Are you paying too much for your new car?

[Richard Tahara]

If you are paying more than the MSP -- Manufacturerer's Suggest Price -- other than mandated taxes, you are paying too much. All other fees are added profit for the dealer.
I recently bought a new car which the dealer wanted to add nearly $8000 in fees and charges. It took four hours of negotiations, but I did get my car for the MSP plus mandated sales taxes and new registration fees.

[dewilson58]

:shrug:

[retiredguy123]

I don't know how the car market has changed because of inflation and supply issues, but, typically, you should be able to buy a new car for about 3 percent less than the MSRP plus sales tax and registration. Period. In the past, it has taken me less than 30 minutes to get that price. I would never spend 4 hours discussing the price with a dealer. I politely give the dealer a take it or leave it "out the door" price, and give them 15 minutes. No "negotiation". If they reject the price, I just leave. If it is presented correctly, they will almost always accept the price because they don't want to lose the sale. I have bought a lot of cars that way.

[jimbomaybe]

If you are paying more than the MSP -- Manufacturerer's Suggest Price -- other than mandated taxes, you are paying too much. All other fees are added profit for the dealer.
I recently bought a new car which the dealer wanted to add nearly $8000 in fees and charges. It took four hours of negotiations, but I did get my car for the MSP plus mandated sales taxes and new registration fees.

You must be a very good negotiator, new car dealers are selling cars before delivery to the dealer. My understanding is the shortage will continue into 2023. I have put off buying a new vehicle because of the current situation. The way I preferred to deal with dealerships was to tell the salesman that I wanted a written quote, that I would shop three/ four other dealers for the best price, any change and I walk, more than once that ended the conversation

[kkingston57]

You must be a very good negotiator, new car dealers are selling cars before delivery to the dealer. My understanding is the shortage will continue into 2023. I have put off buying a new vehicle because of the current situation. The way I preferred to deal with dealerships was to tell the salesman that I wanted a written quote, that I would shop three/ four other dealers for the best price, any change and I walk, more than once that ended the conversation

Since Covid, nothing is the same as it was before. I do suspect that this scenario is going to change. Might be less demand for cars in other parts of the country where there are less cash buyers and people have to finance their prurchase. For most of us, car is not an absolute necessity since majority of TV population does not need a car every day like the working populace.

[MrFlorida]

I am holding off also, I refuse to pay more than the manufacture requires.

[Mortal1]

MSRP is not a number fixed by the mfr, but by the dealership and if you paid that you got taken. As in most things that cost $$$ it's priced by what the market is willing to pay.

[Babubhat]

Place a factory order and wait

[JerryP]

MSRP is not a number fixed by the mfr, but by the dealership and if you paid that you got taken. As in most things that cost $$$ it's priced by what the market is willing to pay.


The Monroney sticker is named for A.S. “Mike” Monroney, a longtime Oklahoma congressman who wrote the 1958 Automobile Information Disclosure Act, the federal law that requires the Monroney sticker.
One of the
primary details on the Monroney sticker is the manufacturer’s suggested retail price, or MSRP, often referred to as the “sticker price.” This is a recommendation
from the automaker
for how much to charge for the vehicle. The actual price will depend on optional features the buyer selects, discounts the dealer may offer and negotiations between the dealer and the buyer.

[maggie1]

I don't know how the car market has changed because of inflation and supply issues, but, typically, you should be able to buy a new car for about 3 percent less than the MSRP plus sales tax and registration. Period. In the past, it has taken me less than 30 minutes to get that price. I would never spend 4 hours discussing the price with a dealer. I politely give the dealer a take it or leave it "out the door" price, and give them 15 minutes. No "negotiation". If they reject the price, I just leave. If it is presented correctly, they will almost always accept the price because they don't want to lose the sale. I have bought a lot of cars that way.

