Ok, so the baby is home...now to try and provide some insight that you may be able to use in one way or another. This may be a long read...
My situation was one where I didn't have as much leverage as a 2020 that has been on the lot for a couple months, or a 2019 that may have been there for almost a year. I was looking for a Black Out, loaded 2020 Limited 1500. There were only 3 of these the the options I wanted within 500 miles and not many overall around. After a bit of a cluster, working with 3 dealers (2 of which are within the same company) I lucked out and happened to be in the dealership I wanted to be with, when my truck popped up on their system. It had come off their truck 3 days earlier and was in the recon shop, being setup! I was the first one to see it and I immediately, said, "I'll take it."
However, that was not without getting 4 quotes on various black out models, visiting, talking and texting to the dealers for about two weeks, so I knew where I needed to be with price and had received the same amount of quotes on my trade in, a 2015 GMC Denali 5.3L. My advice is read as many posts as you can and know where your numbers need to be, before you get infatuated with your right truck. In my case, I knew I had to move at light speed, but had done the diligence already, but when I'm ready to go, it's at light speed.
So...I ended up with, depending on how you want to look at it, -17.49% off MSRP and -9.62% off invoice. Or, factoring in I lost a $500 incentive on what I thought was a, "stackable" incentive from work, but they treated me well and put it back into my trade, after we had already settled on that price. Then, I lost another $500 incentive to get the 3.75% interest rate over 60 months, but cut a net $1,200 out of my 5 year payments. So, if you back those back in, which effectively is still the bottom line, I received -20.55% off MSRP and -12.97% off invoice. One could effectively say, somewhere in the -17% to -20% off MSRP range is where you should easily be, on a 2020 truck that is eating up capital on their lot.
And, I may have the only 2020 ALL BLACK DODGE RAM in the State of Maine at this point! This was me on Saturday morning;
Hope you folks all are ready to negotiate, remember, be prepared! Don't offer up a, "well, we'd like to be around a $550 payment, etc." or they will instantly know where they need to be and they've got ya. My advice;
- Realize that whatever "Blue Book" value you get online for your trade, cut that down by about 80%, especially if the store you are dealing with, doesn't sell your brand trade in. Most of these will be wholesaled off and then they make up the margin and kick some back to the dealers, etc. Know going in where you need to be.
- Realize that the thousands of dollars of on accessories you put on it, if not OEM, won't count. You won't get pinged against it, but it won't necessarily help you either. Even OEM items may not be a benefit.
- Know what you really are willing to settle for your trade. If you are 1-2 years into your payments, you are going to be upside down. If you are nearing your payoff date, or already paid off, you have some equity to play with.
- Read, read, read these posts...know what you might be able to work with. If you are looking for a Honda, read those posts. If the highest they are getting off invoice is -15% from hundreds of responses, don't expect to get -17%.
- The dealer will always see if you don't know your range of % off MSRP, or invoice, they will always start low and hope to hook you in, as it is all profit from there. My grandfather used to pay sticker price, with cash, back in the day. He always bought that way, he just didn't know that the price, is never the price, even if they say, "we have a no-haggle pricing policy."
- When the Sales Manager comes down from the "high tower desk," be ready to get squeezed. The salesperson is there to be the reassuring figure...whispering in your ear how good you luck in that truck, or car. The Sales Manager is there to try and "lose" the least amount of money on the transaction as possible. Don't ever think they are losing, holdbacks, incentives to the dealer, future service, they will keep the lights on.
- Ask them to either throw in some basic accessories, or get them all at cost, or a combo. I put nearly $2,000 worth of items on my new 2020 truck. Mopar has a buy 3, get the 4th tire for $1 promo going on right now, they cut me a break on the installation. Mopar also has multiple coupons ranging from 10% to 15% off for various accessories, etc. In my case, besides the tires, I got everything at cost and are holding them to a couple items they didn't have yet. (Mopar rubber bed mat, if black lugs and side door moldings ever come out and they are a Retrax Pro dealer.)
- Get a written quote! Then take that and do your math. There are plenty of, "auto payment calculators" on the web. Is your credit rock solid, or bad? Are you going to be under 4% interest, or above 5%? It can take its toll on your monthly payments and how much interest over the life of the loan.
- If you buy, get a bank or credit union to lower your rate, many will. It is easy to go through Chrysler Capital, then figure it out later.
- Have a checklist ready and a spreadsheet on where you should be. Once you sit down the finance person, their job is to try and overwhelm you with numbers and when the truck is sitting outside the window, it's like a dog looking at someone eating a hamburger. Your focus on the financials wavers. Have them slow down, double check, explain, etc.
- Don't ever buy the warranty program from the dealer, unless again, you've done your homework and have a quoted price for Maximum Care, etc. You don't have to agree that day, in some cases you have months and thousands of miles before you have to commit. If they don't match, take their info, walk away and come back to the table with them, or simply buy online. A Mopar warranty is tied to the vehicle, regardless of where purchased. Same with Honda, etc.
- Check things off your list...review your vehicle, make sure you leave with what you expect, as once you are gone...you gone. They will help you, but they recorded the sale on the board and are moving on.
I'll probably think of something else, but hope this helps. You need to be in control of the conversation, as this is a HUGE expense. Vehicles are not an investment...simply an expense, a depreciating asset. I'm happy my depreciating asset is an ALL BLACK DODGE RAM!
Happy negotiating!
View attachment 40380
