Msrp at 66k what should I offer or pay?

[timemachine]

Met with dealer again today and seems car dealers haven't changed. They won't give me a good number and keep playing games. I want to give him one offer and thinking of 60k cash. Is that reasonable for a new x5 with an msrp of 66k?

[BabyBlack]

60k does not sound reasonable consider dealer has 9% markup. 61-62k sounds more realistic

[timemachine]

That's what I was thinking plus they will make money on my trade.

[Frank_NJ]

I would take 7% off MSRP and offer them that. They would still make about $500 on the vehicle.

[X5 Minent]

Strobe,

Offering cash is never a good way to bargain with a dealer, because they know that they will not be making money from financing. I sold cars for awhile, here's my suggestion.

Go in about 3 days from the end of the month, find a desperate salesperson (they will be the one that comes to you) because they are a few cars short of their goal or minimum.

Go in with research in your hand. We always dreaded the customer that came in with a handful of edmunds.com print outs. Edmunds will tell you exactly how much money your dealer has in the vehicle, the holdback, the actual transportation costs, EVERYTHING. A well informed buyer is a force to be reckoned with.

Once you find the X5 you want, ask them if they have financing (this does not mean that you are even interested in the financing). Because, if you finance with them, they know that they will make money on the backend from the finance company, which will free them up to budge more on the asking price. DO NOT FILL OUT ANY KIND OF FINANCE PAPERWORK (unless you really want to sell the "finance" gimmick).

When they value your trade, they will try to "de-value" your car with subtle comments or even just the physical action of pointing at even the smallest blemish. This is a head game they play. The best thing you can do here is be realistic with yourself and them. You know you will get less than your ride is worth, because they have to make money, that's business. But, don't give them the upperhand by giving in to their de-valuation of your vehicle.

So, bringing all of this together, Edmunds will tell you what the average person pays for the exact vehicle you are considering. Tell the salesman that you have no problem with the dealership making money. And, if they will help you save some money, you will help them make some money. Be realistically flexible on your trade and make them think you will finance your auto, go in at the end of the month when they are desperate and you will have a fine deal.

Once you have agreed on a price in writing, ask for a bit of time to reconsider financing. After a little time, let them know you have decided to pay cash or will finance with your own bank and are not interested in their financing. They are bound to the agreed upon price, but, they still make a little $ on the sale, the holdback and the trade-in.

YOU WIN.

[timemachine]

I talked to them today as well as my second choice dealer and pretty much told them that. One emailed me looking for the vin # on my trade and said we were pretty close the other hasn't responded yet. I know they need to make a dime and as a business owner myself I want them to feel good about the deal but I don't want to leave feeling like I took the hit. I also have a month or so wait and don't want to sit a month thinking I paid too much while the cars on order. I even offered my trade in advance to sweeten the deal for them to get their money.