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The art of negotiation is pivotal when it comes to car buying. It’s a game where information is your strongest weapon, and CarEdge is your best ally. Today, we bring you five triumphant tales from the CarEdge Community, each of them a testament to the power of knowledge and the importance of negotiation in the car buying journey. If you’re skeptical about negotiating in today’s car market, these success stories will change your mind!
Timing and Market Knowledge = Truck-Sized Savings
Joey’s story is one of patience, timing, and understanding the market. He had his eye on a new truck and, armed with insights from CarEdge, he waited for just the right moment to make his move.
“I used CarEdge to check for used deals around me,” Joey recalls, “and negotiated a killer deal. The truck had been on the lot for over 70 days and the dealer was motivated. I waited until the last day of the month and negotiated down to my asking price. I also negotiated GAP down almost 50%. You guys are a wealth of information. If it’s taxable it’s negotiable!”
In fact, timing plays into negotiability in a big way. Savvy car buyers know that dealerships often have monthly, quarterly, and yearly sales targets. At the end of these periods, they are more likely to negotiate to hit their goals.
In addition, the length of time a car sits on a dealer’s lot impacts its price. The longer it stays, the more motivated a dealer becomes to sell, offering a ripe opportunity for negotiation. Understanding these dynamics and the concept of supply and demand in the car market can greatly influence the outcome of your negotiation and lead to BIG savings.
The Dealer Was Not Prepared For This!
Jon’s negotiation journey led him to an unexpected place: a job offer. Working with CarEdge Finance and Insurance Specialist Kimberly Kline, Jon confidently navigated through the dealership’s pitch.
“When I first arrived, the salesman brought out the offer sheet with three different down payment amounts and three different costs per month,” Jon recounts. “He wanted my initials. I declined. The sales manager then came out asking what I wanted. I said that I wasn’t looking at monthly costs but total out-the-door costs.” That simple, informed request set the tone for the rest of the negotiation.
Jon ended up getting the new truck he wanted with an out-the-door price UNDER MSRP. The Sales Manager was so impressed that Jon says he offered to hire him to sell cars. Was it a serious offer? We wouldn’t be surprised if it was with how skillfully Jon stayed in control of his deal!
Playing Hardball
In Tampa, Marcus was eager to get his hands on a low-mileage Toyota Avalon Hybrid. He played hardball with several dealerships until he found one ready to play his game. He secured his dream car for an incredible $8,000 below sticker price and also secured a great deal on his trade-in.
“My advice is don’t fall in love with the car ONLY, also fall in love with the deal! You really have to just stick to it and use what you learn from CarEdge,” Marcus advises. His determination, coupled with CarEdge’s resources, brought him the deal he was after.
Check out Marcus’ full breakdown of his deal here.
Schooling the Salesman
Knowledge is power, as Navnit demonstrated. When shopping for a 2023 Mazda 3, the best deal he could initially find was $28,500. After using CarEdge’s tools and Deal School, he was sure he could negotiate a better out-the-door price. His thorough understanding of pricing, taxes, and fees flipped the script, with Navnit explaining to the dealer how THEY could meet HIS terms.
Here’s how he says the deal went down.
Dealer: The best I can do is $27,000 plus taxes and title
Me: No, I am looking for $27,000 out-the-door
Dealer: How is that possible?
Me: Well, you can knock off the $800 in dealer-installed accessories, I don’t need the $700 GAP insurance, I can get deals with a doc fee that is $600 lower than yours, and title and then I know I can get a $1500 discount. If not from you, I could from the 3 others that I have emails from.
Dealer: Let me talk to my manager…. ….. The best I can do is $27,500.
Me: Well thank you but that doesn’t work for me. Tell me you can do 27 and we sign today.
Dealer: Well in that case you need to finance through us.
Me: Well I already have a loan quote from my credit union at 4.75%. can you do better?
Dealer: Hold on….. We can do 4.3%
And just like that, Navnit showed the dealer who was in control. He ended up getting exactly what he wanted, at the price he had in mind.
