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Question for car salesmen/car people?

Posted on 9/16/14 at 7:03 am
Posted by Requiem For A Dawg
Guff of Mex
Member since Dec 2010
11972 posts
Posted on 9/16/14 at 7:03 am
I'm currently in the market for a car because my Jeep's gas milage isn't cutting it on my 90 mile round trip commute.

Anyway I've been pricing cars and the NADA price is always $1,200 or more than the KBB price. Why such a big gap between the two? And what's the main difference in them?
Posted by PrivatePublic
Member since Nov 2012
17848 posts
Posted on 9/16/14 at 8:10 am to
It's called profit. Congratulations on entering the real world.
Posted by Wishnitwas1998
where TN, MS, and AL meet
Member since Oct 2010
58080 posts
Posted on 9/16/14 at 8:55 am to
Where the hell are you commuting 90 miles to/from Req?
Posted by Requiem For A Dawg
Guff of Mex
Member since Dec 2010
11972 posts
Posted on 9/16/14 at 9:15 am to
I don't think you read my question.
Posted by Requiem For A Dawg
Guff of Mex
Member since Dec 2010
11972 posts
Posted on 9/16/14 at 9:16 am to
It's only 45 one way. Not too bad.
Posted by Mizzeaux
Worshington
Member since Jun 2012
13893 posts
Posted on 9/16/14 at 9:51 am to
Former sales manager here. My advice is to use whatever price benefits you the most. Be unreasonable and make them earn your business.

Go with the high one when discussing trade, go with the low when discussing price. You won't be the only one to do that. Heck, you're probably not the first one to do it that day.
Posted by Rebelgator
Pripyat Bridge
Member since Mar 2010
39543 posts
Posted on 9/16/14 at 10:59 am to
Glad you're here, is it better to negotiate from car price or total sale price?
This post was edited on 9/16/14 at 11:00 am
Posted by Mizzeaux
Worshington
Member since Jun 2012
13893 posts
Posted on 9/16/14 at 11:11 am to
The Best Way To Get A Good Deal
By Mizzeaux

Step 1. Pretend as if you're paying cash for the car in its entirety, even if you don't have the cash to do so or have a trade, pretend like you're adding the car to the family and paying cash.

Step 2. After you're satisfied with your total cash out the door price, throw in your trade. Have it appraised, know what it's worth and what you'll take for it, try to get as close as possible. (note: many states have sales tax credits on your trade, so if your tax rate is 10% and the car you're buying is $10,000, sales tax would be $1000, right? Not exactly. Throw in a $5,000 trade, you'll get a $500 tax credit towards the purchase. A lot of places will take your $5,000 trade, give you $4,600 for it, and include the tax credit in the "trade value." So they'll show you that you're getting $5,060 for the car, but in reality they're giving you $4,600 and the rest is a tax credit you'd get anyways.).

Step 3: after you're happy with your total cash difference including the rice of the car, all taxes and fees, and your trade, ask them about financing. They'll usually hit you 2% higher (max applicable by law in most states) than you qualify for, unless they're shady, which they may be. Either way, try to knock 2% off your interest rate if you can.

Step 4: if you're going to buy something in finance make it GAP insurance if you're putting little to no money down, or potentially a warranty. That's it. GAP is regulated by the states in most cases, but should cost $300-$500 depending on your term and it isn't a big markup product for the dealership. Warranties are a rip off to many people, and the dealership definitely makes money on hyphen, but if you're a paycheck to paycheck person and plan on keeping the car after the new car warranty expires, it's basically breakdown insurance you add to your car payment.

That's my advice.

ETA: after all that, if your salesman was good and patient, throw him a hundo. You just put him through the ringer for a mini commission. He probably made $50-$150 for your deal, and it took a lot longer than it should have. You've got the money, grinding bastard.
This post was edited on 9/16/14 at 11:17 am
Posted by BillyBobPorkin
Stump Toe, Ar
Member since May 2014
1082 posts
Posted on 9/16/14 at 11:21 am to
Really good stuff right there. I would also like to add that you could get your 40 time down to 4.3 and become a highly touted recruit for Bama. That seems to work, too.
Posted by Requiem For A Dawg
Guff of Mex
Member since Dec 2010
11972 posts
Posted on 9/16/14 at 1:16 pm to
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