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Discussion Starter #1
I am wanting to trade in my 05 DC/LB Sport 4X4 for a 06-07 DC/ TRD O-R 4X4.
I have begun fishing on the web for local dealers and my first bite is from a man that says he is the fleet sales manager at his dealer and is offering me 3% over cost.

This is such a gray area for me and I always get burned at the dealer on the final price but this time I want to take my time so any info I glean from here will be much appreciated

Is the 3% over cost a good deal? Should not he had said over invoice? Are these the same things?

Thanks again in advance.
Bert
 

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2012/14 Stanley Cup Champ
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2006 4x4 Tacoma TRD
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join costco, and then you get a great price without having to haggle or anything. i'm told it is typically $200-500 over invoice. depending on your region i guess. then all you have to haggle over is trade-in value
 

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Pretty much a TN Member
2006 Taco DC TRD OR
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i purchased mine thru my local fleet mgr/internet sales and they did the same thing. totally straight forward, hassle free, no problem for me. thats how i'll do my future purchases.

Nathan
ycart1201
 

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3% on a truck that cost $30,000 is $900. You can do better. As the others have stated try Costco and also pay for the actual cost from Consumers Report. Just remember is the go low wholesale on the new truck your trade will also be at low wholesale. Best to sell your current truck on your own. Beyond that if you are set on trading the only number that matters is the difference in price between your trade and the new truck. Don't be afraid to walk away if they play games.
 

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BEWARE!

The dealer I bought my truck from said a similar thing over the phone. He said he would sell it to me for invoice and it seemed to good to be true. Well, going with my gut I told him I would look at the invoice when I went in. Here's the summary.... I paid his invoice, which wound up being about 3% over their true cost. If I would have paid his invoice plus 3% (what some people say is a good deal) then I would have paid 6% over their cost. Here's why...

My DEALER's invoice had (w/approximate numbers!).....

- HOLDBACK = $580 (which they get back at the end of the year from Toyota anyway, don't pay them twice for it)
- ADP = $240 (some advertising fee)
- FINANCE (some 3 letter code I don't remember) = $250 (fee to offset the bank's interest cost to have cars on the lot)
- FULL TANK OF GAS - $40 (it's on the sticker for goodness sake under standard equipment!)

How's the math coming so far? You're already at 3%. Now add their $399 processing fee or whatever for something THEY HAVE TO DO ANYWAY to sell you the truck. DON'T EVER PAY IT!!!

See what I'm getting at? Best thing to do is add up the true cost of the truck from Toyota. Tell your salesperson you want the invoice for the truck. He'll give it to you. Then cross out all this crap, figure the total, and then add 3%. MORE THAN FAIR to cover their expenses to run an operation. Bottom line is they need to make some money, but don't be the guy that's making it easy on them.

Let me know how it goes!! ;)
 

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Discussion Starter #8
Excellent advice, Thanks to all!
Offers are flying in and I know have tools to work with.
Thanks again...
Bert
 

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2005 Tacoma
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ycart1201 said:
i purchased mine thru my local fleet mgr/internet sales and they did the same thing. totally straight forward, hassle free, no problem for me. thats how i'll do my future purchases.

Nathan
ycart1201
X2

Finance yourselfthrough your lender, research the option codes you want, and call the fleet sales manager at the local dealership. If they have it, tell him your already financed, and have him get it ready for you to pick up. I have done this on the last 5 new cars I have bought, and in the case of my last Tacoma, it saved me almost 5k.
 

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Hey Bert :

My first job out of college was selling cars, and although it's been about 14 years since I went to something better, the tactics haven't changed much ( because people haven't changed much ). The biggest thing that's changed is the internet as a tool for buyers and sellers.

Although there's a bunch of sites on the internet to get info, I use www.edmunds.com or www.kbb.com for most of my searches. You can get both new car pricing, and also do a self appraisal for your trade in. For instance on Edmunds, for the new car, click on New Car Pricing, then Price With Options. It gives the MSRP price and the invoice price. For the Tacoma, the difference would be about $ 2500.00 or thereabouts depending on the options you select. You can go down the list of options and select all you're looking for and come up with a decent figure to use in your shopping. The figures given on the sites should be pretty accurate, but I think they may be off a few dollars +/-. From my experience, don't bust your can trying to get the exact invoice or MSRP price to match to the penny for the truck you want ( or trying to do an exact match with a truck you find on a dealer lot ). As long as you're within $ 25 or so with the info you find online, you're in a pretty good position.