“I had to be so vigilant,” says Navnit. “I was asking for printed deposit receipts, previewing buyers’ orders, pointing out the rebates they had added and so much more. But the bottom line, buying a car is so damn hard.”
In the world of car buying, sometimes an email can save you thousands. Jonathan worked with CarEdge Car Coach Jerry to draft an email to his dealer, transforming the trade-in valuation of his 2015 Crosstrek from $10,290 to $12,000.
Jonathan shared, “The salesperson called me right away the next morning, and said, ‘What number could you do for your car?’ Instinctively I said, ‘How about $12,000?’ and they agreed. If I had it to do over again, I realize there would have been no harm in replying with $12,500 or even $13,000. Big picture, I’m very happy with the deal. Nothing’s perfect, and I take it as a learning experience for next time.”
Jonathan’s email showcased how thorough research and confidence in your offer can lead to significant savings. He credits his success to the knowledge and support provided by CarEdge: “It was great to have someone in my corner. That night I wrote the salesperson an email.”
His story, along with the others, is a testament to how well-informed car buyers can change the dynamic of a negotiation, flipping it in their favor. Check out Jonathan’s full story for more.
From waiting for the right time to strike, to firmly and confidently advocating for fair prices, these empowered car buyers show that, armed with the right tools and knowledge, you too can come out on top in the car buying game.
Ready to outsmart the dealerships? Download your 100% freecar buying cheat sheets today. From negotiating a deal to leasing a car the smart way, it’s all available for instant download. Get your cheat sheets today!
Don’t be afraid to negotiate on your next car purchase. Remember: If it’s taxable, it’s negotiable. Leverage CarEdge Data and our all-new CarEdge Report to understand local market negotiability like never before. Ready to work 1:1 with a car buying expert?CarEdge Coach is the perfect path to big-time savings.
In 2023, the automotive market continues to navigate the unpredictable seas of supply and demand. A lingering used car shortage from previous years is causing 2-3-year-old in-demand models to skyrocket in price, while new car inventories are bloating due to overproduction. What does this mean for you, the savvy car shopper? Let’s dive in.
New and Used Car Inventories Are Headed in Opposite Directions
The latest data from Cox Automotive shows that in many cases, there’s a shortage of 2-3 year old used cars. For in-demand models that are just a few years old, demand far exceeds supply. Dealers are using this to their advantage (to the surprise of no one…) and are marking them up severely. For the brands we’ll talk about below, 2-3 year-old used cars often cost nearly the same as a brand-new car. There’s a totally opposite situation for NEW cars. For many makes and models, there’s now an oversupply of new cars in 2023, just two years after the car shortages of 2021.
New car available supply (total vehicles on the lot) is up 71% since last year, and dealerships are finding their lots chock-full of shiny new cars.
In terms of days’ supply, today’s market is up 47% since spring 2022. Days’ supply is a common auto industry metric that is calculated by dividing the total number of available vehicles by the average daily sales number from the last 45 days. It’s one of many available insights for every new and used listing with CarEdge Data.
790,000 more vehicles on sale today compared to May 2022 means dealers are more motivated than ever to cut deals and move inventory. However, despite this surge in supply, the average listing price for a new car is still 5% higher than last year.
On the flip side, used car inventory is 13% lower compared to last year. High prices have led buyers to say NO to used cars, resulting in a 4% drop in sales rates and listing prices. However, these prices remain stubbornly above 2021 levels.
New Car Inventory By Brand
With brands like Toyota, Lexus, Kia, Honda, Subaru, Hyundai, BMW, and Land Rover, new car supply shortages are making used models a more attractive option than their new counterparts. How so? Dealers continue to markup these cars in many markets.
On the other hand, brands like Ford, Lincoln, Dodge, Ram, Chrysler, Jeep, and Buick are dealing with a glut of new cars, making new vehicles especially negotiable today, and offering more value than used inventory at nearly the same price AFTER negotiation.
