Rebates & Discount off MSRP

reardiff · June 26, 2017

In the market for a new truck soon and have read many of the previous posts about discounts and such, but how do you determine what a fair price is? Is there a formula for this? I don't need the absolute rock bottom best deal but don't want to leave unnecessary money on the table either. Also will be buying with cash which makes every bit hurt that much more being directly out of pocket and not spread over months of financing.

For example several have posted in other topics they had 16% or up to 20% off MSRP and thought that was a good deal. When using the term xx percent off, is that including any rebates and incentives or is that straight off the MSRP and any rebates on top of that? What should the target price be when going into negotiations, assuming this may vary dealer to dealer bases on volume?

aseibel · June 26, 2017

try comparing your price online. I'm sure there's multiple websites, but here's one:

https://www.truecar.com/#/

They try so hard to hid the real price from you. I just called 3 dealers and told them the exact model I wanted and asked for an out the door price. They were extremely close, so I knew they were all working off the same numbers. With all the info available online today, its hard to get screwed on a new vehicle purchase. Just don't pay if its not EXACTLY what you want.

Also, paying in cash does not help the dealer out at all, and won't get you a better deal. They make money on the financing, so they would rather give you a loan.

You're better off financing, take their best rate, then pay it off next month if you want to do that.

Silver16 · June 26, 2017

In the market for a new truck soon and have read many of the previous posts about discounts and such, but how do you determine what a fair price is? Is there a formula for this? I don't need the absolute rock bottom best deal but don't want to leave unnecessary money on the table either. Also will be buying with cash which makes every bit hurt that much more being directly out of pocket and not spread over months of financing.

For example several have posted in other topics they had 16% or up to 20% off MSRP and thought that was a good deal. When using the term xx percent off, is that including any rebates and incentives or is that straight off the MSRP and any rebates on top of that? What should the target price be when going into negotiations, assuming this may vary dealer to dealer bases on volume?

Are you XMIL? USAA has a killer car buying program. Discounts are all computed. Find a vehicle, print t pre qual certificate go buy it. Simple. If not...

reardiff · June 26, 2017

Also, paying in cash does not help the dealer out at all, and won't get you a better deal. They make money on the financing, so they would rather give you a loan.

You're better off financing, take their best rate, then pay it off next month if you want to do that.

Good idea, never thought of that! I could be wrong, but isn't' there usually a rebate OR low interest financing usually? So taking the loan may not save you as much if you loose out on an extra rebate instead? Or am I thinking about it wrong?

reardiff · June 26, 2017

Are you XMIL? USAA has a killer car buying program. Discounts are all computed. Find a vehicle, print t pre qual certificate go buy it. Simple. If not...

Unfortunately I am not, or any family member. I get a Supplier Discount through my work, but used it once before and felt like I could have done better on my own, so likely won't go that route again, but is an option.

duquephart · June 26, 2017

Do a build sheet sort of thing describing exactly what you want. Send it to every dealer within 500 miles asking them if they care to bid on your business.

In my experience (2017 Silverado LTZ Z71) an overall discount of 20+% from MSRP is doable. Shoot for that at least

Orlando8 · June 26, 2017

If dealer wouldnt do 20% off MSRP ,, right now I would look elsewhere that is with rebates, dealer discount etc. Shouldnt be hard to get that on 2017 dealer stock right now

Silverado Steve · June 26, 2017

This....many dealers have and are willing to knock 20% off MSRP including rebates and cash back offers. If you are buying a GMC take a look at Laura GMC and shoot for that price....if you can get that from your local dealer, you are getting a great deal. If you can get 20% off at your local dealer, you are getting a good deal.

If dealer wouldnt do 20% off MSRP ,, right now I would look elsewhere that is with rebates, dealer discount etc. Shouldnt be hard to get that on 2017 dealer stock right now

Edited June 26, 2017 by Silverado Steve

jono20 · June 27, 2017

I'm in Canada so I don't know how comparable it is, but for what it's worth the MSRP on my '17 double cab SLE was $53,884 CAD and I traded it straight across for my 2014 SLT which they gave me $39,154 for per the bill of sale. That's just over a 27% "discount" if you can look at it that way.

