Hyundai Forums banner

1 - 20 of 24 Posts

·
Registered
Joined
·
1 Posts
Discussion Starter #1
Hello, just started negotiating with the dealer. How much below MSRP have people negotiated for a base V6 in Canada? Hyundai is knocking 1500 off the 28,999 MSRP, so how much can I expect the dealer to come down?
 

·
Registered
Joined
·
5,883 Posts
To the best of my knowledge the dealer's margin (not including any factory rebates) is roughly 6-8% on a base V6. Leave 'em $500-$800 and they should be happy.
 

·
Registered
Joined
·
25 Posts
I suggest that you buy a subscription to Car Cost Canada. I did, last summer, and it saved me a bundle (a bundle with 4 digits to the left of the . !)
 

·
Registered
Joined
·
954 Posts
You can also join the APA.. as part of your annual fee you can get 3 free quotes telling you dealer cost and pointing you to a dealer who will sell you a car at a good and fair price. When I bought mine, the rate was $500 over dealer cost.. the local dealer matched the cost, and we were both happy... no negotiating.. no bull.
 

·
Registered
Joined
·
51 Posts
I agree with 6-8% being the Dealers margin. So, if 2010 Santa Fe base V6 has MSRP of $28,999...

7% * $28,999 = 2029 (Dealer's approx margin)...if you allow Dealer to make 529..then the Dealer
would give you $1500 off...

So, if Hyundai Canada is giving $1500 discount and Dealer give you $1500...that would be
$25,999 (plus HST, delivery-around $1565??, air tax-$100??)

Some Dealers will take the $529 profit...some wont..my Dealer took $600 over invoice...
I have heard other Dealers took $400 over invoice...some Dealers will tell you no and
sell only at MSRP and might offer a couple of add-ons (bumper gaurds...free oil changes etc.)

CarCostCanada CCC will give you the exact figures for negotiating...but the 6-8% is usually pretty close...
would say to join CCC...i liked having the exact numbers...CAA members get a discount on signup...
plus got many extra free reports...did reports for friends and family
 

·
Registered
Joined
·
22 Posts
A friend of mine just signed the paper this Monday (haven't picked up the car yet)..2010 Sport AWD for $36021.6..He didn't work too hard with the sales. Only said "Can you get me 2010 Sport AWD with 600/mo for 60 month..everything included"..and the guy replied "yes"..so there you go...it works out to be 600.36/month..I am from Montreal QC
 

·
Registered
Joined
·
954 Posts
QUOTE (zhangyi17 @ Jul 15 2010, 11:36 AM) index.php?act=findpost&pid=341953
A friend of mine just signed the paper this Monday (haven't picked up the car yet)..2010 Sport AWD for $36021.6..He didn't work too hard with the sales. Only said "Can you get me 2010 Sport AWD with 600/mo for 60 month..everything included"..and the guy replied "yes"..so there you go...it works out to be 600.36/month..I am from Montreal QC

Your friend is happy, but negotiating a new vehicle based on what you can afford per month is really the wrong way to go.

When I got my Limited in 08, I said $500 over dealer cost, here's the sheet on your costs.. if you won't give it to me at this I can get it somewhere else at the price. Got the old.. well I have to check with the mamanger.. I said fine.. you have 5 minutes or I'm gone.. done deal. I also got 5 years free oil thrown in.

It wasn't confrontational at all.. just a nice calm conversation.. picked it up 2 days later!
 

·
Registered
Joined
·
7,163 Posts
QUOTE (Pinto_Siftbean @ Jul 15 2010, 09:57 AM) index.php?act=findpost&pid=341960
Your friend is happy, but negotiating a new vehicle based on what you can afford per month is really the wrong way to go.
Amen to that -- and yet it's still the MOST commonly used sales technique out there. I really resent it. Every time I go into buy a vehicle and the serious discussion of price begins, the salesman starts with the "What kind of monthly payment are you looking at?" questions -- to which I reply, "What on earth does that have to do with the sales price of the vehicle? You're not playing with your friends in the street here." The ones that give me that "Yeah, OK - had to try" sort of response get a shot at my business and are often able to close the deal. Those that look insulted that they've been called on a questionable technique don't.
 