Based on the latest new car inventory, these brands are most negotiable in 2023:
Buick
Jaguar
Jeep
Chrysler
Infiniti
Ram
Lincoln
Ford
MINI
Mitsubishi
Genesis
Acura
Audi
GMC
Nationally, these automakers all have current new car inventory well above the historical norm of 60 days’ supply. See local days’ supply for models you’re interested in with CarEdge DataonCar Search.
Using the tools available through CarEdge Data, we analyzed new car inventory by brand in the three largest markets across the nation. Some notable differences are seen across California, Texas, and Florida.
Hyundai, Nissan, Mitsubishi and Audi have much higher inventory on the West Coast, while Toyota, Kia and Honda have higher new car inventory in Texas. Be sure to check local market supply in your area to get the best sense of negotiability.
New Car Inventory By Segment
In terms of segments, compact cars, midsize cars, subcompact cars, compact crossover/SUVs, minivans, and full-size crossover/SUVs are experiencing a supply shortage.
Conversely, full-size pickup trucks, high-end luxury cars, electric vehicles, full-size cars, and uber luxury vehicles are enjoying a much higher days’ supply than average.
New car segments like vans, mid-size SUVs, most luxury cars and traditional hybrids have roughly average inventory right now.
It’s a Great Time to Go Electric
Right now is a great time to be in the market for a new EV. Across all brands, there’s a nearly 90-day supply of new electric vehicles. This can be seen in models such as the Ford Mustang Mach-E, which now has over 150 days’ supply. That’s up over 100% since last year.
Tesla keeps lowering prices, and with the Model Y, has severely undercut prices for the following popular competitors:
Hyundai IONIQ 5
Kia EV6
Genesis GV60
Audi Q4 e-tron
Nissan Ariya
Ford Mustang Mach-E
In other words, there’s finally serious competition in the EV landscape. Is it a price war? So far, Tesla’s competitors have not fired back with steep price cuts of their own. We’ll see if that changes this summer. However, used Tesla prices have fallen drastically this year.
Remember, the EV tax credit landscape has changed in the past several months. Popular EVs from Hyundai, Kia, Audi and others no longer qualify due to made-in-America requirements. However the most popular electric vehicles in America, which are of course those bearing the Tesla badge, once again do qualify for the first time since 2019. Here’s an updated summary of where things stand with the EV tax credits.
New Cars Are Looking Better Than They Have in a While
Whether it’s better to buy new or used in 2023 largely depends on the brand and type of car you’re interested in. Industry-wide, new cars are looking better than they have in years. Popular brands are facing an oversupply, and with that comes greater negotiation power.
Free Car Buying Help Is Here!
Ready to outsmart the dealerships? Download your 100% freecar buying cheat sheets today. From negotiating a deal to leasing a car the smart way, it’s all available for instant download. Get your cheat sheets today!
With fluctuating inventories and prices, it’s crucial to stay informed and flexible. Use CarEdge Car Search to check the local days’ supply of the makes and models you’re interested in, and make sure to stay updated with the latest market trends to snag the best deal.
Dealership fees add up to hundreds and even thousands of dollars. However, that doesn’t mean you are required to pay them. Unsurprisingly, customer satisfaction with the vehicle purchase experience is declining. Forced add-ons and dealer markups are ruining car buying. In fact, several car dealership fees are outright anti-consumer tactics to squeeze a few extra dollars out of you. With negotiation know-how, car buyers should push back against fake dealership fees, and stay in control of their deal. Let’s take a look at the legitimate fees you can expect, and the fees and add-ons to never pay a car dealership.
Legitimate Dealership Fees and Taxes
When purchasing a vehicle, it’s essential to be aware of the legitimate fees and taxes that make up the out-the-door price. These fees are typically imposed by the government and vary by state or local jurisdiction.
These fees make up the out-the-door price. Find out how much your next car will REALLY cost with this free out-the-door price calculator.
Here’s a closer look at some of the most common legitimate fees and taxes associated with buying a car.
