Is that how true-car works?

 

So it seems, so far. Apparently their goal is to provide you with the average paid price (or less) on cars in your area. Immediately after I entered the requested info, they sent me a voucher offer with participating dealers.

 

Keep us posted I will be following suite shortly

 

Does it have to be for your area? For example my area does not sell a lot of Evo's and for the most part the ones they sell are usually close to MSRP. But the Dallas area sells a good amount of Evo's and I know the average paid will be lower up there.

 

Go to the site and get a free quote; It doesn't hurt to see what's in your area. They gave me 3 great options

I'll post my results this Wednesday

 

Hang on a second! If you're financing, read this. If not, might be worth a read I guess.

I actually tried this method with the same dealership after failed negotiation of lowering to a price I liked.

I pulled out the True Car print out that they give you on the website and he took it to the manager. He comes back and says we can do this then. The pricing on the True Value was something I liked (unfortunately I can't remember what the price was) but they wouldn't let me finance my Evo with Mitsubishi. It had to be "Standard finance" which ended up with me paying something like $2.5k + in interest rates. (that's where they make the money back) At this point they seemed to be a little aggravated.

I wanted the Mitsubishi's 0.9% financing for 48 months which would end up being a total of $350 of interest

There are a bunch of stipulations when you pull the True Car method.

Be careful.

I ended up agreeing on a $800 below invoice price with 0.9% financing for 48 months. (I didn't take the True Car deal)

 

To get a total of $350 of interest, on a 0.9% interest loan for 48 months, you would need the car to be about $19,000 OTD.

It seems like most likely your dealer tried ripping you off by playing with your interest rate because they were not happy with selling you the car at the true-car price. They did the typical dealer practice of taking the money off one aspect, but then just adding it to another. I was told they can add up to 2% interest on top of the rate you were approved for. What a crappy dealer. Mind giving us the name?

I would suggest getting your finance approval prior to going to the dealer. Apply at your local financial institutions. Then you will go to the dealer already knowing your interest rate. Then get the dealer to honor the true-car pricing and get you the OTD price. Now you will know the total car price, the interest rate, your payment amount, and exactly how much the transaction will cost you.

Go ahead and run your credit again with the dealership. If they can get you a lower interest rate that what you have already been approved for, then cool, even better. If they are like the above referenced dealership and are trying to make additional money by adjusting your interest rate, then they will just be screwed and will have to make their money back on some other fool.

 

Wow, thank you for this.

I spoke with the sales manager (M. Ko) who is highly rated in the evo community. He did mention that he would like to make some $ back on the financing, but if he can not match my credit union's rate, he will work it out.

Honestly, If I can't get the price TrueCar gave me, or at least close, I'll just walk. I'm not trying to be dicked after a drive all the way to jersey!

I'm also in the for the name.. I'm guessing it might be rt 46?

As mentioned above, I already have my own financing lined up. I sincerely doubt they'll beat my rate, but if they can, maybe just MAYBE I'll think about it.

 

For others in the future, I would try to do what I recommended but, I would not make any mention to the dealer about financing. Go along and pretend like you do not have financing lined up. Get them to honor the true-car pricing and work on the OTD fees.

If a dealer has to give you the true-car pricing, they will either try to get their money from your financing or from some OTD fees. So I would just make them think they are getting it from the financing part. This way I could work the OTD price.

 

Any advise on Negotiating I have gotten railed on the last two cars I bought walked in thinking it was a great deal as tehy had 7k in rebates but some how They managed to jack it back up to past msrp.... I know taxes are a lot in Cali and we did add warrenty it is a Kia after all (wify's go getter) BUt still there is like 6k mystry money that even the bank that financed me cant explane but its all in the damn Contract and I swear when I signed it it was much lower then that. Anyway now that ive gone all crazy with it..... Back on topic. Any advice to Negotiating OTD price Fees etc... the whole 12 hour battel seams like your always there from 8am-8pm....

 

There really isn't much to negotiating. You need to determine your OTD price. I would want to see a price break down right infront of my eyes. How much is:

-the car
-taxes and tt&l
-dealer fees
-gap insurance
-other extended insurances
-trade-in (if it applies)

I'm not sure what more they can add. You can figure out the taxes and tt&l online, if you know the price of the car.

They should be able to tell you exactly how much they are charging for their stupid fees

Gap insurance is not suppose to fluctuate. It is suppose to be a set price depending on the price of the car

And other extended warranties can fluctuate as these dealers like to add or take money away on the prices of them. But you should get an agreement on the price of the extended warranties if you are wanting to purchase them.

Trade-in is pretty simple. How much are they giving you?

With this you should have yourself the OTD price.

I would then say ok, you are going to shop around OTD pricing at other dealers. And not just local, but nationwide as well because if it comes out cheaper, it might be worth paying to have it shipped.

Infact, I would shop around prior to going to your local dealer because they you will have an understanding of around how much it will cost to begin with.

 

Also forgot to mention financing, but I have covered it above.

Get pre approved at the best interest rate that you can first. Then get approval with them. If they can beat your already best pre approval rate, then go with them.

They still may be adding on some interest percentage, but who cares because they would already be getting you a better rate than you can get.

And then when you go into the finance part, you can always act like you don't like the rate and make it seem like you need more time to think about it. If they have room to play with it, they will probably lower it some more.

Just don't let them know you are pre approved already. Just play dumb to the financing part.

 

(Car salesman)

The best way to purchase a car (new) is do your research. Get pre-approved through your bank or credit union before you go in and know what the total amount you want to finance is. If you do that, your lender will already have gone over payments vs. amount financed with you and you'll just be negotiating the out the door (price after trade, taxes, tag, fees). Like the dude above me says tell them you're paying cash up until right after you agree on figures, and at least give them the chance to beat your interest rate.

When it comes to the OTD figure go in knowing what your trade is worth (KBB, NADA, etc) and fight for a little over that amount. Research rebates and incentives which most of the time are publicly available on the manufacturers main website. Websites like TrueCar.com will calculate a figure for you based on MSRP that removed markup and rebates so you can pretty much just hand them the paper work from the website and you're done. The only profit the dealer makes then is the dealer fee and the holdback which is what they get paid from the manufacturer for selling a new car.

 

I wouldn't even tell them you are paying cash. I would just let them think you have not done any preapproval and plan on financing though them.

If you do it this way, you may be able to work a better OTD price because they may be more likely to give a little on price, because they think they will make up some money on financing.

At his point you will have your OTD price and you will already know your interest rate from your preapproval and with that you will know your payment. Then give them the opportunity to run your credit and see if they can get you a better interest rate.

My understanding is manufactures also have rebates (so to speak) to dealerships that will not be posted online on the manufactures site. For example, they had a couple slow months selling Lancers, so they offer rebate money to the dealerships if they start pushing out more Lancers off their lot.

Those type of dealership rebates will not be online and you will have no clue about it. But I'm thinking if you use true-car, you will see a sudden drop in price in the Lancer models and can figure something like that is going on? I haven't played around with true-car so I don't know exactly how it works.

 

I forgot to mention I was trading a car in so yes, it was just short of $18,500 OTD.
Rt 46 Mitsubishi. I dealt with Alex.

(on a separate note: the Evo manual booklet mentioned my keys were suppose to come with a key tag badge (in the event I lose my keys and need replacement) . My set of keys didn't have any and called him multiple times about it missing. He never returned my calls after saying he would. I ended up calling the manager and he said it wouldnt matter since they pull the VIN # anyway)