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Discussion Starter · #1 ·
Tricks dealers use to let you think you are getting a good deal when you are not.

How about the old TrueCar scam.

Yes we will accept the TrueCar MSRP. But when you go in to the dealer they say they will accept TrueCar but need to charge you for the "Dealer Installed Options" Like Nitrogen in the tires.

The latest I ran into is the inflated MSRP

Hyundai just reduced the MSRP on a number of 2018 Sonata's

https://www.hyundainews.com/models/hyundai-sonata-2018-sonata

The dealer used the MSRP from August of 2017 and then gave me the incentives from that inflated MSRP. Not from the lower MSRP from May 31,2018

Ok guys lets all post the scams we have run into to help new buyers.
 

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Are you sure the one you were looking at wasn't delivered to the dealer prior to the new "+" pricing effective May 31? I don't think the dealers will reduce the MSRP on existing stock when Hyundai announces a new pricing structure. See if the number they started with matches the MSRP on the window sticker.
 

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Another trick is on the contract to add the destination charge to the MSRP and dealer installed options. Destination charge is included in the MSRP. Look carefully at what you sign.
 

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Tricks dealers use to let you think you are getting a good deal when you are not.

How about the old TrueCar scam.

Yes we will accept the TrueCar MSRP. But when you go in to the dealer they say they will accept TrueCar but need to charge you for the "Dealer Installed Options" Like Nitrogen in the tires.

The latest I ran into is the inflated MSRP

Hyundai just reduced the MSRP on a number of 2018 Sonata's

https://www.hyundainews.com/models/hyundai-sonata-2018-sonata

The dealer used the MSRP from August of 2017 and then gave me the incentives from that inflated MSRP. Not from the lower MSRP from May 31,2018

Ok guys lets all post the scams we have run into to help new buyers.
Are you saying that the "Window Sticker". MSRP had a price different than the price quoted? I really don't understand your post.
 

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I had a friend who sold cars. What I learned from him:

1. There is an "A.." for every seat.

2. Dealers not only "screw" customers. They also "screw" the salesman. Salesman must keep close track of his deals or dealership will screw him out of his commission.

3. Sales guys would rather sell used, vice new. Every dealer has the same new cars, HOWEVER, I'm the only one with that (used) car.

4. Dealership will do almost anything to keep you from walking out the door, as they know you will go to the next dealer Down the road.
 

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In NJ they have been adding all kinds of "dealer installed" options since early 2000s. Special waxes, advertisement fee, documentation fee, destination fee, dealer location fee (a charge supposedly on the higher cost of selling cars in the area - Only saw that on PA cars), nitrogen tires, seat coating, pin striping, window security etching. The dealer only paid for only the first year of the security etching, sequential years were $75. They were only numbers etched on a few windows, not the VIN. They also sold tire and rim warranties as well as warranties on the FBOs if lost or stolen. Since the early 2000s dealer were charging all kinds of fees not on the window sticker. They would charge $250 to $400 to register the car back in the late 90s. When it was made illegal to charge more then the registration fee, they just called it something else. Many cars had $1,500 of added dealer options, legal, as they displayed it on the sticker price.

This is why, for many, many years I would go to PA and buy a car. They stuck a temp plate on it for $30 and I registered it myself as an out of state dealer could not register in NJ. Plus the rural dealers I went to were happy to sell a car.

Currently, in NJ the 2018 are $3K and more off, depending on the model. Kind of makes the used cars worth way less.
 

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Discussion Starter · #8 ·
Currently, in NJ the 2018 are $3K and more off, depending on the model. Kind of makes the used cars worth way less.
OK "$3k and more off" What? I'm saying the MSRP is the starting point. So when the dealer takes the current MSRP and changes it to the MSRP from Sept 2017 and then takes a couple thousand off he might be back at the new MSRP.

The customer now thinks he has a discount when he has not.
 

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Discussion Starter · #9 · (Edited)
See if the number they started with matches the MSRP on the window sticker.
Nope the MSRP they started with was the MSRP from Sept 2017. Not the MSRP of 5/31/2018.

When Hyundai comes out with a MSRP change it would seem to me that if it is to sell the outstanding supply of cars before the 2019's start arriving. Hyundai would expect to sell more cars by lowering the price to the consumer not to make more money for the dealers.
 

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Discussion Starter · #10 ·
Are you sure the one you were looking at wasn't delivered to the dealer prior to the new "+" pricing effective May 31? I don't think the dealers will reduce the MSRP on existing stock when Hyundai announces a new pricing structure. See if the number they started with matches the MSRP on the window sticker.
The reason Hyundai reduces the MSRP is to sell more car's - Right? If so how does Hyundai pass the reduced price on to the consumers to get them to buy?
 