State & Local Taxes
Buying a car comes with various taxes, including city, state, and county sales tax, personal property tax, and often a vehicle license tax, which has to be paid annually. These taxes can vary greatly depending on your location, so it’s crucial to research and understand the tax rates specific to your state and local jurisdiction when budgeting for a vehicle purchase.
Title Fee
The title fee is charged as a cost for the documents required to transfer the title from the seller to the buyer. This fee can range from as low as $4 up to $150, depending on the state you’re in. The title fee is non-negotiable and must be paid to properly transfer ownership of the vehicle.
Tags and Registration Fees
Tags and registration fees are also imposed by your local government and are non-negotiable. These fees cover the cost of registering the vehicle under the buyer’s name and providing the physical license plates for the car.
Registration fees can vary widely among states. Some states charge a flat fee, while others base their fees on the vehicle’s weight or age. It’s essential to research your state’s registration fees to have an accurate estimate of the overall cost of purchasing a car.
Tag fees relate to the physical plates required for your vehicle. The cost for these plates varies from state to state, so make sure you’re aware of your specific state’s tag fees when budgeting for your car purchase.
Doc Fee
Doc fees straddle the line of legitimate and illegitimate. While dealerships may charge a doc fee to offset the cost of non-revenue producing employees, you should always negotiate this fee. Doc fees vary widely from state to state and dealer to dealer, so it’s crucial to research the average doc fee in your area.
Note that the dealer will never actually remove the fee from your buyer’s order, instead they will reduce the selling price of the vehicle by the same amount as the doc fee.
Now, onto the negotiable dealer fees you should never pay when buying a car.
Dealership Fees to Avoid
Some dealership fees add no value to your car and should be included with every new and used car at no additional cost. These are essentially fake fees that solely exist to make the dealership more money. Always avoid these fees:
Vehicle Prep Fee
Dealer Prep for Delivery Fee
Pre-Delivery Service Fee
Pre-Delivery Inspection Fee
Reconditioning Fee
It’s very important to remember that these fees add no value at all to your car, whether new or used. All of these so-called services should be included in the selling price of the vehicle, no ifs, ands or buts. Having trouble negotiating fake fees? Our CarEdge Car Coaches are always here to assist.
‘Almost’ Fake Fees
These car dealer fees add little value despite potentially costing hundreds or thousands of dollars. If you don’t want the product, these fees or ‘add-ons’ are always negotiable:
Etching – You can find it elsewhere for significantly less.
Nitrogen-inflated tires – The benefits are minimal, and air inflation works just as well.
Pinstripes – These are often overpriced and can be done cheaper elsewhere.
Paint protection – A wax job at a local shop will likely be more cost-effective.
Additional dealer add-ons – Beware of dealers trying to upsell you on unnecessary extras.
The Complete List of Dealership Fees
All of these add-ons and dealer fees are negotiable. Not a single one of them is required, no matter what a salesperson tells you. They’re not like the taxes, title and registration fees that you should expect to pay.
Our CarEdge Car Coaches help thousands of drivers negotiate better deals on their car purchases every month. We’ve seen it all! Here are three examples of ridiculous dealer add-ons and B.S. fees that we’ve helped to negotiate off of the out-the-door price.
Who on Earth would agree to pay $3,000 for a protection package when you could apply those same products for a few hundred dollars elsewhere? Overpriced paint and protection fees are always negotiable.
Some dealers seem to think that if you can afford a new truck, you won’t mind paying a thousand dollars extra for unwanted dealer add-ons. Always negotiate these fees.
Two grand for a safety and security package? Nope, nope and nope.
And then you have this… a whole slew of dealership fees and add-ons that are VERY hard to justify.
Don’t Pay Fake Fees!
When purchasing a vehicle, it’s crucial to stay in control of your deal and be aware of the various fees you may encounter. By understanding the legitimate fees, being cautious of questionable ones, and avoiding unnecessary dealership fees and add-ons, you’ll ensure that you’re getting the best deal possible on your next car.
