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
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.Your friend is happy, but negotiating a new vehicle based on what you can afford per month is really the wrong way to go.
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.
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.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.
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.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 ).
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.
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.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
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....rather than bartering with the salesmen when it comes to the monthly payment.