What to Offer First on a Car (How to Buy New in 2021)

[@notwaitingtolive]

My fiancé just bought a new car. How close did we get to the True Car Price? We actually doubled the average discount reported on TrueCar with a total savings of $8,599 and beat the "excellent" price shown on True Car by $3,240. Normally True Car Price will give you a rough idea of the discount you can expect on a new car. But there's one mistake new car buyers make that can cost them thousands in missed savings. I explain how we negotiated a great price and avoided this costly mistake in this video: kzbin.info/www/bejne/jYi2qYKvg8R1jLM

[@notwaitingtolive]

Be careful buying a used truck's right now. Truck prices are up 30% year over year. Here's the latest car price trends for March: kzbin.info/www/bejne/jaOWpZhsp9Z-e6c

[@travelfoodielove]

What’s a fair price for a Mercedes CLA 250 4matic fully loaded 2020 in Boston MA

[@notwaitingtolive]

Serena Ray I’d make an initial offer of 11% off MSRP. I think 9% off MSRP is still fair. 6% off MSRP is average.

[@akshaygoel2184]

@@notwaitingtolive I have the same question! Wondeirng if this still holds Truecar seems to say less off

[@twig7105]

Should you make your initial offer and then add in the factory rebates? Or do you ask them what the factory rebates are first and then try to negotiate price?

[@notwaitingtolive]

Your initial offer should be based on what other people have been paying after all rebated have been accounted for. Negotiate price independently of the factory rebates. Knowing what the rebates are available is important however as they give you important context on how the dealer is being reimbursed and how much further they might be willing to lower their price.

[@tarasromanchuk4103]

Hi! Thank you for making interesting and useful videos. Would you recommend not waisting time for local dealership and go straight to headquarters to make reasonable negotiations? And is is make sense to buy a car in a different state?

[@notwaitingtolive]

Most reputable dealers have their own General Manager and sales staff that are responsible for the cars on their lot. The price the dealer paid for car and the price the market will pay for the car determines the discount possible more than anything else. I don’t think it would be worth your time to go beyond the local dealer to negotiate a car on their lot. Depending on the situation and what you’re looking for buying a car out of state can be a great decision and either save you a couple thousand dollars or find a car with better equipment or condition for the same price.

[@garysamuel9521]

$1100 in dealership charges. What to do?

[@Santiago-li7yl]

Hello, looking at a new 2021 Durango RT. Saw one with a sale price of 45,690. Msrp was 52,870. Think I can get it lower than the sale price? I want to finance through my own bank though. As I plan on giving about 15k cash and having the bank just finance the rest, which hopefully is around 30k. Trying on not having to go through the dealer. What do you suggest? Thanks in advance.

[@notwaitingtolive]

The lowest recent comp sales I see are around $43,000-$44,000. The majority of sales are >$45,000. I'd offer $43,000 by email to multiple dealers in your region to see what they come back with. I cover exactly what to say in this video: kzbin.info/www/bejne/pnvbm3ummLWEmq8 Realistically ~13% off MSRP is on the high end of the discount achievable but there are a few people getting an even bigger discount so it's definitely worth a try.

[@mk14617]

Thank you for your excellent KZbins. We are interested in a 2021 Hyundai Santa Fe hybrid Limited, no black color exterior or interior, but other colors work. We are near Greenville, South Carolina.

[@notwaitingtolive]

You’re welcome. I appreciate your feedback. I’m just copying my response over from the car consultant: I’d offer 6% off MSRP. That does not include taxes or fees. The average discount is ~2% off MSRP right now. I think 4-6% off MSRP is achievable.

[@jwindham3981]

Hi Manny, in this video I notice you said an initial offer of around 25-25.5k for the Ford Escape might be a reasonable starting point. Is that a price that includes tax, or is that an initial offer before tax in your estimation? Thanks for sharing your content. I think a fair deal is important, though I know we all have to take the bread home to live in a better world.

[@notwaitingtolive]

I do not include sales tax only because it’s an expense that varies from 0-10% depending on the state.