When you are figuring up the value of your trade in, be *honest* about the condition of you trade when it asks for EXCELLENT, GOOD, FAIR or POOR. It's probably a good idea to either give your trade a good wash, wax, and interior clean before taking it to the dealer so they can do an appraisal, or have it detailed. It doesn't make a huge difference in what you'll get.... the majority of the appraisal will come from what the market is getting, or what wholesalers are paying for a particular model. But having it nice and clean helps. It's just like going out on a date..... if you take a shower, wear deodorant, and put on some decent clothes, you'll have a better chance of scoring some booty. Same thing with helping the value of your trade if it's clean. What most dealers are looking for is a car without dents, dings, & scratches, and shiny paint. Overall mechanical & tire condition factors into that as well.... plus a clean interior without any major stains, tears, or rips. What dealers really want is a car that they don't have to do anything to.... just remove your tags off of it, put a silly flag on the antenna or some other attention gitter, and drive it out to the used car lot. Check out the local papers to find identical cars for sale, or you can also check ebay and a few other sites. Your bank or credit union might be able to help out to if you call them. When you do a self appraisal online, you'll get several different figures. Use the wholesale figure as a baseline. Compare several different sites to get the trade in values. Really, from my experience, there's a little black book that wholesalers and some dealers use, and it's called The Little Black Book, and this thing is usually dead on with pricing, because it's what cars are bringing at auctions and some other sales. If you can get your hands on a current one of those, that's probably your best bet. However, as someone else posted on here, you'll almost always do better to sell it to an individual instead of trading. It's a little bit more of a hassle, but you might get anywhere from $ 500 to a couple thousand more than trading.

I think there's some incentive money (rebates) from Toyota on the Tacomas. It was $ 500.00. It might have stopped. Edmunds and KBB should have that info. And unless you're going to pay cash for the truck, know what your credit score is, and go to a credit union to get the financing..... or get preapproved for it anyway so that you know what rate you can get.

At the dealership, tell the salesman or whoever acosts you in the parking lot that you want his best price, and that he'll only have one shot to give it to you... that you don't get into horse trading tactics. I'm thinking $ 350 or so profit should be sufficient for most dealers to pay the salesman & finance guy. They'll be getting a holdback later on anyways. Unless Texas is different than SC, they'll probably turn you over to a "sales manager" or other fart who'll ask " what'll it take to earn your business today". These guys are generally completely full of sh*t, but they know the business better than the salesmen, and know what they paid for the new truck, and have an idea what yours is worth. The salesmen only exist to take you on a test drive, write up a buyers order, get your credit app, and put gas in the new car before you buy it. If they give you a figure that's acceptable to you, take it. Otherwise leave and tell them you're going to go shopping somewhere else ( but make sure you've given them your phone nr, because if you do actually leave, they'll probably call and start throwing out lower numbers ). Honestly, most of my verbal agreements to buy a car have been made standing right smack dab in the middle of the front doorway of a car dealership. Remember, you don't HAVE to buy a car from them. If you do leave and go to another dealership, don't lie about the figure the other car dealer gave you. Just tell them what you're looking for, how much you're willing to pay, and that the other dealership was pretty close to it, but you wanted to see if they could do better. THey'll hound you to get the figures though. Resist.

So if you agree on a price and get in the finance guys' office to sign the papers, my advice would be to NOT take the life insurance, extended warranty, prepaid maintenance, and other fluff items. It's almost never worth it.....these things are hideously marked up. And even if they weren't, there's a time/value of money that has to be figured into the equation...whether you pay cash or have to finance the fluff items. Not only would you be paying alot for the mop & glo warranty, but you'll have to pay interest on it as well.

When you take delivery of the truck, make sure you get everything you've paid for, and that it's in excellent condition. If they owe you something, get it in writing from a manager.

I hope this helps some. SOrry for the damn long post reply, but that was what was in my head. And for God's sake DON'T LEAVE THE LOT WITH DUNLOP AT20 GRANDTREK TIRES ON IT !!!!!!!!!

:chug:
 

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A few obtw's.

As said, don't but anything from the finance guy. Nitrogen tires, corrosion, etc. If you really want it buy it another day. My guy barely offered it because I think he was already prepped that I wasn't going to buy anything but my truck.

Second, some say go on line and see how much your ideal truck would cost. That's great if you are ordering it. But they'll probably have something close to what you want on the lot with some options you didn't want but don't mind having. Know the price of those also by having them read to you the two letter option identifiers from the invoice/sticker. Tell them (be honest) that you're going to go on line and do some research and then call them back. They'll say that's fine. Somebody said it before, carsdirect.com is a good site.

Third, it's only business, not personal. Don't feel like they won't be able to feed their children if you get a great deal.

Bottom line is........... YOU'LL LOVE THIS TRUCK!
 

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probably wanna mention the trade in after you've settled on a price :)

don't know if it's any different with consumer report, but you can check out cars.com too for invoice price.

check some incentives also, like manuf. rebates etc.
 

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Offer no more than 300-500 over their real cost of the truck.
Plenty of websites out there where you can find the actual dealer cost. I purchased my 2005 Tacoma in December 2004, I had to go to 5 diffrent dealer to get my price of 300 over cost.
 
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