Seven Lessons from my first car purchase at the dealership
I recently purchased a new vehicle through a dealership. I bought a 2019 Toyota Tacoma TRD Sport 4x2 Double Cab and quite feel not clean. This is my first time to purchase a new car. And there are many suspicious points all over the process. Conclusively, the price I paid was $41,740 including dealership appearance package, dealer prep, dealer doc fee, tax, non-tax fees, and extended warranty. This price got already discounts of around $4500 according to their calculation. I am not sure this was a good deal or not, and I am still don't know the numbers they showed are real/meaningful numbers or not. Feels like they made up numbers in order for me to think that they gave so many discounts so that I feel it is reasonable and I have to buy it. I will leave a note here to remember how it went for me and for other people not to get ripped off again.
1. Don't believe MSRP and online advertisement of the manufacturer.
As you know 2019 Tacoma TRD Sport MSRP is $32,725 and if you add all the options it increases around $43,000. However, the vehicle that the dealership showed me was $48,000. I asked them how they priced this even though the maximum price is around $43,000 according to the manufacturer. The dealer said that the dealership added values by custom options on top of the manufacturer's options. I am not sure this is true or not.
The Toyota is advertising now 0% APR for 2019 Tacoma, but the dealer pretended he didn't know this and pretended to give this benefit as his favor. Even he used this manufacturer's offer as a weapon not to give dealer discounts by making me choose either of those two.
2. Don't believe the price on the dealership's website.
Before visiting the dealership, I checked the inventory of the dealership. I saw the vehicles priced from $35000 to $ 38000, but there are vehicles over $40000 when I actually went there. The dealer said that the prices on their website are for qualified people and in my case the price never approached the online prices. The dealership's seemingly cheap prices are for attraction to make you come in.
3. Keep saying NO!
At first, the dealer showed me only expensive vehicles (full option) and pretended they don't have vehicles with reasonable prices and reasonable options. After I kept saying many no, the next day the dealer texted me he had a vehicle that fits in my budget. They did have reasonable vehicles on the other side of the lot.
4. Be careful on logic
The dealer asked me about my must-have options and vehicles. If I say A, B, C, he said only higher-level models have A, B, C. Apparently not! I studied the manufacturer's website and let him know. Then he said his dealership doesn't have lower-level models with A, B, C in their inventory. He kept making an effort to make me purchase expensive vehicles with A, B, C at a slightly discounted price. When I kept saying NO and left, he texted me he found one with A, B, C at a lower price. Yes. He found the one on the other side of the lot, which has A, B, C but a lower-level model. It, of course, should be cheaper. Now his logic was that we found one with A, B, C with the price I want, so I should purchase. However, it is a lower-level model that means the price should be lower...
5. All the fees (e.g. Appearance package, Dealer prep, etc.)
The dealer pretended I must pay these. What I found out after a long long negotiation is that he cannot remove them but he can give a discount as much as the fees. (even more) That means these can be removed.
6. When the dealer's manager comes to you, this is the final moment.
When you drive the negotiation to the limit of the dealer, the manager of the dealer will come to you for the final negotiation. In my case, the price didn't change, but I got the C option. However, it feels quite shady. There is no description of this in the contract and no receipt. No service record was in the dealership. The dealer picked up the car and installed the C option. I didn't have any receipt and proof that they picked up my car or what kind of C was installed. Even they lent a car that I drove during the installation (3 days), but no rent contract and insurance and check-ups were made. It is kind of that I secretly drove the car for three days. I still don't know how it went through.
7. Extended warranty (CNA Vehicle service contract)
Mine is Automotive Preferred Care from CNA. The 10-year warranty and the price is around $2100 for 10 years. This warranty price seems like auto insurance. When it comes to auto insurance, you can get very different numbers from different insurance companies and from even different agents of the same company. The extended warranty works very similarly in my experience and study. That means it is negotiable. The finance manager of the dealership possibly can give you a better number.