[@jwindham3981]

@@notwaitingtolive Makes sense, thanks much, Manny!

[@jin4223]

@@notwaitingtolive Manny, then is the price on Truecar.com also the price before including any tax and fees? Is there a way to figure out the average OTD of a specific model?

[@lisar6998]

whats a fair price for a 2020 Ford f150 v8 or a Toyota tundra ext cab in TX? how much off msrp? A few dealers tell me they wont give quotes via email ..only in person lol

[@notwaitingtolive]

The average discount varies by 2x by trim. For the F150 that ranges from ~10%-22% off MSRP on average. For the Tundra that ranges from ~5-11% off MSRP on average right now. As for quotes by email: I recommend starting with an offer for this reason. Give them something to accept, reject, or counter. When you ask them to start by making you a discount, more times than not they should respond that the price is listed online.

[@notwaitingtolive]

How much of a difference is there between leasing and buying a new car? kzbin.info/www/bejne/j6SUZ2akrtKYp5Y

[@andy_byrd]

So after getting your best counter offer you send these to the other dealers and ask them to beat them, correct? If they can beat it, is that the point to stop or is it worth trying to get the original lowest dealer to beat the new offer? Thanks!

[@notwaitingtolive]

I'd recommend circling back to the original dealership with the now lower counter offer. Sometimes they will be willing to go lower than they previously stated given the alternative you now have.

[@andy_byrd]

@@notwaitingtolive thanks that was what I meant with the 2nd part of the comment.

[@shehryarqadri4083]

You said offer them of around 26k does it include with APR?

[@notwaitingtolive]

That does not include APR or even sales tax. That's just the negotiated sale price of the car.

[@lisatranx]

Your videos have been helpful in my car purchasing process. Thank you!!!

[@notwaitingtolive]

You're welcome. And thank you. I appreciate you taking the time to leave feedback.

[@jenweatherwax7113]

Thank you for your help, this was really useful for deciding where to make my starting offering

[@VetinCloud]

Should I send the email message with an offer to all dealers at the same time?

[@notwaitingtolive]

edward reyes Yes. Then as they return their counter offers you can leverage the lowest ones. I have a separate video that covers exactly what to say when negotiating by email: kzbin.info/www/bejne/pnvbm3ummLWEmq8

[@georgelaroche7955]

Great Video. I used truecar for my last purchase. I'm considering the Genesis G90 this year but nobody has the build I want which means the dealer would have to order it. What can you suggest for getting a good price off MSRP?

[@leah679]

Your videos are really helpful. thank you! Question -- Do you do this process to reach the car price even if you intend to lease? Thanks for your help!

[@notwaitingtolive]

Yes. Your best approach a lease as if you're buying it and then once you agree on price ask them to run the numbers as a lease. I have a video about lease negotiation on my channel that I've been meaning to update. All the info is relevant just longer than my more recent videos: kzbin.info/www/bejne/f563Z2SOhstmjLM

[@leah679]

@@notwaitingtolive Hey Manny, Thank you very much for responding and so quickly! wow! I did watch that other video too. I need to review it again. After watching a couple of your videos, I asked more directly about getting the price to where I think I want it (based on TrueCar data). I am being offered a price that's in the "well below market" realm now, but the MF is at 0.0022 for a 2020 Mazda3. Mazda is offering 0% APR on purchases right now. What's a realistic MF / APR to shoot for in today's market? (Or where/how can I research that)? THANK YOU again. What is the link to donate to you for your assistance?

[@notwaitingtolive]

leah679 You’re welcome. I think a reasonable money factor right now is 0.001. If you’d like to donate I’d greatly appreciate your support: notwaitingtolive.com/donate/

[@Ourfloridaproject]

not waiting to live thanks again! They are telling me it’s set by Mazda and no room to go lower on MF. Residual value also set by mazda. 😢 Is there anything else work on? Thanks again!

