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Posted: 5/2/2009 1:04:56 PM EDT
GM has extended it's 0% financing offer until June 1st.  I'm in the market for a 4x4 extended cab Silverado.  A local dealer has one stickered at $36k with all of the options that I want.  Is it unreasonable/offensive if I offer $28k out the door?  NADA's invoice is $33k.  I know that GM sales are in the toilet, but do you think that they would go this low?  I know, I know, I should've just asked but I want to hear if anyone has been this successful in low-balling a dealer recently and if so, what was your strategy.  Thanks.

P.S. I'm pretty much set on a Silverado.  I'm tired of Fords and I will not even consider a Dodge.  Also, I don't like Toyota's styling and Nissan's styling is getting old, IMHO.
Link Posted: 5/2/2009 1:06:25 PM EDT
DO IT...............................
Link Posted: 5/2/2009 1:08:32 PM EDT
Cant hurt to try. Take a look at a GMC first though. They look MUCH better than the Chev.
Link Posted: 5/2/2009 1:10:06 PM EDT


Enjoy your new Obama Motors vehicle.
Link Posted: 5/2/2009 1:16:28 PM EDT
Start low and go up, whats to lose.
Link Posted: 5/2/2009 1:39:16 PM EDT
They are desperate to sell with the way the car business is. I'm of the school of though that no offer is an offensive offer.
Link Posted: 5/2/2009 1:49:51 PM EDT
Try expect them to BS you and try to say they cant do it.

Throw an "oh well" at them and walk out.
*** I am in no way responsible if this causes you to purchase a GM product
Link Posted: 5/2/2009 2:17:31 PM EDT
No one need be offended. It's just business for both of you. You're trying to find their floor and they're trying to find your ceiling.

Start low.
Link Posted: 5/2/2009 2:46:20 PM EDT
Originally Posted By Texkaw:


Enjoy your new Obama Motors vehicle.


Yes, it pains me to buy a GM vehicle given their acceptance of tax-payer money, but IMO they make the best full-sized pick-up at the moment.
Link Posted: 5/2/2009 2:49:00 PM EDT
As far as I am concerned, they need business BAD and they're sitting on lots of trucks(at least they were at the last GM dealer I went to a few months ago), so start low and deal from there.
Link Posted: 5/2/2009 2:53:42 PM EDT
Link Posted: 5/2/2009 3:04:48 PM EDT
EVERYTHING is negotiable!
Link Posted: 5/2/2009 3:06:38 PM EDT
I would offer lower...
Link Posted: 5/2/2009 4:00:19 PM EDT
Start low and bid up.  They will probably try to make up all their lost profit on the few sales they do make.  This has caused problems for people already.  Remember, they can only sell so low because they are not going to lose money no matter what.  They have to make some money somewhere in order to stay open.  They aren't going to give it away, but that is no reason for you to pay any more than the least amount of money they will accept for that vehicle.
Link Posted: 5/2/2009 4:02:37 PM EDT
The worst they can say is no. If they are hungry enough they will not let you out of the front door.
Link Posted: 5/2/2009 6:08:18 PM EDT
Originally Posted By AR_Ron:
Originally Posted By Texkaw:


Enjoy your new Obama Motors vehicle.


Yes, it pains me to buy a GM vehicle given their acceptance of tax-payer money, but IMO they make the best full-sized pick-up at the moment.


Then don"t think of it as a low offer, but a starting point for negotiations of a product you already have money invested in.
Link Posted: 5/3/2009 5:47:22 AM EDT
Statistically speaking, the person to make the first bid in a negotiation usually winds up with the better deal.  So go low and suggest a price first.  Something like: "Can you get me out the door in this truck for $25K".

