Hey,

I am looking to buy an RX8 today and right now the best deal I have seen is from DarCars of College Park Maryland. It is a blue RX8 6-speed with Grand Touring package and Navigation for $26,661. Do you think I can talk them down more then this (this is the price they are listing on the internet, so you figure they may come down a bit on it.)

I also want to trade in a 1997 Mitsubishi Eclipse Spyder GS-T with 84320 miles that has a perfect exterior and a near perfect interior -- the problem is I owe about $6800 on the car (less then the KBB private party value and a lot less then the dealer retail value, but about $1500 more then KBB dealer trade-in value). Do you think I would be able to work out a deal so that the dealer gives me payoff and I still get the RX8 for $26,661 OTD?

I have limited car buying experience so any information is helpfull

thanks in advance.

- Brian Clark

 

Be strong and don't go in there too excited about the 8. Make them think you'll walk if they don't give you EXACTLY what you want. What year is the 8 ? I'm guessing 04....26.6K out the door - fully loaded sounds like a great deal

 

If you can wait a couple of days......don't forget Gerber.

http://www.adm02.com/mazda/gerber/

 

get them to take the 500 off now, and give them the form when you get it

 

I filled out that yesterday..I am guessing that it takes a few days to get it in your e-mail inbox?

 

try to talk to them in person if it is a used car. if it is a new car, talk to them through the net (internet sales manager guy). you might have some troubles with your trade in (negative equity) but dont sweat too much of it. if u put a down payment to offset your negative by a bit, u are fine. try to negotiate the interest rate. dont always go off what they give to you. remember, u can get financing yourself and dont have to go through their banks that they talk to. sometimes this is a better route! find out what interest rate they are offering through their bank contacts and bounce it against what u find out there. make sure they dont run your credit report like 50 times. i got screwed this way trying to negotiate an Evo8.

always remember to stand your ground and DO NOT raise your down payment amount that u wanna put down. if they come back and say "we need $$$ from you to get your payment here", tell em "no this is all i can do". in the end, they will make your payment work out just fine. like if u plan on throwing down 4k and they want 7k, tell em to #$%#$% off LOL!
if u want a better deal, just walk out the door and see how quick they change up things. if they wanna sell a car badly, they will either have to take a loss or a very small profit.

 

YOU MUST BE EXTREMELY CAREFUL. This opens the door for dealership to snake you out of your good deal on car, so you need some major help. They have some serious leverage, because they can low ball you on trade in, and get more for the leftover rx8. If you need help, message me, and I'll guide you in right direction. Ironmedic has some good advice, so listen to what he wrote. I had a friend who got taken this exact same way. This is the type of situation where buying a leftover 04 can backfire on you if you are not careful. Good luck!!

 

Every book and advice column will tell you not to mix the trade with the new car in making your deal. Negotiate the new-car price first, and then talk about the trade.

The price indicates to me this must be an '04. You should be able to get an '04 close to invoice (I think this is around $29K) minus any rebates (I think they total $4K now), so $25-26K.

The dealer will probably lose money or break even on your trade. I suspect that their markup is probably $1500 over trade in and they have lost that if they allow you $6800. They may be motivated to move the '04 off the lot, though, and they might consider a break-even situation a win. I have a rule about buying cars: you've paid too much if you haven't walked out and the dealer called you back. In other words, don't be afraid to walk out, because more often than not, the dealer will call you back. If you act like you could take it or leave it, then they are more motivated to deal. If you drool over it, they know they've got you and they will never lower the price.

 

Good advice. I've also heard the same regarding trade-in and followed this during my purchase (unfortunately, it kept me at the dealer until 11pm, but it was worth it). Get them to commit to a selling price, then pop it on them that you want to trade in. They will ask you early on if you have a trade-in. Say no or that you're not sure. Then flip after negotiations are complete. That should bring your cost down.

 

I know your situation.. I'm looking at a fully loaded 2004 RX-8, yellow w/ 6 spd 238 hp engine, Grand Touring Package, upgraded interior, and everything else except NAV.. sticker price was $33,000, but dealer dropped it to $25,900, as he's desparate to get rid of remaining '04 RX-8s.
The next day, I brought in my 2002 Ford Focus w/ 50,000 miles, and dealer offered to buy it for trade in for $8,000 (Blue Book for selling on own is $7,500 in mint condition).
That makes my purchase price for the '04 RX-8 $18,000 out of my pocket. I'm thinking maybe I can get the dealer to drop another $1,000.00 and would that make a good deal??

 

Mzd, as I said in your other thread, I thought your original deal was a good one. The consensus on your situation seemed to be that it was a good deal, as long as you liked the color of the car.

 

its hard to get a dealer to drop $1000 off a car. takes alot of suave and straight up aggressiveness. my friend was good at that stuff! he almost walked off the lot with a brand new Evo8 for 28k instead of paying 32k. the dealer almost did it to make a sale but backed out of his offer. my friend refused to go any higher than 28k and he said he almost got his evo for that price brand new. would have been awesome if he did!

is your focus paid in full? how much do u owe on it if not paid in full? sometimes u could talk the dealer to give more for your trade in based off the car. i negotiated my old 96 cobra with 30k miles on it for a trade in on an expedition. the car was only worth 9k but they bought it off me for 11k and trade me my expo for 11k (even trade).

