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Year End CRV purchase

Living Proof

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Just want to ask the community about tactics regarding the purchase of a Honda CRV the last week of December. My lovie wife and I are pretty much decided on a '18 Honda CRV with EX trim level. That is the number 2 of 4 of the Honda trim levels and provides a slightly larger engine and a bunch of electronic driving improvements over the base model LX. I live within 30 driving minutes of 6 Honda dealers, and my strategy is to let them give me offers next week in the last few days of the '17 buying season. Lovie is pretty much sold on the style of the CRV over the competitors, I like the car and it is a top rated small SUV. Presently, I have an offer of about $2k under MSRP, pretty good for a car rated at the top of it's class in a car with MSRP of about $29.5K. Dealing with that many suppliers is interesting to say the least. Naturally, they want me to name my price, I want them to give me a deal I cannot walk away from. I've done 2 last week of the year new car purchases with outstanding results, but, the CRV is one of the best selling cars and dealers are protective. One issue is the Honda dealers tend to install a bunch of aftermarket add-ons that I pretty much find useless and overpriced. Really, who needs wheel locks when YouTube has videos showing how easy it is to beat a wheel lock.
Yeah, we can look at alternative cars, but, Lovie likes the CRV and it will be her car. Can't argue with that.
I'd appreciate any thoughts.
 

Philpug

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On line services can be your friend in todays buying market. You are in the tristate area with a lot of options..especially with Honda dealers. Unfortanately I don't know anyone at any Honda dealers in your area. Right now they want to move metal. Make sure you shop the dealer fees/add ons as much as the car, they cay vary from dealer to dealer.
 

Josh Matta

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My advice is to never a new car worst return on invest ever.
 

cantunamunch

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. I live within 30 driving minutes of 6 Honda dealers, and my strategy is to let them give me offers next week in the last few days of the '17 buying season... Dealing with that many suppliers is interesting to say the least. ...
I'd appreciate any thoughts.

Do you know who you will want to have doing your service and warranty/recall work?
 

Wade

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Dealing with that many suppliers is interesting to say the least. Naturally, they want me to name my price, I want them to give me a deal I cannot walk away from.
I'd appreciate any thoughts.

I generally take the opposite approach. I find that a dealer is never going to give me the best possible deal they can just by me asking for them to do just that.

Instead, I do my research and determine what constitutes a great deal for the car I want. I base the deal I want on the invoice (not MSRP) price plus dealer profit less incentives less an estimate of dealer holdback (if it can be determined or at least estimated), and use that as a starting point. I'm transparent with the dealer about how I got to the number I want, and I expect them to be transparent with me about why the deal they're offering is the best they can do.

If a a dealer can meet or beat the price I'm looking for, I may just buy the car at that price. If I get the sense that I maybe left something on the table, I may shop their offer. Either way, I'll wind up paying an amount I'm comfortable with for a car I like, which is the definition of a good deal in my eyes.
 
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Philpug

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Do you know who you will want to have doing your service and warranty/recall work?
Service and sales are mutually exclusive. Serve IS a their own sales department, they do not turn away cars from other dealers. The only thing that would sway me is if that dealer has a special service package, free oil changes ect that is included with the purchase.
 
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Living Proof

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My advice is to never a new car worst return on invest ever.
While not quite on topic, I very much agree with your thinking, this will be my first new car in 30 years. A major driver is to get driving aide safety technology which was not available a couple of years ago. Also, the CRV has relatively minimal depreciation, a low mileage preowned is pricey. We keep cars for at least 100k so in this specific case, I will break my past habit. The real truth is it will be my wife's daily driver and she really likes it.
 

trailtrimmer

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My advice is to never a new car worst return on invest ever.

Cars are not an investment, they are purely an expense.

That being said, given the higher interest rate on used and high residual value of quality models, it can make sense to buy new if you get a .9% interest rate and plan on keeping it for a long time. If you are the type that buys a new car every four or five years, then it is indeed a bad decision.
 

Tom K.

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Not my usual tactic, but generally, you can work email offers from competing dealers until you get a feel that you're close to the bottom.

I'm a little ashamed to say that living in a small town, I typically get two or three good prices from sort of nearby big city dealers -- where I'm never going to buy anyway -- and take the best one to my local dealership. They'll always come within $100 bucks, and let us pick a color if we're patient, which is a big deal for my wife.

Really, almost any reasonable approach is going to get you a decent price this time of year.
 

VickieH

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No advice on tactics, but I have numbers from a similar transaction. Costco has an auto program. Prices are pre-determined.

