How to get 15%-20% off MSRP
03-01-2019, 02:21 AM
#1
Senior Member
Thread Starter
How to get 15%-20% off MSRP
Back in 2016, I was looking to buy a Z06, while I was surfing the corvette forum and looking to see what other forum members were paying for a new Z06. I came across an old thread that discussed negotiation techniques when buying a new car. I have tried that technique several times and it works almost every time. I will try to explain it here:
1. Using cars.com or similar sites, search for year, make and model of the new car you are considering. Set the "Distance= All" as at this stage you are just trying to find the lowest priced car(s) in US or the country you are in regardless of the location, color or other options.
2. Do another search, except this time narrow it down to the color and trim of the car you want. Sort the results on "Distance= Nearest" Find the dealer(s) that have that car in stock and send a nice friendly email indicating you are interested in their car and include a link to the lowest priced car(s) you found in step 1. Ask if they are willing to match the discount. Depending on the car and how exclusive it is, as well as how picky you are with the options, you may have to broaden the search outside of your local area or state.
I will expand on this using the following purchases I have made:
* 2016 Z06 – I started looking for a 2016 Z06 in Oct of 2016. The 17 models were already on the dealers’ lots. I found one at about 20% discount in FL and managed to negotiate and buy one locally for $86K, the MSRP was $107K, so $21K below sticker or 19.6% discount. I was looking for white Z06 with 2 tone red/black, 3LZ with Z07 package. The Z06 I got was exactly what I was looking to get.
* 2017 F-Type R – I started looking in Nov of 2017 and found 3 cars in FL, NJ and NY discounted anywhere from 18% to 21%. I bought one locally at $89K, MSRP was $112K, so $23K below sticker or 20% discount. On that one, I wanted either a black or white with 2 tone interior. I ended up with a black exterior and all the other options that were important to me but solid black interior , so I would say I got 90% of what I was looking for
* 2018 Mazda CX5 – A friend of mine was looking to buy a base CX5 in Jan 2019, using the same technique, we managed to get her into one for $20K locally, MSRP was at $25K, so about 20% discount.
* 2019 Huracan – I started looking for it in November of 2018. I managed to negotiate a $20K discount which in terms of percentage is only 8%, however, in this case, I could have bought a new 2018 model at higher discount with all the option I wanted, except it didn’t have magnetic dampers. I was pretty set on options for this car and was not willing to settle.
* 2018 AMG GTS – I started looking in Jan of 2019 and found a new 2018 GTS in MN that was discounted by $26K. Finding the color and options locally was not that easy as most 2018 models were already sold. One dealer in TX had the options I wanted but was not willing to discount it more than $14k. I found 2 new 2018 cars one in CO and one in CA that were suitable for me. I ended up buying the one in CA at $122K, MSRP was $146K. $24K below sticker or 16% discount. They also paid for the shipping it to me in an enclosed transport. It took about 8 days to get my car from the time I signed the contract and wired the money. There are 2 options I didn’t get with my GTS, ventilated seats and Alcantera steering wheel. But If I had started looking for it a few months earlier, I would have probably gotten both those options, basically I missed the window of opportunity. In my experience it works best if you buy the current year model in the last quarter of that year.
This technique obviously doesn’t work when a new model is introduced or if you are looking for a rare or hyper car. I am on a waiting list with a local Chevy dealer for a mid-engine Corvette and expect to pay full MSRP.
Another point worth mentioning is that sometimes dealers list their new car under used category. That was the case with the 2018 GTS I found in MN. It showed 25 miles on odometer and Carfax indicated it was never titled. When I called to inquire, I was told the car is brand new and it is just a marketing tactic. I imagine some car manufacturers may have a limit as to how much a dealer can discount a new car and advertise it.
I understand that some folks are more interested in building a relationship with a specific dealer or are not willing to buy from an out of town dealer and I totally understand and respect that. I keep my cars for 1-2 year and being able to save upfront to offset new car depreciation is very beneficial to me.