Ready to take control of your car buying experience? Let CarEdge Coach guide you through the process, ensuring you avoid unnecessary fees and get the best deal possible, all with three months of 1:1 expert help. If you prefer a DIY approach, CarEdge Data is the perfect tool to help you make informed decisions and secure a great deal on your own terms. Why do we do it? We simply want to change car buying for the better. It’s about time!
Carvana, the nation’s 10th largest car dealer, has become increasingly popular as an online car dealership. However, despite its growing reputation, there are three key reasons why you should avoid buying your next vehicle from Carvana. Plus, we’ll take a look at the many examples of Carvana selling ‘broken cars’ to customers.
Reason #1: Skyrocketing Profit Per Vehicle
Carvana’s gross profit per vehicle has seen a significant increase, as revealed in their latest earnings report. In Q1 2023, their profits per car sold rose by an astounding 61%. Meanwhile, other online car dealers like CarMax and Vroom haven’t experienced the same success.
While Carvana’s total revenue dropped by 25% to $2.6 billion, their gross profit per unit increased. How did they achieve this? By inflating their car prices. Carvana’s financial success is relying on uninformed buyers to make purchases without realizing they’re being overcharged.
Reason #2: Ridiculously High Prices
Carvana’s prices are just too high. Unfortunately, car buyers should expect to pay a premium for the no-hassle, non-negotiable prices at Carvana. The company obviously tosses a few thousand dollars onto the price tag as an unofficial ‘convenience fee’ of sorts. In some cases, they’re selling used cars at nearly the same price as new ones.
Take a look at this example. Here’s a 2022 Ram 1500 Crew Cab with 12,667 miles on it, and Carvana is asking $45,990. This isn’t 2021, folks. Truck prices have gone down. In fact, our Car Coaches are regularly negotiating over 10% off of MSRP for brand-new trucks.
On CarEdge Car Search, we can see that Carvana has been trying to sell this truck for well over a month, and has already dropped the price by $3,000.
The new 2023 Ram 1500, same trim and all, is within range of the USED Ram truck once current market negotiability is taken into account. And this truck, even if it’s a few thousand dollars more, comes with a full warranty, and is without the mechanical unknowns that come with every used vehicle at Carvana.
Simply put, Carvana’s prices are just too high, but not all buyers will notice. Be sure to check CarEdge Dealer Reviews to see what others have experienced near you.
Reason #3: Serious Quality Issues
Carvana has a concerning track record of selling vehicles with serious quality issues. While not every car they sell has problems, it’s a recurring theme that cannot be ignored. Poorly reconditioned cars, or worse, are all too common in their inventory.
These are just a few of the real, horrific issues that Carvana’s customers have had to deal with:
Remember, if you can’t get an independent pre-purchase inspection (PPI), it’s not recommended to buy from that dealer. With Carvana, this is often the case.
In most instances, you’d be better off negotiating a deal on a new car rather than overpaying for the convenience of avoiding negotiations with Carvana. Do your research, compare prices, and make sure to prioritize quality when purchasing your next vehicle. Don’t be lured by the seemingly hassle-free car buying experience Carvana offers, as it could end up costing you more in the long run. Don’t forget to check the latest Carvana reviews at CarEdge Dealer Reviews!
Free Car buying Help Is Here!
Ready to outsmart the dealerships? Download your 100% freecar buying cheat sheets today. From negotiating a deal to leasing a car the smart way, it’s all available for instant download. Get your cheat sheets today!
If you’re thinking about selling your car, you need to get a quote from EchoPark Automotive. Why would we insist that thousands of CarEdge Community members consider giving one online car buyer special consideration? Frankly, EchoPark is overpaying for used cars, and writing big checks to sellers in the process. Here’s what our team found using this free CarEdge offer comparison tool.
EchoPark’s Aggressive Bidding: A Windfall for Used Car Sellers
We did some research with CarEdge’s Sell Your Car offer comparison tool, and we found that EchoPark is paying too much for used cars. “Apparently, EchoPark has decided that they want to be the next Carvana,” exclaimed CarEdge Co-Founder Ray Shefska. Ray says that EchoPark may be putting themselves in a position where they’ll be buying high, and selling low.