I've known people that dearly love to dicker with a car salesman until they reach the agreed-upon price. Me? I'd rather be poked in the eye with a sharp stick than try bargaining with a guy on his home turf who knows the exact cutoff point on price, while I sit there like a pumpkin in Linus's pumpkin patch thinking to myself that no matter what price we've agreed upon, I'm still getting screwed. I break out in a cold sweat every time we need to buy a new car. I'd gladly hire someone to dicker for me just so I could watch the car salesman sweat instead of me, and then I'd walk out with a nonchalant "No thanks" reverberating through the showroom.

[larcha]

How to Get the Best Price on a New Car - Step by Step Instructions (https://clicks.aweber.com/y/ct/?l=A547W&m=JeRcc4D3MN2qnX&b=sGUHDCMw6UcDcWFUvEKgXQ)
This ia a link to a free step by step guide that will teach you exactly how to buy or lease a new car. It teaches you how to properly set up a competitive bidding process with multiple dealers and includes email and phone templates you can use.

[larcha]

Auto Buying ZIP Code Entry | Costco Auto Program (https://www.costcoauto.com)
New & Used Car Buying Service | Costco Auto Program
Costco Auto Program has been providing prearranged pricing and a stress-free car-buying experience to Costco members for more than 30 years. They've developed a proven formula to maximize value, streamline the process and remove the hassle normally associated with buying a car.

[srswans]

Place a factory order and wait

I did the same - still paid MSRP, no negotiation, but got excellent price for trade-in.

OP’s negotiation skills are impressive tho - nice work. The other dealerships I shopped were either $6k to $15k over MSRP or selling cars enroute.

[rsmurano]

It all depends on the vehicle you want. There are hundreds of thousands of new cars that are being taken to auctions because they can’t sell them, you can find a great deal on new cars. I’m looking at purchasing a new used car and while I’m waiting on some cars, price is dropping $500-$1000 every week. I’m still waiting because they started off way to high and now they are getting down to actual kbb prices.
Also, check out YouTube videos on what’s happening in the car market. People aren’t buying cars because of the interest rates so car dealers are hurting and some might not survive like for example carvana.

[Petersweeney]

Went to Kia to look at Telluride they wanted 10k add on for market adjustment in august just shook my head and went to Toyota….no markup for a new hybrid Highlander….

[Robbb]

I just bought a 2023 Honda CRV, shopped 4 dealers, 3 were asking 2-3,000 over MSRP, I walked on all of them, fourth a dealer sold at MSRP with no dealer add on's, I get the car in February. I received a call back from 2 of the dealers I went to and all of the sudden they will beat any written offer. My sense is these dealers are trying to keep the impression that there is a massive car shortage, however it seems as though supplies are starting to build and cars are not selling as fast as they once were. LIke many of you I will walk before I ever pay over MSRP.

[jerryss]

Go to the web, look for the car you want. 3 dealers will contact you, with a fixed price. No muss no fuss.

[chet2020]

I've known people that dearly love to dicker with a car salesman until they reach the agreed-upon price. Me? I'd rather be poked in the eye with a sharp stick than try bargaining with a guy on his home turf who knows the exact cutoff point on price, while I sit there like a pumpkin in Linus's pumpkin patch thinking to myself that no matter what price we've agreed upon, I'm still getting screwed. I break out in a cold sweat every time we need to buy a new car. I'd gladly hire someone to dicker for me just so I could watch the car salesman sweat instead of me, and then I'd walk out with a nonchalant "No thanks" reverberating through the showroom.

I agree, what I do is handle car transactions by email. I can contact many dealers in a short period of time and then take my time with my responses. As an aside, there are brokers out there who will negotiate on your behalf, find you good deals, usually for about a $500 fee.

