Hi all!

I am looking to buy CX-9 Signature from 2020 or so and I found one online with advertised price of $36k (2020, 18k miles). I contacted the dealer and asked for the out of the door price. The price became $42k, but, wait, it now includes: reconditioning fee of $1,500 and accessories package for $1,595. So, they are clearly pulling a quick on by feeding me with $3k of stuff I do not need. This is a used car and if you really-really want to detail it, then $200 is all it takes.

This is the first time I am looking to purchase from a dealer, hence the questions:

1. How do CX-9 hold up the market value in real life, not just going by the prices on cars.com and such?

2. What is realistic and a good discount to get from a dealer on average? I'm in TX, if that matters.

3. Any other tips/tricks on negotiating with a dealer?

Thanks so much!

 

1. How do CX-9 hold up the market value in real life, not just going by the prices on cars.com and such?
This is always an unpredictable question with what we have seen in the last 2 years. I would shop for other reasons and not as investment in return when you go to trade in or resale.
A few of use received MAZDA letter that offered (as trade in for a new Mazda) as much or close to what we paid for our Mazda that were almost 3 years old. I did. LOL

2. What is realistic and a good discount to get from a dealer on average? I'm in TX, if that matters.
This has so many variables that the only people that can answer are those that have purchased in your area. And in Texas that varies a lot from county to county. Used cars on Dealer lots have different reason for why they are priced and nothing is conforming to what the market can compare. Most are trading in and the re-selling price is formulated in part by what was purchased in its place.

3. Any other tips/tricks on negotiating with a dealer?
The only real tactic that partially still works is you offer and be prepared to walk. And I mean leave. Don't negotiate, tell them what you are offering, dont use the term its all I have or I will pay cash, neither really work as leverage as it once did. The dealer is going to get paid regardless these days. LOL If they want your business someone will call or email you. So make sure you leave something that has your information.

 

Thank you for the detailed response. But in your experience what were your best percentage you managed to knock off the asking price?

 

I have a Dealers License......
I once purchased a car at DOCKED pricing. That means exactly the cost as it was unloaded off the freighter from the auto manufacturing facility in England to Hayward California. It was brand new BMW not even a 2/10th of a mile on the odometer.

Having relatives that are investors in a couple dealerships in other states as well I worked a short time for dealership in sale service and parts.... (Basically, where I felt I wanted to at any given day) I know what real pricing is and it still not what you all think no matter what is advertised as. Bank flooring has a lot to do with the retail or final sold price as well the location of the dealership and what the contract is with the auto manufacture. Dealerships are mostly independently owned business. This is why at times shopping around may give you a better deal. But don't make the mistake of trying to compare same model make and option unless they are exactly in all respects the same. You will not have as much negotiating power.

I get asked from friends and family advise and I tell them make the best deal you are going to feel good about and judge where you buy it by how well you are treated. Future service and other sales needs and wants may depend on that good feeling when you drive home in the new vehicle. And really don't make the mistake in telling what your deal was or what you paid, you will likely get that friend a co-worker, neighbor etc that will tell you they got a better deal or know someone that got a better deal. LOL

 

10 Days before quarter ends make your offer. Bonuses are based on sales so there is more sell pressure at this time. Of course the Fed actions have even distorted the car market now so all past tips may be invalid. Lucky Lopez on YouTube gives good advice on what is happening now.

 

Thanks, I'll have a look. I agree this should typically be opportunistic time to buy a car. And in a way the spike to an already insane interest rates might actually deter people from buying - I wonder if that gives leverage to the buyer. We'll know soon enough, I'll reach out to a few vendors to feel them out.

 

Cars are still in short supply, so prices remain high. The add-ons you show are just another way of raising the price. Sometimes it gets to the take it or leave it point, because someone else tomorrow will take it.

All that said, reread Callisto's item 3 in post 2. Car dealers need to sell cars. You want a car. Needs trump wants. If a salesman doesn't get cars sold they make no money...and they get fired. The only truly effective negotiating tool we have is the willingness to walk away. And, this is hindered due to the short supply. Make an offer and leave them to ponder it is great if you're willing to risk losing the deal if they can sell the car to someone else. These are unusual times.

There are many very good videos on youtube about buying cars and all the sleazy tricks dealers pull on customers. Watch several and go in informed. Simple things, like be aware of the 4-square tactic where they move numbers around on a sheet of paper until your head spins and you agree to a bad deal. Let them do it, because now you know their game. Don't tell them how you'll pay for the car until you're ready for the contract to be printed by the so-called finance manager. They are counting on a kickback on the financing, and a higher kickback if they get you to sign for a higher interest rate than you'll qualify for. Take all the time you need and say as little as possible. Look at your state's law regarding documentation fee. This is the fee for preparing the paperwork, and in some states it is stated in law that this fee is optional and limited to a certain maximum amount. Know this. Don't talk about it until you're shown the completed contract, then tell them that you won't pay the optional fee. They'll reprint the contract after they fail to sweet talk you. Don't sign or initial anything until you read every word above it, and understand why you need to agree to it. Check every number on the contract and understand why you need to pay it. Be sure the total is correctly added (yes, they are that sleazy). You certainly do not need to pay a used car prep fee and an accessory package fee, unless that extortion is the only way you'll get the car you really want. Shields up!

 

Thank you, they did say that the car prep fee is mandatory, the accessories - doesn't seem like it. I'll do a bit of reading on it. I'm not really in a rush to buy a car and I can walk away if I don't get a good deal.

 

Good!!!

 

LOL insane rates? In 2004 during GWB the 10 Year Bond Rate, used for real estate deals, was around 4.5% and in the 1990s when America still had a large manufacturing sector it was about 6.5%.