New Car Dealers in Elizabeth - NJ 1 (2023)

FAQs

How do I talk down to a dealer for MSRP? ›

Explain that you are looking for the lowest markup over your bottom price. As an alternative, ask if the salesperson is willing to beat a price you got from a legitimate buying service. If so, tell him what it is, or better yet, show them a print out. Try not to be argumentative.

The short answer is yes. However, for many, even the thought of negotiating new car prices can seem intimidating. Treat this experience like any negotiation and go in with a plan. The more thought you put into it upfront, the more confidence you'll feel about speaking with your dealer about the price of your new car.

A final resort for the dealer with vehicles that don't sell at the dealership is to sell them at an auto auction. Most areas have auto auctions that are frequented by new- and used-car dealers.

Americans planning to shop for a new car in 2023 might find slightly better prices than during the past two years, though auto industry analysts say it is likely better to wait until the fall. Since mid-2021, car buyers have been frustrated by rising prices, skimpy selection and long waits for deliveries.

It's standard practice to offer 3-5% over your dealer's true new car cost. After you find the car you want to buy, take note of the: MSRP (sticker price) Factory invoice price.

New cars. It is considered reasonable to start by asking for 5% off the invoice price of a new car and negotiate from there. Depending on how the negotiation goes, you should end up paying between the invoice price and the sticker price.

How do you talk down a car salesman? ›

Focus any negotiation on that dealer cost. For an average car, 2% above the dealer's invoice price is a reasonably good deal. A hot-selling car may have little room for negotiation, while you may be able to go even lower with a slow-selling model. Salespeople will usually try to negotiate based on the MSRP.

The first year faces the most significant depreciation hit to the car's market value, with most vehicles losing about 20% or more of their original value. The loss continues to decline from there. Cars often shed about 60% of their original purchase price within the first five years.

These vary from car maker to car maker. However, the typical break-in period is within the first 500-1000 miles. If you give in to the common urge and start pushing your engine too hard early on, you risk accelerating this process, causing minute imperfections in the size and shape of engine components.

There is good news on the horizon in 2023, however. J.P. Morgan estimates that prices for both new and used vehicles are set to decrease as supply chain issues abate and inflation is poised to keep easing.

The right way to do it is to say something like “I can see we're still pretty far apart with the price of the car. Please call me if you can find a way to get it lower.” Then be sure to leave your contact information. You might get a call back right away, it may take a few days, or the call may never come.

When negotiating, it helps to be able to justify what you're asking for, he adds: "Instead of saying, 'I want to pay this,' try something like: 'I've looked at five or six different cars that are similar to yours in the market. The price range goes from $19,500 to $20,700. I'm comfortable making an offer of $19,100.

What do you say when a customer asks for a lower price? ›

You could say, “This is the best price we can do for the scope of services we're offering. Now if you want less scope, we could certainly reduce the price. If you want to add scope, we could reduce the price as well to the extent that it afforded us an additional economy of scale.

In terms of the best time of the year, October, November and December are safe bets. Car dealerships have sales quotas, which typically break down into yearly, quarterly and monthly sales goals. All three goals begin to come together late in the year.

If you're shopping for a used car, the early months of the year — January and February — are a good time to ship. You may see more vehicles on the market then as people sell their old vehicles after buying new ones over the holidays. That increased supply can lower prices, making it a good time to buy.

In the past, the average lifespan of a car was significantly lower than it is today. Now, you can expect a standard car to last around 12 years or about 200,000 miles. More advanced vehicles like electric cars can go even longer, up to 300,000 miles.

To figure out your ability to pay, the salesman typically will ask what you do for a living and where you work. This may seem like small talk, but it is actually a carefully calculated move to gather information. Thus, you should always downplay the importance of your own job.

What is MSRP? MSRP stands for manufacturer's suggested retail price. It's the price that car manufacturers recommend dealerships sell their vehicles for. A new car's MSRP is usually displayed on a window sticker, hence the term "sticker price," which you might hear used instead of MSRP.

A dealer tacks these arbitrary amounts onto the MSRP to increase profit on high-demand models. Sometimes such markups appear as a second window sticker separate from the MSRP. Historically, you would find them primarily for highly anticipated all-new or redesigned models.

On average, new autos are priced 8.8% above MSRP, according to the iSeeCars report. While that's down from a peak of 10.2% in mid-2022, each of the 10 models with the biggest difference has an average price of at least 20% above its MSRP.

