Re: Buying Price (Joe, long-really long)

From: Todd Abernathy (t_abernathy7@juno.com)
Date: Fri Apr 07 2000 - 23:49:57 EDT


Joe, you're welcome. Okay, you asked for it so here we go.

I really don't have any advice about a trade in since I have not done
that. I know what you mean by not knowing what you want to "some
degree". I took a long time to decide between the Sport or the SLT. If
it's options you're trying to decide about compare them to after market
prices for the items, cost of have them installed or painted versus your
skill level and time to do the work. And check out the warranty
information. If it is something you can add on yourself and are willing
to do, what you pay for the truck will be less and so will your taxes.
If comparing between models make sure you clearly understand what
packages come with each model and what is in each package. Also, not all
options are available for all the models. Compare the trucks yourself,
don't take anyones word for it. I found that the SLT includes a hood
insulation pad, the Base model nor Sport even have it available as an
option. FYI, for about $65 you can get the pad and clips to hold it in
from the dealer. Yet, I digress.

In the St. Louis area there are nine Dodge dealerships. I got prices
from seven of them and worked them against each other. The market here
may simply be more competitive than in other places with several less
dealerships. If you only have one dealership in your area maybe you can
work them against an internet price. There is a dealership in New
Mexico, http://www.anewdodge.com/quotes.htm that advertised all sales
$140 over invoice and one in Oklahoma, http://www.autoinvoice.com that
advertised sales at invoice. There might be a dealership closer to you
advertising on the internet the same type of deal. In any case get the
dealership to run the numbers for what you want. I found that the
information on the internet at such places as http://4adodge.com,
http://www.1stopauto.com, http://www.kbb.com, http://www.edmunds.com and
http://carpoint.msn.com were dead on or very close to the prices quoted
by the dealerships (except as I recall 1stopauto was a high in its
quote). Here when the dealerships prints out the cost the printout shows
MSRP, Invoice price and the break down of both for each option listed.
Plus, shipping and some minor stuff. Make sure you know what the invoice
price is. Have a couple of dealerships run the printout for you so you
can compare the numbers. I really think what helped me get a good price
was they knew I knew what the numbers were. And tell yourself and them
you will NOT buy today, that you will take your time to think about the
deal and comeback tomorrow. They know you want to buy, that is why
you're there and sales is what they do. You have to take time to think
about the deal you're getting, is it a good deal, are you and sales
person clear on what your getting for that price ?

Base on my buying experience this Spring there is no reason to pay over
invoice. Heck, if I was to do it again I might start at $200 under
invoice. Mention they will have the profit of the "holdback" for very
little work. WARNING, don't use the term "holdback" it seems that they
don't like customers to mention that word. Just say the money provided
by the dealership to cover cost for 30 days. On my truck holdback was
$7XX, so the dealership made $6XX from holdback and $45 from the
"processing fee". The salesman will say you're taking bread out of his
child's mouth or some such story. Bottom line, he won't cut a deal that
doesn't help him somehow. On that note try talking to the sales manage
to cut out the middle man. It will take less time and the manager might
be more interested in making a sale, to get their numbers up, than the
profit for the actual sale. This is my theory, I did not get a change to
try it. Also, don't buy into the "price is only good for today". High
pressure sales just tick me off and I nicely told them such. I had no
problem with them after that. As long as you stay nice in your negation
tone they should too.

$289 for processing fee ? Sounds like they are really trying to stick it
too you. See what other dealerships are charging for a processing fee in
your area. Here the ranged is $75 to $45. Again work the processing fee
to your advantage to save later in taxes.

Also, check the DML archive from February under "Anyone want to talk
prices on '00, Sport, CC, V8, 4X4?". I posted asking for price
information and got some good feedback.

You do know about the Farm Bureau Discount, right? Join the Farm Bureau
for $30 get a $500 discount. Also, if you know someone that works for
DC, that you trust, and they will go on the title with you, you can get a
special DC employee rate that is very good.

Kiplinger's is a financial magazine. Around this time of year they do an
issue called "New Car & Truck, Buyer's Guide". Of all the research I
did, and believe me I did a lot, they have the best information. It
should be on newsstands now or very soon. You can all them at
888-547-5464 or 800-544-0155 to get a back issue if they already did the
2000 issue, it will cost like $5, but well worth it, or to see when the
issue will be out. I learned a lot from Kiplinger's except they will say
to shoot for about 4.5% over invoice, since 6% is the normal markup.
They have other good info that I have not even touched on here.

Last thing, I promise. For financing I found that some credit unions
were 1 to 1.5 % less than the banks.

Well, good luck. If I can be of any more help and you can take reading a
bunch of stuff just let me know.
Todd
t_abernathy7@juno.com
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