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-   -   How to protect myself at the final stage of negotiations? (http://www.jeepgarage.org/f73/how-to-protect-myself-at-the-final-stage-of-negotiations-12902.html)

JoeSchmoe007 09-15-2010 01:01 PM

How to protect myself at the final stage of negotiations?
 
I am currently communicating with several dealers about specific configuration and price.

There is no trade-in and this is 100% cash deal.

I asked them to add up all the charges and provide me with a final price I would have to pay, tax not included. I don't really care how the itemize it and what fees they want to sneak in - I am negotiating final number except tax.

If I reached an agreement on this number - how can I protect myself from any surprises at the end and at the delivery time?

What I have in mind is have them fax me complete quote with EVERYTHING included and itemized (including tax). I will ask this to be signed by sales manager and also words "Total out of the door price" (or something like this) to be written on that document.

What happens next? I suppose I will be asked for a deposit. I plan to use credit card for this.

One dealer has the exact configuration I am looking for in transit to him so I will ask him to put VIN # on the document as well.

Another will need to order from the factory. Should require them to put in writing "This price is valid until MM/DD/YY"?

Please advise

Jim Hef 09-15-2010 01:11 PM

Re: How to protect myself at the final stage of negotiations?
 
I would say the "price is valid subject to vehicle being shipped as ordered"! I have had ordered vehicles come in with some items not being as ordered, or with some items that I didn't order. Final price can be negotiated again if you want to select the vehicle despite the differences. Also, "deposit will be refunded in full regardless of transaction being completed".

JoeSchmoe007 09-15-2010 01:14 PM

Re: How to protect myself at the final stage of negotiations?
 
Quote:

Originally Posted by Jim Hef (Post 268425)
I would say the "price is valid subject to vehicle being shipped as ordered"! I have had ordered vehicles come in with some items not being as ordered, or with some items that I didn't order. Final price can be negotiated again if you want to select the vehicle despite the differences. Also, "deposit will be refunded in full regardless of transaction being completed".

Is deposit usually refunded? I thought it counts toward the purchase price.

Technosavant 09-15-2010 01:14 PM

Re: How to protect myself at the final stage of negotiations?
 
When you order, the price is locked in, at least it was with us.

The best thing you can do is to use whatever buying programs are at your disposal- employer, Costco/Sam's Club, whatever, if you have the option, use it. You might not get the absolute best deal possible that you might get by browbeating a desperate dealer, but you'll save a lot of headache.

Without that, do your research. Know the invoice price and how much you'd like to pay. Contact dealers via internet and see what kind of deal they'll give you- since you'd basically just be walking in and signing papers, you're likely to do better than just walking off the street. Since you know exactly what you want, start with that dealer and vehicle- you can also contact other dealers to see what they might do with that.

From that point, you'll deal with the F&I guy, where they try to get you to get financing through the dealer (do yourself a favor- know what you can get elsewhere before walking in, so you know if they're screwing you) and they'll also try to sell you on extended warranties. The one they'll start trying to sell you is a 3rd party one- a bad idea. If you want one, make VERY clear it's manufacturer warranty or none at all (or better, just buy it online from somebody who discounts them).

The places where I've been burned in the past have been in the F&I office. I didn't know what other loans were available so I got stuck with a crappy rate (I refi'd when I figured out what happened) and the warranty I'd told them I didn't want (went back the next day and asked if they'd like to fix it or have me tell corporate I requested HondaCare and they sold me Warranties4Morons... they moved it to HondaCare immediately).

You'll do yourself more favors by doing your homework first. Then if you have an agreed upon price and you know what financing you can get elsewhere (or even get it elsewhere before walking in), they'll have a really hard time putting the screws to you.

Technosavant 09-15-2010 01:15 PM

Re: How to protect myself at the final stage of negotiations?
 
Quote:

Originally Posted by JoeSchmoe007 (Post 268426)
Is deposit usually refunded? I thought it counts toward the purchase price.


Depends on the dealer. For popular vehicles like the WK2, it should be. Our dealer said it would be refundable if we chose not to take delivery since they'd be able to sell it anyway. If it was a slow moving vehicle and you're just being picky, then the deposit will likely be higher and nonrefundable.

JoeSchmoe007 09-15-2010 01:18 PM

Re: How to protect myself at the final stage of negotiations?
 
I will not need financing - this will be 100% cash deal. Sorry I didn't put it in initial post but now it has been added.

Quote:

Originally Posted by Technosavant (Post 268427)
When you order, the price is locked in, at least it was with us.

The best thing you can do is to use whatever buying programs are at your disposal- employer, Costco/Sam's Club, whatever, if you have the option, use it. You might not get the absolute best deal possible that you might get by browbeating a desperate dealer, but you'll save a lot of headache.

Without that, do your research. Know the invoice price and how much you'd like to pay. Contact dealers via internet and see what kind of deal they'll give you- since you'd basically just be walking in and signing papers, you're likely to do better than just walking off the street. Since you know exactly what you want, start with that dealer and vehicle- you can also contact other dealers to see what they might do with that.