The dealerships are hard up for sales right now, and some are more willing to make a deal then others.  I just bought my wife a fully loaded 2008 Dodge Grand Caravan with every option and only 15 miles on the odometer.  It stickered for $35k.  We walked out the door at $23k.
Link Posted: 5/3/2009 5:51:03 AM EDT
Link Posted: 5/3/2009 5:57:48 AM EDT
Always start way lower than you want to pay. Tell them you're offended that GM is taking your tax money to bail their sorry asses out if they start getting froggy.
Link Posted: 5/3/2009 6:26:28 AM EDT
Originally Posted By AR_Ron:
GM has extended it's 0% financing offer until June 1st.  I'm in the market for a 4x4 extended cab Silverado.  A local dealer has one stickered at $36k with all of the options that I want.  Is it unreasonable/offensive if I offer $28k out the door?  NADA's invoice is $33k.  I know that GM sales are in the toilet, but do you think that they would go this low?  I know, I know, I should've just asked but I want to hear if anyone has been this successful in low-balling a dealer recently and if so, what was your strategy.  Thanks.

P.S. I'm pretty much set on a Silverado.  I'm tired of Fords and I will not even consider a Dodge.  Also, I don't like Toyota's styling and Nissan's styling is getting old, IMHO.


It's not unreasonable at all.
The dealer knows he isn't going to get 35K and you aren't likely to pay just 28K.(but it would nice)
I bet you could get it for 30K so 28K is a good place to start.
Link Posted: 5/3/2009 7:07:11 AM EDT
They are most likely not going to sell for less than they have in it. That will not pay their light bills. You say 28k out the door on a 33k
invoice price. I don't know what your sales tax rate is, but what you are asking is for them to sell you the truck for around 25k
+ tax, title and delivery fees.

Good luck but I don't see it happening.
Link Posted: 5/3/2009 7:46:45 AM EDT
Originally Posted By Banditman:
They are most likely not going to sell for less than they have in it. That will not pay their light bills. You say 28k out the door on a 33k
invoice price. I don't know what your sales tax rate is, but what you are asking is for them to sell you the truck for around 25k
+ tax, title and delivery fees.

Good luck but I don't see it happening.


you pay tax and title at the dealer in FL?
Link Posted: 5/3/2009 8:10:46 AM EDT
Originally Posted By www-glock19-com:
Originally Posted By Banditman:
They are most likely not going to sell for less than they have in it. That will not pay their light bills. You say 28k out the door on a 33k
invoice price. I don't know what your sales tax rate is, but what you are asking is for them to sell you the truck for around 25k
+ tax, title and delivery fees.

Good luck but I don't see it happening.


you pay tax and title at the dealer in FL?


Yes,
Link Posted: 5/3/2009 8:48:35 AM EDT
Originally Posted By Banditman:
They are most likely not going to sell for less than they have in it. That will not pay their light bills. You say 28k out the door on a 33k
invoice price. I don't know what your sales tax rate is, but what you are asking is for them to sell you the truck for around 25k
+ tax, title and delivery fees.

Good luck but I don't see it happening.


Invoice price often has little to do with what the dealer has into it.

How long has it been on the lot?  How much has it cost the dealership while sitting there?  What sort of holdbacks and incentives are available?  I got my wife's above mentioned mini-van at a good chunk below the invoice cost.

I know very little about buying new cars, as this is the second time I have purchased one, and the first time I did it outside of an employee incentive plan.  However, as was explained to me by my dealer, Chrysler gives them coupons for moving a certain number of units in a month.  Each coupon was worth $500.  The dealership applied four of them to the van to get me to make the purchase.  You know it's a sign of bad times when the GM of the dealership comes out and tells you "Look, we both know that we need to sell this vehicle to you more then you need to buy it."

Again, the invoice price of a particular vehicle rarely has much to do with how much the dealership has into the vehicle.
Link Posted: 5/3/2009 9:15:34 AM EDT
Yes the Dealer invoice price has very much to do with it. There is usually a Dealer holdback
number on that invoice. After the vehicle is sold the manufacturer will pay the dealer the amount
of the holdback. There is not nearly as much markup on vehicles as there once was. The dealer
has floor plan costs and that can effect the price of the vehicle and their willingness to deal. Some
dealers own their inventory outright and have no interest payments to make on the floor plan.

I would be very careful buying a vehicle right now. Particularly if you are
trading in a vehicle. We had a big GM dealer go belly up in my town. They could not payoff the
trades they took in and this left person that traded in a car with two car payments as they were
still responsible for the finance contract on the vehicle they traded in.  


