May 31st 2013, Broomfield Colorado: 2014 CX-4 Touring AWD Sky Blue.
$26,660 MSRP
$25,818 for the car.
$599 BS Dealer Handling Fee
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$26,417 Actual Cost to me
$183 under MSRP
I paid $1974.29 in taxes but you should ignore that since your area will be different. Focus on your offer price compared to mine and the factors below.
What I did wrong:
* Let the dealer know I was desperate and eager for the car
* Let the dealer know I totaled my previous car recently so time might be a factor
* Let the dealer know other dealers had not responded to me, limiting my ability to put them against competition.
* Let the dealer know I was focused on a specific model in a specific color.. And there was only 1 of those in my region.. limiting my ability to put them against competition.
What I did right:
* Tried to engage four dealers on the next to last day of the month with the expectation that many might want to make a quota.
* Let them know I didn't feel like coming down if no discounts were involved
* Let them know I was aware of dealer hold backs and other profit centers
* Negotiated remotely via email and telephone. They couldn't read my body language, I could contact other dealers, other friends for advice and I had no time constraints about their offers.
* Avoided the opportunity to get less money for a trade-in than its value. Geico's settlement with me was GREAT. Love them.
* Avoided the opportunity to finance at a higher than market rate. (I actually used a promotional 1.9% through them.)
* Avoided any type of "Document Fee"
* Avoided any type of "Advertising Fee"
* Avoided any other dealer fees than the ubiquitous "Dealer Handling fee"
* Avoided any high profit, unnecessary items such as paint protection, unnecessary warranties, protection from terrorism or space aliens.
Now that I own the car and I'm locked into these numbers, I don't even like to think about these numbers. Fact is, I could have done better but a few mistakes on my part and the fact that the Mazda CX-5 is a hot seller with great reviews prevented me from getting a car I need now at a really good price.
The perfect transaction for a dealer makes money on the sale price of the car, the trade-in and the financing. Additional options like accessories and last minute add-ins like third party paint protection are just icing. With this in mind, I think I did OK in limiting how much money is gone from my wallet. I think the dealer did good too, making a good amount of money on a very popular and hot selling car.
I'm waiting for this transaction to complete: I have the car but they have to install the roof rails and supply some accessories this week. If that goes well I'll be happy to name them publicly then. If you have specific questions, feel free to email me directly.
I hope you do better than I did, and I really hope you don't do worse. Cheers,