2018 Subaru Crosstrek Premium w/Eyesight (also one of the top in its class, etc)

Costco price is "$300 over Costco Base"
Invoice: $25,185
MSRP: $26,963
Discount: $1638
Sale Price: $25,325

If that vehicle was a Forester, it would be "$500 UNDER Costco Base". Costco discounts vary by model and trim level.

Blue or red Crosstreks are reserved before delivery. Dealer offered an additional $500 discount off an in-stock vehicle, so buying off the lot would have been a discount of $2138 off MSRP. Sounds like you are already in that ballpark.
 

tch

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A consumer advocate suggests this approach: If you KNOW you are going to buy a car, you email 3 or 4 dealers in the neighborhood, making clear you are contacting them all. You explain that you are committed to buying a car from the one that offers the lowest price and then ask THEM to make YOU an offer. The fact that they know you are openly comparison-shopping plus your commitment to buy is supposed to flush out the lowest/best offer.

I've never been in a situation to do this, but there's a certain amount of sense in the advice.
 

Philpug

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I used TrueCar when I shopped for the Alltrack and I was very impressed with how easy the process was. I also expanded outside of my closest region and found a significant difference in pricing. Also, IIRC, PA caps what dealers can charge for dealer fees which is good.
 
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Living Proof

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A consumer advocate suggests this approach: If you KNOW you are going to buy a car, you email 3 or 4 dealers in the neighborhood, making clear you are contacting them all. You explain that you are committed to buying a car from the one that offers the lowest price and then ask THEM to make YOU an offer. The fact that they know you are openly comparison-shopping plus your commitment to buy is supposed to flush out the lowest/best offer.

I've never been in a situation to do this, but there's a certain amount of sense in the advice.

This is pretty much what happened, but I used Beneplace Car Buying Service. They contact 3 local dealers and immediately I was offered about $1600 off MSRP by all three. Subsequent visits to dealers this week have produced even more discounts. Got a major new cost reduction this morning, and, I believe the previous most aggressive dealer will beat it. The sales guys just sort of shake their head at the discounts available this week. One thing for sure, they have a lot of CRV's on the lots, all sales people that the week prior to New Year is the busiest. Internet shopping services help level the playing field.
 

Uncle-A

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It is a good idea to wait till the end of the year and you said that you have used that approach. I have found that January is the slowest month for car dealers and if you wait till the end of January dealers want to get cars off their inventory because it cost them to hold the car into the next month.

A guy I talked with on this same subject said it is not a good idea to pay cash for a car because the car may be sold for less if the dealer thinks he can make up money on the financing of the car. But I do not have any backup data on this just talk and talk is cheap. Maybe some of our members could share info on this issue.

Have you looked into the purchase of a returned leased vehicle? Two or three years old with low miles? I have had some success with these vehicles.
 

Philpug

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There is always an end of the month deal. No need to rush into this IF you don't need it this week.
 

aveski

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Dealer add-ons are just that. Tell the dealer you don't want them. Ask for the lowest out the door price, which should include the price of the vehicle, fees and taxes.
 
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Living Proof

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Just a quick update, this morning I'm visiting the winning dealer to give a deposit check. Lovie's (my wife) first color choice is not on their lot, so it may be a few days before completing the deal. It came down to 2 dealers who discounted far more than 4 others. I'm convinced internet shopping strengthens the negotiation position of the buyer as offers at least $1600 off the MSRP established great starting point, especially in a popular car like the CRV. I am somewhat amazed by the winning written offer, the sales guy for the 2nd place dealer is amazed they got beaten. More to follow when the actual deal is done.
 

Ohioskier

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Just a quick update, this morning I'm visiting the winning dealer to give a deposit check. Lovie's (my wife) first color choice is not on their lot, so it may be a few days before completing the deal. It came down to 2 dealers who discounted far more than 4 others. I'm convinced internet shopping strengthens the negotiation position of the buyer as offers at least $1600 off the MSRP established great starting point, especially in a popular car like the CRV. I am somewhat amazed by the winning written offer, the sales guy for the 2nd place dealer is amazed they got beaten. More to follow when the actual deal is done.

Congrats. I know I’m late but if your a costco member you should look at what dealers are near you and the costco pre negotiated price. You never know it could save you more. We actually used that to get an Odyssey years back and a local dealer not in program when we asked what they could do beat costco offer but we were glad to have that leverage. I believe we were about 10% below msrp. That’s 5 years ago but still valid today. I worked in auto sales in previous life. Don’t worry about depreciation it’s not investment to earn money just happiness and enjoy the car.

Also remember negotiations aren’t over yet you are headed into the finance office next. They will try to pad things with gap and other warranty programs. They are all a waste of money don’t buy them. If they offer you the special cut rubber floor mats for your car get those. They fit Honda perfectly and have saved us a few times.

Good luck.
 

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