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Easiest way to get the best price on a new truck

Discussion in 'Trucks and Trailers' started by Rons Rightway Lawncare, Aug 18, 2008.

  1. Rons Rightway Lawncare

    Rons Rightway Lawncare LawnSite Bronze Member
    Messages: 1,164

    I was reading another thread posted recently about are truck prices really lower right now due to the high costs of fuel. Well here is my take on it....

    First off, the dealer is not going to sell you a new truck at a loss. That is the bottom line.

    The dealer pays a given price for the truck and even if he sells you the truck at that price " Dealer Invoice " price, he still makes a little money at the end of the year, what they call holdback, which is a sort of bonus paid based on how many vehicles he sells for the year. Bottom line is the dealer has to pay a salesman and salesmanager, a detail guy, a mechanic, etc... with all new vehicle sales and the cheapest they will sell you the car for is dealer invoice.

    Now most cars and trucks these days do come with rebates and other special offers.

    What you need to do in advance of going to the dealer is find out the following....

    1. What is the invoice price of the vehicle your considering buying

    2. look at the vehicle manufactors website and find out what are the current applicable rebates and incentives

    ( one site you can use to find both of these quickly and easily is www.carsdirect.com )

    3. figure out roughly what your credit score is and based on that you can find out roughly what kind of interest rate you can get. One site I have used to find a good rates on is www.capitalonefinance.com

    So you know what kind of interest rate you should get, you know what the trucks invoice price is and you know what kind of rebates are out there.

    Go to the dealer and ask to speak directly with the sales manager, to save you and the salesman time and to cut straight to the chase.

    Tell the sales manager your willing to buy the truck right here and right now if he is willing to sell you the truck at dealer invoice MINUS all rebates. Give him your Social security # and let them pull your credit and explain that you know you can get a ( whatever it is ) interest rate and you want their finance manager to match that rate.

    You should know that the dealer is going to add in your sales tax, title and tag fees and some kind of documentation fee ( should be no more than 400$ for the Doc fee, if it is more then either pay it or spend more time finding another dealer with lower doc fees )

    Doing a deal this way makes it easy for you to get the bottom line price and saves you and the dealer alot of time avoiding the back and forth deal game they usually play.

    I do not believe that because gas is so expensive that dealers are going to sell at a loss. The dealers simply can't sell the truck any less than invoice minus the rebates. If truck sales slow down because of gas prices or slowing economy or whatever else.... the dealers will not have room or need to order more new trucks from the manufactor, The manufactor will then be forced to either cut back production and or offer better rebates in order to boost sales and move the units off the dealers lots so the dealer will have the room and need to order more new stock from the manufactor.

    Don't forget that unless your paying cash - and the dealer would rather finance you since they make a small amount of money as a kickback from the bank for making a loan, and they make no kickbacks when you pay cash.... - you are not only shopping for the best price on the truck but also the best interest rate on the loan.

    Also when I make deals I could care less about how much the truck itself costs, I always work with OTD ( out the door ) prices, and like I said, some dealers will have over inflated DOC fees and other BS fees they might want to add like for afinish protection plan or body undercoating etc... I am only willing to pay dealer invoice for the truck, minus rebates, and my sales tax, tag and title and no more than 400$ for DOC fees and that is it. Shop around and you will be able to get the same deal. My Tundra stickered for close to 30 grand and I bought it out the door with all fees added and paid only 22,700$ Got a good rate too, as good as I could find anywhere online.
  2. Rons Rightway Lawncare

    Rons Rightway Lawncare LawnSite Bronze Member
    Messages: 1,164

  3. browningv308

    browningv308 LawnSite Member
    Messages: 160

    just act like you are not interested in it tell them that you don't really need it but your just looking i bet they drop the price several times before you leave the lot
  4. Rons Rightway Lawncare

    Rons Rightway Lawncare LawnSite Bronze Member
    Messages: 1,164

    Sure, but that is all part of the game they play. If you go into the dealership letting them know you have done your research and you know what you want and what your willing to pay they will either accept and you get busy signing papers while their detail guys clean up the truck and shine up the tires, or they say no and you shake the sales managers hand and thank him for his time and turn around and leave. But unless the vehicle you want to buy is a extremely limited edition rare vehicle, they will take invoice minus the rebates.
  5. newz7151

    newz7151 LawnSite Silver Member
    from Tejas
    Messages: 2,419

    It's something how this is complete opposite of the Outdoor Power Equipment world. YardCard 90 days SAC doesn't cost the dealer, but all of the other plans do. Between 1%-6% of the total (with tax even!) depending on which plan the customer tries to use and which finance company it is.

    The attached is an example from YardCard. There is only one plan which provides a 1% rebate back to the dealer, but it's the one that nobody in their mind would ever use.

    rate example.jpg
  6. mag360

    mag360 LawnSite Silver Member
    Messages: 2,445

    They can pull rebates and other incentives that are about to come into availability too. I grabbed a new dodge back in early march for roughly 2/3 sticker (including tax, tags, doc, etc). They pulled a couple thousand out of their hat to make the sale (early kickback from chrysler to the dealers I believe---before they started giving them the big money to sell hemis at 1/2 price). That was with no harsh words or pita tactics from me (trying to treat them as I want to be treated).
    The dealer did manage to weasel out of the 3 years of free oil changes they used in the bargaining though. I signed the "we owe" reciept after asking about the oil changes---paperwork guy said it was between me and the sales manager and the sheet only verified that the truck had all the equipment I wanted on it when I picked it up.
  7. P.Services

    P.Services LawnSite Fanatic
    Messages: 6,319

    i think im going to stick to buying used with a few thousand miles from a private party. then i know im getting a great deal.
  8. Rons Rightway Lawncare

    Rons Rightway Lawncare LawnSite Bronze Member
    Messages: 1,164

    In most cases, you can buy a new truck for less than a nearly new truck from either the dealer or a private party.
  9. FDuce

    FDuce LawnSite Member
    Messages: 178

    Especially now. I've been looking for a new/used truck for the past month or so. I found one dealer who didn't BS me. They said the truck "black book" prices have been dropping by $500/week for the last 4-5 months. They also said that in the past 2 weeks the prices have gone back up 500/week due to the drop in gas prices and the flood of good deals (people are starting to buy again). At one dealer they had a '07 F150 ext cab 4x4, asking $29, 500. I can buy the same truck new from the dealer for $20-21,xxx, but I get A-Plan also. People that bought these trucks a year ago haven't made enough payments to keep up with the dropping book values.
  10. TomberLawn

    TomberLawn LawnSite Bronze Member
    Messages: 1,299

    Where do you find the invoice cost for the vehicle you want?

    I've heard of instances where a dealer will sell at a loss because of floor plan financing. If a vehicle stays on the lot for too long, like over 30 days or 45 days depending on the program, the dealer has to start paying interest to the manufacturer. If you roll in on the 29th day and offer a few hundred under invoice, that would be better than for the dealer than letting it sit for another few days or weeks and pay interest on it.

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