I'm a new member here, and I'm looking to get a G. This will be my first car buying experience so I'd like to gather some opinions/advice before being thrown to the dealers.

I'm looking to get an '04, dg/black, auto, rwd, premium, sport for $32200 out the door (tax, title, license). Edmunds lists the invoice at $30258 plus an additional $545 destination charge. Is this destination charge justified or is it just another one of those hidden/filler charges? In any case, my out the door price minus TTL comes out to be just about equal to invoice price (assuming the destination chrg is dismissable). Is this a reasonable price to set my sights?

Also, I want to trade in my '99 Prelude SH which Kelly Blue Book guestimates to be worth $12-13,000. What's the best way to go about negotiating the lowest price for the new car while getting the max price for the trade-in? I'd like to get at least the blue book value of my car. Should I work the out the door price of the new car w/o even mentioning the trade-in until the price is sealed...or should I mention the trade-in up front? Any advice would be appreciated.

 

In my area, dealers use the NADA book, not the KBB, and then they still determine the trade on the current used car market, which right now I believe is sluggish!

Brilliant Silver/Graphite '04 Sedan

 

as it is you are paying $1,400 over invoice. some people on the board quoted $300-$500 over invoice but probably depending on area. i take that approach when haggling, always start at invoice (destination charge is legit). remember this thing called dealer holdback which already guarantees them a profit even if they sell at invoice. once you have the price then you can talk about trade ins, which opens the door for them to get back at you...

 

Thanks for the info to those who replied.

In response: I've seen people posting $400 to $500 over invoice...but is that price including tax title and license?

Also, about the trade-in...I kind of figured the dealer would try and snake me on it to make up for going down on the new car price. I figured this would be especially true if I didn't mention the trade-in until the sale price had been established. Would I just be better off getting an official quote from carmax and using that as leverage (assuming carmax gives me a decent quote)? My car is in great condition w/ not many miles on it so I think it should get a good quote...hopefully the used car market isn't too bad. BTW, does anyone know if an AEM CAI, carbon fiber interior trim, and cleared corners will cause any significant depreciation in trade-in value?

 

Hi Sandmansleeper,

300-500 over invoice is before the tax and lincense, so your out the door price should be around the ballpark of the sticker price, more or less. For your trade-in, I would suggest you to sell it to a used car dealer instead of a car dealership since they will be so nippicking about you car, resulting in a fairly low value for your trade in. Regarding the trade-in value, most of the dealerships and used car dealers don't look at the KBB value nowaday. Instead, they look at the auction value of the car nationwide. Are you in the Southern California area?

 

You are right, and I believe the used car market is in a slump right now, I traded a Mustang GT, and it's pretty hard to get a decent price for a 4 year old car when they are selling brand new 03's for 19k! I did not know you could do better selling the car to a used car dealer as opposed to trading it in, I'll keep that in mind for the next time!

Brilliant Silver/Graphite '04 Sedan

 

Used car dealers just serve me better based on my experiences. When trading in your cars, try comparing the prices between what a dealership is willing to pay and how much an independent used car dealer will buy from you. Compare a number of indy used car dealers and sell the car to one that has the best offer.

 

That's really a good idea, I will definitely check that out next time! I was spoiled by the last dealer I dealt with, bought my last three vehicles from him, and he always gave me top dollar on my trade, one he even gave me close to retail, but they are no longer owned by the same family, and he is gone, or I would have probably sold it to him!

Brilliant Silver/Graphite '04 Sedan

 

Thanks for all the great advice, guys. I think I will check around and see what used car dealers will pay for my car. Does anyone have any experience using carmax for that purpose? On their website, they claim that they do look at KBB value...whether or not they stick by it is not set in stone, though.

As for negotiations, I've read mixed opinions on the best technique. Some say go at the end of the month...some say go at almost closing time during the week...some say that doesn't even matter. One of the members has posted his best method is to send a mass email to all the dealers in the area to get them going against each other.

Example email: "....looking for '04 G in __ with ___ packages....$400 over invoice plus TTL...add a penny more in hidden charges = NO DEAL...best price gets my business in 48 hours"

I think I'll try this method, but I'm afraid that I'll get jacked around when I actually enter the dealership door after driving for hours to get to it (assuming I can't get a low price nearby in the DFW area).

GGGGG: I'm in TX. Hopefully that won't affect my trade-in goals or my G35 price (I don't see too many of them in this area).

 

One piece of advice -- in TX you will pay sales tax on the NET purchase price if you trade in your old car. You will pay sales tax on the entire purchase price of the new car if you sell it to a used car dealer. In other words, the used car dealer needs to beat the trade in value by a substantial amount. Tax is 6.5%.

 

That's one thing I am sure people don't take into consideration! I don't have to pay excise tax on a vehicle here, it's a thing for disabled Vets, and that saves me a chunk of change!

Brilliant Silver/Graphite '04 Sedan