·
Registered
Joined
·
501 Posts
APA and CCC and several others like it are in business to make money. Just another way to cut an extra piece off the pie. They sell you 'dealer invoice' figures. Come on people. Those are not what the dealers pays. Just another 'suggested' figure released by the car companies to those outfits.

Nobody but the dealers know what they actually pay.
 

·
Registered
Joined
·
954 Posts
QUOTE (trucker @ Jul 15 2010, 04:21 PM) index.php?act=findpost&pid=342058
APA and CCC and several others like it are in business to make money. Just another way to cut an extra piece off the pie. They sell you 'dealer invoice' figures. Come on people. Those are not what the dealers pays. Just another 'suggested' figure released by the car companies to those outfits.

Nobody but the dealers know what they actually pay.

We're all in business to make money.. didn't realize you were an expert on what dealers pay... give us the numbers..

I can also give you a price on marketing and promoting your business.. I'll quote you 10% above what my other clients pay and we'll take it from there...
 

·
Registered
Joined
·
954 Posts
You've obviously never been a member of the APA if you think all they do is provide pricinig.. alot more benefits.
 

·
Registered
Joined
·
954 Posts
QUOTE (Don67 @ Jul 13 2010, 06:39 PM) index.php?act=findpost&pid=341479
To the best of my knowledge the dealer's margin (not including any factory rebates) is roughly 6-8% on a base V6. Leave 'em $500-$800 and they should be happy.
Sounds about right.. they will offer to deal at 3% without blinking an eye... they tried to get me in to a 2010 for that... ummm.. no thanks.
 

·
Registered
Joined
·
75 Posts
Interesting thread. I too am in Canada and we're considering a Santa Fe (well, it's actually a forgone conclusion that we'll get one, just depends when :D).

Forgive what will be a very stupid question no doubt, but what's the problem with basing a car purchase on the monthly payment? I ask as that is what we've been working on. If the vehicle costs X then per month payment will be Y, if Y is, for example, over CAD$480 a month then that might be beyond what we want to pay per month. As said, I'm probably missing something here and sorry for somewhat taking the thread OT.

As for what we are looking at, well, I'd love to say we'd go for the range topper, but I think mid-range AWD V6 is what we are more likely to go for.
 

·
Registered
Joined
·
7,163 Posts
QUOTE (markuswarren @ Jul 17 2010, 10:05 AM) index.php?act=findpost&pid=342481
Interesting thread. I too am in Canada and we're considering a Santa Fe (well, it's actually a forgone conclusion that we'll get one, just depends when :D ).

Forgive what will be a very stupid question no doubt, but what's the problem with basing a car purchase on the monthly payment? I ask as that is what we've been working on. If the vehicle costs X then per month payment will be Y, if Y is, for example, over CAD$480 a month then that might be beyond what we want to pay per month. As said, I'm probably missing something here and sorry for somewhat taking the thread OT.

As for what we are looking at, well, I'd love to say we'd go for the range topper, but I think mid-range AWD V6 is what we are more likely to go for.
A lot of the time, a salesman will focus on what you can afford per month, and back into a price and length of loan to make that "work". Meanwhile, you've not been paying attention to the price you're being charged, you've focused on what monthly payment you can afford. It's very easy to pay too much for a vehicle when you let them do this.

It's the same silly deal with trade-ins. They'll offer you what you think to be a very fair price for your old vehicle and make it up (and then some) in the price of the new one.

The appropriate strategy when purchasing a car is:

1) Ignore all discussion of monthly payments up-front. Focus on the price of the vehicle. WHEN you've established a decent price, THEN discuss loan terms with the finance guy, not the salesman. You should already know how much you plan to borrow and have a good idea of what the monthly cost with interest will be before you visit the dealer. You should, in fact, already have shopped for loans before you get to the dealer, preferably pre-qualifying for one. That puts you in a stronger bargaining position when it comes time to talk real payments.

