Wednesday, May 27, 2020

Pricing a New Car, Part 2

So, I have discovered Consumer Reports (CR) magazine no longer provides detailed dealer costs for new cars since 2015.  My Toyota Highlander is 15 years old (with only 30K miles) but is dying from general age fatigue.  There are car parts that just decay from age.  I could keep it going for another year for $3,000 (new timing belt, other belts, replace worn tires [age not tread], and general maintenance).  The charging system is failing, so I have to keep the car on a "battery- minder" (smarter version of a trickle-charger).

I could generally live with a small electric car.  I haven't left the County for 3 years.  I don't drive much.  But there are those days when I need a trailerload of compost or need to haul stuff to the County landfill.  So I need an SUV.  I suppose I could rent an SUV for special purposes, or arrange for compost to be delivered. 

It is all a bit uncertain.  But I decided on a small SUV.  The top 2 two-seat versions at CR are Subaru Forester and Mazda CX-5.  The Mazda has slight advantages (better interior, more reliable, and better driver seat),  The Subaru excels in things I care less about.

So, I went to the CR car pricing page on their website.  They sent my to TrueCar for "pricing" and all I got from that was offers from dealers.  OK,  I had chosen a specific model, color and AWD, no options (I actually didn't want any of the options). 

I responded to each of the dealers with the details of the car (taken directly from the Mazda website) and offerred a total price, delivered.  Eternal Blue (because they don't offer a dark green as I would prefer) , 2020 Mazda CX-5 AWD drive, Sport version (least fancy) no options.  And asked if they would accept $23,000 total all fees and taxes, delivered, certified bank check on delivery. 

Half ignored my question and sent upgraded car offers.  Several made offers above the MSRP and would not specify the additional fees and taxes, though they surely know them.

So I responded to all requesting more information and reminding them that I had made a specific offer on a specific vehicle in detail.  1 did.  Offerred MRSP (Manufacturer's Suggested Retail Price in case the acronym is unfamiliar - which is always a joke) and said he couldn't go lower.  Idiots!  I'm 70 years old; I know better.  I know car sales are WAY down.  At this guy wants full price?  I suggested he reconsider.  He wouldn't.  I sent him a joke insulting car salesmen.  He deserved it...

I checked on another site that listed all their cars.  Apparently, the CX-5 Sport is not one they want to sell.  But one of those "chat now" boxes opened.  Considering I hadn't been able to get any reply from that place to my emails, I clicked.

We chatted.  I repeated the details from the previous emails.  Her initial offer was MSRP.  I sent her a ROTFL icon and suggested she get real.  She promised to get "her team" looking at my offer.  I bet they never reply.

So I have 2 places I'm waiting for a reply from.  They all want $28,000 and change.  I'm offerring $23,000 o let them know they have to get seriously lower.  If it gets down to $25,000, I will probably accept after something like "throw in a trailer hitch and floormats" and they will say no to the trailer hitch ($450) but OK of the floor mats and we will have a deal.  I've already checked with the local trailer store and they will add one for $250.

And if none of them go for my offers, I've not contacted the Mazda dealership in town.  Yeah, I'm saving them for last.  If I can't get the car for the price I want, I may take it.  I could buy a Lexus if I wanted to.  I just don't drive much, and impressing the neighbors is not my thing.  I just refuse to get ripped off by some slick salesman. 

And if I buy the Mazda at the local dealership for the same price the ones further away want, they don't get to gloat AND I have the Good Will of the local dealership.  When I bought the Toyota locally, the dealership added prefferred repair scheduling (a real thing by experience), shuttle service to and from home, and they were true to that.

But back to the car pricing.  Apparently, no matter how desperate salesmen are for their commissions AND having few sales these days according to news reports, they don't willing to accept less than $1,000 profit these days.  Maybe it is company rules...

I'll do the best I can.  Quite frankly, a difference of $2-3,000 doesn't really matter much on a car I expect to drive for 15 years.

I just don't ever want to be ripped off again.  That's Part 3 tomorrow...






2 comments:

Megan said...

Hmmmm. Interesting. You would think that everyone would at least get back to you. Not perhaps to go anywhere near your price, but at least to engage, sound you out, find out how serious you are. After all, car sales are way down and surely they haven't got a lot to fill their days with - so why not swap emails with someone who may or may not be a serious buyer? If it turns out that you're wasting their time, they've lost what? - 10 or 15 minutes of time??? Geeeeeeeez.

Disappointing, isn't it? You'd appreciate someone taking you seriously and actually trying to sell you a car.

Megan
Sydney, Australia

Thumper said...

My Mazda CX-5 AWD, one trim level up, was $30K in 2016. The Sport was around $24K then...

The CX-5 is a great car--I'll buy another one after this one croaks, either it or a Rav 4--but I don't think the margins right now will get you into one for under $27K. They can't sell at a loss and sub-24K is a loss. Definitely not with TTL thrown in.

Car negotiating is not what it used to be. There's not as much wiggle room on their end as there used to be--too many people know the fair price before they walk in. The incentive to mark high and sell lower is gone.

Looking Up

 While I was outside with The Mews, I laid back and looked up.  I thought the tree branches and the clouds were kind of nice. Nothing import...