QUESTION: I want to buy a car from my local dealer, but they won't budge off of MSRP. What should I do?

July 21, 2005

Tony

Great site!

I am currently trying to buy a vehicle that was just released in 2006, and the dealer is telling me they will not budge from MSRP.

I am in the situation where there is only one dealer in the state that sells the car I'm looking for, and they have a reputation for being hard to deal with.

I have a question in regards to contacting dealers in bordering states via email; How much information should I give them? Should I tell them what I am willing to pay?

I really wouldn't mind buying in another state, but of course it would be easier to buy locally. Also I would like to leverage that information against the local dealer. Any advice?

Also, in your article you mention to get financing somewhere other than the dealership, but some dealers are offering great rates like 1.9%. Would you still go with another institution with a higher finance rate?

Thank you for the information,

Andy

Answer:

Hi Andy,

The reason the dealer won't budge off of MSRP is simply a matter of "supply and demand."

In your case the supply is lower than the demand. The car dealer can hold out for top dollar, because they know people will pay in order to get this particular car early.

As the supply increases, as it always does, the price will come down. That will probably take several months minimum.

By all means contact other dealers and give them your contact information and tell them what you want and how much you're willing to pay.

You may get lucky and stumble into a dealer who has a larger supply of the vehicle you want, or one who is more desperate than your local dealer - in which case they may be willing to deal on the price.

If you get some decent offers go back to your local dealer and tell them to match the deal or you'll buy from the other guy.

As far as the financing thing goes in most cases in order to get the real low rates you have to give up the rebate. By arranging your own financing you can still get a decent rate and you get to keep the rebates as well. In most cases you will come out better this way.

Keep in mind however, there may not be any rebate or special financing rate on the vehicle you are interested in due to the fact that it is a new, in-demand model.

You'll just have to weigh each circumstance and see which way you come out better. An excellent source of outside financing is RoadLoans .

They have low rates and they will give you a RoadLoansCheck to shop with. You just find your car, put together your best deal and write them a check. My daughter did this and it was a snap.

All my very best...

Tony Iorio