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How Did You Get The Best Price?

B

Bangadrum5

GUEST
Hi everyone, I am new to this forum and a future Avalanche owner. I have read tons of stuff on how to get the best price for your new car or truck, but I thought I would ask the people who own the best truck(in my opinion out there) how they worked the numbers. Thanks for your help.
 
I walked in found the 02 I liked and my dealer had this circle what you want your payment to be sheet. I circled 100.00 less than What I was paying on my Dakota,

The Salesperson kinda laughed at me, walked back into his manager's office and asked me when I wanted to pick it up.

They Dropped $10000.00 Off the price plus paid off the remaining balance on my dakota. >:D

Plus I got 0% for 5 years.

I got lucky because the dealer just wanted to get the last 02's off his lot. He only had 2 left when I went there.

jgwatsonjg
 
Your best bet is to go in one the last day of the month and even better is the last day of the year

I shopped about 10 dealers
was averaging around $3500-$4500 off
I went in on DEC 31 2001
got $6250 off --w/$1k Rebate
Drove it off the lot on Jan 2

AV a great year :)
 
I first researched everything about what I wanted including MSRP pricing and I figured out exactly what I wanted BEFORE I spoke with any sales representative. I ordered my Avalanche by the way. THEN I called my local dealer and asked to speak to the "Internet Sales Manager" and when he answered I asked if he was the Internet Sales Manager. This way even he wasn't a true internet sales manager he would know I had been on the internet and knew my stuff. Now, he may not want to spend much time with you so you have to tell him what you want to do. And say it with confidence so he'll know you are sure about what you want. Rattle off the features you want like he can write as fast as you can talk. Remember you have already gone through the build your own vehicle process on sites like GM Buy Power to get the MSRP of the truck of your dreams, and got a fair price quote from carsdirect and you already know what rebates are out there. currently $2000 on 2003 models.

After you tell him what you want ask for the MSRP that he came up with, it should be the same as what you got from GM BuyPower if it isn't then find out the problem. The next thing is, to point blankly ask him what his best price would be without tax, tag, title, fees, etc. What you want is a figure that is comparable to the MSRP.

Again, since the manager knows he's not going to make a killin off of you he may act blunt and to the point. The price he gives you should either be equal to or less than the price you got off of carsdirect. In my case it was about $200 less than carsdirect. If it's not then throw the curve back on him and make your offer. Go about $500 less than carsdirect. If he says no, then you say I'll think about it and state you will shop around some more.
I spent the better part of 5 months planning this purchase. I used one dealer for the test drive and did some experimenting with him in negotiating skills. I practiced with what I had learned at another dealer. And tried out the internet sales manager trick with two more dealers before I called the dealer I wanted to actually deal with. They're lots of dealers around so use them to your advantage. You buy a car every three to ten years, those sales representatives sell cars everyday so take your time.

If you want some hard and solid figures other than carsdirect then goto this website and download the buyer's offer spreadsheet. Fill out the invoice prices from a site like www.kbb.com or cars-direct.com use 3% holdback and 5% profit.
http://www.carbuyingtips.com/download.htm

That's how I was able to get $6000 off the sticker.
Good luck with your experience.
 
i used two tools to get $6000 off the sticker. first i went to a big competitor of the dealer i bought from. got a price, and took it to them. they said they would beat it. then i took someone who knew the sales manager. he told the salesman to take care of me. it helps to know people i guess. or i was just lucky that day. :B:
 
Welcome to the club, Bangadrum5!

First we went to Autobuytel.com to see what their price was.

Second, we went to the gmbuypower site and had a few places contact us with their best price for the configuration we wanted.

Third, we went to the Kelly Blue Book and Edmund's new car buying aids, where they help you with dealer costs of the base vehicle, dealer costs of options, and a fair asking price.

Fourth, we checked out the CAFCNA site. It was new at the time and didn't have many posts, but it had great feedback when it came to what people liked and disliked about the new Avalanche.

Finally, we called the sales manager of a local Chevrolet dealership. We told him we were interested in purchasing a vehicle that day, without a trade-in, if they could meed our price (not much above invoice). By the time we got to the dealer, the paperwork was ready to go and we were out of there in 1/2 hour. It was the easiest auto purchase we every had.

Good luck to you!
 
