Negotiating Tactics

[jasonloushin]

I have been shopping around for a while, looking for the vehicle that suits me best, and I finally found it. This dealer advertised the MSRP as $49,820. A dealer discount of $10,908, for final price of $38912. They say this is with all rebates included, so the customer doesnt have to mess around with that.

My question is what should I do to aim to lower the price? My goal was to get out at under 40k out the door with TTL. This is my first time buying a new car and I dont know how much room there is for negotiation.

the link to the vehicle is below - no pictures up yet, but they sent me pictures - attached is one of them. Also attached is the window sticker
https://www.haaszautomall.net/new-Ravenna-2019-RAM-1500-Big+HornLone+Star-1C6SRFFT8KN540471

 

[knightro84]

I would ask them to separate out their "dealer discount" from the amount of rebates/incentives included in their advertised price. You might not be eligible for all of the rebates included in their advertised price - I've dealt with dealers that had upwards of $3,000 in rebates that very few people would qualify for - but they do it to hopefully get you in the door anyway.

Right now in your area there is a $5,000 incentive from Ram on the 4x4 Big Horn. A rough estimate of invoice price on this truck is $45,500. There are dealers where you can order a truck and get 7% below invoice plus available incentives, so I might try and use that as a best case scenario (not saying that is actually the best you can do, but a good starting point I think). Using 7% below invoice would put you around $42,350 less the $5,000 incentive would be $37,350 plus TTL. If you're eligible for other rebates or incentives, drop the price even more.

If this is a higher volume dealer I would probably offer $37,000 plus TTL and their dealer fees and see what they come back with. Lower volume dealers might not be as willing to go so far below invoice.

 

[jasonloushin]

When I asked him to separate it out, he came back with this. (Doing all over email btw)

FROM DEALER "invoice is 49375, sale price is 45026 and we are applying 7000 in rebates for a final sales price of 38,026"

So it looks like the "dealer discount" is $4349. and another 7000 in rebates. I have since asked for him to detail out what the rebates are. And this is a fairly high volume dealer too.

Worth asking for a bedliner or running boards? Not sure how good they are with additional equipment to throw in.

 

[knightro84]

My guess is they are advertising 1% below invoice, plus $7,000 in rebates ($2,000 of which you may or may not qualify for). You want to get the sale price as low as you can before rebates are applied.

However on the other hand, if this is really the truck you want - I might not focus solely on getting the absolute lowest price. If you can come to a number that is mutually acceptable to both you and the dealer, I'd pull the trigger. If your goal is $40k out the door, I'd offer them $39k out the door and see what they come back with.

EDIT: forgot to add this - try and find similar trucks within a 250-500 mile radius of where you live and email those dealers with the same thing - you're trying to do $39k out the door. You can then use offers from multiple dealers against each other.

 

[jasonloushin]

Here is the list of Rebates given.

And this is what I am looking for. Not too many have the black apperance package with 6'4" bed.

 

[Old Ray]

Some observations from a new car buying ADDICT (I need intervention); unfortunately vehicle buying is designed by the manufactures and dealers to be a adversarial process, therefore it is strictly based on greed, unlike other product retailers that post their selling price, the dealerships / manufactures have the MSRP and discount from there. The less they discount the more they make as their cost price is fixed (subject to manufactures incentives). Don't be fooled by the nice guy dealer doing you a favour, they need to make a profit to cover the costs of doing business (which is what they should advertise and sell for), so anything above that is extra profit. Car purchasing is highly emotional for the buyer and the smell of new paint is addictive and causes temporary mind loss (ask me how I know this). Try to remain cool and subjective in a very stressful situation that is completely subjective, what you need and what you want are not the same thing. Emotions win and reality loses usually (damn ego). I think you are close on the price, ask to see a copy of the "offer to purchase" that should show all the costs including extras. In my opinion don't buy the extended warranty , tire and wheel insurance, or any extra, that is just mostly profit for the dealer. If the offer shows dealer fee, (total crap) counter offer (in writing) them with that deducted, but they seem to like to show that on the contract so tell them that they can take it off the purchase price. Because of the process you have to decided what price your happy with. I could be wrong on all of this!

 

[Lonestar21]

Here is the list of Rebates given.

