Targeting A Dealership?

I have not been car shopping in 12 years, and that last purchase was our 2007 CX-7 GT AWD. (It is BTW, the most fun and pleasurable vehicle I have ever owned & driven! I have been a fan of the Mazda turbo 4 configuration since the beginning,) It was purchased from a friend who had been in the business for years, and we naturally traveled a distance to the dealership where he was manager. Unfortunately he is no longer in the business.

I am now looking to buy a 2018 CX-9 (GT AWD or Sig) and in a bit of a quandary as to what dealership I choose to begin this process, and Im curious as to thoughts by those of you who have had more recent experiences.

- Dealership #1 is closest to home, less than 30 minutes away but has only 3 9s in inventory none of which I would want and not much to for my wife to see.
- #2 in distance (but more than 45+ min) has only 4 in stock. Two could be of potential interest, but similar to #1, there is very little to see and compare.
- #3 is where we bought the 7. It is also close to an hour away, and again only 4 on the lot with no contenders.
- Dealership #4 (about an hour away) has 20 9s on the lot. They have been the most assertive in emails & phone calls since a search thru CR/True Car a couple of months ago. No real name-based contact is established and no 1st choice color/trim candidates on their lot.
- #5 is about 45+ min across town, and has 24 2018 CX-9s on the lot. One or 2 could be of interest.

I am leaning toward #5 because they have much more to actually see to compare, and Im betting they will be the most eager to deplete an inventory glut of 2018s. Dealer #4 on the other hand seems to be most assertive in follow-up for the sale, at least in terms of the CR/TrueCar lead generation. The ONLY dealership with my ultimate 1st choice in color and trim on the lot is #2, and this is likely where the others will go to swap out for the sale. This will be a straight cash purchase with no trade. So where would you go, and why? Or does it matter?

I personally could care less even if the dealership is 2hr away. I'm buying the car to keep for a long period of time so the perfect color combo is priority followed by the best price.

If you already know exactly what you want, then I'd play one dealership off against another to get the best price, and the quickest delivery.
When I bought my 6 last fall, I was going back and forth between two dealerships. One close to home, and one about 25 minutes away.
It ultimately came down to one dealer saying he could source the model I wanted in about a week, and the other dealer saying they couldn't get me the car I wanted for anywhere from 6-8 weeks.
I couldn't understand why such a difference, but I went with the one week delivery guy.
The prices I negotiated between the two were almost identical. It came down to what I could get in terms of freebies.
Good luck.

It's possible to get all negotiations done over email these days, which is what you should do so you can get written quotes. The quotes can be used to your advantage when negotiating with other dealerships.

When I bought my Sig, I shopped at three dealerships. Two were local, and the third was over 2 hours away. I went to the nearby dealerships to test drive the vehicles and inspect the trim level I wanted. If you want to see a specific trim level and a local dealer doesn't have it in stock, email a different one that has that trim and ask for them to take photos for you.

Once I had decided trim and colour, I drafted an email asking for a quote for the configuration I was after. I sent this email to each dealership. Often, dealers will not provide numbers over email, only in person or over the phone. This is just so they can give you numbers that they can magically change once they get you in the store. Refuse to deal over the phone, if they want your business, they'll play ball. At this point I just compared what each dealership was willing to do for me. If one offered a better deal than the others, I gave the others a heads up and offered an opportunity for them to come up with a better deal.

In the end I purchased from the dealer two hours away. They provided the best deal, had the best communication, and the best customer service.

When i got my CX-5, I thought the price was high at my nearby dealership - I had already bought 2 other cars from them in the past, and the salesman assured me that was the best deal i would ever see.

So I emailed 3 other dealers in the area - all over 45 minutes away. I heard back from all 3 and one of them actually gave me a great quote - I called to confirm the details and my local dealer still insisted it couldn't be that cheap. I got all the line items over the phone, my local dealer said they couldn't touch and to buy it. So that is what i did.

You definitely need to work multiple dealers to get the best price. Not all will do it over the phone or email - some responses I got were crap. But there is always one or two that wants to make a sale, especially at end of month or quarter.

Keep in mind that dealers make money on financing - not the Mazda financing, but other banks, so a cash deal no trade is least attractive to them. Some dealers add a protection package to the price - all profit and no value to the consumer. Tell them you don't want it, or get them to knock it down close to zero. Sometimes they get credit for selling these packages more then selling the car. So if you are at an impasse, let them include the package, but discount the car that amount.

I use an auto broker for my new cars. He takes 200 bucks flat-rate and will get you the best deals because he buys a dozen cars a day and the dealerships all want his business.

Maybe look into it. The dealership will still take care of you for warranty and maintenance stuff, you just don't have to deal anyone trying to sell you undercarriage coating and scotch guarded seats. Plus you'll know you're getting the best deal possible.

Adding to alphadog00's post above, some dealers move more volume, so they might be less likely to work with you on pricing. Those dealerships that are a little out of the way usually need to be more competitive in order to make sales.

