Is this good negotiating? YACT

[QueHuong]

My mom had her friend help negotiate buying a car. We chose the Camry 2004 LE V6 with everything standard. We downed $12,000 and chose the 5 years financing. Invoice was $21190. The bastard's initial offer to us was $196 for 60 months (tax included). Mom's friend threw an offer out at $156 per month - of course they refused. They bumped it up to $180 per month, and we bumped it down to $170. They refused again so we left. Car dealership calls back next day and negotiated over the phone and the price we all agreed on is now $177 for 60 months.

$177 x 60 months = $10620

$10620 + $12000 down = $22620 total

$22620 - $21190 invoice = $1430

So after 60 months, we own the car and would have paid $1430 over invoice, including interest and tax. Does that seem like a good deal?

 

[isekii]

sounds great

btw what % is the APR ?

 

[QueHuong]

I don't remember what the APR is - the friend just came in, told them he doesn't care about any rebates, APR, etc and told them, "Here's what we're paying per month for 60 months to own this car."

 

[Thoreau]

Originally posted by: MindStorm
I don't remember what the APR is - the friend just came in, told them he doesn't care about any rebates, APR, etc and told them, "Here's what we're paying per month for 60 months to own this car."

*NEVER* negotiate based soley on monthly cost. Dealers take advantage of that to make it seem like a smaller sum of money in order to rack you into other things. Pay closer attention to the bottom line. Personally, i'm not one to speak, just ask Adul how much i'm paying for an '03 Sentra SE-R. Less than $2K over invoice is definitely not bad at all, but the dealership WILL go *BELOW* invoice if you use up enough of their time. My previous car, another Sentra, I spent three days in-person at the dealership haggling and managed to get the car at $1800 below invoice.

Oh, that monthly payment they quote you is JUST the car, no GAP insurance, no extended warranty, etc... and those things add up very quickly when it comes time to sign all the paperwork.

 

[QueHuong]

Originally posted by: Thoreau

Originally posted by: MindStorm
I don't remember what the APR is - the friend just came in, told them he doesn't care about any rebates, APR, etc and told them, "Here's what we're paying per month for 60 months to own this car."

*NEVER* negotiate based soley on monthly cost. Dealers take advantage of that to make it seem like a smaller sum of money in order to rack you into other things. Pay closer attention to the bottom line. Personally, i'm not one to speak, just ask Adul how much i'm paying for an '03 Sentra SE-R. Less than $2K over invoice is definitely not bad at all, but the dealership WILL go *BELOW* invoice if you use up enough of their time. My previous car, another Sentra, I spent three days in-person at the dealership haggling and managed to get the car at $1800 below invoice.

Oh, that monthly payment they quote you is JUST the car, no GAP insurance, no extended warranty, etc... and those things add up very quickly when it comes time to sign all the paperwork.

No, he knows all of that...my mom wanted to just pay that extra "few dollars" so she can get the car home and he told her those few dollars translate to hundreds of dollars after 60 months so we were negotiating for dollars at a time. And I'm pretty sure that $177 per month includes interest and tax (6.5% here) like I said in the original post. But what I'm wondering is if the friend is as good as he says he is.

 

[CTrain]

It sounds like you got an awesome deal.

Invoice of $21100x(for example 7% tax) = ~$1400.

So with that consideration.....you paid INVOICE and got interest FREE for 60 months.

 

[DXM]

That's an awesome deal for 60 months financing.

 

[QueHuong]

So he is as good as he says...cool

Kind of feels nice since the guy who the salesman had to report to (what's his position called? He sits in front of the computer and the salesman come to him when a certain amount of money to be paid is established...financial manager?) seems like a d!ck.

 

[RossMAN]

Decent deal.

Never ever negotiate with the "what can you afford per month" mentality.

 

[CTrain]

Well, you usually don't but from what he got, its a great deal.

Invoice of 21190 x 6.5 tax = $22567 + tag and title.

With the financing, he will end up paying $22620.

From that standpoint.....he paid Invoice and got 0% financing for 60 months.

 

[RossMAN]

A killer deal would have been a 2004 Toyota Camry XLE V6 for $23,000 out the door

So why did you choose the Camry over the Mazda 6, Honda Accord or Kia Rio?

 

[TechnoKid]

Originally posted by: RossMAN
Decent deal.

Never ever negotiate with the "what can you afford per month" mentality.

Yup, I read that salesman's confession thing, and learned that it is much better to negotiate on the price of the car before anything else. The four-square thing and monthly payment negotiating are just to distract you from hidden cost.

But I do have my apprehensions about telling the salesman straight up that I want $xxxxx.xx for the car. They are going to right away try and get you to say some type of monthly, and refuse the offer. Do I say, "Look, this is the price I want for the car, can you do that?"

I plan to buy a truck sometime in the next couple of months, toyota tacoma crew cab 4x4 V6, msrp:$26,930, inv:$24,120, tmv:$24,963.

 

[QueHuong]

Grr...almost everything is done, and we specified we want a car with no more than 10 miles put on it, just in case we might get a car where some careless test driver aggressively accelerated and break, putting wear and tear in the new engine that hasn't been broken in yet....so the car guy said it'll take an estimated month before he can find the exact car we want. :|