From that point, you'll deal with the F&I guy, where they try to get you to get financing through the dealer (do yourself a favor- know what you can get elsewhere before walking in, so you know if they're screwing you) and they'll also try to sell you on extended warranties. The one they'll start trying to sell you is a 3rd party one- a bad idea. If you want one, make VERY clear it's manufacturer warranty or none at all (or better, just buy it online from somebody who discounts them).

The places where I've been burned in the past have been in the F&I office. I didn't know what other loans were available so I got stuck with a crappy rate (I refi'd when I figured out what happened) and the warranty I'd told them I didn't want (went back the next day and asked if they'd like to fix it or have me tell corporate I requested HondaCare and they sold me Warranties4Morons... they moved it to HondaCare immediately).

You'll do yourself more favors by doing your homework first. Then if you have an agreed upon price and you know what financing you can get elsewhere (or even get it elsewhere before walking in), they'll have a really hard time putting the screws to you.


Technosavant 09-15-2010 01:20 PM

Re: How to protect myself at the final stage of negotiations?
 
Ah, well, cash is your friend. Then you don't have to worry about that. I wouldn't let on that you'll pay cash until the price is finalized- it keeps them from pushing back harder knowing there won't be a financing kickback.

JoeSchmoe007 09-15-2010 01:26 PM

Re: How to protect myself at the final stage of negotiations?
 
Quote:

Originally Posted by Technosavant (Post 268427)
... I requested HondaCare and they sold me Warranties4Morons...

I do not intend to purchase extended warranty at this time but I am curious: would this Honda dealer actually accept that Warranty4Morons himself? I would assume yes b/c it would be completely preposterous if they didn't. However, my experience with 3-rd aprty warraties when I looked into them was that nobody accepts them - not dealer nor independent shops because it's too much of a hassle foe them to get reimbursed (they have to spend hours on the phone) At the time Jeep dealer told he would only accept Chrysler extended warranty and nothing else.

Technosavant 09-15-2010 02:04 PM

Re: How to protect myself at the final stage of negotiations?
 
I'd assume they'd accept whatever 3rd party warranties they sold, but my thinking is that those contracts are likely to change, and even if they didn't I may not always be able to make it to the selling dealer- if you're on vacation and it blows a differential, you'll be using the nearest dealer you can find. In that case the manufacturer warranty will not only cover you, but pick up the bill for the towing. No need to worry about reimbursements (how many of these 3rd parties work- you pay for it and they pay you back... in theory...).

I don't know if I'll get an extended warranty for the Grand Cherokee (I expect it to be fine well into six digit mileage, and that's when most warranties have quit). Probably not- they've become rather expensive and a couple thousand bucks is a lot to bet that your problems will happen in a 70K mile span (from the end of the factory warranty to the end of the extended).

JoeSchmoe007 09-15-2010 02:09 PM

Re: How to protect myself at the final stage of negotiations?
 
Techno: as you know bumper to bumper warranty is only 3/36,000

I purchased Chrysler extended warranty in 2000 for my Jeep ZJ (still at the factory warranty at the time with 2 years/32,000 miles) and for me it was worth it.

I am actually considering getting it for new GC '11 - 7/60,000 Maximum care is about $1,200 from Chrysler directly (probably less from dealer) which I think is reasonable (I drive about 5,000 miles/year)

Steeler 09-15-2010 03:56 PM

Re: How to protect myself at the final stage of negotiations?
 
I hate to burst anyone bubble but.... The first thing everyone should remember when placing a factory order is, that car or truck isn't yours until either you pay for it, or you sign a contract. Deposit or no deposit, that GC that you ordered once delivered to your dealer, belongs to them. So if someone walks in and offers MSRP for it, they have every right to sell it or raise the price on it. Is it ethical? NO, but it's been done. It's been documented, that many who ordered the first batch of numbered 2008 SRT Challengers, were told upon delivery that they wouldn't honor the original deal and would have to pay a "market adjustment" over MSRP.

Make sure you put any deposit on a credit card. At least you have a chance to dispute the transaction if a problem arises. It also wouldn't hurt to call your credit card company before hand to inquire if there is a time limit that you can report a claim.

JoeSchmoe007 09-15-2010 04:02 PM

Re: How to protect myself at the final stage of negotiations?
 
Quote:

Originally Posted by Steeler (Post 268537)
I hate to burst anyone bubble but.... The first thing everyone should remember when placing a factory order is, that car or truck isn't yours until either you pay for it, or you sign a contract. Deposit or no deposit, that GC that you ordered once delivered to your dealer, belongs to them. So if someone walks in and offers MSRP for it, they have every right to sell it or raise the price on it. Is it ethical? NO, but it's been done. It's been documented, that many who ordered the first batch of numbered 2008 SRT Challengers, were told upon delivery that they wouldn't honor the original deal and would have to pay a "market adjustment" over MSRP.

Make sure you put any deposit on a credit card. At least you have a chance to dispute the transaction if a problem arises. It also wouldn't hurt to call your credit card company before hand to inquire if there is a time limit that you can report a claim.

Isn't contract signed at the time when I give a deposit?


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