Monday, August 14, 2017
The Reveal and the Art of the Deal
There it is in all's glory, a 2017 Toyota Sienna. We've swung the pendulum from three Honda's in our household to two Toyotas and one Honda. I still like Honda but the nearest dealer is an hour and a half drive away and the nearest Toyota dealer is about 2 miles as the crow flies. I also don't like the little swoop Honda put in their rear window design a few years back.
When buying a new vehicle these days, the rage is to send out dozens of emails to make dealers "compete" with each other. I have a good friend who sales cars for a living and another that owns a car dealership. I'll give anyone reading a hint. The "best" price quoted via email is about $500 to $1000 more than the "best" price quoted to a person sitting in the dealership. Their reasoning is simple. It is much easier to negotiate with someone sitting in front of you than trying to attract one of the thousand email quote requests that get sent to you into the dealership. As the old saying goes, a bird in the hand is worth two in the bush... or in this case probably a thousand.
Still I like to do my homework so I not only looked at the price ranges of the model and options I wanted but the same model without options. I also looked online at dealers within 150 miles and see what they were advertising those models and options for. With that information written down on a piece of paper, I called up my friend the car salesman and set up an appointment. I also previously discussed our max price with my wife so she wouldn't be surprised later.
When I sat down in his office and casually laid my piece of paper on the desk with all my writing so that it was sideways to both of us. As I had hoped, I could see him eyeing it while we were chit chatting about various options. He now new what I was expecting for a price range. Since they didn't have any of that model on the lot at this time as they were making room for the 2018 models to be released later this year, he had to search his computer to find the one I wanted. When he found one without any options, he gave me a price which coincidentally was right at the median point of the previously research price range they were selling for in my area according to several websites.
I said I would pay the low range value which turned out to be about $700 less than his first quote but that I also wanted a couple options valued in their pricing guide at about $1000, plus rust, paint and upholstery protection which was another $700 all included in that value for $700 less than he quoted. This is why I always price out the model without options and then add them later for no added dollars to give me leverage rather than starting out with all the options included. So all told, my offer was valued at $2400 less than the one he initially quoted but the actual dollar figure only went down $700. He did the old "go-and-see-the-manager" routine and came back asking for another $200 which I agreed to and shook his hand. According to the websites, the price I paid was in the "excellent deal" column though purchasing it at the end of a model year and having a $2500 cashback incentive going on really helped out.
I normally shy away from their rust, paint and upholstery protection stuff but he told me that it came with a five year guarantee. If anything stains, rusts or peels in the next five years, they will make it like new again. With two kids and another totaled out van with very stained floor and seats, I thought it was probably worth the $700 gamble. The only problem is that the fumes are horribly noxious and overpowers the new car scent that I always enjoyed but knew in the back of my mind that they were noxious as well. As of writing this, we've only had the vehicle for 24 hours so I'm hoping that the odor goes away fast.
To celebrate blowing a big wad of cash, we went out to eat and blew another much much smaller wad of cash. It just made sense! Since it has been ten years since I purchased a new vehicle (that I mainly drive), I'm having to learn a lot on how to work all the controls. I'm also excited for winter now since we have two vehicles now with AWD for when the roads get bad, assuming we get some precipitation again.