#Her hometown forum selections

Forum original post address: Sharing experience in bargaining for new cars in the United States in 2022 . Women and non-binary are welcome to join our community and discuss your car buying experiences with fellow locals.

by timepiece

Due to the shortage of semiconductor chips and semiconductor labor, and the global supply chain becoming unstable due to the epidemic, the last year or two is actually not a good time to buy a car. But also because of the above reasons, the second-hand car market is very hot, so the price of selling cars will be higher than before, and it will be easier to sell.

To sum up, we decided to buy a new car (???)

In fact, the reason is this, we——

• I want to sell my old car while the second-hand market is booming.
• I want to change to a hybrid car (although electricity is often not clean energy). ( https://www.youtube.com/watch?v=s3ScJ_FwaZk)
• We want to buy a car while it still has qualify tax credit (the car we want to buy will soon be sold for 200,000 hybrid/tram, and we may no longer be able to enjoy federal tax credit if we buy it next year). After the introduction of the Inflation Reduction Act, there are There have been many changes, which will be discussed in detail below.
• Like anything else in life, if you must upgrade, buy it early and enjoy it early.

The following is my bargaining experience (about a few thousand dollars), I hope it can help everyone who needs to buy a car.

Step 1 - Decide on budget and car model

• In this step, the plan is submitted by the victim No. 2 (aka my family), and then approved by the victim No. 1 (me).
• If it is a daily car, I recommend Japanese cars, which are fuel-efficient and less prone to problems (basically there is no need to buy an extended warranty).
• Nowadays, if you buy most hybrid or electric cars, you can still get several thousand dollars of tax credit on tax return (but not all models are qualified, like Tesla/GM, it is no longer possible) Update 8/16/22: The Inflation There are many restrictions on EV/hybrid tax credit under the Reduction Act. There is an upper limit on the income of car buyers, and there is also an upper limit on the price of the car. Another point is that the car must be last produced in North America to qualify. Models that meet the requirements can be found at the US Department of Energy ( https://afdc.energy.gov/laws/inflation-reduction-act) . As for Tesla and Toyota/GM models that have reached the manufacturer's sales limit, they will be eligible for tax credit again after January 1 next year. Tax credits are also available for qualifying used streetcars.
• So did we end up buying a Japanese car? No…(???)

Step 2 - Find a car dealer and test drive

• If you are buying a new car, many dealers may not have current cars (or this year’s/next year’s models) for you to test drive. Therefore, during the negotiation stage, most dealers can be contacted directly by email (or phone) without going in person.
• We found a dealer close to home, and they happened to have a 2022 car of the same model for us to test drive. The salesperson patiently took us for a spin, and then introduced some of the car's features (reverse material: The victim No. 2 said: "This is my dream car. I lived in its headquarters when I was a kid, blah blah." Not surprisingly, this dealer also asked for the highest price...)
• Since I have already tested the car, I no longer need to negotiate with other dealers face to face. You can negotiate directly by email or phone. If you don’t know how to write distressed emails, I found a template on YAA (the website of a salesman who has been in the automotive industry for 43 years and his son). I changed it and put it at the end of the article.
• You can enter keywords such as your car model + msrp + forum online (Google or even social media) to see if other people have received discounts when buying cars.
• I saw that for our models, some dealers did not bargain, some increased the price by 5k, some gave $1,000 loyalty cash, and some received a $1,000 discount as employees of large manufacturers... These real-life examples I found online gave me an idea. , I also know which direction to go in when bargaining.
• But when I was doing my homework, I also saw people complaining that (some) Japanese car dealers (I’m talking about you, Toyota) simply don’t bother to talk nonsense with customers, and ignore buyers because supply exceeds demand... I still hope for dealers like this Just a few.

Step 2.5 - Costco Auto Program is worth a try

• If you really don’t want to bargain and you have a Costco membership (you can ask a friend to borrow one), you can try the Costco Auto Program . Costco affiliated dealerships will have lower prices than MSRP (Manufacturer's Suggested Retail Price). Just enter your zip code and the car model you want, and the webpage will match you with dealers near you, and then you can contact them directly.
• There was no Costco dealer near me, so I filled in the zip code to the next state (you still have to pay taxes in your own state when buying a car in another state), found a dealer more than 100 miles away, and finally bought the car with them (also You can take advantage of living far away to bargain with them).
• But Costco Auto Program has a big drawback, that is, the updates to new cars on their website are not timely. For example, they have not updated the new car I want to buy in 2023 (latest development: the model we want is on the official Costco Auto website , but after I entered the information, Costco has not negotiated prearranged pricing = =). Because there is no update, I have no way to ask the dealer for the Costco price sheet... If you are not in a hurry, or don't want to bargain, you may want to wait until the Costco prearranged pricing comes out before arguing with the dealer.