[chrissy2231]

If you are paying more than the MSP -- Manufacturerer's Suggest Price -- other than mandated taxes, you are paying too much. All other fees are added profit for the dealer.
I recently bought a new car which the dealer wanted to add nearly $8000 in fees and charges. It took four hours of negotiations, but I did get my car for the MSP plus mandated sales taxes and new registration fees.
The only way to buy a car New Car Prices: MSRP, Invoice vs Dealer Cost w/Holdback (https://www.car-buying-strategies.com/new-car-prices.html)

[OhioBuckeye]

I think used cars are way, way to expensive. Some used vehicles have 50, 60 or 70,000 miles on them & they want 14 to $20,000. dollars for them. You can say what you want about miles or price but dealers are starting to push EV’s. The thing that I think dealers put big prices on gasoline cars so people will consider EV’s. I don’t want some worn out car or someone else’s problems or a 30 or 60 day warranty! It’s OK if you don’t like what I say, pay what they want. But I’m not rich enough to buy & pay for all the extras to own an EV!

[gatorbill1]

If you are paying more than the MSP -- Manufacturerer's Suggest Price -- other than mandated taxes, you are paying too much. All other fees are added profit for the dealer.
I recently bought a new car which the dealer wanted to add nearly $8000 in fees and charges. It took four hours of negotiations, but I did get my car for the MSP plus mandated sales taxes and new registration fees.

Had to go to Autonation in Clearwater to get best deal and trade in price. Need to get away from Leesburg and Ocala for best deal.

[spjvette]

MSRP is not a number fixed by the mfr, but by the dealership and if you paid that you got taken. As in most things that cost $$$ it's priced by what the market is willing to pay.

MSRP is a fixed number that the manufacturer puts right on the factory invoice. Ask to see the invoice. Always remember the price is not the price

[Oldragbagger]

We just bought our new car in March and I think we paid $500 over MSRP for “market adjustment.” It was not open to negotiation at all. They had very few cars on the lot or expected that were not pre-sold because we were after either a hybrid or compact car with high mpg.

On the upside, we were trading in a 2017 Dodge Ram 1500 and we walked out with our new car and a check for $419.

[BBmac]

MSRP is a fixed number that the manufacturer puts right on the factory invoice. Ask to see the invoice. Always remember the price is not the price

Invoice is no longer the invoice but rather a made up number. Many years ago it actually was an invoice but that changed when consumers began to be able to access the actual invoice. The spread between MSRP and Invoice has narrowed considerably over the years so it is not longer a relevant tool to determine best price. Holdbacks and volume incentives are now the rule.

For many car models it is still a sellers market but that will be changing in the not too distant future. We are in unprecedented times when some used cars sell for far more than the MSRP of new ones. I bought a new Toyota Sienna a month ago and sold the exact same 10 month old one with 19,000 miles to Carvana for $6000 more than I paid for the new one. The dealer selling me the new one was even willing to take my trade and give me $1,500 in cash along with the new car. I would have happily done that if Carvana didn't offer me an even higher number. Crazy!

[ffresh]

I've known people that dearly love to dicker with a car salesman until they reach the agreed-upon price. Me? I'd rather be poked in the eye with a sharp stick than try bargaining with a guy on his home turf who knows the exact cutoff point on price, while I sit there like a pumpkin in Linus's pumpkin patch thinking to myself that no matter what price we've agreed upon, I'm still getting screwed. I break out in a cold sweat every time we need to buy a new car. I'd gladly hire someone to dicker for me just so I could watch the car salesman sweat instead of me, and then I'd walk out with a nonchalant "No thanks" reverberating through the showroom.

You painted such a vivid picture of the process; you made me laugh out loud ... THANKS! Perhaps you missed your calling unless you're already at work on your next novel :)

Fred

[retiredguy123]

MSRP is a fixed number that the manufacturer puts right on the factory invoice. Ask to see the invoice. Always remember the price is not the price
Any invoice the dealer provides is totally bogus. If they hand me one, I just hand it back to them without even looking at it. In fact, an individual vehicle on their lot does not even have an accurate invoice. That is because the dealer is paid with incentives to sell a group of vehicles within a certain time period. For example, they may be offered additional cash to sell 50 vehicles by the end of the month (which may not be the calendar month). But, the MSRP is a price set by the manufacturer, and it is required to be displayed on every new car offered for sale. That is a Federal law. Note that, often the manufacturer offers a rebate which effectively lowers the MSRP for that vehicle. When buying a new vehicle, you should always independently verify the current rebates for the vehicle because some dealers will try to hide that information from you. So, you may agree to a specific price, but when they draw up the contract, they apply a rebate to their benefit that you didn't even know about when you agreed to the price.

