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Price quoted on a 2016 iGT 3 Sedan $21,396 before TTL. Dealer informed me I "have to hurry" that incentive they have running ends 11-2. Is this the case? Won't they just have a new incentive for year end? Do I have to buy now??

I am trading in a 2014 Mazda 3 iTouring with 11k miles, hoping to get 14,500 - 15k. Trading because I want the higher trim.

Thanks
 

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It's a pressure tactic. Time is on your side, not the dealer's.....
 
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Put a price you are willing to pay with a trade-in number on the table. Keep going back, and tell them the terms until they are willing to meet them. Remember this, the dealer has about 40 percent margin on the msrp price of the new car. Dealership takes 17 percent for admin and then splits 40 percent of the margin after that with salesman. So when you negotiate on a 25k msrp car realize that the dealer only paid 15k for it, break-even with no one in sales making money is 17.5-18k. So they can still make money at 20k.
 

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Put a price you are willing to pay with a trade-in number on the table. Keep going back, and tell them the terms until they are willing to meet them. Remember this, the dealer has about 40 percent margin on the msrp price of the new car. Dealership takes 17 percent for admin and then splits 40 percent of the margin after that with salesman. So when you negotiate on a 25k msrp car realize that the dealer only paid 15k for it, break-even with no one in sales making money is 17.5-18k. So they can still make money at 20k.
Sounds like you've got your car buying down to a science.

I always go the last week of the month and I never buy the first time I sit down and go over any numbers. I usually get texts or calls two or three days later with a better offer and sometimes they get better the next day. I just express my want and desire to purchase whatever car and that I just don't feel comfortable with the initial offer and "need to sleep on it".
 

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Sounds like you've got your car buying down to a science.

I always go the last week of the month and I never buy the first time I sit down and go over any numbers. I usually get texts or calls two or three days later with a better offer and sometimes they get better the next day. I just express my want and desire to purchase whatever car and that I just don't feel comfortable with the initial offer and "need to sleep on it".
No, I just know how pricing and sales works. I understand the prices well enough to know how to walk in and know what I'm walking out with. New cars can sometimes be harder depending on how much they are holding down on the price. If you buy accessories, warranties, etc. you can use these as a negotiating point too since all of those are normally 50 percent margin you can expect that you walk away better if you ask for something that lets them fluff it into the margin. My wife used to use the tactic of I'll pay msrp for the car itself if you include all the accessories warranty and service. She'd typically get a lot more that way than most people who try to negotiate downwards.
 

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Remember this, the dealer has about 40 percent margin on the msrp price of the new car. Dealership takes 17 percent for admin and then splits 40 percent of the margin after that with salesman. So when you negotiate on a 25k msrp car realize that the dealer only paid 15k for it, break-even with no one in sales making money is 17.5-18k. So they can still make money at 20k.
That seems quite high. Might be true on more expensive cars, but less expensive cars don't have nearly such a high margin. Here's a quote from 2014: "The average profit margin of a new-car sale was only 3.8 percent last year, according to the National Automobile Dealers Association; most dealers survive on ancillary services such as maintenance, financing, and warranties."
(Of course, the average sale price is under MSRP, that needs to be figured into the quote).

Technically speaking, the dealer invoice is what they paid, and that's public information if you dig around a little. But then Mazda gives various incentives and there's probably some other discounts, so they still make money even at the invoice price. These incentives seem to be pretty regular events (you can find them on the MazdaUSA website among other places), you can be sure they'll do something to move cars during the doldrums of winter.

You can go to truecar.com and get some good quotes from nearby dealers. Doesn't take much hassle and you get a very competitive price. (AAA offers the same service, but they use truecar.com, so you might as well go directly to them).
 

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That seems quite high. Might be true on more expensive cars, but less expensive cars don't have nearly such a high margin. Here's a quote from 2014: "The average profit margin of a new-car sale was only 3.8 percent last year, according to the National Automobile Dealers Association; most dealers survive on ancillary services such as maintenance, financing, and warranties."
(Of course, the average sale price is under MSRP, that needs to be figured into the quote).

Technically speaking, the dealer invoice is what they paid, and that's public information if you dig around a little. But then Mazda gives various incentives and there's probably some other discounts, so they still make money even at the invoice price. These incentives seem to be pretty regular events (you can find them on the MazdaUSA website among other places), you can be sure they'll do something to move cars during the doldrums of winter.

You can go to truecar.com and get some good quotes from nearby dealers. Doesn't take much hassle and you get a very competitive price. (AAA offers the same service, but they use truecar.com, so you might as well go directly to them).
Ummm, 3.8 percent is after they've paid out the bonuses etc. Bonuses and commissions eat up 90 percent of the profits. The salesguy gets 40 percent of the margin. sales manager gets 15-20 percent gm gets 5 percent, etc.

True car takes a finder fee of 250-500 bucks from the deal.
 

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I guess it depends on how you (or the dealers) define profit margin. I know I got way under MSRP and they weren't crying so there is some margin. That was the 2nd dealership. The guy at the first one was going to give me something between the dealer invoice and MSRP and scoffed at me when I thought they could do better. I didn't have my research in hand then (including knowing the $1000 Mazda incentive for 2015 models that was active at the time), so I couldn't say anything definitively, but I knew it wasn't a good deal. I also wasn't entirely ready to buy yet, so I walked away and did some more research.

Truecar does take a commission, but even so it was pretty painless for me and gave me a better deal than if I tried to negotiate on my own.
 
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