Thursday, July 28, 2005

My experience on Toyota dealership yesterday

I'm looking for new Toyota Camry, visited Richmond Hill Toyota dealership yesterday (in Ontario). What you read in the book about dealer tricks, they try to do on you. I told to this guy that I'm ready to buy car for invoice (which is 22,716 for 2005 Camry LE) + 300 dollars mark-up.

  • Dealer Try # 1: Included 600 rust-proof, told him I'm not interested in this addition, and I'll take no extra stuff, so don't spend you time.
  • Dealer Try # 2: Put $289 in doc fee, when I asked what is that, told me - our dealership proud to install anti-thief system to every car that we sell. Told him that I don't need it, he told me: no way, it's coming like that to our dealership, so I told him that I probably should look for other dealership with no system pre-installed. Agreed to take it out.
  • Dealer Try # 3: Calculated price with $300 mark-up, come with ~27,200 on pocket calculator, computer show ~27,900. When I asked him why is a difference, he said that my invoice price is wrong (I've checked it on other dealership before), but didn't agree to show invoice price in his computer (so I assume my is proper one).
  • Dealer Try # 4: He told me that nobody will sell me car for this price, you'll spend your time to go around and eventually come back to us. I told him that I'll send e-mail to 20 Toyota dealerships in GTA and get back even better price. It was the last drop, he wished me good luck and we left office.

All of those tries was in 10 minutes range and I don't know how many more they have in their pockets, specially when you get to financing manager.

P.S. When I recalculated price today, I've got ~28K with 300 dollars dealer mark-up, so this guy doesn't know how to use calculator. :-)

P.P.S Here is how you get 28K: 22,716 (invoice price) + 300 (dealer mark-up) + 1,160 (PDI) + 100 (air tax) + 75 (gas tax) + 15 % taxes (GST - 7% + PST - 8% in Ontario) = 28,003.65

Thursday, July 21, 2005

Ad in Russian newspaper

Posted ad in Russian weekly newspaper. Cost is $8.56 ($8 + GST).

Monday, July 18, 2005

Dealer Invoice Price services

All of following service help you to get invoice prices for car:
  • CarCostCanada - they charge you 39.95 and you can get 5 reports (with different packages and options). They give you address and name of the guy willing to sell for some fixed price over invoice, but sometimes you can get better deal by yourself.
  • EWheels.ca - price for 1 report is 19.95
  • APA

If you know any other site to get invoice price, please, share.

By the way, Car Buying Tips is excellent site full of advices about new or used car buying process and they even have Canadian page!

Thursday, July 14, 2005

Books about car buying

Following is a list of excellent books about cur buying process:
  1. Don't Get Taken Every Time : The Ultimate Guide to Buying or Leasing a Car in the Showroom or on the Internet by Remar Sutton - excellent and entertaining book on car-buying process.
  2. What Car Dealers Don't Want You to Know by Mark Eskeldson - another good one.
  3. The Insiders Guide to Buying a New or Used Car (Insider's Guide to Buying a New or Used Car) by Burke Leon, Stephanie Leon - the best one I've read so far.
  4. Car Buyer's and Leaser's Negotiating Bible, Third Edition (Car Buyer's & Leaser's Negotiating Bible) by William Bragg - interesting book, approach is different from others, worth to read.
If you know any other book, please, advice.

Business Idea

When you buy new car, you almost always pay more that you need. Idea of my business is to help people to save money.

For cars, there are 2 prices:
  • MSRP (manufacture suggested retail price) - price recommended by factory to dealers.
  • invoice price (real price that dealer pay for car).
When you buy new car from dealers, often enough you pay something close to MSRP. Dealer taking huge profit to his/her pockets. It's hard to deal with people on the lot, since they make no decision (every 5 bucks change should be approved by manager). The idea of the business is to deal directly with managers (using invoice price as a guide).

I'll post more info about my progress as well as useful links related to cars and car buying process.