Is this a good deal?

[extrashaky]

Originally Posted by SirBrass

...and if you plan to mod at all, don't go for the extended service agreement...

On the other hand, if you plan to keep this thing stock, do consider the 100K mile extended warranty. There are threads in the tech section on engine failures in the 30K to 40K mile range. I don't think a few of those indicate that we have a particular problem with this car. But I know I had warranty repairs on my Jeep in the 70K and 80K mile range that would have cost much more than the cost of the 100K extended warranty on this car. What good is it to save a thousand dollars now if you're one of the unlucky few who end up shelling out several thousand for an engine replacement at 40K miles, just a few thousand miles out of warranty? To me it's not that expensive an insurance policy.

Originally Posted by gramicci101

I've never bought into the end of the month quota desperation theory. I can see end of the year, but what didn't get sold this month can be sold next month. Others might have a different opinion.

That NPR story I mentioned earlier explained it. In that story, the dealership had a total quota of 30 cars each month. If they met the quota, they received a $60,000 bonus from the manufacturer. If they only sold 29 or fewer, they did not get the bonus. They could almost give their 30th car away and make money if they met that quota.

At the beginning of the day, they had only sold 25 cars for the month, so they had to come up with 5 sales that day. As the day wore on, they ticked up to 28, to 29, almost to 30, and then a couple of the customers backed out. They got desperate, and they started offering to sell cars at a loss. They would actually make more money selling at a loss and getting the bonus than they would if they didn't make the sale at all.

They stayed open until 9 PM that night until they sold their 30th car (at a loss). The sales manager told the interviewer that if you drive by the dealership at 8 PM on the last day of the month and the lights are still on, you can often get a ridiculous deal IF you bargain hard and you're willing to buy the car that night.

Obviously how well that works depends on the manufacturer's incentive structure. But pretty much all of the dealerships have a quota, and the individual sales people have individual quotas as well. If your particular salesman hasn't met his quota for the month and his income (or in some cases, his job) is on the line, you're in a much stronger bargaining position than you would be on the first or 15th of the month, when there's still plenty of time for them to make up a deficit.

[gramicci101]

Originally Posted by extrashaky

That NPR story I mentioned earlier explained it. In that story, the dealership had a total quota of 30 cars each month. If they met the quota, they received a $60,000 bonus from the manufacturer. If they only sold 29 or fewer, they did not get the bonus. They could almost give their 30th car away and make money if they met that quota.

At the beginning of the day, they had only sold 25 cars for the month, so they had to come up with 5 sales that day. As the day wore on, they ticked up to 28, to 29, almost to 30, and then a couple of the customers backed out. They got desperate, and they started offering to sell cars at a loss. They would actually make more money selling at a loss and getting the bonus than they would if they didn't make the sale at all.

They stayed open until 9 PM that night until they sold their 30th car (at a loss). The sales manager told the interviewer that if you drive by the dealership at 8 PM on the last day of the month and the lights are still on, you can often get a ridiculous deal IF you bargain hard and you're willing to buy the car that night.

Obviously how well that works depends on the manufacturer's incentive structure. But pretty much all of the dealerships have a quota, and the individual sales people have individual quotas as well. If your particular salesman hasn't met his quota for the month and his income (or in some cases, his job) is on the line, you're in a much stronger bargaining position than you would be on the first or 15th of the month, when there's still plenty of time for them to make up a deficit.

That's interesting, thank you. I didn't know the manufacturer offered a massive sales incentive like that.

[SirBrass]

Oh the end of the month thing exists. Ask @jeffsides, who works in finance for a big toyota/scion dealership. Towards the end of the month he usually doesn't make it in time to our evening meets b/c of salesmen staying late with customers trying to secure sales (drives him nuts b/c it keeps him at work way later than he'd like).

[marc615243]

Originally Posted by SirBrass

how badly does the salesman realize that you want this car? If he's gotten clued in, then you may need to agree to the $30k (b/c he'll play the long odds and hold his own, b/c he figures you're going to sell the car to yourself sooner or later, with good money betting on sooner, even if he doesn't cave on price), OR suck it up and wait just to prove him wrong and wait for another SWP Limited to pop up.

If he's still in the dark, play the "I can walk away any time I want" angle even to yourself, and play the odds that the limited will still be there in another 15 days. The limiteds don't move anywhere near as well as the premiums b/c of the cost factor. The subaru dealerships can sell the premiums ridiculously easy b/c the price is just too good. The limiteds are for those who can go higher and really really want that particular car. Thus they don't move as fast. Much like the WRX base models vs. STI Limiteds (except they'll probably have more BRZ Limiteds on hand than the new STI Limiteds) in terms of time on lot till sale.

