walk out, and the sales manager flat out said that the sales guy lied, and he was going to give me another $200 off.
What do you think the offer is for?
hahaha curious to know what FOLP means?
See above for folp
In this day and age how do you even negotiate the vehicle price? I’m getting either MSRP or MSRP minus whatever rebates are available and that’s it. They don’t budge. (So far no markup) This is for Kia, Hyundai and Ford vehicles. Their lower end sedans. Hell I tried negotiating on a used Cruze diesel and was told the advertised price is the price. Zero negotiation.
Now mind you these are all via email. I used to purchase all my cars long distance and most would even FedEx the contract. I can’t get that far now with no wiggle room on their end for pricing. I mean a damn Cruze and nothing ha!
FOLP happens when your target number seems too low they don’t even try to run the numbers. If they did maybe they would have considered it, but they won’t find out because they’ve already pegged you as a time waster.
That’s when you walk them through how you got to that payment by breaking down the numbers. It never hursts to learn how to calculate a lease by hand.
When I was negotiating a lease a couple of months ago, after presenting one dealer with my offer (discount off MSRP + monthly and DAS), they came back asking me how I got to my numbers. That’s where I had to show them the MF, RV and incentives I used to get to my monthly. Dealer came back telling me although my numbers were correct (MF, RV and incentives), they could not agree to the discount I was requesting. I thanked them and worked with another dealer.
I always tell folks to KNOW YOUR NUMBERS.
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