San Diego Housing Market News and Analysis
OT: I hate buying and haggling for a new car...And why Edmunds, TrueCar,etc is worthless imho
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Submitted by Coronita on March 22, 2017 - 6:08am
So, I'm in the process of haggling for a new Miata RF after I cancelled my order for a regular Miata at $5000 off....
I was told since the RF was a new 2017 model with limited stock, there was no room for negotiation....MSRP (or in some cases above MSRP). I was like, no thanks I'll wait....
Then I started to get some dealers to respond... First it was a few hundred below MSRP...And where I am at is now at "invoice"...
Then I'm doing some more research... I figured out "invoice" price is most likely bullshit in today's modern car buying... Why? Most of the dealership incentives I believe has to do with meeting monthly sales targets, in the form of manufacturer rebates AFTER hitting sales targets...So I suspect if you try to buy a car at the end of the month, AND a dealership is trying to hit a sales target, that might be why they might be willing to sell the car significantly below invoice....since if the hit the sales target, the manufacturer rebate applies to all cars sold that month, not just yours....
If that's the case, the concept of "invoice" price really doesn't mean squat anymore, and places likes TrueCar are only there to make you feel better that you didn't get completely ripped off... You see, when I go to TrueCar I always see a nice bell curve in what people pay... However, every single time I've talked to multiple dealers on every car purchase, I've always hit well below what the lowest price TrueCar "claimed" people have paid.....
This miata RF is no different. I'm currently sitting on offers from many dealer now below invoice, on a 2017 model that just came out a few months ago, (no 2016 model)....And it's close to the end of the month. The other thing that I learned is that TrueCar charges roughly $200-300 to the dealer if someone ends up buying a car through their referral service....So if you end up contacting a competing dealer, you should probably be able to knock an additional $200-300 off the price versus someone that goes through TrueCar...That's assuming both dealers are both trying to hit their monthly sales targets and both have the same incentive to clear inventory to meet that target, if they haven't already met that target (in which case, they don't care about trying to sell you a car until the next month, hence less negotiable)....
So the only way you can really get a good price, is if you play each dealership off of each other, because you have no visibility into which dealership has incentive to sell a car, even if it's significantly below "invoice" just to hit a monthly sales target. I hate this..It's like flying blind. You have very little visibility into exactly what those manufacturer incentives are to each dealership, and hence why prices can vary from dealership to dealership.
Off to the haggling table I go... If I can get a RF at $28-9k, or roughly $1k below "invoice", I'll pull the trigger and "pay" for being one of the firsts to get one....
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