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Discussion Starter #1
I have a dealer willing to sell me the 2017 CR-V Touring at 'dealer invoice cost' + mandatory fees + HST (I'm in Toronto, Canada). They way they say they work is I give them an offer along with a credit card deposit of $1-$3K (no more than that) and they either accept or reject it. If they accept then the it's a done deal and the deposit goes against the purchase price and the rest must be paid in cash or if financing the deposit goes to the first month's payment and the rest of the deposit (if any) is returned or the difference made up if the deposit was not enough.

This seems to avoid, for the dealer, the tactic of negotiating. For example, you can't politely ask once a price has been agree upon for the dealer to throw in some floors matts, wheel lock, touch-up pen, or other extras at which point they might feel it's not worth losing the deal for a couple of hundred bucks. I haven't bought a car in 30 years so I am wondering is this method something new? I don't like the idea of it. I am in no rush to buy this car and am prepared to walk out to another dealer if this is the way they want to operate. Also, by having the deal work this way I can't go to another dealer to see if they will beat the price as it will already be a done deal. I have a couple dealers who already have told me they will be another dealer's price.

Any advice would be appreciated.
 

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Why would you even consider this? Do you know what the 'invoice' price is? Do you know what the 'mandatory fees' are? Put a big deposit down for something unknown?

Let them give you a firm OTD price. If you like it, buy it. If not, don't.
 

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At least in the US, the only time I have seen this method of "put a deposit down, make an offer and wait for our decision" works is when you see and want "that specific thing and only that thing". Example: I see a house, I walk through the house, review everything about the house I can lay my hands on, and I want "that" house, and willing to wait on it.
 

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Oh one more thing, I would suggest having your own negotiating tactic. This is a new one too. Since you are considering the Touring trim, which is only a 1.5L, I would ask them "are you only giving me half the engine for all this money"?
 

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Discussion Starter #5
Why would you even consider this? Do you know what the 'invoice' price is? Do you know what the 'mandatory fees' are? Put a big deposit down for something unknown?

Let them give you a firm OTD price. If you like it, buy it. If not, don't.
I never said I was considering this. Far from it. I am just reporting what the dealer said their 'negotiating' policy is. I never said I would put down a deposit on something unknown either. I know exactly what the the invoice price is through unhaggle.ca and it is $35.424 Canadian. The mandatory fees in Ontario, Cnaada (confirmed also through unhaggle and other sources) are $1,875 (Freight $1,725 + Federal A/C Fee $100 + Gov't Tire Stewardship Fee $30 + Gov't OMVIC Fee $10).

I just wanted to see if this tactic was something anyone else has ever heard of.
 

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On a used car (cash) negotiation, I once told a salesman:
"Look, this is all I can afford. At this price, if the dog gets sick, I'll have to shoot her because you're getting every penny I've got."

He laughed, made me repeat it for his boss, then they took the offer.
 

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Discussion Starter #8
I've had salespeople tell me (on many different things I wanted to buy, including houses) that the offer I was making was to embarrassingly low to present to which I always reply "Fine. I'll take it to someone who doesn't think so". They always then change their mind. Funny that...
 

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Do a lot of research..look at deals in other areas. I told them I was looking at rava, and rogue but I want you to sell me this Honda.
Paid 29,500 + tax and dealer fees . My OTD was 27,807.4 with my 4,000 down and added tint and roof cross bars for my Crv touring 2017
 

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I have a dealer willing to sell me the 2017 CR-V Touring at 'dealer invoice cost' + mandatory fees + HST (I'm in Toronto, Canada). They way they say they work is I give them an offer along with a credit card deposit of $1-$3K (no more than that) and they either accept or reject it. If they accept then the it's a done deal and the deposit goes against the purchase price and the rest must be paid in cash or if financing the deposit goes to the first month's payment and the rest of the deposit (if any) is returned or the difference made up if the deposit was not enough.