[@notwaitingtolive]

Our Florida Project I would email other competing dealers in the region with the sale price and money factor of 0.001 to see what counter offer they come up with. If some other can earn your business with a lower money factor they’ll certainly let you know.

[@saulsaldana2281]

Thanks Manny👍👍👍👍🇺🇸🇺🇸🇺🇸🇺🇸🇺🇸🇺🇸

[@notwaitingtolive]

You're welcome Saul. Thanks for checking out my other videos.

[@samdecaprio]

Thank you for your advice! It's been really helpful to me as I'm preparing to make some offers tomorrow.

[@notwaitingtolive]

You're welcome. And good luck. Let us know how it works out if you think of it.

[@samdecaprio]

@@notwaitingtolive thank you so much again for your help! I ended up buying a 2020 VW Jetta and saved almost 4k 😊

[@notwaitingtolive]

Sam DeCaprio Congrats! That’s over double the average savings on a car that will be popular for many years to come.

[@renelara960]

If a vehicle is for example $42,000.What is a good deal price to purchase all included out the door? I'm actually going tomorrow

[@notwaitingtolive]

There’s no general rule for a discount based on price of the car. What you can negotiate depends on the specific car. What are you looking at buying?

[@BizzyIzzy87]

And then you add all the other fees and pay MSRP anyways that way lol. Always negotiate out the door price.

[@notwaitingtolive]

I just created a video on my channel which addresses the challenges with negotiating out the door price. I think you may find the information useful: kzbin.info/www/bejne/p53Pqomsh7GEmLc

[@SGriffin597]

World you be able to dedicate a video to purchasing a 1 year old vehicle with under 15k miles? Also, what if it’s available 250 miles away at another dealership? Can I have my local dealer and a salesman where the vehicle is located bid against each other? Thx!

[@notwaitingtolive]

I can't right now. I have a few videos in the backlog to make. But I can answer your questions. Dealers can trade new cars between each other (plus the cost of delivery which is $1-2/mile). But they won't commonly trade used cars so there's no real incentive for one dealer who has what you want to negotiate with another who doesn't have what you want. You would likely be able have the car delivered to your door from the dealership that's 250 miles away. If your concern is negotiating from a distance the same concepts in my used car negotiation video apply. Reach out to the dealer that has the car you want. Build your backstory that you're ready to buy today and this car is one of several other you're considering that are closer to you. And make the case that you're willing to listen to an offer you can't refuse. People buy cars all the time from dealerships across state lines and even across the country and then either travel to pick them up or have them delivered. Do you have any other questions I can help answer?

[@sabastiantaylor7209]

Uhhh I ask to see the invoice on the car. I pay invoice on the car and I don’t tell them I brought my own financing. I have never paid MSRP. I do not pay dealer fees. I EMAIL EACH DEALER IN THE AREA. If they won’t show me invoice. WALK AWAY! Make the dealers fight each other for your business.

[@notwaitingtolive]

I agree that the fundamental mechanism for negotiating the best new car price is dealer vs dealer price competition. Broadly speaking dealers of the same manufacturer can all sell you the exact same car. The factors you mention like dealer invoice and hold back are going to be roughly equal for dealers of the same manufacturer and are not relevant in the final sale price. The only significant variable between dealers of the same manufacturer new car is how close they are to their unit goals for the month, quarter, and year at any one particular time. These variables are beyond your control in a negotiation. This video is about positioning yourself as best you can before pitting dealers against each other to see which one is willing to go the lowest. Timing is by far the most significant factor in new car sale price.

[@sabastiantaylor7209]

not waiting to live thank you for a the information. I’m also patient and not emotional about my purchase. Which really helps. I start a week before the end of t he month and try to buy December January time. Which has seemed to work out best for me. I always start researching months before and go after cars I have seen on the lots for a long time. Usually a highly loaded vehicle almost the most expensive on the lot. Plus I try to build a relationship. I have got to the point that I buy any car I want through the one Lexus dealer but they own a multitude of dealerships and they just bring the car to the dealership for me and I buy it from them even when it’s not a Lexus. I have always purchased 35 plus cars from then in the last 20 or so years.

