I had made up my mind to buy a particular car (make/model) with no bells and whistles. I checked the Edmunds website and they have what is called a “Price Promise” from dealers who agree to sell the car (make/model) you are interested in at the price listed on the “Price Promise”. So, I contacted two new car dealers and told them that I have an Edmunds “Price Promise” from their dealer. Will you sell it to me exactly for the price listed in the Edmunds “Promised Price”? I also asked the dealers to give me the full price breakdown.
Distributor #1
This dealer started giving me the runaround and didn’t answer my questions. He started asking me questions like are you paying cash or are you financing? I’m like, man, I’m asking for a price breakdown and you’re talking about payment. So I called Edmunds and complained that the dealer was not giving me answers to the pricing information he had requested. The Edmunds rep was very friendly and helpful. He said that he would speak directly to the dealership and escalate the issue with them. He did and the dealership manager called me and he wanted to work with me. I thanked the Edmunds rep for the help. However, I did not continue with this dealer due to initial bad experience. Due to the inconvenience I experienced, Edmunds gave me a $100.00 Amazon gift card.
Distributor #2
I asked the same question. Here is the “Price Promise” from Edmunds. Can you give me the full breakdown of the price of the car? This dealer gave me the full price breakdown in an email, I have listed every line item they provided that totaled up to “Full Cash Price”.
- MSRP
- discount
- Sale price
- Total aftermarket financed
- Documentation tax
- State and Local Taxes
- Total license and fees
- full cash price
Here are the key takeaways:
Decide exactly what make and model of car you want.
To avoid misunderstandings, get a written email from the dealer that has the full price breakdown.
Review the details thoroughly and see if there is room to negotiate.
Dealers have a tendency to abuse you in “Doc Fees”. Here is a link where you can get an idea of how much it really costs in each state and how much dealers charge on average. Some states regulate and set a limit and others do not.
Sometimes car dealers will say that the destination fee was not included in the Edmunds “Price Promise”. If they want to charge you the destination fee, it should be listed in the price breakdown you receive by email. If it’s not on the list, great, don’t ask about it. They probably already included it in the total price.
Do not visit the dealer until you receive an email with the price breakdown and have reviewed the information.
You have the upper hand when you are trading via email. The moment you walk into the dealership, the dealer has the upper hand. Now he has taken time off from work or the weekend to visit the dealership. They know you don’t have time. Therefore, it is better to negotiate when you have the upper hand. The dealer’s goal is to get you to the dealer. If they can bring you, then they have your business.
Edmunds Price Promise is a great way to save money when buying a car. I saved $1,200 using the Edmunds Price Promise.
If the distributor does not meet the Edmunds “Price Promise”, Edmunds representatives are available to assist you. Take advantage of his experience.
Refuse all the aftermarket offers: the $700 stain test on the car interior, the extended warranty, etc. I don’t understand any of these things. The only thing I would recommend is GAP Insurance if you are financing your car purchase.
Remember, the deal is void if the dealer changes the price once you show up at the dealer.
The second dealer I contacted was honest, direct, and helpful. There was no nonsense. Guess who got my business, I’ll state the obvious, it was distributor #2. Once I did my homework, it was very easy to stop by the dealership, finish the paperwork, pick up the car and go. I was happy and the dealer was happy.