Good hunting :-)
1. Using cars.com or similar sites, search for year, make and model of the new car you are considering. Set the "Distance= All" as at this stage you are just trying to find the lowest priced car(s) in US or the country you are in regardless of the location, color or other options.
2. Do another search, except this time narrow it down to the color and trim of the car you want. Sort the results on "Distance= Nearest" Find the dealer(s) that have that car in stock and send a nice friendly email indicating you are interested in their car and include a link to the lowest priced car(s) you found in step 1. Ask if they are willing to match the discount. Depending on the car and how exclusive it is, as well as how picky you are with the options, you may have to broaden the search outside of your local area or state.
I will expand on this using the following purchases I have made:
* 2016 Z06 – I started looking for a 2016 Z06 in Oct of 2016. The 17 models were already on the dealers’ lots. I found one at about 20% discount in FL and managed to negotiate and buy one locally for $86K, the MSRP was $107K, so $21K below sticker or 19.6% discount. I was looking for white Z06 with 2 tone red/black, 3LZ with Z07 package. The Z06 I got was exactly what I was looking to get.
* 2017 F-Type R – I started looking in Nov of 2017 and found 3 cars in FL, NJ and NY discounted anywhere from 18% to 21%. I bought one locally at $89K, MSRP was $112K, so $23K below sticker or 20% discount. On that one, I wanted either a black or white with 2 tone interior. I ended up with a black exterior and all the other options that were important to me but solid black interior , so I would say I got 90% of what I was looking for
* 2018 Mazda CX5 – A friend of mine was looking to buy a base CX5 in Jan 2019, using the same technique, we managed to get her into one for $20K locally, MSRP was at $25K, so about 20% discount.
* 2019 Huracan – I started looking for it in November of 2018. I managed to negotiate a $20K discount which in terms of percentage is only 8%, however, in this case, I could have bought a new 2018 model at higher discount with all the option I wanted, except it didn’t have magnetic dampers. I was pretty set on options for this car and was not willing to settle.
* 2018 AMG GTS – I started looking in Jan of 2019 and found a new 2018 GTS in MN that was discounted by $26K. Finding the color and options locally was not that easy as most 2018 models were already sold. One dealer in TX had the options I wanted but was not willing to discount it more than $14k. I found 2 new 2018 cars one in CO and one in CA that were suitable for me. I ended up buying the one in CA at $122K, MSRP was $146K. $24K below sticker or 16% discount. They also paid for the shipping it to me in an enclosed transport. It took about 8 days to get my car from the time I signed the contract and wired the money. There are 2 options I didn’t get with my GTS, ventilated seats and Alcantera steering wheel. But If I had started looking for it a few months earlier, I would have probably gotten both those options, basically I missed the window of opportunity. In my experience it works best if you buy the current year model in the last quarter of that year.
This technique obviously doesn’t work when a new model is introduced or if you are looking for a rare or hyper car. I am on a waiting list with a local Chevy dealer for a mid-engine Corvette and expect to pay full MSRP.
Another point worth mentioning is that sometimes dealers list their new car under used category. That was the case with the 2018 GTS I found in MN. It showed 25 miles on odometer and Carfax indicated it was never titled. When I called to inquire, I was told the car is brand new and it is just a marketing tactic. I imagine some car manufacturers may have a limit as to how much a dealer can discount a new car and advertise it.
I understand that some folks are more interested in building a relationship with a specific dealer or are not willing to buy from an out of town dealer and I totally understand and respect that. I keep my cars for 1-2 year and being able to save upfront to offset new car depreciation is very beneficial to me.
Good hunting :-)
Last edited by N-4Speed; 03-01-2019 at 02:29 AM.
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03-02-2019, 10:19 AM
#5
Senior Member
Thread Starter
You are right, sometimes they try to include ADM. Once we agreed on the price, I usually ask for the sales agreement, if it has ADM, I ask them to remove it and if they don't, I move to the next dealer.