• If you graduated within 24 months (undergraduate/associate/master’s degree is acceptable), you might be able to qualify $1,000 in cash~
• This Auto Program also applies to used cars.
• Not every salesperson at a Costco affiliated dealership is an Authorized Dealer Contact. When you enter your information, someone from the dealership will contact you. You can directly say that you are looking for a Costco Authorized Dealer, or you can contact the dealer directly according to the email Costco sends you. Some dealers may give you a quote by email, but some may require you to go to a physical store to see the price sheet.

Step 3 - Negotiate the price! Bargain! Bargain!

 Before negotiating the price, if the dealer asks you for your socials and pulls your credit score, no! want! Give! Because bargaining and trade-in/finance are separate steps.

The core idea of ​​bargaining——

• All taxable items (except DMV fee and sales tax) can be negotiated!
• Trade-in and finance (the dealer likes to show you monthly payment, but it means nothing) are other steps. The first step in bargaining is to negotiate the OTD (Out the Door) price of the car——
• ex. I might be interested in trading in my car or financing, but I'm here today to talk about the OTD price.
• We would like to see the OTD price, including sales tax and fees. Nothing more nothing less.
• A conscientious dealer’s OTD price should only be MSPR+Sales Tax+Title/Registration Fee (+Service/Doc Fee). After knowing the MSPR of the car, you can use YAA’s tool ( https://joinyaa.com/out-the-door- price/) do the math.
• Costs that can be avoided/negotiated: Protection Package (common ones include tinted window, paint protection, seat waterproof protection, nitrogen tire, etc.), Additional Accessories, tire insurance... I want to know why these services are not worth so much money. You can watch the video - 4 Car Dealer Fees or 9 fees to NEVER pay a car dealership .
• If the dealer says they can't remove the package, we can:

1. Change dealer.
2. Or tell them firmly: I did my homework, I know I don't need those and I am not paying for them / I don't want any accessories on the RO (repair order) for the PDI (pre-delivery inspection) ).
3. Or: I'll pay for those but the price of the car need to be lowered by that amount of the fee.

• The following is the public pull of two dealer quotes——

• This quote comes from Xiaohongshu. I was really filled with questions after reading it. The first insurance is completely a profit-making project for car dealers, and then the processing fee is also created by them. The most ridiculous thing is the sales commission... This actually requires customers to pay. ...There is also a freight fee. The destination fee for new cars is included in the MSPR and you don’t need to pay it separately. Used cars may require it. Adding up all these extra expenses, and then the dealer pretending to reduce the price by $2,000 is a psychological tactic. It's really a shame.

Then this is the dealer we found. Not only did he not add any weird fees when he gave me the first quote, he also gave me a discount of several thousand dollars on the basis of MSRP. And he told us honestly that he might not have the allocation for our car, and it might take a long time to order a new car from the factory. Because of this factor, we did not choose him in the end (but we sent an email to thank him and told him the reasons why we would not buy a car from him). but! With this quote, we felt confident. We used it to negotiate with other dealers and finally got a bigger discount.

Step 4 - Sign the written offer

After negotiating the OTD price with the car dealer, they will ask you to sign the offer (because I bought a new car from a factory order, so it took several months to get the car, and trade-in/finance etc. will be in We’ll talk about it when you pick up the car, that’s another battle), and you’ll be asked to hand in a deposit. There are a few things you need to pay attention to:

• Make sure the deposit is fully refundable.
• Make sure that if there is a new buyer/factory incentive in the next few months, the dealer can match it.
• Ask the salesperson and his/her manager to sign it.
• When my salesman asked me if I didn't trust him when I made these requests, my first reaction was guilt and I thought I was too pushy, but I would say this: "I trust your professionalism. You are great to work with. But at the same time, as a customer, I just want to make sure that my rights are protected. It doesn't hurt to write down just a few sentences on the written order right?"

Step 2 Supplementary information - a very direct email template written by a man

[NAME],

Greetings,

My name is [ ] and my zip code is [ ], and I am looking to purchase the following:

2020 Honda Odyssey in the Touring Trim. My preferred color is Red Scarlet Pearl but the Platinum White Pearl is also acceptable. I presently own a 2011 Accord and a 2016 Pilot, so I will qualify for Honda Owner Loyalty. I am prepared to pay cash but would entertain financing if that would offer a better out the door price. I am looking to take delivery by month end at the latest. I would move sooner if the deal warrants it.

Please provide me with your best detailed out the door price including all fees and please be competitive as I am contacting several dealers on his behalf within a 75 mile radius.

Thanks so much and I look forward to hearing back from you.

All the best,

[name]

Their email template is written at the beginning, you can also refer to it.

My name is [name] and I am in the market for a car. I have been coached by Ray Shefska, of YAA. Here is a link to their website: https://joinyaa.com/ this will give you a little insight into how much I understand about the process. I want nothing from your dealership other than a competitive price and an ease of doing business.

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