Topic: "thats our final offer" - is it?

[Mariann]

Hello All;  So after deciding to buy an 06 Tucson, I called about 7 dealers, let them know that I was doing so, and asked them for their best bid.  I explained that I would not play one against the other (I am being truthful)...Most of their "lowest bids" came in around $22,500 - $23,200 for a GL 2.0L FWD - Air Pkg   MANUAL.  Those quotes included the Frieght and PDI, only thing to add was sales tax.   (hyundaicanada.com says MSRP is $22,195.00).  The lowest offer of $22,500 said that was the lowest offer they would give (including floor mats ) according to "the owner".

 Being that I only talked to them that one time, and the fact that it is still a price above the MSRP, should I hope to save more?  Would more "haggling" be worth it? Or could it simply be supply and demand is dictating a higher than MSRP price?

 I was hoping to get it down to about $22,000 + tax.  Is the offer I was given reasonable or is there still room to work?  Also, from those more knowledgable than I, should I wait until January in the hopes that the Jan incentive would be some sort of cash back?  I am paying cash so the 0 % financing does not help me.  Sorry for so many questions at once;)

Please help me, I have never bought a new vehicle before. 

Thanks,  Mariann

P.S.  I should point out, I sent my brother in, he had a quick test drive and asked for a quote as he was leaving...he was given a quote of $23, 400 + $1,600 Freight/PDI...a difference of $2,500 from my quote...

[wing]

MSRP = $22,994  Since it's $22,195 + $799 Freight charge.

So $22,500 is less than MSRP.  Usually there is also a $100-$200 "Admin" charge which is BS as well.

So Your not doing too bad at $22,500. 

Go in with YOUR final offer.  Sounds like you are being reasonable at $22,000 + tax since you are only $500 off their first offer.  Tell them your willing to pay no more than $22,000 + taxes and then drive away

[sterling]

If you want to maximize your own dollars why wouldn't you take advantage of the 0% and keep your money in the bank where it will earn some interest?

[Traum]

If you want to maximize your own dollars why wouldn't you take advantage of the 0% and keep your money in the bank where it will earn some interest?

These 0% financing plans might have some BS administration fees as well. Make sure you double check for that before signing.

-Rick

[yugrus]

If you want to maximize your own dollars why wouldn't you take advantage of the 0% and keep your money in the bank where it will earn some interest?

I'd do just that if it was known for sure that there's no cash rabate. Almost anyone can qualify for 0% financing these days. I did not pay any admin fee for my financing, that should be a part of the deal.

[Mariann]

I am going to pay cash, as the finance does not appeal to me...I guess the answer is, if I can get it below MSRP, then it certiantly isn't a bad deal?

Thanks!

[bmorton]

Freight & PDI is currently $1425 on the '06 Tucson, according to Hyundai. Dealers are apparently free to charge more, but my experience is that if you call them on it, they'll reduce it to Hyundai's recommendation.

So the "regular" price at MSRP would be $22,195 + $1425 = $23,620. So if they're offering it to you at $22,500 including freight & PDI, that's a $1120 savings off MSRP. Seems reasonable enough. But don't be afraid to negotiate a little harder; they might move a little more if you make it clear that you're ready to buy if the price is right.

[No H2O]

Please help me, I have never bought a new vehicle before. 

Thanks,  Mariann

Well don't bother asking them what their best price is (as if they'd sell anything ona minimum profit), tell them what you'll pay out-the-door.

I bought my 1999 Honda CR-V (new) which had an MSRP of $26,000 for $24,000 plus PST and GST. That's it. No freight, PDE or admin added, but then I never pay for those.

And that "these cars are so hot that we can't give you much of a discount" line that dealers give you; ask them "if they are so hot, why do they have a bunch left on the lot"? Ahhh salespersons kill me for thinking all consumers are soooo stupid. LOL.

[eax]

Invoice is $20970 for a 2006 GL 5spd w/air.  Freight is $799.  So $21769+$626(PDI)+$100Air tax(now at $22500) but then you would still have...+gas tax+admin+profit+ taxes.  I have no idea if they have a cash rebate incentive but there must be one based upon what the numbers say.  Your best deal is to be had now, with a pick-up before Dec.31st.

[yugrus]

And that "these cars are so hot that we can't give you much of a discount" line that dealers give you; ask them "if they are so hot, why do they have a bunch left on the lot"?

You know, I actually asked the same question once. And was told that the half of the lot had just arrived, and the other half had been waiting for the pick-up. I guess that also explained why there was no line up in sight.
Most sales guys just HAVE to have the answer, no matter how stupid it sounds.