Note I didn't pay a single dime out of pocket so that included all fees, levys, taxes etc. I stacked my preferred pricing via my employer and a $1000 rebate for a BS credit card application. Not sure how this compares to everyone else but I think I did pretty well!

Edited June 27, 2017 by jono20

reardiff · June 27, 2017

This....many dealers have and are willing to knock 20% off MSRP including rebates and cash back offers. If you are buying a GMC take a look at Laura GMC and shoot for that price....if you can get that from your local dealer, you are getting a great deal. If you can get 20% off at your local dealer, you are getting a good deal.

I'm familiar with Laura GMC, been on their website quite a bit and heard nothing but positive things about them. I'm about 5 hours away (northern IL) so wouldn't be out of the question to buy one from there if the circumstances worked out. According to their website they have 28 SLT crew cabs with 6.2 which is unheard of. Around here I'm lucky to find a Chevy or GMC dealer with one or maybe two.

duquephart · June 27, 2017

try comparing your price online. I'm sure there's multiple websites, but here's one:

https://www.truecar.com/#/

They try so hard to hid the real price from you. I just called 3 dealers and told them the exact model I wanted and asked for an out the door price. They were extremely close, so I knew they were all working off the same numbers. With all the info available online today, its hard to get screwed on a new vehicle purchase. Just don't pay if its not EXACTLY what you want.

Also, paying in cash does not help the dealer out at all, and won't get you a better deal. They make money on the financing, so they would rather give you a loan.

You're better off financing, take their best rate, then pay it off next month if you want to do that.

When I ordered there was a "down payment assistance" program/incentive of, I think, $2500 available if you used GM financing. If that's still around the thing to do is go for the financing (as well as whatever else is going on incentive-wise) and pay off the loan immediately to avoid any finance charges. The dealer will tell you that you must make three payments before paying off but that is BS - the real reason is that their spiff requires three payments before it kicks out.

The bottom line is to weigh all your options carefully and not to put too much stock in anything a dealer says.

aseibel · June 27, 2017

isn't' there usually a rebate OR low interest financing usually? So taking the loan may not save you as much if you loose out on an extra rebate instead? Or am I thinking about it wrong?

What i have heard, is when you start talking numbers, don't tell them how you intend to pay. Just ask for their best price. if they voluntary tell you there is an incentive to pay cash or finance, then you have the option.

Krusty · June 27, 2017

I'm familiar with Laura GMC, been on their website quite a bit and heard nothing but positive things about them. I'm about 5 hours away (northern IL) so wouldn't be out of the question to buy one from there if the circumstances worked out. According to their website they have 28 SLT crew cabs with 6.2 which is unheard of. Around here I'm lucky to find a Chevy or GMC dealer with one or maybe two.

No-brainer to buy from them being that close........... 6.2L buyer - wise man..........

nserafini · June 27, 2017

Fair price is normally fair by the region. Trucks in Plano are less than say Los Angles as the market is different. Use Truecar with your zip to get a ballpark. Incentives are based on dealer/mfgr offers. And yes, if you have outside financing you may lose a rebate that would have applied if you financed with the say GM financial.

Always shop the vehicle you want, and not for the deal. I will say that most people say Laura GMC deals in such volume they will have what you want and at a very decent price. I'm sure you'd find that the same truck in your area would be less at say Laura (but the difference might be the cost of a one way flight or shipping the vehicle).

duquephart · June 27, 2017

Fair price is normally fair by the region. Trucks in Plano are less than say Los Angles as the market is different. Use Truecar with your zip to get a ballpark. Incentives are based on dealer/mfgr offers. And yes, if you have outside financing you may lose a rebate that would have applied if you financed with the say GM financial.

Always shop the vehicle you want, and not for the deal. I will say that most people say Laura GMC deals in such volume they will have what you want and at a very decent price. I'm sure you'd find that the same truck in your area would be less at say Laura (but the difference might be the cost of a one way flight or shipping the vehicle).

And, OP might not want a GMC. Not everyone does.