GW... thanks for the advice. MSRP is currently the only price I have to work with, but I'm seriously thinking about paying for the CCC report. I'm just not sure if it will make a difference in the end result.
The
Consumer Reports New Car Price Report provides the buyer with true Canadian dealer cost, holdback, rebate and incentive information at US$30 a report, less for multiple reports. Apply a reasonable mark-up and let the games begin. Alternately hand it to the salesman and invite him to add the minimum mark-up required for dealer profit telling him you will buy if the price is right.
Never negotiate from MSRP or dealer invoice. Both are fictitious, designed to flimflam naïve consumers. Establish a fair target price beforehand by calculating true dealer cost from buying service data, applying a reasonable 4-percent markup for profit and adding $750 for actual freight cost. Enter zero for PDI. Refuse up-sells and add-ons. Reject non-statutory charges and fees. Do not discuss your budget, financing, monthly payments, leasing vs. buying, or trade-in before receiving an acceptable bottom line price.
A salesman cannot close the sale until the customer is open to buy. The knowledge buyer is not open to buy until his target price is met. The most powerful tool in a buyer’s arsenal is the “walk away,” a strategic exit that leaves the door open for further discussion. Transferring the onus to the salesman shifts the psychological advantage to the buyer. Always ponder a deal overnight. If you have shopped several dealers one may be hungrier than the rest. Wait for a call with an improved offer. Test for a fallback position. Say it still isn’t good enough. Absent a call return to the dealership and pick up where you left off. Most folks can tolerate two rounds in a negotiation. After that patience may wear thin.
http://crcanadacars.org/