I told him I am basically buying this car sometime soon but not in a hurry. I am going down there here within an hour or 2 to talk financing and what options we have. I plan on buying the car tonight if I don't get too much tacked on the end with service agreements and whatever else they try to add.

Thanks everyone for the help in this decision. I will post how everything goes later tonight.

[m.wood0213]

Id say its a good dead but thats coming from someone who bought one with a "+" in the discount area instead of a "-" (I got the opposite of a discount). I paid 33,000 OTD for mine.

[gramicci101]

Originally Posted by marc615243

I told him I am basically buying this car sometime soon but not in a hurry. I am going down there here within an hour or 2 to talk financing and what options we have. I plan on buying the car tonight if I don't get too much tacked on the end with service agreements and whatever else they try to add.

Thanks everyone for the help in this decision. I will post how everything goes later tonight.

Post pics!
@Diode Dynamics has LED fog lamp bulbs that produce a white light that matches the HIDs. The OEM bulbs are dingy yellow.

Cravenspeed 2" antennas are $25 on Amazon.

Energy Suspension shifter bushing is $20 on Amazon.

So many cheap mods are available, there's really no reason not to.

[Ursam]

Originally Posted by extrashaky

That NPR story I mentioned earlier explained it. In that story, the dealership had a total quota of 30 cars each month. If they met the quota, they received a $60,000 bonus from the manufacturer. If they only sold 29 or fewer, they did not get the bonus. They could almost give their 30th car away and make money if they met that quota.

I had that exact experience last year. I was shopping for a Camry for my wife at the last day of October. We did some test drives, then came back to my local dealer and made a real low-ball offer, fully expecting a tough negotiation. To my surprise, they accepted my low price offer with no negotiations. The only condition was that we had to accept the deal right then. After the deal was finished, I asked the salesman why he accepted my offer, and he admitted that they had a quota to fill for the end of the month and they simply could not afford to let a potential buyer go out the door that night.

[SirBrass]

Originally Posted by marc615243

I told him I am basically buying this car sometime soon but not in a hurry. I am going down there here within an hour or 2 to talk financing and what options we have. I plan on buying the car tonight if I don't get too much tacked on the end with service agreements and whatever else they try to add.

Thanks everyone for the help in this decision. I will post how everything goes later tonight.

Danger Will Robinson. When I did the same thing back in November, I walked out with a BRZ instead of getting a good budget idea.

The salesman WILL be doing the "What numbers do you need to see for you to go home with this car today?" routine, with that theme prevalent.

Go in VERY well-armed and prepared to deal as if you are going to buy today, especially if you're not.

[SHOspazz92]

I waited before I got mine. I love my BRZ but could not Justify paying 30,000 dollars for it (Sorry, I just don't feel it's a 30,000 car). So, when I found a used limited priced well I jumped on it. I paid 24,900 (Out the door) for my 13' Limited with 7300 miles on it. It was the best priced one with in 1200 miles at the time. Though I understand wanting to get one BRAND NEW. In this case, I could justify buying used.

-Sam

[thill]

I would just negotiate the price of the car out the door over email. Then you have it in writing. Don't add a bunch of options and service/protection plans onto the car. It already has a very good warranty, and you can always add an additional extended warranty later for most likely a cheaper price. Lots of places sell genuine extended Subaru warranties online.

It just makes it easier to negotiate up front then if you go down there. These guys do this for a living, they know how to push things on you that you may not want/need.

[extrashaky]

Originally Posted by thill

It just makes it easier to negotiate up front then if you go down there. These guys do this for a living, they know how to push things on you that you may not want/need.

Mine tried to push me right into a WRX. There are not a whole lot of options to upsell on these cars, and the salesmen don't like having so few items to use for negotiation. The first salesman I dealt with tried to just skip all that and convince me to test drive a car with more options. I was having none of it.

[thill]

Originally Posted by extrashaky

Mine tried to push me right into a WRX. There are not a whole lot of options to upsell on these cars, and the salesmen don't like having so few items to use for negotiation. The first salesman I dealt with tried to just skip all that and convince me to test drive a car with more options. I was having none of it.

My salesman was not pushy at all. The finance guy was. Even after I told him I did not want an extended warranty he kept trying to push it on me to the point where he was getting annoying. I finally told him I just wanted the car at the agreed upon price with nothing else. No window etching. No fabric protection. No extended warranty. No clear bra. Nothing else.

He was grumpy but it went smooth after that.

[marc615243]

Just got home with the car. The salesman was fantastic to work with and he did not pressure me with anything. There were no additional addons and the final price of the car all fees included was exactly at 30000 like we had discussed. I will post some pictures up tomorrow after I get some in better lighting.

[Skurj]

Grats!