One thing I would also research are the fees that may be tagged on at the end of sale. There was a news story in Calgary that exposed some dealerships for tagging "document fees" on to the final purchase price. In Alberta, all applicable fees must be included in the vehicle price, so the "document fees" they were charging were straight profit. This will likely vary from state to state, so it might be worth looking into before closing the deal.

singlemalt_18 said:

I have not been car shopping in 12 years, and that last purchase was our 2007 CX-7 GT AWD. (It is BTW, the most fun and pleasurable vehicle I have ever owned & driven! I have been a fan of the Mazda turbo 4 configuration since the beginning,) It was purchased from a friend who had been in the business for years, and we naturally traveled a distance to the dealership where he was manager. Unfortunately he is no longer in the business.

I am now looking to buy a 2018 CX-9 (GT AWD or Sig) and in a bit of a quandary as to what dealership I choose to begin this process, and I*m curious as to thoughts by those of you who have had more recent experiences.

- Dealership #1 is closest to home, less than 30 minutes away but has only 3 9s in inventory * none of which I would want and not much to for my wife to see.
- #2 in distance (but more than 45+ min) has only 4 in stock. Two could be of potential interest, but similar to #1, there is very little to see and compare.
- #3 is where we bought the 7. It is also close to an hour away, and again only 4 on the lot with no contenders.
- Dealership #4 (about an hour away) has 20 9s on the lot. They have been the most assertive in emails & phone calls since a search thru CR/True Car a couple of months ago. No real name-based contact is established and no 1st choice color/trim candidates on their lot.
- #5 is about 45+ min across town, and has 24 2018 CX-9s on the lot. One or 2 could be of interest.

I am leaning toward #5 because they have much more to actually see to compare, and I*m betting they will be the most eager to deplete an inventory glut of 2018s. Dealer #4 on the other hand seems to be most assertive in follow-up for the sale, at least in terms of the CR/TrueCar lead generation. The ONLY dealership with my ultimate 1st choice in color and trim on the lot is #2, and this is likely where the others will go to swap out for the sale. This will be a straight cash purchase with no trade. So where would you go, and why? Or does it matter?

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Except for conveniently scheduling a test drive, you shouldn't be targeting a dealership at all. You should be targeting the car you want at the best price. Don't forget, inventories constantly change, and if needed, a dealer can either do a swap with another dealer if they don't stock the car you want, or they can sell you a car that they get allocated in the coming weeks.

I'd email all of them, and work the phones, until you get the best price. Also, if you get that price, you can work the other dealers with that quote.

sm1ke said:

Adding to alphadog00's post above, some dealers move more volume, so they might be less likely to work with you on pricing. Those dealerships that are a little out of the way usually need to be more competitive in order to make sales.

One thing I would also research are the fees that may be tagged on at the end of sale. There was a news story in Calgary that exposed some dealerships for tagging "document fees" on to the final purchase price. In Alberta, all applicable fees must be included in the vehicle price, so the "document fees" they were charging were straight profit. This will likely vary from state to state, so it might be worth looking into before closing the deal.

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Wouldn't the high volume dealers have the better price? They can sell more vehicles for less profit per vehicle.

tex2670 said:

Wouldn't the high volume dealers have the better price? They can sell more vehicles for less profit per vehicle.

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Initially, that's what I thought as well. When I got the quotes back, the busiest dealer had the highest quote and was the least willing to move on price. I came to the conclusion that it really will come down to how greedy a particular dealership wants to be. For example, if there's a dealership nearby that sells the majority of Mazdas in the area by a large margin (due to customer loyalty and marketing tactics or whatever), they may be less willing to wheel and deal if they know that they can sell to the next person who comes along for a higher price. It will also depend on your sales guy, if he really wants/needs your business, he'll do what he has to to earn it. Someone who already has a big customer base may be less likely to go the extra mile. YMMV, of course.

Thanks to all for taking time and the great responses. I have already talked to #2, 4, and 5, and #2 with the exact match is coming in with an initial Truecar quote that is in the "unusually low" range. It seems we're off to a good start with phone and email. I can already tell that #5 is not as eager to land the sale. I will give report on the final outcome. Again, thanks.

What kind of quotes are you getting from them so far?

arock712 said:

What kind of quotes are you getting from them so far?

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The out-of-the-gate quote for our 1st color choice Signature is $40,150 BT; another dealer has located a Sig in our color, but is admitting they will give best deal on one on their lot... haven't talked $$ yet, but maybe they can come to a price more compelling than color. I'm willing to consider ultimate value of the deal, and wife will have input too. It is going to be a busy week.

Dealerships trade cars with other dealerships all the time. It is entirely possible to deal with two dealerships over the same car. You don't know until you see it. Anyway, not problem.

Do not tell them how you'll pay for the car. The dealerships often get a kickback from the lender, especially if they can slide in an above market interest rate. Keep these cards close to your vest. Don't tell them that you'll pay cash until you get your price set.

Look for a 2nd sticker of extras you probably don't need. We bought a Toyota that had a $795 sticker with things like a year's free towing (Toyota already includes that for 2 years, and our car insurance has road service), worthless window etching, free oil changes for a year (Toyota already includes that), more totally worthless things. I simply said, "I'm not paying that," and sat quietly at the desk until they zeroed it out. Patience is your friend. They NEED to sell cars. You WANT to buy this one. Needs trump wants.

