How Negotiable is the Dealer's "Internet Price?"

"brjklein" (brjklein) 08/10/2014 at 18:23 • Filed to: car buying, dealership, internet price, negotiating

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I'm getting serious about buying my first new car ever (I've owned a lot of fun used cars, just nothing new), and I already know the Truecar price as top-end trick (thanks to carbuying.jalopnik), and the get-the-Internet-price trick. But I still think most of the Internet prices are slightly above where I would like to be (for example, I'd like to be out-the-door where the Internet price is). For the reason that they're about $500 from the Truecar price, I feel like there's a lot left on the table still.

Which brings me to my question: how negotiable is the dealership Internet Price? Could I reasonably expect to get the Internet Price out-the-door, if it's only $500 from the Truecar price?

Many thanks, fellow Opponauts.

P.S. My car falls under a $25K "Internet Price."

heliochrome85 > brjklein 08/10/2014 at 18:35

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tons of factors involved like model, time on lot, etc. What are you looking at?

Tim (Fractal Footwork) > brjklein 08/10/2014 at 18:35

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I think I negotiated an extra $500 off an internet price, but thats after I asked them if they would match another dealership's internet price.

And if you're looking at new cars, be sure to look up the manufacturer's incentives yourself. Most of the dealerships I went to were denying me a $500 incentive that I eventually got.

nFamousCJ - Keeper of Stringbean, Gengars and a Deezul > brjklein 08/10/2014 at 18:37

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much like with anything in life never accept to pay full price and be willing to walk, if they want it bad enough they'll sell. Hell I even got half off on a band shirt at a concert. "How much?" "$30" "Whats the lowest price you'll take?" "$20" "I'll give you $15 cash" "deal". (I actually felt pretty bad after cause the bass player was there and said wow you were able to haggle a band sure, nice. Then realized I was probably taking from his profits. Oops. But great group The Bunny The Bear if you want to look them up- I recommend In Like Flynn)

So that being said have a price you want. If originally 25k and you want to pay 23k offer 22k. They'll counter closer to your 23. If they say no, politely excuse yourself and head out. If within their means you'll have a new vehicle at your requested price. Anything, and I mean anything can be haggled.

brjklein > heliochrome85 08/10/2014 at 18:39

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The car most Oppos apparently look at: Fiesta ST. Edit: probably a 2014, not 2015.

I've been sights-set since March, tracking pricing. I qualify for a lot of the incentives, which gets the Truecar price down to its current state. Is the Internet Price factoring incentives in? I think I qualify for $2000 in incentives without financing through Ford.

Conan > brjklein 08/10/2014 at 18:46

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You can get to invoice and below a bit on new cars.

heliochrome85 > brjklein 08/10/2014 at 18:53

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The internet price does not always factor in all the incentives. Read the fine print. If you are ready to pull the trigger, make sure to sit down with the internet manager since he isn't working on commission but rather on overall sales number. He wants the sale, and doesn't often care about the commission.

E92M3 > brjklein 08/10/2014 at 19:11

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It's negotiable some, and often fluctuates. The price can drop $500 - $1000 at the end of the month automatically (by the dealers software). Some don't use that feature though. I've watched a few cars that drop in internet price throughout the month, then reset on the 1st of the following month.

Tom McParland > brjklein 08/10/2014 at 19:31

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It really depends...some dealership "internet prices" are already well below market value because they want to move inventory fast. These places tend not to budge much. However, if the TrueCar price is $500 cheaper, than you can probably get another 500 off. But since the FiST is a fairly low margin car to begin with I would not expect much more of a discount than that.

brjklein > heliochrome85 08/10/2014 at 20:40

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Thanks for the info! I'm hoping they'll negotiate more due to the end of model year and arrival of 2015s (there are dealers with 2x the number of 2014s on the lot than 2015s).

brjklein > Tom McParland 08/10/2014 at 20:54

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Thanks for the info as well; I know the ST is fairly low margin, but isn't invoice 8-10% above cost, plus the 3% holdback? I feel like there's some room for haggling in 11%, especially if the car's been sitting on the lot.