To the OP anything is possible but don't believe all the hype of extraordinary deals out there
and yes a lowball offer can hurt when dealing with them. Good luck
Link Posted: 5/3/2009 9:22:38 AM EDT
Originally Posted By Banditman:

I would be very careful buying a vehicle right now. Particularly if you are
trading in a vehicle. We had a big GM dealer go belly up in my town. They could not payoff the
trades they took in and this left person that traded in a car with two car payments as they were
still responsible for the finance contract on the vehicle they traded in.  


Also I expect the good people at the dealership may have jumped ship, might have a finance manager who signs your name and chases a check you were supposed to get, that happened to me.
Link Posted: 5/3/2009 9:24:13 AM EDT
Originally Posted By Banditman:
They are most likely not going to sell for less than they have in it. That will not pay their light bills. You say 28k out the door on a 33k
invoice price. I don't know what your sales tax rate is, but what you are asking is for them to sell you the truck for around 25k
+ tax, title and delivery fees.

Good luck but I don't see it happening.


After it sits on their lot for so long (90 days etc) they have to pay on the vehicle.
Link Posted: 5/3/2009 9:36:06 AM EDT
Originally Posted By Banditman:
<snip>

To the OP anything is possible but don't believe all the hype of extraordinary deals out there
and yes a lowball offer can hurt when dealing with them. Good luck


I would not make a determination of a course of action based on the individual experiences or commentary of either Banditman or myself, nor of anyone else, actually.  I'd make my decision based on my own needs and financial situation.  I can only offer you my experiences in purchasing a new vehicle a month or so ago in similar market conditions.  

That stated, the Jacksonville market is large enough to have several competing dealerships.  So I fail to see how a lowball offer can hurt, unless you are fixated on a specific vehicle in stock at a specific dealership.  You offer, they counter offer or say "no".  If you can't reach terms, you move on to the next dealership.

Link Posted: 5/3/2009 10:13:15 AM EDT
Originally Posted By PBIR:
Originally Posted By Banditman:
They are most likely not going to sell for less than they have in it. That will not pay their light bills. You say 28k out the door on a 33k
invoice price. I don't know what your sales tax rate is, but what you are asking is for them to sell you the truck for around 25k
+ tax, title and delivery fees.

Good luck but I don't see it happening.


After it sits on their lot for so long (90 days etc) they have to pay on the vehicle.


Not if they own the floor plan. That means they own the cars, they are not financed. Not many
dealers do that though...When their floorplan is financed, yes they have to pay interest.
Link Posted: 5/3/2009 10:36:54 AM EDT
Originally Posted By boknows20:
EVERYTHING is negotiable!


This plus don't forget if you buy it you are supporting the UAW and oboma.
Link Posted: 5/3/2009 1:02:24 PM EDT
Thanks guys for the replies so far.  I've never bought a new vehicle, much less one from a dealer so I'm a newb.  I've had very good luck buying used cars from private parties (10 or so years old and paying cash), but the uncertainty of a used car's reliability is starting to wear on me.  

My daily driver is a '93 Ford Ranger.  Little things are starting to go wrong with it so I won't be trading it in (I'd probably have to pay the dealer to take it , plus it's so old, no dealer would want it).  When I went in to the dealer yesterday, I just went in to see if I qualified for 0% financing, which thankfully I do.  The salesman started showing me some trucks and before I made any serious offers, I wanted to see what Arfcom (those with experience) would say is a reasonable price.  

I plan on checking out more dealers in the next couple of weeks and by the last week or so, I plan on making some serious offers.  I plan on putting $5k down so if I can get a truck with the options I want down to $28k (or less), my monthly payments would be about $383 for 60 months.

In scenario #2, I would settle for a 2008 if dealers wouldn't come down on their prices.  Around here I have seen quite a few in the $26-28k range, which I could hopefully negotiate down to $23-24k.  Of course the 0% financing deal would't apply, so I will have to check my bank, and other banks/credit unions to see what the best rates they would be able to offer.  Depending on the final price, rate, length of the loan, etc I might be better off with an '09.  I'll have to crunch the numbers and see.
Link Posted: 5/3/2009 2:11:55 PM EDT
Keep the '93; drive it in the winter until the engine/trans blows up - even if you get a new truck.
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