How much below asking price should I offer on a new car? ›

Based on your pricing homework, you should have a good idea of how much you're willing to pay. Begin by making an offer that is realistic but 15 to 25 percent lower than this figure. Name your offer and wait until the person you're negotiating with responds.

The out-the-door price is a term that describes the total cost of the vehicle. It truly is what it says — it is the total cash price that you will pay to walk away with keys to the car. This cost often includes a variety of extras, including some of the dealer's expenses associated with the car.

Invoice price (or dealer price) is the amount that the dealer paid the manufacturer for the car. MSRP is the “sticker price,” which is the amount that you will pay the dealership.

They are actually going to talk to the manager. The main reason being that the sales manager controls all the pricing of the cars in order to ensure that the dealership is making a profit.

Paying cash for your car may be your best option if the interest rate you earn on your savings is lower than the after-tax cost of borrowing. However, keep in mind that while you do free up your monthly budget by eliminating a car payment, you may also have depleted your emergency savings to do so.

Car prices may be coming down after two years of inflated prices brought on by supply-chain issues that occurred during the pandemic. Prices could drop up 5% for new vehicles and 10% to 20% for used vehicles in 2023, according to a report in November from J.P. Morgan.

The MSRP is set by the manufacturer, so you can't negotiate the MSRP — but you can negotiate how much you'll pay. Shop around for a car and compare prices. One strategy is to tell the dealer you could get a similar car for less money from another dealership and ask them to beat that price to gain your business.

How much off the MSRP can I negotiate? It depends on the market value of the vehicle. You can expect to see larger discounts on slower-selling vehicles. But on a popular vehicle, even a couple hundred off might be considered a good discount.

The short version is that it recommends making a 20% down payment on the car, taking four years to return the money to the lender, and keeping transportation costs just under 10% of your monthly income.

Is it smart to buy a brand new car? ›

New cars come with the latest safety features and are very likely to be reliable, though they can come with a higher price tag and higher insurance costs. Used cars are generally cheaper because the high depreciation of their early years is already behind them and you may not need as much insurance coverage.

Cars lose the most value in the first year, and depreciation continues for about five years. A car can lose up to 20% of its value in the first year, and over the first five years fall to around 40% from the original price. That means it loses about 15% of the value each year after the first year.

Trucks, truck-based SUVs and sports cars retain the most value. Luxury sedans depreciate the most.

In retaining “like new” quality and inheriting a slower depreciation rate, the best used car age for buying is 2-3 years. In fact, Americans are saving up to $14,000 on a 3-year-old vehicle. For example, a car that may have cost you $30,000 when new would cost around $16,000 after just 3 years.

Most experts consider the first 500 miles as a reasonable and sufficient break-in period.

Depending on the car company, dealer holdbacks might range between 2 and 3 percent of the invoice price or the manufacturer's suggested retail price. That can add up to more than $1,000, depending on the cost of the car.

Some vehicles command well above MSRP.

With that bit of folksy poetry fixed in your mind, you'll need to guard against any dealers treating today's short supply of cars like a winning lottery ticket. Many are tacking thousands of dollars in dealer markups to the manufacturer's suggested retail price (MSRP).

Seasonally, the best time to buy a car typically coincides with the ends of sales cycles — the last days of the month, quarter, or fiscal year. Most dealerships and salespeople work on commission and have quotas to meet each cycle (month, quarter, and year) to net big bonuses.

In fact, the MSRP is typically the starting point for your negotiations. If the model you want is in especially high demand, you may end up paying the full MSRP, but you'll almost always be able to negotiate with the dealer.

How much should you talk down a used car? ›

Based on your pricing homework, you should have a good idea of how much you're willing to pay. Begin by making an offer that is realistic but 15 to 25 percent lower than this figure. Name your offer and wait until the person you're negotiating with responds.

The sales tax, which will vary by state, is the most significant cost you'll pay when buying a new or used car.

There is good news on the horizon in 2023, however. J.P. Morgan estimates that prices for both new and used vehicles are set to decrease as supply chain issues abate and inflation is poised to keep easing.

Automakers have been dealing with a significant lack of inventory over the last year due to the impact of computer chip shortages and other supply chain issues, pushing prices paid higher as buyers competed for the few cars available on the lot.

MSRP, or Manufacturer's Suggested Retail Price, is what the automaker thinks is a fair price for the car that also nets the dealer some profit. It's typically 20 percent higher than the invoice price, but varies somewhat depending on manufacturer.