We got offers from multiple online car buyers, and the difference was shocking.To get a sense of the overall market conditions for online car buyers today, we requested offers for a number of vehicles in different markets in America.
For example, we found a 2016 Ram 1500 for sale by Carvana in Kansas City, and received offers from multiple online buyers, such as Cargurus and CarMax. It turns out that EchoPark is not yet in the Kansas City market (more on that in a moment).
Cargurus made the highest offer, at $23,000. That’s $9,000 less than Carvana’s current asking price of $32,000. That sounds about right, at least in today’s market. But this is where EchoPark’s growing presence in online car buying enters the scene. They’re not in every market, but where they are, they REALLY want to buy your car.
EchoPark Offers Are Through the Roof
Now, let’s take a look at EchoPark’s determination to gain inventory. Over at CarMax, we found a 2021 Toyota RAV4 XLE on sale in Colorado Springs, Colorado for $33,000. CarMax is known as one of the higher-priced car sellers, since they claim to have no-haggle pricing (although you CAN negotiate your deal). For this RAV4 on sale for $33,000, EchoPark would pay $31,862 to buy it! It’s absolutely insane to see an online car buyer offering just $1,200 less than the car’s listing price. That’s yet another sign of a used car market out of whack.
Let’s take a look at one more example. To be sure this wasn’t a Toyota fluke, we picked this 2019 Ford F-150 Lariat. CarMax is asking $43,000, but EchoPark is willing to pay $38,700 to buy it. That’s NOT normal in the used car market. This is like if you went out and bought a $500 TV, and your neighbor offers to buy it off of you days later for $475. Crazy, right?
What does it all mean? This is a recipe for selling at a loss. Ray put it best, “Either EchoPark is desperate for inventory and isn’t worried about losing money on used cars, or this is pure insanity!”
These instant offers from online car buyers are generated by an algorithm that is supposed to offer a compelling price for the seller, but an offer that also makes it easy for the buyer to then sell that vehicle for a profit. Clearly, either there’s something wrong with EchoPark’s algorithm, or they seriously need inventory, and are willing to pay a price for it.
Is EchoPark Automotive Legit?
Yes, EchoPark is a legit business that buys and sells used cars online. EchoPark does not sell new cars. It’s also important to point out that EchoPark Automotive does not buy and sell in all markets. To sell your car to EchoPark, you’ll need to be close to one of their Vehicle Buying Centers. Most locations are in the southern half of the country, from coast to coast. See the latest EchoPark dealership locations here.
When you get an offer to sell your car to EchoPark, your offer is good for 7 days or 500 miles, whichever comes first. If you complete the deal within two days, they throw an extra $250 onto the offer.
When it comes to inventory, EchoPark mostly buys and sells 1-5 year old cars with low mileage. All of EchoPark’s cars come with a 7-Day Money Back Guarantee, similar to Carvana’s 7-day money-back guarantee, and CarMax’s 30-day money-back guarantee, as long as you’ve driven under 1,500 miles.
Compare Offers – No Matter What
Before you sell to EchoPark Automotive, we highly recommend that you compare offers from multiple online car buyers. You’ll get offers from reputable buyers like CarGurus, CarMax and EchoPark in seconds!
Thinking about buying from EchoPark? It’s possible that you’ll find a great deal, but it’s also possible (almost likely) that they’ll be overpricing their used car inventory to try and recoup money from overpaying for inventory.
We want to help you buy confidently. Do your due diligence and guarantee savings with the latest local car market data on CarEdge Car Search. How about premium market insights like Black Book trade-in values, negotiability score and official CarEdge recommendations for every listing? With CarEdge Data, you’ll get that and more.
Have you sold a car to EchoPark? Perhaps you’ve bought a used car from them? How did it go? Let us know in the comments below!