In addition, I recommend not to tell them trade-in and down payment at first. It is better to negotiate pure car's price first and then apply trade-in and down payment later. If you give this information first, they will use this for them not for you.
Next time, I would use some program such as Costco auto. Dealing with dealers is a very time- and energy- and emotion-consuming thing... Furthermore, I am not that happy even I bought a brand new car. I don't know the reason but the feeling is not good...
Thanks,
JF
1. Don't believe MSRP and online advertisement of the manufacturer.
As you know 2019 Tacoma TRD Sport MSRP is $32,725 and if you add all the options it increases around $43,000. However, the vehicle that the dealership showed me was $48,000. I asked them how they priced this even though the maximum price is around $43,000 according to the manufacturer. The dealer said that the dealership added values by custom options on top of the manufacturer's options. I am not sure this is true or not.
The Toyota is advertising now 0% APR for 2019 Tacoma, but the dealer pretended he didn't know this and pretended to give this benefit as his favor. Even he used this manufacturer's offer as a weapon not to give dealer discounts by making me choose either of those two.
2. Don't believe the price on the dealership's website.
Before visiting the dealership, I checked the inventory of the dealership. I saw the vehicles priced from $35000 to $ 38000, but there are vehicles over $40000 when I actually went there. The dealer said that the prices on their website are for qualified people and in my case the price never approached the online prices. The dealership's seemingly cheap prices are for attraction to make you come in.
3. Keep saying NO!
At first, the dealer showed me only expensive vehicles (full option) and pretended they don't have vehicles with reasonable prices and reasonable options. After I kept saying many no, the next day the dealer texted me he had a vehicle that fits in my budget. They did have reasonable vehicles on the other side of the lot.
4. Be careful on logic
The dealer asked me about my must-have options and vehicles. If I say A, B, C, he said only higher-level models have A, B, C. Apparently not! I studied the manufacturer's website and let him know. Then he said his dealership doesn't have lower-level models with A, B, C in their inventory. He kept making an effort to make me purchase expensive vehicles with A, B, C at a slightly discounted price. When I kept saying NO and left, he texted me he found one with A, B, C at a lower price. Yes. He found the one on the other side of the lot, which has A, B, C but a lower-level model. It, of course, should be cheaper. Now his logic was that we found one with A, B, C with the price I want, so I should purchase. However, it is a lower-level model that means the price should be lower...
5. All the fees (e.g. Appearance package, Dealer prep, etc.)
The dealer pretended I must pay these. What I found out after a long long negotiation is that he cannot remove them but he can give a discount as much as the fees. (even more) That means these can be removed.
6. When the dealer's manager comes to you, this is the final moment.
When you drive the negotiation to the limit of the dealer, the manager of the dealer will come to you for the final negotiation. In my case, the price didn't change, but I got the C option. However, it feels quite shady. There is no description of this in the contract and no receipt. No service record was in the dealership. The dealer picked up the car and installed the C option. I didn't have any receipt and proof that they picked up my car or what kind of C was installed. Even they lent a car that I drove during the installation (3 days), but no rent contract and insurance and check-ups were made. It is kind of that I secretly drove the car for three days. I still don't know how it went through.
7. Extended warranty (CNA Vehicle service contract)
Mine is Automotive Preferred Care from CNA. The 10-year warranty and the price is around $2100 for 10 years. This warranty price seems like auto insurance. When it comes to auto insurance, you can get very different numbers from different insurance companies and from even different agents of the same company. The extended warranty works very similarly in my experience and study. That means it is negotiable. The finance manager of the dealership possibly can give you a better number.
In addition, I recommend not to tell them trade-in and down payment at first. It is better to negotiate pure car's price first and then apply trade-in and down payment later. If you give this information first, they will use this for them not for you.
Next time, I would use some program such as Costco auto. Dealing with dealers is a very time- and energy- and emotion-consuming thing... Furthermore, I am not that happy even I bought a brand new car. I don't know the reason but the feeling is not good...
Thanks,
JF
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