03-02-2019, 10:24 AM
#6
Senior Member
Thread Starter
Trending Topics
03-03-2019, 12:10 AM
#8
MBWorld Fanatic!
Thanks for sharing. How successful are you in buying a high demand vehicle like a '19 G550 or G63? Don't think your going to get anything off MSRP. FWIW seems like your getting your deals on the outgoing model years. In one year after your purchase what is your vehicle worth? You now have a two year old vehicle.
03-03-2019, 02:46 PM
#9
Senior Member
Thread Starter
Thanks for sharing. How successful are you in buying a high demand vehicle like a '19 G550 or G63? Don't think your going to get anything off MSRP. FWIW seems like your getting your deals on the outgoing model years. In one year after your purchase what is your vehicle worth? You now have a two year old vehicle.
However, there are currently 58 new G63 on Cars.com from $142k to $181k. But, since we are in 1st quarter of 2019, you won’t get as much discount as you would get in 4th quarter. I understand that some folks want a car when they want it and are not willing to wait, I have other toys in my garage and am willing to wait to get a sizable discount.
As for the worth of the vehicle. I think there is minimal difference between the car purchased in Q1 VS. Q4 (or span of 9-12 months). When I was younger and used cars made more financial sense, I paid close attention to in-date-service as I was interested in how many years of factory warranty was remaining. Having said that, obviously a 2017 GTS demands higher prices than a comparable 2016 GTS.
03-03-2019, 07:03 PM
#10
Super Member
Originally Posted by N-4Speed
Good point! You are correct, it will be almost impossible to get any discount on a 19 G550 as there are no new G55 listed that I could find. I tried to qualify this point in my original post that “This technique obviously doesn’t work when a new model is introduced or if you are looking for a rare or hyper car.” I consider G550 rare since you can’t walk into a dealership and buy one of the floor.
However, there are currently 58 new G63 on Cars.com from $142k to $181k. But, since we are in 1st quarter of 2019, you won’t get as much discount as you would get in 4th quarter. I understand that some folks want a car when they want it and are not willing to wait, I have other toys in my garage and am willing to wait to get a sizable discount.
As for the worth of the vehicle. I think there is minimal difference between the car purchased in Q1 VS. Q4 (or span of 9-12 months). When I was younger and used cars made more financial sense, I paid close attention to in-date-service as I was interested in how many years of factory warranty was remaining. Having said that, obviously a 2017 GTS demands higher prices than a comparable 2016 GTS.
However, there are currently 58 new G63 on Cars.com from $142k to $181k. But, since we are in 1st quarter of 2019, you won’t get as much discount as you would get in 4th quarter. I understand that some folks want a car when they want it and are not willing to wait, I have other toys in my garage and am willing to wait to get a sizable discount.
As for the worth of the vehicle. I think there is minimal difference between the car purchased in Q1 VS. Q4 (or span of 9-12 months). When I was younger and used cars made more financial sense, I paid close attention to in-date-service as I was interested in how many years of factory warranty was remaining. Having said that, obviously a 2017 GTS demands higher prices than a comparable 2016 GTS.
Otherwise agree with your buying points. Even better is buying a 1000 mile model and saving $80000 off msrp like I did with my Huracan.
03-03-2019, 07:50 PM
#11
MBWorld Fanatic!
For me it’s a combination of all. Buying 2nd or 3rd year avoids first year adopter pricing, but more importantly the manufacturer engineers out the persistent mechanical and software issues. The 2016 GTS I first drove was an absolute pig. It was stupid stiff and creaked so loud I thought I had hit something on the test drive.
Waiting until the next year allowed a 8% new order discount as inventory had risen and allowed me time to familiarize myself with must have options.
Waiting until the next year allowed a 8% new order discount as inventory had risen and allowed me time to familiarize myself with must have options.
Last edited by AMG 17GT; 03-03-2019 at 07:53 PM.
