Volant007

Hey everyone, I have been on this forum for a couple of months now and have be reading a lot of what you all have posted, thanks for all the informative and "wacky" info everyone has provided, it is very much appreciated. Ok now to my problem, I live in the Miami/ Ft. Lauderdale area and I am looking to finance a G37S. This will be my first car purchase so I have listened to everyone’s advise and have not actually walked into a dealership. I have instead emailed a few dealerships to get some quotes and I also went to edmunds to price the car as was also advised. I am looking for a G37S OB w/ graphite interior. I want premium and navigation with mud guards and the illuminated kick plates. It invoices at $38,206 and the msrp is $41,885. A lot of people here say that its possible to get it for invoice. The tax rate in Miami is 7% but it is 6% in Ft. Lauderdale so I'm obviously shopping in Ft. Lauderdale. 6% tax added to the invoice is approx $40,500, so i am asking $41,000 OTD, is this reasonable or am I expecting too much. One salesman I have been emailing back and forth on a daily basis is asking $42,000 OTD. Does $42,000 OTD sound good or should I look elsewhere? please advise and thanks again for all the information everyone has contributed to such a great forum!

dji

First, don't talk about OTD prices... you can't negotiate on taxes, and it's just another variable to deal with when you're trying to get to the lowest price.

When you're trying to get the best deal - make sure you're getting the best deal on ALL ends... the document fee/"business operating fee"/tire disposal fee, etc etc... some are legit, though some are marked up, and some are just pure dealer profit.

I'd start by asking for $xxxx above invoice and go from there. The "OTD" price is only a function of taxes, title & licensing, etc.

bboysteele

^What dji said. Also, I don't know if this is the case where you live but I know at least in Colorado the tax you pay is based on where you live and not where you buy the vehicle. The dealership needed my home address because if I lived out east of town (which I don't) I would have paid 1% less in tax. Find out if this is the case in your State/town.

speedracer g37

iTrader: (4)

i would have to disagree. if you know what taxes and tags will cost, out the door price is exactly what you should talk about. there is no room for a dealership to add this and that if you tell them that you are writing a check for this amount and this amount only.

Volant007

dji, thanks for your response, but a few questions, what are the extra fees that are legit, and how am I supposed to know if those extra fees are reasonable and not "marked up?" I understand what you are saying about asking for a certain amount above invoice but can't the dealership just add extra fees or inflate the fees to get to a certain number? I am searching threads but it seems as if most people are leasing and not financing. Purchasing the car at invoice + tax = $40,500. He is asking $42,000 OTD. Should that difference of $1,500 be acceptable for dealership fees, etc? Again I am totally new to this game, thanks for the help!

speedracer g37

iTrader: (4)

i'll tell you what...call another dealership and tell them this guy offered $42,000 out the door. also tell them you will come in and pic up the car if he can get down to $40,500 and see what he says.

Volant007

Sounds great, I will do that first thing in the morning and post after I get a response, thanks again!

speedracer g37

iTrader: (4)

i got what i considered a good deal back in november. i negotiated $42000 out the door for :

lp 6mt sport
premium
nav
spoiler
3m clear bra installed by dealer
3m tint

5% tax in md and around $250 in dmv charges (tags & title)

dji

Volant - if you're planning to purchase: doc fee (~$30), title/registration. If you're leasing: acq fee (base fee, ie non-marked up = $595), doc fee (~$30), title/registration. It's really pretty evident though, if it smells like a bogus fee/pure profit, it probably is. Stay away from pinstripes =), and nitrogen filled tires.

Trying to deal in "OTD" terms gets difficult if they counter and you re-counter, because you've now likely lost track of the actual price you're paying for the car.

Make sure you get a break-down of all the fees you're paying and the amount of said fees before BEFORE you get into the financing department.

speedracer g37

iTrader: (4)

^how do you loose track of the price? you're falling for all the b.s. if you negotiate this way. OTD!!! if you have done your homework, you know what a good price is for the car. you know the amout of tax on that price, you know what the dmv charges for tags and titling. that is it. i.e. in the deal i have liste above, i knew the amount for tax and tags, invoice price on the car, what others were paying, and what was a good deal. this being the case, i did not get into talking about this charge, that charge, or even the transport fee ($795 listed on the sticker). i said out the door, this is what i'll pay or i'll go somewhere else because i know other dealers are willling to sell me this car at this price.

edit: and after the deal, i said throw in the clearbra and tint since this is the second g i'm buying from you in the last three years, and they did.

dji

Falling for the bs? How is wanting to deal with the individual components of what constitutes the OTD price BS? It's not more difficult to work this way... and it's proven to cut the bs. Ever head of TILA? If you've ever gotten a mortgage then you've benefited from full disclosure.

And why would you talk about after tax prices with the dealer during negotiation anyway? Taxes & registration/licensing go to the municipality... it's fixed, and the dealer has nothing to do with it. This is all talk you can get down to after a price has been agreed to and you're sitting in the finance office.

And especially on the internet - where there are people from all parts of the country (different taxes, different transaction prices), it's helpful to know the different parts of what makes an out-the-door price to make a relevant decision as to what makes a good deal or not. OTD doesn't mean the same thing to everyone else...

speedracer g37

iTrader: (4)

ultimately, i think were talking about the same thing. however, i just tend to look at it from the big picture prospective. buying a house and a car are two completely different things. there aren't any agents fee, points, closing costs, inspection fees, etc in buying a car. if you eliminate all the areas where a dealer can add fees by talking bottom line, i feel you can save yourself a lot of headache.

dji

Agreed, we are talking about the same end... different means.

Sounds like it's worked for you, so cheers!

On the internet however, it's hard to know the area/level of expertise/level of scheming dealership so I've found it easier to talk shop with forum folks in this manner.

I can't wait for my G37 to arrive (just put down deposit today, should get here in a week or two!)!!!!

speedracer g37

iTrader: (4)

good luck to all of you and i hope you get a good deal on your cars!!

Volant007

Thanks again for all the advice, I see where you are both coming from..I think. dji I plan on financing the car, if I knew exactly what fees were legit and how much each one was, then I can reason that your point is most valid but because I do not know which fees are legit and what "fair" prices are, then speedracerg35 makes a valid point about purchasing OTD. Again thank you both and anyone else for all the advice, I will keep you all up to date.