A comment above was about the fees they stick the buyer with. Someone may know Pennsylvania law on where there is a cap on the documentation fee and whether the law states that the fee is negotiable. The law in my state of Washington says that the fee is a max of $150 and negotiable. Most buyers don't know that and just roll over for the $150. Check your state law. I think it should be rolled into the business overhead.

Examine every fee closely. Be sure the sales tax is correctly calculated. TRUST NOTHING. First, be sure the price on the contract is the price you actually agreed to. I've seen it magically higher on the contract. (Must be magic...if it was a mistake, sometimes it would be lower.) Check for every line item they charge you. I've had them try to charge me tax only the business owner pays. They may cram on gap insurance. (a) you don't need it; you're paying cash, (b) if you did need it, your car insurer sells it cheaper. Even be sure their addition is correct. Be surprised at nothing you catch them doing.

Buy NOTHING ELSE from the dealer. The so-called finance manager is paid only on commission. If he doesn't sell you something extra, he doesn't get a paycheck. Avoid the overpriced wax job, overpriced spritz of Scotchguard inside, worthless window etching, worthless undercoating, overpriced tire & wheel insurance, so-called extended warranties, pre-paid maintenance (maybe a good deal but check closely*), avoid it all. If there really is something you want, you can find it at lower cost elsewhere.

There are a thousand videos on youtube about car buying techniques and scams. You can watch a few and see their techniques. 4-square worksheet that gets you head spinning. Sales person scuttling back and forth to the sales manager to give you time to stew and worry about not getting your new dreamboat. Here's just one:
https://www.youtube.com/watch?v=mytaWIA3YLs

*There is a very low profit margin on new car sales. The profit margin on used car sales is higher. The service department is the gold mine. Any way they can get customers into the habit of always getting service at the dealership is good for them. They'll oversell things you may not need at overcharged prices--the service writer is paid on commission, and the tech is paid piece work.

singlemalt_18 said:

The out-of-the-gate quote for our 1st color choice Signature is $40,150 BT; another dealer has located a Sig in our color, but is admitting they will give best deal on one on their lot... haven't talked $$ yet, but maybe they can come to a price more compelling than color. I'm willing to consider ultimate value of the deal, and wife will have input too. It is going to be a busy week.

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Signature trim With machine grey color, Truecar price is $39953.
I have been looking at Audi Q5 and CX9 signature at $40K seems like a no brainer. If I can convince my wife....

To add to PTguy's excellent do's and don't's list when buying: ask for as much free stuff as you can when negotiating.
Ask for stuff like free rubber floor mats/liners, window tinting, body side moulding, block heater (if you're a Northerner) etc.
When I bought my 6, I got about $1,000 worth of free stuff. All they can say is no.

Also be careful with this 0% financing stuff. They jack up the price and then give you this supposedly 0% financing deal.
You'll pay more for the car at 0%. Financing is never free.

Buzzman12 said:

Also be careful with this 0% financing stuff. They jack up the price and then give you this supposedly 0% financing deal.
You'll pay more for the car at 0%. Financing is never free.

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Thats not true at all. You need to be really careful about passing opinions as facts when people come here for information.

There are cases where the manufacturer, not the dealer, offers the customer an either or when it comes to an incentive. You can choose either the cash incentive or the 0% financing.

For those who cannot pay cash for a car (80% of vehicle transactions) the 0% is the most affordable option because taking the cash incentive and then paying an interest rate (3.9%-4.5% for a 60 month term right now) you will pay more in interest than the cash incentive will give you.

Always look at your total exposure and transaction total (including interest if youre financing). Thats how you determine the deal youre getting.

Aviboy97 said:

There are cases where the manufacturer, not the dealer, offers the customer an either or when it comes to an incentive. You can choose either the cash incentive or the 0% financing.

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That is exactly what I'm being told by the dealerships I'm currently getting quotes from; at the bottom of the discounts tally, they have been quite clear that you can choose one of either what is currently $2000 in Mazda cash OR the promotional financing arrangement pegged now at .9%. You cannot take both

x2 on working extras into the deal. MSRP on my 2018 Sig was about $51k CAD at the time. My OTD price was a little higher than the MSRP, but the deal included extras like:

OEM accessories ($1780)
Extended warranty and rust inhibitor treatment ($1500)
3M HFBM paint protection film and install ($850)
Five free oil changes ($550)
Free delivery to my home in Calgary from Leduc
Payments deferred for three months

I was a first time Mazda buyer, so I was unable to take advantage of the loyalty rebate. Make sure you take advantage of all of the available/applicable rebates... work out a final price, then tell them to apply the rebates if they haven't already.

Buzzman12 said:

Also be careful with this 0% financing stuff. They jack up the price and then give you this supposedly 0% financing deal.
You'll pay more for the car at 0%. Financing is never free.

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I got 0% for 5 years on a $15.999 loan for my 2002 Protege5. MSRP for the P5 was 16k.
This was just after 911 though.