This seems to avoid, for the dealer, the tactic of negotiating. For example, you can't politely ask once a price has been agree upon for the dealer to throw in some floors matts, wheel lock, touch-up pen, or other extras at which point they might feel it's not worth losing the deal for a couple of hundred bucks. I haven't bought a car in 30 years so I am wondering is this method something new? I don't like the idea of it. I am in no rush to buy this car and am prepared to walk out to another dealer if this is the way they want to operate. Also, by having the deal work this way I can't go to another dealer to see if they will beat the price as it will already be a done deal. I have a couple dealers who already have told me they will be another dealer's price.

Any advice would be appreciated.
Here's my thoughts:
as someone posted , if you don't like their way of doing business, then don't go forward with it. It is really a simple as that.

The other thing I noticed about your post was, you stated:
"This seems to avoid, for the dealer, the tactic of negotiating. For example, you can't politely ask once a price has been agree upon for the dealer to throw in some floors matts, wheel lock, touch-up pen, or other extras at which point they might feel it's not worth losing the deal for a couple of hundred bucks. I haven't bought a car in 30 years so I am wondering is this method something new?"

Why do some people feel the need to pull a rabbit out of their hat...after the price has been agreed upon??
For most dealers in the US in the last 5 years, the internet has taken nearly all of the profit away on new vehicles(because they work on such close margins) that $50. on someone else's website could be the difference between a sale or the person going elsewhere..
Working at dealerships, I've actually witnessed people drive over 6 hours away, because they know we have the lowest price, only to then ask for all weather mats or they walk...(or so they say)
It's perplexing to me.
I also fully understand that because you haven't bought a car in so long, things may be confusing to you.
But....
I've also seen people give $1000.deposits on cars that are tough to get, cancel the car after it comes in...because they bought it form somewhere else whilst the dealer was pulling strings and swapping it in...

My advice, therefore is simple: If YOU don't want a shell game played on you, then don't participate in one of your own, either.
Good luck!
 

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Have your wife/kid etc available by text or cell.
Its the buyers version of I'll have to talk to my manager crap that every sales droid uses.
 

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Hi,

I bought two new CRVs in 2015 from the Honda dealer in Kingston Ontario and they did not use this tactic. I haven't heard of it being used.

I am of the opinion that 'dealer invoice cost' doesn't mean much because I understand dealers get other bonuses and incentives - so that cost is not a view into their profit.

A hard nosed approach I've used (and you are in a good position being in the GTA) is to email a number of dealers the exact model, add-ons, colour etc and ask them to email back to you their best price. At minimum this will give you some benchmark numbers for when you speak with any particular dealer. In my limited experience, some dealers will get very soon get back to you with a bottom line price and others will write to say "you can't buy that way!".

Peter
 

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Hi,

I bought two new CRVs in 2015 from the Honda dealer in Kingston Ontario and they did not use this tactic. I haven't heard of it being used.

I am of the opinion that 'dealer invoice cost' doesn't mean much because I understand dealers get other bonuses and incentives - so that cost is not a view into their profit.

A hard nosed approach I've used (and you are in a good position being in the GTA) is to email a number of dealers the exact model, add-ons, colour etc and ask them to email back to you their best price. At minimum this will give you some benchmark numbers for when you speak with any particular dealer. In my limited experience, some dealers will get very soon get back to you with a bottom line price and others will write to say "you can't buy that way!".

Peter
Agreed0 many dealers have too many tactics around "invoice" and "dealer cost" without many customers understanding there's a lot more such as holdback and regional incentives that impact pricing.
 

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My negotiation tactic for last 2 cars was:

Me: "Hey Dealer, looking to trade-in my xxx and get '17 CR-V. What's your out of the door price".

Sales manager 1: "How are you? Nice to hear from you. Hope all is well. My best internet price for the 2017 CRV EX 4wd is $26,314 including destination and handling charge. MSRP is $29,035. There is no dealer cash back from Honda but I did quote you $1000 under my dealer invoice. The standard purchase fees are your state tax, Doc fee $399, NJ tire tax $7.50 and your standard NJ MV registration. We currently have white diamond /ivory in stock. Please let me know if you have any other questions and if you would like to make an appointment to come in to see and test drive."

Sales manager 2: "Come to the dealership, we'll give you the best price!".

Sales manager 3: "We'll beat any written offer by $500!"

Guess which dealer got my business?
 
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