Originally Posted by esquire
First and foremost, what was said earlier is 1000% correct. You should not be mentioning your trade in, until AFTER you've negotiated your price for the actual car. In fact, as the earlier poster also said, you're better served by selling the car privately - you will get a lot more out of it.
Second, ignore entirely what the poster directly previous to me said about 1500 dollar over invoice being okay, and that you shouldn't mind paying an extra 1000 dollars. You SHOULD mind.
Your approach is simple - call the dealer, tell him exactly what car you want, exactly what options you want (know the names of the options, and even the option codes), and tell him that you want the car at X hundred over invoice. (no more than $600). Tell him, "if you can make that happen, i have cash in my pocket right now for the down payment and i can drive down today, and pull the trigger in the next few hours." Be firm. Again, tell him what price you what, and say "if you can make it happen, i can be there in the next few hours to knock this deal outt" Be prepared to hear a few no's. But in my experience, if you tell a dealer you can make the deal happen that day, with little hassle, they'll take a deal with little profit over invoice.
For what it's worth, I got my car for $300 over (european delivery) invoice. I'm probably on the low end of the spectrum, but i've heard of PLENTY of people getting $500 over invoice.
Hope that helps,
Fair enough. You have your priorities and strategy and I have mine. I didn't want to deal with the whole being firm, putting up with dealers saying no, calling around, etc, and I decided that an extra $1000 (assuming I could've gotten $500 over) was a reasonable amount to avoid that -- especially amortized over the life of the car.
However, OP keep in mind that a lot of people who get $500 over invoice are doing Euro Delivery. Not everyone, but the reason I mention it is that dealers are more likely to take less profit on ED orders because those orders don't come out of their allocation; EDs are extra allocations. That means that taking a small profit on your ED order doesn't mean they have one less car for the year to try to make more profit on; they instead have just as many cars to sell at a profit as they did before your order, and yours is just a bonus -- though it's not pure gravy, since they actually have to do more work than normal to set up your ED in addition to all of the usual helping you, submitting the order, etc. And if the customer does Performance Center Delivery on top of that, the dealer doesn't even have to deal with delivery prep, inspection, etc, so they'd be even more likely to take less profit. Some people do seem to get $500 over invoice even with traditional delivery options, but that seems a lot more rare.