Tom McParland > brjklein 08/10/2014 at 21:07

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Those numbers are not accurate. What is the MSRP on the car you want and what is the advertised sale price?

brjklein > Tom McParland 08/10/2014 at 21:13

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I must have been mistaken with the percentages.

MSRP is 22,215 and sale price is 19,470, potentially including the current $2250 in incentives (which doesn't include at least one $500 incentive that I qualify for).

Tom McParland > brjklein 08/10/2014 at 21:24

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Do you qualify for the included incentives? If so and you can get the other $500 off i say it's a good deal.

brjklein > Tom McParland 08/10/2014 at 21:47

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Yeah, I qualify for everything. I'll see what happens nearing the end of the month.

Tom McParland > brjklein 08/10/2014 at 22:02

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end of month doesn't matter much anymore, from my experience t deal will be exactly the same or that car will be gone

brjklein > Tom McParland 08/10/2014 at 22:10

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Interesting. Not that I was expecting a different deal, I'll just be in the place I want to be to purchase, at the end of the month.

Tom McParland > brjklein 08/10/2014 at 22:12

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oh gotcha :)

Jimmy Tango > brjklein 08/11/2014 at 01:05

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I think aim for internet price as out of door is a general rule of thumb. Whether or not you have the will-power to walk away from the dealers won't budge is another story.

topher3134 > brjklein 08/11/2014 at 10:28

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I buy and sell alot of cars, 14 cars since june of 2010, the best way to deal with this is to get all of the cars you are interested in and willing to drive in some sort of organized spreedsheet. Call/email each one and tell them you are buying a car on x day. You will buy it from whomever gives you the best price OTD. See who gives you the best price. You will probably have to disclose all the discounts you are expecting to qualify for...example would be military or college grad. That allows you to go apples to apples with all the dealerships. They all bought the car at the same price or damn close.

counterblow > brjklein 08/11/2014 at 12:28

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The "internet price" doesn't mean shit. They put that up there to appeal to the timid no haggle folks who just want to buy a car like they are ordering toilet paper from Amazon. I was looking at a Volvo C70 on internet price. I ignored that BS and shot them the price it was worth. "No BS, this is the lowest I can go" was the reply. I walked. Well 6 months later and the chump is still sitting on that car....priced BELOW the Internet Price he was trying to pawn off as :low as I can go:

Plecostomus is a starred commenter > brjklein 08/11/2014 at 12:57

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I bought one last year. Best decision ever.

brjklein > Plecostomus is a starred commenter 08/11/2014 at 15:26

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I've test driven 2 so far and been following all four forums for issues/upgrades and community info since March. I know I'll be happy with the car, I just won't stretch myself to get one before it's right.

Plecostomus is a starred commenter > brjklein 08/11/2014 at 15:52

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For a comprehensive list of who makes what for this car see BlackBird's thread on FiestaST.net - or check out what's available at ModBargains.com - that's where I work and though they mostly do BMW Stuff I make sure we always have the latest and greatest Fiesta ST specific stuff on the market.

Few actual issues, fairly minor things like tightening the chargepipe system hoseclamps to be aware of.

brjklein > Plecostomus is a starred commenter 08/11/2014 at 22:43

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The only thing I'm actually worried about is the QC of late-build 2014s. Seems like the engines and/or transmissions are cutting loose at a higher rate.

PanchoVilleneuve ST > brjklein 08/12/2014 at 15:05

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I just got a Costco discount on top of the Ford internet price.

brjklein > PanchoVilleneuve ST 08/12/2014 at 17:39

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What was your OTD?

PanchoVilleneuve ST > brjklein 08/12/2014 at 17:53

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Not sure what it will wind up being, but the price I agreed to before TTL on a 2014 Focus ST2 with rado gray wheels and navigation is $25,344. List is $28,015.

Plecostomus is a starred commenter > brjklein 08/13/2014 at 12:56

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You can tell early/late by the tachometer. Early like me has a 6700rpm redline, late has 6500.

brjklein > Plecostomus is a starred commenter 08/13/2014 at 14:31

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I don't think that was the cutoff for the most recent issues we've been seeing on the forums. Wasn't January 2014 when they changed the redline? The issues have been coming out of April-May builds, it seems.