 

I think that's a damn good price for the RX8 GT nav $25,900 and your trade-in is awesome also. Most dealership don't take trade in by private party value. I guess your dealership is desperate to make a sale.
I dont think they can drop another 1,000 without taking a lost.

Buy it now!!

 

Focus is all paid in full.. paid it cash a year ago for $10,700, and if I do this deal, would be $2,700 difference.

 

That just does not make sense. This is not how you buy a car, or you end up with a 90 month note or 60 months and big balloon payment on the end. Never, ever play "what I want my payment to be" with the dealer.

1) Find out the dealer cost on the car
2) Find out any rebates and dealer incentives on the car
3) Find out the holdback on the car

Now you know how much the dealer has in the car. If you get it for this amount they make $0 (which is not realistic).

On a trade you find out:

1) What is it worth for sale
2) What is it worth trade in
3) What you owe on it, if any

If you can sell it for more than you owe, that is an option and may net more money. In some state you save on taxes with a trade in.

If you owe more that it is worth selling it or trading it, then you are upside down and this amount must be rolled into the new car.


Dealer cost on an 8 with GT and NAV (05 model) is $30,781. We will ignore hold back for now. So assuming that Brian is getting the $3,250 in customer cash (rebate + MAC) this gives you $27,531 . Since Brian says the car is advertised at $26,661 or $871 below dealer cost. This is MORE than the hold back. So it APPEARS if Brian has the options and price right on this car they are losing money to sell it.

Now if there is any additional dealer money or "marketing aids" that "we" don't know about, then the dealer COULD sell it this low and still make money

So then let us say his car is worth $2000 less as a trade than he owes, they are not going to lose this money too - to the price of the new car will go up to $28,661 to cover this.

"Standing your ground" and "making them get you payment where you want it" ia just BS advice. You have to know the numbers and run them. If the dealer is selling the car below cost they are not going to lose money on the trade as well.

They may really need to sell these left-over '04 cars, but as a business they have to at least break even and hopefully make a profit on each transaction.

You goal is to do the deal for as little difference as possible, but you have to run the numbers and be REALISTIC. You can stand there hollering that they gotta do better when there is nothing left to give. Anyone that does that is truly wasting their time and if I were the dealership would not consider them seriously. The other thing they will do is blow smoke up your skirt and get you some low payment deal with a balloon on the end or a really long term and you end up paying too much just to "get your payment right".

Dennis

 

North Americans are very lucky. I purchased your equlivant v.red 6MT with leather for AUD$64,000. Roughly US$49,920. AND we have no Nav option.

And it was considered a good deal, because without the discount it would have been AUD$71k

 

I agree with some of what you are saying, but it's not that comlicated. The way I always made my deals is to work out a rock bottom price on a new car. After that is settled, then you mention your trade in. Yes, they hate it, but it's how you prevent yourself from losing. You then expect to get full or close to full trade in value. This is when the dealer can low ball you on trade. The only thing you really have to do is make sure you get a proper trade in. They tried this with me, and low balled on the trade after I agreed to purchase price. Had I not gotten them that low on the purchase price of car, they'd have given me more on a trade in. If you reverse it, and get trade in value first, your deal can become lower then initially thought. In my experience, they eventually caved, and gave me a better trade. This is from my experience, and I can't say it's something that happens all the time, nor will it work all the time, but I suspect it's very likely it does happen. That is all you have to worry about. What you owe on your trade in is irrelevant. The key is to get a trade in on what car is worth. For me personally, if they don't budge on trade in, and refuse to give me the real value, I know I got manipulated and I walk, and keep my old car. It all depends on how badly you want car. The more you are willing to not make sale, the more likely dealership is to budge.

 

I didn't do a step by step, but yes you always do the trade last.

You get the best price you can on the new car - using the availble sources for incentives, rebates, invoice, and hold back. Then hit them with the trade in. But in this guy's deal, he knows up front his car is not worth what he owes. So the difference has to come out of his pocket or rolled into the new deal (by inflating the cost of the 8).

Now normally it is wholesale to wholesale - so if you are getting the car for dealer cost they are not going to give you top dollar (retail) for your trade - unless you have something easy to sell and desirable (Honda Odyssey, for example).

The point I was trying make is: get your numbers right before you step foot in the dealership. That way you know if you are leaving money on the table or not - and you also know when the deal is as good as it gets.

The original poster was wanting the dealer to sell him the 8 for less than cost (it appears) AND was wondering if they would give him what he owed on his trade (owed > RETAIL price), and then maybe knock another $1000 of the new car. The answer is, no they will not. The lesson is to look this cr*p up so you don't have to post a "did I get a good deal" or "is this a good deal" message - you know all the numbers and then you will know.

Dennis

 

I didn't see where he posted what they actually offered for his car or that he had done the deal.

Here the trade in is worth 7% savings in tax, so if you get $5000 trade in you would save $350 in tax on the new car. So it is like getting $5,350 trade in, minus the expense and trouble of selling it yourself. But you have to weigh the options. If you are upside down, then it gets really tough to sell anything yourself and you are pretty much stuck with a trade.

If getting a new car is your only goal, then I sure would like to be your car salesman :D

I am only happy when I know where all the money goes. I get my financing pre-approved and challenge the dealer to beat it. I go in knowing the cost of the new car and the worth of mine. If I leave money on the table it is because I just really wanted that new car - but that does not happen I don't have a bucket trade in car, so if I don't get the deal I want I just drive away - still happy.

Dennis