Well just got back from the dealer to find out what they would give me for my STi on a trade for a Evo IX for the hell of it.

My STi is an '05 with 9200 miles and some options installed. They appraised my car at first for $26000 (I conviently placed the NADA value of $27,100 on the seat). KBB listed my car as $25,350. I ended up talking them up to $26,750.

After this I left and I acted like I didn't seem at all interested in the offer they were giving me. The sales manager told me they would sell the car to me at MSRP as well.


My question is, would you take this offer and go ahead and purchase the car? Currently I'm on a 5 year financing plan with Subaru at 255 dollars a month for car payments (I put down a big down payment) and would like to keep it around there, I may be willing to increase to 6 years at around 255 a month for the IX.

If anyone could give me some advice on what I should do as far as bargaining and eventual purchase of the IX, please let me know, thanks.

 

6 year loan on a car is stupid. 5 is pushing it. Frankly, I would stick with what you got. The deal doesn't sound that great if they are offering book value and selling you the car at MSRP.

 

Not a bad deal

 

what car do you like more? go with it

 

The Evo IX, I just feel like it suits me better than the STi does.

 

You gotta understand that the way dealerships make money now especially selling cars at MSRP is trade ins. Just as "paying cash" for cars got you a deal 15 years ago, it doesn't work in todays trade in obssesed economy, with the advent of Costco pricing, and the internet, everyone is savvy enough to know you can get the car at or close to MSRP, markups are a thing of the past, mostly.


You are never going to get what you think your car is worth by trading it in, sell it private party and just wait, however private party will want to buy your car at NADA and KBB prices so it's a lateral. Take it from someone who has traded in alot of cars recently and decide if the EVO is going to be kept till paid off, otherwise you will continue to be upside-down every couple of years to get the next new thing.

 

If you are paying MSRP, you are paying too much. Afterall, MSRP is markup.

 

I apologize, I meant invoice

 

Precisely. If you're going to get the IX, which you really sound like you want to do, make sure you plan to keep it for a while.


Agree here as well. MSRPs can be quite a lot above invoice. Ask to see the invoice the dealer paid for the car and bargain from there. Oh an also, I've never before paid "dealer fees" which can be as much as $600. I simply tell the dealer I'm not interested in that fee.

Finally, I'd say take the car for a test drive to see if you'd really prefer it. And if you do, then work you negotiating skills

 

Sounds good so far guys keep it coming.

They were pretty tough on the dealing, if they don't budge through I will go to a different dealer. I will wait a week or two then go back in and ask to see what the dealer paid, and then negotiate from there. But like I said if this dealership doesn't go through then I will go to the next. Kinda pisses me off how they wouldn't work anymore with me even though I talk to one of the salesguys (the one that is selling me the Evo) all the time, and I have two family friends that work there, one of whom is the sales manager.

 

my 6 year loan ended up being $200 more in interest than the 5 year loan, not that much diff. Just FYI

 

the ix is tight and it's not a bad deal but your payments will probably be more than 255

 

i think the bottom line is what kind of money are you giving away to interest not what your monthly payment is. the deal is looking good to me but whats your interest rates at now and what kind of rate are they offering you? i got 4.7 percent at a credit union. most dealers get there kick backs off of financing so watch for that.

 

Hmmm...I think he said about 6%, which is pretty damn high. I wonder if I should go with a credit union.

 

The thing is, dealing with a salesman is like playing poker. They are trying to gauge your interest and everything will be setup from that.

Think about the poker-face you are presenting them: you are looking to trade in your practically brand new car for what is essentially a nearly identical car. They know you are in it with your emotions and not your brain because it really makes no financial sense to do. Do the math and figure out how much money you are tossing away and it's sort of crazy really. You have eaten the brunt of the depreciation on the STi only to trade it in on something else that will go down 7k or so in a year. oUCH! I bet the salesperson had saliva dripping from his mouth because he figures you are easy prey.