Advice for trading in FRS to dealer

[jblmr2]

@torkdork great advise! Wish we had met before I bought mine.

[extrashaky]

Originally Posted by peachsnow

I didn't even think about December... It really is around the corner. But what do you mean pump up the numbers? On my trade in value? Or something else?

To expand a little on what torqdork said, the last day of the month is usually the best day to buy a car because of the dealer incentives. The manufacturers set target monthly quotas for each dealer. If the dealer meets the quota, the dealership gets a bonus. So for example, suppose the dealer's quota is 80 cars for the month, and if they meet the quota the manufacturer will pay the dealership an $80,000 cash bonus. If they have sold 79 cars, they could actually give that 80th car away and still make money on it.

When a dealership is counting down the hours on the last day of the month and still hasn't met their quota, they become very, very motivated to make a sale. If you go by the dealership at 7pm on the last day of the month and the lights are still on, you could probably go in there and get a great deal.

And that's true at the salesman level as well. Not only does the dealership have a quota, but each salesman has a personal quota. He'll be willing to lose his commission on the sale if it means making his quota and getting his bonus. In some sad situations, meeting quota can even be a matter of keeping his job.

If month end is the best day of the month, year end is the best time of the year because the manufacturers are fighting for bragging rights as torqdork said. They raise the dealer incentives then, thus raising the pressure. You can get some really insane deals if the timing is right.

But all that said, don't assume that you will automatically get a great deal on the last day of the month. It all comes down to timing. If the dealership has met its quota, they'll no longer be as willing to deal. You might get a ridiculously good offer at noon, only to find it evaporate at 3PM because they made the final sale they needed to meet the quota. It's just something you keep in mind when negotiating for a car, in case you can make it work in your favor.

[peachsnow]

Originally Posted by extrashaky

To expand a little on what torqdork said, the last day of the month is usually the best day to buy a car because of the dealer incentives. The manufacturers set target monthly quotas for each dealer. If the dealer meets the quota, the dealership gets a bonus. So for example, suppose the dealer's quota is 80 cars for the month, and if they meet the quota the manufacturer will pay the dealership an $80,000 cash bonus. If they have sold 79 cars, they could actually give that 80th car away and still make money on it.

When a dealership is counting down the hours on the last day of the month and still hasn't met their quota, they become very, very motivated to make a sale. If you go by the dealership at 7pm on the last day of the month and the lights are still on, you could probably go in there and get a great deal.

And that's true at the salesman level as well. Not only does the dealership have a quota, but each salesman has a personal quota. He'll be willing to lose his commission on the sale if it means making his quota and getting his bonus. In some sad situations, meeting quota can even be a matter of keeping his job.

If month end is the best day of the month, year end is the best time of the year because the manufacturers are fighting for bragging rights as torqdork said. They raise the dealer incentives then, thus raising the pressure. You can get some really insane deals if the timing is right.

But all that said, don't assume that you will automatically get a great deal on the last day of the month. It all comes down to timing. If the dealership has met its quota, they'll no longer be as willing to deal. You might get a ridiculously good offer at noon, only to find it evaporate at 3PM because they made the final sale they needed to meet the quota. It's just something you keep in mind when negotiating for a car, in case you can make it work in your favor.

wow this was extremely helpful thank you so much you and torqdork helped alot. I had no idea that was how dealerships worked. I thought the scion policy was pure price or something. So negotiation was out of the question. Since I got this new info, i'm going to keep my sales person waiting until the end of the month. I'll use the 30th of this month as a trial run, if i get a good deal i'll bite if not hopefully Dec 31st. Thanks guys!

[extrashaky]

Originally Posted by peachsnow

I thought the scion policy was pure price or something.

Scion dealers can't always negotiate on the price of the car the same way other dealers can, but the price is not the only thing being negotiated. They can also negotiate on trade, dealer extras and financing. You might be able to get them to throw in some dealer options, clear bra, extended warranty, etc. to sweeten the deal.

[torqdork]

Good advice @extrashaky. Most dealership retail cash incentives are stair-stepped on a per new vehicle sold basis but do have a ceiling based on total volume so additional sales above quota still pay at the top level. Also, earlier this year Scion dealers in my region were given the green light to abandon Pure Pricing on leftover '13's and '14's.

@peachsnow, if you're thinking about a Toyota extended warranty, keep in mind that they can be purchased from any franchised Toyota dealer in the US. I recall Carson Toyota and a couple of others @priuschat.com merchandising them far below most other dealers.

Oh, and don't even consider an aftermarket warranty company. They have a long history of going bankrupt and leave buyers hanging with no extended warranty and no recourse.

[peachsnow]

Haha, I think i'll pass on the extended warranty. since i'm planning on adding on a Catback exhaust after my purchase. Although i'm getting mixed signals from every dealer, half of them say that adding an after market exhaust would void my warranty. half says its ok.

[Tcoat]

Originally Posted by peachsnow

Haha, I think i'll pass on the extended warranty. since i'm planning on adding on a Catback exhaust after my purchase. Although i'm getting mixed signals from every dealer, half of them say that adding an after market exhaust would void my warranty. half says its ok.

Only voids if they can prove it caused the warrantied issue.
Go TRD and bargain it in. That is what I did. Pretty nice exhaust too.

[peachsnow]

Ouu good to know

[Koa]

just take it off when/if you need warranty work done. CBEs aren't a big deal. They by and large do not alter the drivetrain at all. The dealer has to PROVE that the modification was the fault of the damage.

[peachsnow]

Hold up since we are on this topic, do you guys know if the 2016 models are going to be coming out in December? Do you guys have any news on that? Should I wait for the 2016 or jut snap up the 2015 now?

[Tcoat]

Originally Posted by peachsnow

Hold up since we are on this topic, do you guys know if the 2016 models are going to be coming out in December? Do you guys have any news on that? Should I wait for the 2016 or jut snap up the 2015 now?

16 will come out next September.
Although there is loads of speculation there are no official statements on what if any changes will be made.
If you want to wait that is fine but be careful of the "next year model will be better trap" of you may wait forever to no benefit. (or of course, they could be spectacular)

[peachsnow]

Lmao! Never mind by next September my Frs value will go from 19k to maybe 18k I thought it was in december

[peachsnow]

Alright guys, the cards are finally on the table. They are selling the car to me for 26,065. Which is MSRP+Delivery+Halo which is holy shit 400 dollars lol. What are my options here? Can i lower it anymore? What should i do?

[NIN69]

Originally Posted by peachsnow

Alright guys, the cards are finally on the table. They are selling the car to me for 26,065. Which is MSRP+Delivery+Halo which is holy shit 400 dollars lol. What are my options here? Can i lower it anymore? What should i do?

Find a halo at another dealer or online. You might get additional dealer options for free if they think you are considering buying somewhere else. Just get the Scion accessories brochure and see what they might give you as extras to close the deal. I was able to get free tint and an arm rest installed. For a 2015 that will probably be the best price they are offering.