Thanks for your help guys. ?I can't wait to get my AV. ?Now I just have to decide on the color. ?Yellow or Dark Gray. ?Here is what I am planning. ?2003 Z66, Driver Convenience Package, Personal Security Package, Dark Charcoal Assist Steps (for the little woman). ?As for the interior, the wife and I have a baby on the way so I may get the leather (easier to clean then fabric). ? :B:

I remember seeing a forum subject where people had said they paid below dealer invoice. ?If they paid below dealer invoice how is the dealer making any money? ?Or is the invoice price not the true amount a dealer pays for the vehical. ?Do I sound nieve or what? ?Sorry about the spelling. ???
 
I'm lucky, I work for Directv which is owned by GM so I get the Family First discount. No haggling, just 6500 off the MFSP or 5% below dealer invoice.
 
Bangadrum5 said:
Thanks for your help guys. ?I can't wait to get my AV. ?Now I just have to decide on the color. ?Yellow or Dark Gray. ?Here is what I am planning. ?2003 Z66, Driver Convenience Package, Personal Security Package, Dark Charcoal Assist Steps (for the little woman). ?As for the interior, the wife and I have a baby on the way so I may get the leather (easier to clean then fabric). ? :B:

I remember seeing a forum subject where people had said they paid below dealer invoice. ?If they paid below dealer invoice how is the dealer making any money? ?Or is the invoice price not the true amount a dealer pays for the vehical. ?Do I sound nieve or what? ?Sorry about the spelling. ???

If you are looking for a good deal call my buddy Armen. He is the owner of Diamond-Motors. Here's the web page. www.diamond-motors.com
 
Bangadrum5 said:
I remember seeing a forum subject where people had said they paid below dealer invoice. ?If they paid below dealer invoice how is the dealer making any money? ?Or is the invoice price not the true amount a dealer pays for the vehical...

If they are getting the rebate, I certainly hope EVERYONE pays below invoice! :eek:

There have been a lot of good suggestions here,
but it really does not have to be that complicated.
I recently "retired" from the car business after nearly 10 years, most of them as a manger. A large part of a manager's job is to make some money for the dealer, and move as many units as possible. Managers also do not have a lot of time to waste.

Here is the EASIEST way to get a great price: :0:
ONCE YOU ARE READY TO BUY, simply call the dealership and ask for the New Vehicle Manager. (Large dealerships will even have a "Truck and SUV" Manager... if so, talk to that person.) Tell the MGR that you are "Ready to buy" an Avalanche, and that you are "calling all area dealerships" and "...the first one to show me the Factory Invoice and sell it to me for $xxx. over invoice before the rebate will get my business!" ;)

If they start to dance around, say "Excuse me (name) I am a busy person, and I know that you are as well. If you decide to meet my terms without any games, just give me a call... but as I mentioned, the first dealer to meet my terms makes the sale, and I have several more calls to make, so I need to hang up and get busy here." If they do not suddenly say "OK, come on in" just give them your name and number and they will likely be calling back within about 5 minutes. (As a variation, you could refuse to give your name & number, in an effort to get an immediate answer. But some of them actually WILL have someone that they have to check with to "OK" your offer.)

As far as your "target" amount over invoice, that is of course up to you. They are there to make money, and 99% of all managers and salespeople get paid primarily on the amount they get OVER invoice (before rebate.) So naturally, they will want as much as you are willing to give. (Would you do YOUR job for free? ;) )

When a vehicle has low demand and ample supply, it is often possible to buy right at, or even a little under invoice before rebate, (like most domestic CARS) but on an Avalanche, they will "want" about $1000. over invoice, (which in this case in not "unreasonable" - after all, you will still be way under invoice after the rebate!) but the majority will take less! (y)

If you offer $500 over invoice before rebate, almost all dealerships "will" do that price... some might take a little convincing that $xxx. over invoice actually is your highest offer. (Some very small dealerships cannot afford to sell at that price. Even though they will still get some revenue "at" invoice, it is EXTREMELY EXPENSIVE to run a car dealership... you cannot even begin to imagine.)