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It's true that the goal is to sell more cars but lowering the MSRP on new inventory will not change the MSRP on existing inventory. It may cause the dealer to offer additional discounts on the old inventory that they don't have to offer on the new inventory but the MSRP doesn't change. Once the factory prints and posts the Monroney sticker for a certain VIN then that MSRP doesn't change even if they lower the MSRP on newer cars.
 

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Discussion Starter · #12 ·
It's true that the goal is to sell more cars but lowering the MSRP on new inventory will not change the MSRP on existing inventory.
And you know this how?

Why would Hyundai lower the price of a 2018 in June if the dealers have not been selling cars and the 2019 are on the way? There must be a way to pass the lower price on to the customer if they want to sell the 2018's before the 2019's show up. I do not think the dealers pay the MSRP don't they work on the invoice price which I would think could be changed with a stroke of a pen.
 

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Dealers receive incentives from the maker to move stale inventory. Has been that way since at least the early '70's. Whether or not the dealer chooses to pass that along is another matter.
 

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And you know this how?

Why would Hyundai lower the price of a 2018 in June if the dealers have not been selling cars and the 2019 are on the way? There must be a way to pass the lower price on to the customer if they want to sell the 2018's before the 2019's show up. I do not think the dealers pay the MSRP don't they work on the invoice price which I would think could be changed with a stroke of a pen.
The window sticker is put on by the factory. The MSRP on the sticker cannot be changed. If the car was produced before the MSRP reduction it would show the higher MSRP.

You are correct, the goal of lowering the MSRP is to sell more cars as they are not selling well. However, the inventory that is on the lot before the price change will show the higher MSRP and that is what the dealer would use on the contract. The way that you get a lower price on older inventory is the dealer discount should be bigger. This would show up on the sales contract, not the window sticker. They would start with the window sticker MSRP but the amount the dealer discounts the car would be bigger. For example, a car that has been there a week the dealer may only discount $1500 while a car that has been there for 3 months they may discount $2500.

As others have said, in theory the manufacturer would give the dealer extra incentives to move the older inventory but it is up to the dealer to pass along those savings and they may not. The way the manufacturer would directly decrease the price to the buyer is by offering a bigger rebate. That would be easy to do with saying, for example, $4500 rebate for 2018 SEL $2500 rebate for SEL+.
 

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^^ Agree with all that has been said. In the end a dealership is a business whose purpose is to produce profit. If they can get away with selling a car that has been on their lot for a long time with less options, and not reducing the price, then they can make more profit. Just because they can reduce the price, doesn't mean they should or will. In addition, for the dealership, it has cost them a lot of money to keep that car on the lot (repeated car washes, maybe some gas fill-ups after test drives, insurance for the car being on the lot, etc) so they are going to try to get as much out of them as they can. If you seem interested in the pricing that is shown, they will stick to it. If you make it clear what you want your out the door pricing to be, and they feel that you will NOT buy a car outside of that price, they will do more to get closer to what you want so that they at least get some profit by selling a car. If the dealership isn't hurting (financially that is), they aren't motivated to dip into their profits.
 

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Here's another thing for Left_Snow to think about. Don't let the dealer start at MSRP and then you have to work down from there. Do your research and figure out what a good price is for that car and make your offer. Let them figure out how close they can get to what you are willing to pay. In the end it doesn't really matter what the MSRP is as long as you get to a bottom line total that you're satisfied with. If you are willing to pay $20,000 then you don't care if they start with a $25,000 MSRP and discount it $5,000 or if they start with a $23,500 MSRP and discount it $3,500. Just focus on the bottom line.
 

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Although not mentioned here, don't forget that 99% of dealers do not own the cars on their lot. The bank owns them. This is called "Floor Plan". Dealers pay the bank interest every month for every car on their lot. Remember, the bank owns them. (I know of one local Buick dealer who owns his cars. All others have their cars on Floor Plan). Dealers would rather sell from in stock to get rid of the Floor Plan interest, vice ordering for you. BTW: Dealers are SUPPOSED to pay off the car and any Floor Plan interest as soon as the car is sold. Banks send people out to find every car at the dealership that is on Floor Plan. If they can't find the car, dealer in BIG TFOUBLE. I've seen two cases in the past 25 years, where dealerships got their franchises pulled because they did not pay off the car once car sold to customers.

The longer the car sits on dealer lot, the more dealer had paid on his Floor Plan loan.
 
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