[@notwaitingtolive]

Sabastian Taylor patience is so important. I myself have fallen victim to my emotions in a used car purchase that cost me at least an extra $500 if I just held back and remained patient. That’s a heck of a purchase resume by the way over the last couple decades. Do you flip or export them? Or do you just give great presents?

[@sabastiantaylor7209]

not waiting to live I am a passionate automobile enthusiast. When I was first starting out I drove beater cars but once I became successful I told myself I would get what I wanted. Now that I can afford it, I get what I want when I want, but I have learned building that relationship has saved me lots of money. It’s amazing what you save if you have patience. That’s why I try to stick to the one dealership.

[@notwaitingtolive]

Sabastian Taylor I admire what you’ve been able to accomplish. What’s your favorite make/model over the last couple decades?

[@johnsondana10]

Thanks for the great tips!

[@notwaitingtolive]

You're welcome. I appreciate you taking the time to check out the different videos on my channel. I hope this helps you negotiate a discount!

[@strategicservices9906]

How much less should I get off list price if I don't have a trade in?

[@notwaitingtolive]

You should get the full discount you would’ve gotten with a trade in or even more. The game they can play with the trade in is to give you less for your trade in or charge more for the car you’re buying to give you an impression you’re getting a better deal on the other. The money at stake is usually ~$500, and usually $1,000 or less. Buying without a trade in is just a simpler negotiation, which is to the buyer’s favor. Did that answer your question?

[@zhiynijohnson8287]

Hey, I’m looking to buy a new Mercedes soon. I inquired about a 2020, but the sales rep quoted me for a 2019 as he said he was trying to help me get the “ best deal “. It’s still new however it doesn’t have all the options I was looking for. I also noticed that it was the last new 2019 black/black one that they had on the lot. The 2020 that has the options I’m looking for is only $600 more MSRP but he’s saying that vehicle wouldn’t qualify for as many discounts. What should I do?

[@notwaitingtolive]

Zhiy'Ni Johnson They’re probably being truthful that last year’s new model qualifies for a significantly larger discount. That car will need to be discounted significantly compared to the current model just to sell this time of year. Car sales people get paid off the gross profit of the vehicle and potentially internal dealership incentives for selling specific cars at the dealership (particularly last years new models). You can be sure though they’re not steering you towards the 2019 out of the kindness of their heart. They’re either personally incentivized to sell the 2019 version, or they think the 2020 version after discounts will be out of your budget. Keep in mind when it comes time to sell the car the difference between the 2019 and 2020 model year could be worth thousands of dollars in resale value. Normally I wouldn’t recommend trying to negotiate two vehicles at once. But in this specific situation I’d get their offer for both and compare. The 2019 model should be $3,000-5000+ cheaper than the 2020 model. If the 2019 is only $1,000 less they’re trying to pull a fast one. In general the 2019 model at the right price will be the better financial decision because of the deeper discount, but make peace with what you actually want out of this car. The worst thing that can happen in the car buying process is not that you pay too much, it’s that you buy the wrong car.

[@zhiynijohnson8287]

not waiting to live thank you so much for your reply. Is the dealer able to add options to the 2019 vehicle? It’s the premium keyless go package that I really like, that the car doesn’t have.

[@notwaitingtolive]

Zhiy'Ni Johnson for the most part no factory options can be added after the car has been manufactured. A keyless entry package most likely cannot be added. Some times an authorized dealer can install original equipment manufacturer options but these cases are usually limited to items that can be attached like an extra battery, skid plate, or grill.

[@SeBro999]

2020 Honda Odyssey in 84096 I feel like you are going to save me some money this week.....

[@edbrown7006]

More gold!!!

[@notwaitingtolive]

Thank you. I appreciate you taking the time to leave feedback.

[@coopsnz1]

There less net profit today in new cars , than 20 yrs ago . Blame government and union leaders the overpriced everything