[rsmurano]

Most people probably finance a car and with rates going way up, more and more people won’t be able to afford a new car because everything else costs more.
Check out some of the YouTube videos on what’s happening with the car dealerships and what’s happening in the repo market and the high delinquency of auto loans. The used car market will soon be flooded with more cars than buyers. Carvana is hurting because it purchased used cars at high prices and can now sell them anywhere near that price, which means dealers might be going under when things get worse

[NJMike]

I just bought a 2023 Honda CRV, shopped 4 dealers, 3 were asking 2-3,000 over MSRP, I walked on all of them, fourth a dealer sold at MSRP with no dealer add on's, I get the car in February. I received a call back from 2 of the dealers I went to and all of the sudden they will beat any written offer. My sense is these dealers are trying to keep the impression that there is a massive car shortage, however it seems as though supplies are starting to build and cars are not selling as fast as they once were. LIke many of you I will walk before I ever pay over MSRP.

I hope that the dealership doesn't call you in late January to tell you that your vehicle can't be had at the agreed upon price. Some people will pay the extra money rather than go through the waiting period. Best of luck to you.

[retiredguy123]

Go to the web, look for the car you want. 3 dealers will contact you, with a fixed price. No muss no fuss.
No muss, no fuss, but you will pay too much for the vehicle.

[ChrisTee]

Auto Buying ZIP Code Entry | Costco Auto Program (https://www.costcoauto.com)
New & Used Car Buying Service | Costco Auto Program
Costco Auto Program has been providing prearranged pricing and a stress-free car-buying experience to Costco members for more than 30 years. They've developed a proven formula to maximize value, streamline the process and remove the hassle normally associated with buying a car.

Well, we tried the Costco auto program. I'd stay away. We wanted a new Subaru - and were ordering it. The dealer that Costco referred us to was unbelievably rude - felt like a 1970 car sales experience. They would not provide the cost!! You must "come in and sit down with us" after several emails, he admitted it would be more than 10% ABOVE MSRP---- so, I sent emails out to 6 other Subaru dealers (on my own) with my build specs and told them to bid. Cash sale. I got a decent deal, no haggle - 3% BELOW MSRP! This was last December. I picked up my car as promised 3 months later. I shared the proof with Costco and they told me they were "sorry" about my experience. Sorry? They didn't do a thing about it. Sorry? Costco's program would have cost me thousands - thousands. No thanks. Boo Costco Auto Buy Program.

[collie1228]

Why is it that our "leaders" get in a bunch about alleged "price gougers" (big oil companies, big pharma, big grocery, etc.) but nary a word about auto dealers who add thousands to the price of cars, just because they can. I get supply and demand, but how about a little bit of consistency?

[nn0wheremann]

If you are paying more than the MSP -- Manufacturerer's Suggest Price -- other than mandated taxes, you are paying too much. All other fees are added profit for the dealer.
I recently bought a new car which the dealer wanted to add nearly $8000 in fees and charges. It took four hours of negotiations, but I did get my car for the MSP plus mandated sales taxes and new registration fees.
I have never paid more than 85% of MSRP, and I am not about to start now.

[Eg_cruz]

If you are paying more than the MSP -- Manufacturerer's Suggest Price -- other than mandated taxes, you are paying too much. All other fees are added profit for the dealer.
I recently bought a new car which the dealer wanted to add nearly $8000 in fees and charges. It took four hours of negotiations, but I did get my car for the MSP plus mandated sales taxes and new registration fees.
I tried to get them to knock off the Market Value Adjustment but they would not remove the fee……so I left. I am not paying $5000 just because they can and frankly shame on others who pay it.
Ocala Kia wanted $12,000 over manufacture. I just laughed and said I would never.

[CoachKandSportsguy]

Only my first car did I buy new, otherwise I have never bought a new car and am not about to start now.