Ready to deal, but don't understand special offers & incentives

Discussion in 'Ordering, Pricing, Leasing, Negotiating' started by WVmanowar, Sep 2, 2019.

  1. WVmanowar

    WVmanowar Active Member

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    I test drove the truck I'd like to buy while out of town. I will take my car there tomorrow morning to see what they'll give me on trade in.
    That could be a deal breaker, but I'm going into thinking they'll offer any more than fair to good condition. I have a '12 Hyundai Elantra Limited (GPS, leather, sunroof, backup camera, etc.).

    I don't fully understand which of the incentives or special offers I can get. I get the military incentive. There's a $2k, $1k, and two or three $500 incentives. I think the $2k may require a trade in.

    I was told that if I take the 0% financing, one of the $500 incentives is off the table..not sure if that's because I mentioned that I may pay cash. He also told me that if I register it in my home of record (WV) instead of where I'm stationed in Virginia, then I'd lose out on a $500 incentive. I prefer to register it in WV, but not if I lose the incentive...My hometown is in the Pittsburgh region and the $500 is available for that area. Is this legit?

    He added in the destination fee. I thought it was strange that there is a $175 charge for tires. Other stickers list the tires, but don't charge for them. These are Hankook's, but nothing special...will be replaced. There's a charge for Proc/Doc fee for $250 and a government fee for $94 on the quote. I thought this sounded suspect.

    I can wait, but wasn't sure how many of these incentives would be gone after the sale ends on Sep.3 . He said they offer $150 for accessories, but thought I read where it's normally $500. It is a small country dealership or I'd ask for other things to sweeten the deal like a spray in liner, mud flaps, or running boards.

    Base + Options: $44,510 - Savings/Rebate of $5,778 + taxes of $1617.75 + Proc/Doc fee of $250 + gov't fee $94.50 for an out the door price of $4o,694.25

    I tried to use USAA and COSTCO buying program, but the site doesn't allow you select narrow it down to the exact options I want. The COSTCO gave me a dealer that doesn't have the color/options I chose.

    Advice on getting this lower, take a chance on better incentives after labor day sales, wait on the buyer's program,

    Lastly, the back seet wouldn't latch. He seemed surprised about it failing to catch or lock back to upright. It felt great on the test drive though!
     
  2. fusseli

    fusseli Well-Known Member

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    Yep your understanding sounds right. If your addresses work for you just go with whatever is best. 5.7k off msrp is pretty decent, just know what your trade is worth and don't accept anything but a reasonable offer on it. If you want to get the total lower, go in with a fixed trade difference you have in mind, i.e. retail price of truck minus retail (not trade-in) price of your trade for example. Keep in mind that the dealer can probably go lower, depending on the trade's value and resale-ability, and that all the rebates from Ford or elsewhere aren't coming out of their pocket AFIK. USAA and Costco I believe just put you in touch with a dealer and a specific salesman, and is the equivalent of an extra ~$250 rebate. Maybe your country dealer doesn't have a registered salesman/rep? Oh and LT instead of P tires are +175 in price
     
  3. WVmanowar

    WVmanowar Active Member

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    Thank you. What does "P" stand for? LT= light truck. The tires they have with whitish lettering don't look that great. Can you go a little deeper on the 'fixed trade difference' ...do you mean take less on trade in to get price lower? I've found 3 trucks with the right options, but all are 1.45 - 2 hrs away.
     
  4. fusseli

    fusseli Well-Known Member

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    No what I am saying is don't let them trick you by going low on the truck price but also low on your trade. The difference between the two is what you pay. Figure out what you think the difference should be, before you go in, and stick with that. Make sense?
     
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  5. WVmanowar

    WVmanowar Active Member

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    Yes. Just found another dealer that is closer, but have to get their offer.
     
  6. DHare

    DHare Well-Known Member

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    You may be able to negotiate out of the doc fees. They are just a dealer profit add-on and not all dealers charge them.
     
  7. Ric

    Ric Well-Known Member

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    Three key points of a vehicle purchase.

    1. Price out the door. Sales price+tax+licensing = price out the door

    2. Interest rate if not paying cash. I got zero percent interest for 36 months from Ford. Shop around. Credit unions typically have the lowest rates, especially if you do automatic payments.

    3. Trade in. Selling a car private party usually reaps the biggest sale price. It is a little more of a hassle to sell a vehicle private party, but if money is tight, it might be well worth it.

    Carnax will buy cars without requiring a car be bought from them. They give an offer that is good for seven 7 day. Even if you don’t end up selling your vehicle to Carmax, you’ll get a good ballpark estimate of what it is worth.