Large dealerships will sometimes do less than $500 over, but you decide how easy you want to make this. Although it is possible to find a dealership that will take invoice, the ones in any given area of the country might not. If not, when you start calling a week later and offer $500 over, you will feel foolish, and they probably will not take you seriously. Personally, I would offer $300 over invoice if the one I want is in stock or if I order it -- and $500. over if they have to get it from another dealer, as there are other costs involved. (Depending on WHERE you are, and on local market conditions, this may or may not fly, but again, even if you pay $1000 over invoice before rebate, do not feel like you didn't get a good deal... you still paid LESS than invoice after the rebate! (y) )

Something else to consider when you are deciding on your offer: When I buy a vehicle, I want to establish a very positive relationship with that manager! Later on, I might want another vehicle, or I might need them to go to bat for me with the service department, so I do NOT want them to remember me as "That idiot who expects me to work for free!" :8: Having a "connection" in Management can be a VERY valuable asset down the road! (y) And, should you ever have a friend or relative who needs a vehicle, call the manager again yourself, give them your friend's name, and tell your friend to give them a call. You would be surprised how valuable that will be to you the next time you "need" something from that manager! ;)

As far as kbb.com or edmunds.com go, they are great sources of information in general, but the invoice price they give you will almost certainly not match the dealership's Factory Invoice. There are real costs that mfrs pass along to the dealer right on the invoice, such as "Regional Advertising" and even the gasoline that they put in the vehicle as it leaves the factory, as well as small price changes on options that occur quite often! So, 99% of the time, the Factory Invoice will be higher than the amounts that you find online, which is why you must insist on seeing THE invoice!

Last but not least, yes, there are incentives that dealers get from the factory that I will not get into here, but again, it is extremely expensive to run a dealership, and most Managers are even forbidden to "dip into" those funds, simply because they are necessary to keep the dealership afloat. (Just to touch the tip of the iceberg, can you even begin to imagine the electric bill to keep all of their buildings warm in the winter, and cool in the summer? PLUS, there are MANY employees behind the scenes that you never even see that have to be paid!)

As far as buying at the end of the month, or end of the year is concerned, there is a tiny bit of truth to that... SOME dealerships, in order to meet an important goal or "quota" will feel additional pressure to do deals that they would not ordinarily do. But, most of the time, you can get their "best" price on just about any day of the year. The exceptions would be during a buying frenzy in Summer, when they are low on a particular vehicle, they will sell for a higher profit per unit, OR on a new, very HOT vehicle, it is not unusual for it to go exclusively at or above MSRP!

Finally (my fingers are tired...)
for those fo you with a trade-in, see the "Trade=In Values" topic in the "Chevrolet Avalanche Discussion" area... (where this topic SHOULD be!) ;)

Good luck to all, and keep us posted on the great buys! (y)


Seven :cool:














 
Ditto,
what Seven said, with emphasis on a dealer with excess inventory

There is three tiers of pricing

What it costs GM to build
dealer cost
and MSRP

Occaisionally, if they have excess inventory or dog for a mover-- GM will kick back to the dealer, no matter what it sells for

In the case of my 2001 Candy Apple Green Pontiac
they were not selling very well
MSRP was ?$27,845
dealer cost was $22,300
I paid--- ?$18,995
and the dealer still made money from kickback
 
I'm no car dealer, so I can't say I know what goes on behind closed doors at the dealership, but I do know this:

There is no reason EVER to pay more than invoice. And that is before any rebates.

The fact is, there are sooooo many dealerships out there, all of whom want your business, that it would be hard to find at least 1 of them in your area who won't give you what you're asking. And once you get one dealer down, the rest have to follow in order to be serious compeitors.

Deaer incentives certainly vary from region to region. I live in Delaware in close driving distance to both Philly and Baltimore. It took me only 1 day to get a dealer to sell for invoice price. However, once I found out how easy it was to get them to come down, I started looking for someone to sell BELOW invoice. My search took me almost across the US - to Montana of all places. There I found a dealer who was willing to go significantly under invoice, so much that by the time I factored in shipping the car back home, it was STILL about $400 under invoice BEFORE rebates. This was probably the only time I'll ever wish I lived in Montana (no offense to those who do!!)!!

The interesting thing is that when I presented this info to all the dealerships here locally, NONE of them were willing to match it. I don't know if it was due to the aforementioned regional incentives, or whether they simply thought no one in Delaware would be crazy enough to buy a car 2/3 of the way across the US! I may be crazy, but I'm not stupid! I'd buy a car from a dealership in Alaska if they could give me a better price!

In short, I got a great deal on my loaded '03 Blue Z-71. I probably could've done even better, and I'm sure there are better deals out there. The bottom line is - DON'T PAY MORE THAN INVOICE!!! The dealership isn't going to go broke and it isn't your concern if they do- let some other schmuck pay $500 over, or worse MSRP!!!

The simple fact is that even at invoice, dealerships are making a profit. Not a killing, but a fair profit. Use the money you save and get yourself some mods!