2) Ignore all discussion of trade-ins up-front. Focus on the price of the vehicle. WHEN you've established a decent price, THEN discuss what they're willing to give you for your trade-in. If you like the number, fine. If you don't like the number, consider moving your old vehicle as a private sale. Yes, it's a bit of a hassle. You'll want to weigh the difference in money you'll get with the effort you'll expend. You should already know the wholesale and private value of your vehicle before you get to the dealer.

Next to a house, a vehicle is probably the most expensive thing most people will ever buy. Worse, unless you're dabbling in collector vehicles, it's assured to be a depreciating asset.

Can you imagine negotiating the purchase price of a HOUSE based upon the monthly payment? Never comes up during the discussion, does it? Before you start, you already know how much you can afford to borrow, and you're negotiating price, not monthly payment. The seller could care less about how you finance it and the terms of the loan, just so long as the deal gets done.
 

·
Registered
Joined
·
75 Posts
Thanks for the clarification on this, very much appreciated, and it now makes sense.

We have been considering where the money for the new vehicle should come from, dealer financing, or get a bank loan. With 0% it is tempting to use the dealer, but something says that there is a catch there somewhere and that a bank loan, even with a higher interest rate would be better for some reason, if only that we'd have the full amount of the car in hand, rather than bartering with the salesmen when it comes to the monthly payment.

Once again, thanks :)
 

·
Registered
Joined
·
7,163 Posts
QUOTE (markuswarren @ Jul 17 2010, 10:54 AM) index.php?act=findpost&pid=342496
Thanks for the clarification on this, very much appreciated, and it now makes sense.

We have been considering where the money for the new vehicle should come from, dealer financing, or get a bank loan. With 0% it is tempting to use the dealer, but something says that there is a catch there somewhere and that a bank loan, even with a higher interest rate would be better for some reason, if only that we'd have the full amount of the car in hand, rather than bartering with the salesmen when it comes to the monthly payment.

Once again, thanks :)
I actually used dealer financing on my Santa Fe since they were able to score a better interest rate than the local banks here in Colorado.

As for the 0% financing, you have to look to see if the option (the cash they'll give you in lieu of the 0% financing) works out. If they can offer you 0% financing, they NEED to give you cash in lieu of that deal or they're admitting that they're charging you too much for the car in the first place. Their money isn't free, either. So you find your best deal on financing elsewhere, see what the total interest comes to, and look at the cash and it's value at whatever percentage you could get on it if you invested it somewhere. It's a pretty simple equation ... Their cash at whatever return you think you could get vs. the interest you'd pay someone else if you got your best deal on a loan elsewhere.

Again QUOTE
...rather than bartering with the salesmen when it comes to the monthly payment.
Again - you need NEVER (and really SHOULD never) talk to a salesmen about payments or financing when making a vehicle purchase. It's NOT their job to begin with, and is only employed by them to cloud reality. Your interaction with the salesman should be to negotiate the price of the vehicle and nothing more! Besides, unless you've been pre-approved elsewhere, you'll never know the real numbers until their finance guy finishes checking your credit and figuring out the % rate he can get you from some outfit.
 

·
Registered
Joined
·
3 Posts
When I bought mine, Santa Fe 2010 GLS AWD brand new in july ...

I paid the MSRP and got 2500$ of accessories with it (Hitch, roof rack, side steps, etc..).

Dunno what is their margin on these..
 

·
Registered
Joined
·
283 Posts
canderson,

You are right on with my thinking. Some of the 0% financing is either that or cash reduction on the price.

You also want to remember if you take 0% financing instead of the cash reduction in price, if thats the option, even if they amount to the same dollars,
you only come out ahead if you have the financing for its full term.

If your vehicle is totaled, stolen or burns up, you lost because you didn't get your money back.
Take the cash & put it in your pocket. Then work on financing.

If you want to play with the sales & finance person, tell them you pay cash. It throws them off their game plan.
 
1 - 20 of 24 Posts
Top