And this is what I am looking for. Not too many have the black apperance package with 6'4" bed. View attachment 6200

You need to see if you qualify for all those rebates they have disclaimers and its hard for someone to qualify for all the “rebates” advertised. also like stated take your time and shop around sometimes a little drive can save you thousands.

find a dealer that you won’t have to negotiate to. When I purchased I shopped around for what I wanted and I asked for the out the door pricing to see who had the better deal. My local dealer had a dealer discount of only 2k plus rebates I drove 30 minutes and I got a dealer discount of 8500 that’s not including the 4500 rebates I qualified for.

I don’t think it’s a good deal so far
But good luck

 

[jasonloushin]

Thanks for the help. Ive been researching for about 2 months now. But I have only been emailing or phone conversation back and forth.

With this dealer, it looks like there is $5500 in rebates, and another $1500 in their dealer coupons which they are adding on, on top of the $4400 dealer discount.

Ill keep searching and looking. Thanks for any input!

 

[knightro84]

Here is the list of Rebates given.

And this is what I am looking for. Not too many have the black apperance package with 6'4" bed. View attachment 6200

You definitely qualify for the 42CK1, GLCKA1, and GLCKA (those are residency based offers). I would ask if everyone qualifies for the others or if there are certain criteria that need to be met. If you qualify for all of those rebates, I would offer $35,500 plus TTL (about 7% below invoice + $7k in rebates) and go from there.

 

[jasonloushin]

The information that he sent me previously where the rebates that he said were being offered. All of their Ram vehicles on their website are between 10k and 12k under MSRP. They say the advertised price is the price a customer pays. They don't post deals that are not available to everyone.

 

[knightro84]

The information that he sent me previously where the rebates that he said were being offered. All of their Ram vehicles on their website are between 10k and 12k under MSRP. They say the advertised price is the price a customer pays. They don't post deals that are not available to everyone.

Honestly if it were me, and I really wanted the truck, and was comfortable paying $40k OTD, I'd tell the guy you're willing to do $38k or $39k OTD and will come buy it today or at least put a deposit down on it. If they come back and say "the best we can do is $40k" then you're getting the truck you want at a price you set out to achieve.

If you're truly trying to get the lowest price I'd probably try and do $35,500 plus TTL. I'm not sure what TTL in Ohio is but that might get you close to or over $38k OTD anyway.

 

[SCasey89]

Also, for what it's worth. That window sticker they sent you does not match the truck in the picture. The Window Sticker shows the truck has the Premium LED lighting group. Those headlights on the truck in the picture are not the upgraded LED headlights....

 

[knightro84]

Also, for what it's worth. That window sticker they sent you does not match the truck in the picture. The Window Sticker shows the truck has the Premium LED lighting group. Those headlights on the truck in the picture are not the upgraded LED headlights....

Good catch

 

[JoeRam]

Also, for what it's worth. That window sticker they sent you does not match the truck in the picture. The Window Sticker shows the truck has the Premium LED lighting group. Those headlights on the truck in the picture are not the upgraded LED headlights....

Also the window sticker shows Chrome Clad Aluminum Wheels.. Again Not what's in the picture

 

[SCasey89]

Also the window sticker shows Chrome Clad Aluminum Wheels.. Again Not what's in the picture

And also doesn't list the black appearance package which the truck in the picture obviously has.

 

[SCasey89]

Here's the truck in the picture...

https://www.haaszautomall.net/new-Ravenna-2019-RAM-1500-Big+HornLone+Star-1C6SRFMTXKN592526

 

[Pparana]

I roll my trucks over every 10-18 months. Here is my recommendation. Get the sales manager on the phone. Tell him where you want to be, your ready to buy right now of they can get there. None of this come in and we will talk about it. I would go $750-1000 lower than max. Usually they will meet in the middle. Tell him the truck has over 200 miles and is a midnight PKG. Which is a tough sell. That trim level is always the best deal for buyers and always has good rebates. I got one for about 13700 off sticker. Similar truck.

The deal you want makes little money for salesman so they sometimes won't get back to you, but the sales manager will, he just needs to move trucks. I would also wait a week to get as close to the end of the month as possible. Last 3 trucks I bought we're on the last day.

Best of luck, it should be a easy deal. Pic of mine below