[neil]

Invoice is $20970 for a 2006 GL 5spd w/air.  Freight is $799.  So $21769+$626(PDI)+$100Air tax(now at $22500) but then you would still have...+gas tax+admin+profit+ taxes.  I have no idea if they have a cash rebate incentive but there must be one based upon what the numbers say.  Your best deal is to be had now, with a pick-up before Dec.31st.

$1000 in lieu of low rate financing available right now on Tucson.

There is no "0% admin fee".  Hyundai does their subvented financing through BNS or BMO.  Only additional charge is the Lien Reg Fee, $68 and $64 respectively.

$22,500 is a good price.

Mariann, make sure you have informed all the dealers you plan on paying cash, not financing.  If your bro-in-law didn't mention it the sales rep may have assumed you are like 95% of todays buyers who do finance.

[sterling]

And that "these cars are so hot that we can't give you much of a discount" line that dealers give you; ask them "if they are so hot, why do they have a bunch left on the lot"?

You know, I actually asked the same question once. And was told that the half of the lot had just arrived, and the other half had been waiting for the pick-up. I guess that also explained why there was no line up in sight.
Most sales guys just HAVE to have the answer, no matter how stupid it sounds.

Some people take things a little too literally. You know when someone says, "the new Civics are just flying off the lots," it doesn't mean they actually are flying. Likewise, a hot seller doesn't actually create line-ups. 

[Mariann]

Thank you all SO MUCH for your advice...I joined the APA, and they are going to get a broker to quote me a price...Then I can compare it to what I have been quoted...I will keep you all informed on the deal I get.  If you have more advice, please keep it comin!

Thanks!

[yhzdriver]

I am going to pay cash, as the finance does not appeal to me...I guess the answer is, if I can get it below MSRP, then it certiantly isn't a bad deal?

Thanks!

How does this make any sense!!!  If I have $22,500 in the bank and I can buy a car with 0% Financing, I would have to give my head a shake not to take the financing...   With the cash sitting in a savings account with ING @ 2.75%, you would get $626 interest in the first year!  That's guaranteed interest, you could get a lot more if you went with a GIC or mutual fund...

I looked at a Tuscon last year... Hyundai dealers here in Halifax were very flexible on price.  With 0% financing... come up with the price you want to pay OTR and divide it by 60 months (or whatever the 0% terms cover) and tell the dealer "this is what I'm prepared to pay per month"!...walk away... then wait for them... they will call you!

[eax]

Mariann, you basically just wasted $25 for the APA.  The invoice was posted above, the cash back was posted above, Freight/PDI posted above, just go from there, your down to nickle and diming already.

[Mariann]

Well, no, I did not "waste my money" as the broker given to me by the APA has given me a quote I didnt think I could get, without me having to spend one minute in the dealership...to me, the time I saved, as well as the dickering, it was well worth it!  I will let all know the final price paid once the deal is done.  Thanks again all!

[Mariann]

Well, it looks like I have a deal...$22,400.00 includes everything except sales tax...also threw in floor mats...

Although he said the only stipulation is I can't get a loaner if I need one if problems arise with my vehicle because then they start loosing money...that I thought was a little weird...should I fight that?, but otherwise I am quite happy and am going to purchase...THANKS AGAIN to everyone with their help and suggestions, it has ben very much appreciated....

Mariann

[sterling]

So by phoning around to seven stores you got prices of $22500-23200 + sales tax. Now this broker gets you a whole $100 off? And you can't ever get a loaner? I wonder how much this broker's fee will be? I wonder if the store that originally quoted $22500 would deny you a loaner if you need it?

[mdxtasy]

No loaner if you have issues with the vehicle?  If there's an option to take it elsewhere for service, I'd go.  Then you should also let the APA that this is what they are doing.....just so they know when their other clients go looking for the same vehicle, they should not expect top notch service.  I think it's bullshiit.  The dealership is being anal about it. 

[yugrus]

No loaner = BS. You can go elsewhere for your warranty needs, and negotiate the loaner there.

But the whole deal does not look exceptionally good to me.
Providing you're paying cash here's what sounds more reasonable, if the given information is correct:
$20,970 Invoice
$799 Destination
$300 Dealer's upfront profit
$100 Air tax
$75(?) Fuel tax. Going to be higher though...
$626 PDI (If you wish to pay it in full)
-$1000 Cash rebate
$21870 Total

This price includes at least $600 in total dealership profit (including holdback) which is healthy 3% of the average dealer's cost.
I'd say the quote you received from APA includes at least $500 of the profit that the dealership shares with the agency.

Mind you, that's IF you WISH to pay full PDI price which covers about 6.5 hours of preparation time by their going rate.
As a concession you would agree to take the vehicle off of their lot.

I'd say you could have done better without APA assistance. And get your loaner…