Chris
 
The sticker price on my AV was 37.800 I got it for 32,400, every time the sales man tells you that they are going to talk to there boss, they probably going to talk about baseball or something. I read on the web somewhere that you can go to the fleet manager, this guy I hear works on a salary not a commission, just butter him up tell him that you rather work with him than a new car dude. if you have a trade in don't mention it until you are about to finalize the deal, I did this, those guys looked like I dumped a bucket of ice water on them.
Good luck.
 
We research on this site to know exactly what we wanted. Then called around and let them bid back and forth without having to haggle in the showroom.

Before net-research, I used to get all my info and go inthere ready for battle. The time before the AV, they kept having to 'go check with the boss'. It didn't take many trips like this for me to realize they just wanted to wear us down. I called the closest pizza place, ordered a cheese pizza and told them I would give the driver an extra $10 if he was fast. You should have seen the look on their faces when we sat down in the showroom to eat our dinner. Needless to say, we got the deal we wanted in about 5 more minutes.
 
pdxkevin said:
Before net-research, I used to get all my info and go inthere ready for battle. The time before the AV, they kept having to 'go check with the boss'. ?It didn't take many trips like this for me to realize they just wanted to wear us down. I called the closest pizza place, ordered a cheese pizza and told them I would give the driver an extra $10 if he was fast. ?You should have seen the look on their faces when we sat down in the showroom to eat our dinner. ?Needless to say, we got the deal we wanted in about 5 more minutes.
Great story, PDX. I would have liked to have been "a fly on the wall" during that encounter. ;D
 
Chris Bradburry said:
I'm no car dealer, so I can't say I know what goes on behind closed doors at the dealership, but I do know this:

There is no reason EVER to pay more than invoice. And that is before any rebates ... The bottom line is - DON'T PAY MORE THAN INVOICE!!! The dealership isn't going to go broke and it isn't your concern if they do- let some other schmuck pay $500 over, or worse...

That is quite a philosophy Chris, and I am amazed?that you went clear across the country to save four hundred dollars! ? :eek: ?For you, that was the right thing to do, as you feel good about it - and that is basically what getting a new vehicle is all about! ?(y)

Just out of curiosity though, how far would you travel to save 50 cents on a gallon of milk? My local grocer has them at just $1.29! :D Just playin! ;)

However, that is not necessarily the best approach for all of us. Personally, I would have GLADLY paid invoice to a good local dealer, and made friends with a Manager or 2 in the process. ?;) ?From my experience, that is worth MUCH MORE than $400 in the long run!

When it comes right down to it, when and if you have a mechanical problem, and your local dealer's service department is already too busy, which customer's vehicle will they fix first... one who bought from them, or one that went clear across the country to save a few hundred bucks? ?Trust me, they absolutely do give priority to THEIR customers, as they should.

If they are down to their last loaner car, and you are standing there along with one of their loyal customers who also needs something to drive, who will be driving the loaner? (Any guesses? ?;) )

If you require a repair that is really "borderline" as to whether or not it should be covered under warranty, (dealers do not get paid nearly as much on a warranty repair, keep in mind) I'm not saying that they will not cover it, but you stand a much greater chance of having it covered when your Manager-buddy calls and talks to the Service manager on your behalf! ? (y)

Many dealerships will also pay a referral fee ($100. is common) to their customers when they send a friend who buys something. (Call your friend (the Manager) to get this set up, and to tell him the name of your referral before they go in!) ?Think about how many people you know or work with in a year that buy a vehicle... you could have done this 4 times and netted the same price, PLUS all of the other benefits that having a "Friend" at the dealership can provide!

I have Manager-friends at several dealerships...
when I want something from their parts department (talk about "profit margin!") they gladly call the Parts Mgr and say that I am on my way! It is VERY rare that I have to pay more than about 5% over their COST! ?(y) ?That has more than made up for any amount over invoice that I have paid to the sales department! ?

Another great example: About a dozen times over the years, I have had situations where I wanted my vehicle serviced "now" (before a trip or whatever) for anything from an alignment to having a dead vehicle. I would call the service department only to hear that it would be anywhere from 3 to 10 DAYS before they could get me in! I would say, "No thanks" then call my Manager-friend! In each case, I got a phone call from a Service Advisor or manager within about 10 minutes telling me "Bring it on in!" (y)

There are lots more examples too, but I think this is plenty to get the point across...