    Remember three points:

    1. PRICE - out the door

    2. INTEREST RATE

    3. TRADE IN

    Salespeople know how to manipulate these three points so they maximize their profits. Knowing that makes you a good consumer and will help you get a good deal.

    Good luck!
     
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  8. RedlandRanger

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    If you are financing, I always figure out a good trade and a good purchase price and then figure out payments based on the difference. If they come close to my payment target, I know I got a good deal. They can finagle the numbers however they want, but at the end of the day, they can't mess with the payment amount - assuming you have the same loan period. i.e. - don't figure a 60 month loan and then have them quote you a monthly payment for a 72 or 84 month loan.

    My last two purchasing experiences have been pretty good - My truck since I ordered it and did XPlan was pretty much laid out. I didn't do a trade in (I sold it myself), and when we signed the papers there was no hard sell. When we bought our C-Max 3 years ago the salesman actually let us test drive it by ourselves which was nice. They made us a good deal on the one we test drove, even though it had more on it than we wanted. It was actually better than XPlan, and they gave us more on our trade than I was asking. A very good experience. I was expecting to purchase my truck at that same dealer since we had a good experience, but the salesman we dealt with on the C-Max must have been intending to move on and when I was discussing it with him last fall he didn't seem too interested in an order. He left the dealership a few months later. I ended up purchasing my truck thru another dealer that a friend of mine worked at, and they were awesome.

    At the end of the day, I think it all comes down to the dealer - some dealers are still old school, high pressure places, but there are a lot of dealers who have gone to the "no haggle" kind of place and treat you like a person. You really don't know what a dealer is like until you go in. If you don't like how you are being treated, get up and walk out.

    The other thing that I thought was odd was that some dealers just don't seem to be interested in placing an order - if you don't want to buy off the lot, they don't really want to talk to you.
     
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  9. AzScorpion

    AzScorpion Well-Known Member

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    You have to remember that you'll also lose the difference in sales tax on your trade in if you sell it yourself. Not a big deal if your state has a low sales tax but it could add a lot more the cost if you're in a high tax state. Then there's the hassle of waiting for people to show up and they blow you off or they have to get financing which can turn into another nightmare.

    OP it looks like you're getting a good deal on the discounts and incentives just make sure they're giving you a good trade in value. Look it up on line so you know what the value is. When I first went in the offered me $24,000 for my 2016 Tacoma. I told them 1. Do I look like an idiot:question:2. I'll burn in in my driveway for that price. With that said in the end they gave me $31,435 so it pays to be a persistent PITA.:)

    In the end the only thing that matters is the bottom line number you're going to finance. I really don't care how they get there whether they give me a huge trade in and take little off msrp or the opposite. They have 0% for 60 months and you only lose a $500 rebate which is still better than going 72 months at 1.9% as you'll pay more in interest.
     
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  10. RedlandRanger

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    You said it way better than I did. "In the end the only thing that matters is the bottom line number you're going to finance." That was what I was really trying to say (in my long winded way).
     
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  11. dceggert

    dceggert Member

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    Just my opinion and something to ponder....with inflation running about 2% yearly any finance rate at 2% or less is pretty much cash. If you can get 0% financing that is roughly a 2% discount every year on the money you owe on the loan. A lot of people do not like payments but if you finance for as long as possible at 0% that can add up to a huge discount over the course of the loan. If you truly can 'pay cash' then deposit that in an account and pay the 0% payment from that account as autopay. Set it and forget it....just something to think about.

    By the way, although I did this with my 2017 Fusion and am enjoying the 'discount' it did bite me in the butt a bit. With the announcement the Fusion is being taken out of production by Ford my trade value has bottomed out. A quote for trade on the Ranger I am pondering was pathetic at $11.5k on a fully equipped Platinum with 30k miles. I would buy another at that price myself so I will be keeping the car. I need to figure a way to finagle the Ranger I want in a different way....
     
  12. Nutty 5.0

    Nutty 5.0 New Member

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    Passenger Tire
     
  13. Caliope

    Caliope Well-Known Member

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    I am in a position that I could have paid cash for my truck. I did a lot of number crunching while waiting for my truck to determine the best option for me. I shopped around locally and found the lowest rate I could get on an auto loan. I then shopped around for CD rates. I found that even with a CD rate that was only slightly higher than the loan rate, I would be money ahead to finance the purchase and invest the money in the CD. Ultimately I financed at 0% and invested the loan amount in a 36-mo CD at 2.65%. This was the most thought out vehicle purchase I have ever done.
     
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