For those of you who think long-term...
DO NOT hesitate to pay a small profit,
especially when you stand to reap the benefits of it for years to come! ?(y)

Seven ? :cool:


 
Dear Bangadrum,

I just purchased a new 2002 Blue Z66 on Nov 22, 2002.
Here is my 1 penny+1 penny worth:

1. I used three important tools to do research and get competing bids--a computer, a printer, and a fax machine. I have been lurking around this site for 3-4 months reading and digesting everything I could before taking the plunge. I was looking for any remaining 2002 2WD AV within a 4 hour driving radius becuase I was interested more in obtaining a 0% 60 mos financing than lowering the purchase price by obtaining the rebate. I have printed actual window stickers from the GM BUY POWER web site then called every dealer to verify if the AV is still there. Some dealers take longer to update their inventory so you may be interested in a truck that's already been sold. Use e-mail to your advantage and write a standard "this is what I want and this is my offer" letter to the buy power manager. Finally, once you have established a "potential" list, use the fax machine to get competing bids from different dealerships.

2. How low can you go? It is basically a bell-shaped curve. The majority of us members and lurkers will fall in the "invoice to $1,000 above invoice" range--just because of the fact that you are here reading this reply means you are more informed than the average AV buyer. Don't laugh at those who pay close to MSRP--believe me, there are thousands, if not millions out there. At the same time, the ones who get "killer" deals, i.e., 10,000 of MSRP, are far and few in between. For these lucky bastards, timing was right, and they used their geographic location to their advantage.

3. How far will you go? One poster drove all the way to Montana to get the best deal. Good for him. At least the long trek back home was inside his beloved AV. The best deal I got was about 500-750 dollars below the price I paid my local dealer. But it also meant a 4 hour drive in a rental car, dropping off the rental car, then driving my new AV back to home another 4 hours later. In the end, it was not worth it.

4. Dealers DO need to make money. Dealerships do cost a lot to run. Just don't be the one paying close to the MSRP mark. Let that be the bozos in the next booth. If you show that you are serious and you have done your research, they will deal with you. I agree with the poster who said that it was worth it to establish a good rapport with your local dealer.

5. Is it a buyers market? I think it still is. If you live in a metropolitan area where there are 15 dealers in 2 mile long highway, the world is your oyster. If you live in a rural area where there are only 1 or 2 dealers, it's tougher. If you are in the market for 2003's--its a buyers market. If you are in the market for a 2002 but not specific about color or options--its a buyers market. If you want a 2002 blue Z66 with options A, B, C, and E only, but not D, well, good luck.

6. Here's my deal:

Found what I wanted--local dealer--haggled over phone and fax machine--agreed on price.

Sales person drove AV to my house so I can check if it will fit in my garage--I live 30-45 minutes away. It did, so he rode with me as I drove the AV back to the dealership.

Blue Z66 2002
Tan interior cloth seats
convenience package--homelink, On star
6 way power bucket seats
premium on road suspension--locking diff, susp level

MSRP 34,600
Paid invoice 30,200 + tax, title, license
0% 60 mos financing
downpayment 400.00
GM card points 1600.00

good luck
 
One thing is for sure...before I walked in to any dealerships...I was armed to the teeth with internet pricing, option package pricing...you named it I had it...just so that I felt like I had the advantage walking in to the lions den.....I even had to correct the salesman on some packages etc.......made me feel special.... ;D :B:
 
NJAV said:
One thing is for sure...before I walked in to any dealerships...I was armed to the teeth with internet pricing, option package pricing...you named it I had it...just so that I felt like I had the advantage walking in to the lions den.....I even had to correct the salesman on some packages etc.......made me feel special.... ;D :B:

You ARE special NJAV!
But you have come a long way since then... :D
Just kidding
giggl.gif


Seriously though, it is important to have the KBB "invoice" and other info with you if you go in without arranging pricing first... they will know that you have done your research, and that usually makes a BIG difference! (y)

Seven :cool:
 
Seven Wonders of the Wood said:
You ARE special NJAV!
But you have come a long way since then... ?:D
Just kidding ?
giggl.gif


Seriously though, it is important to have the KBB "invoice" and other info with you if you go in without arranging pricing first... they will know that you have done your research, and that usually makes a BIG ?difference! ? (y)

Seven ? ?:cool:
Why thank you... (y)....I rufused to let any dealership take me for a ride..after all I was the one going to purchase their vehicle...I like to be the one in control of the negotiations... ;D :B:
 
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