Tony Hyundai experience

[bueller555]

Just bought an '09 Hyundai Genesis from Tony Hyundai in Waipio via the Costco program. I loathe the thought of buying a new car because of the cat-and-mouse game that is usually played. The Costco car buying program is simply invoice plus a fixed amount ($500 or $1,000 depending on the model). No negotiating on the purchase although there's some wiggle room on the trade-in value and probably the extended warranty offer.

Sales mgr Larry Davis ("L.D.") was front and center and deals directly with you. No mysterious sales manager with the red pen either. I really hate that crap. Salesperson was Mike Means. Fairly new to the job, but decent guy. Even though it was a set price, it still took us nearly 5 hours to get out of there. That included the time for test driving and prepping the car.

Did I get a rock bottom price? -- probably not, but I believe that I paid a fair price for the Genesis and received a fair price on my trade-in. Definitely two thumbs up to this dealership and the experience.

[Frankie's Market]

Re: Tony Hyundai experience

Depending on the make and model, you can sometimes save more money if you did some shopping around. But the Costco program is good for folks who are either new to the car buying game and don't want to get ripped off.... or for those who simply don't want to go through the hassle and headache of negotiating. The important thing is that you are happy with your car and the purchasing experience.

And yes, there is definitely room for negotiation when it comes to extended warranties. Remember that you do not have to buy the warranty that the dealer offers. There are other 3rd party companies that you can turn to. So take the time to compare each company's coverage and prices before making a final decision.

[craigwatanabe]

Re: Tony Hyundai experience

Having worked for a car dealership, the Costco program sets the price the dealership must honor. The loser is the salesperson so that's why these programs are typically facilitated by a sales manager. If a salesperson is involved it's only for unit sales (which counts for his end of the month bonus)

However the Costco program can result in a higher price if the vehicle is "old stock" and has better incentives on the lot where pricing is negotiable. The beauty of coming in to a lot is that if you REALLY know the biz you can walk away with a steal of a deal.

I've read those defensive buyer's guides and quite honestly, they don't hold much water. Looks good in theory, however dealerships will walk away from a customer if they are simply grinding the price below MSRP. Anything above MSRP is fair game. Anything below it is really being unfair to the dealership.

And one thing about car selling. If a salesperson or the dealership lies to you, you have recourse to cancel the deal. But more than often it is the customer that lies...about their credit, "No nothing outstanding or late" But when we pull a credit report, suddenly their terrific credit score has vaporized into something less than a 600. Customers can lie all day and some do. But their credit report says it all.

If you want the smoothest and shortest time in a car dealership, come in pre-approved with a letter from your banking institution. If you come in with no inkling of your credit history...and you know it's bad, you'll be there for quite a few hours. People with excellent credit are in and out in less than an hour.

What takes a long time is when the F & I manager has to hunt for lenders that are willing to loan to high risk customers.

The "Pencil" or the time it takes to negotiate a price is usually limited to one or two trips to the manager. On the third one, the salesman has pretty much lost his commission and possibly his job. If you get to a third pencil offer, it's time for the sales manager to step in because something isn't right. Either the salesperson isn't promoting the vehicle correctly, or the customer doesn't have enough downpayment, trade in value, or good credit history.

When it comes to qualifying a person for a loan, sometimes the salesperson has to put the customer in another vehicle possibly with less options. The customer hates that but it was probably the salesperson's fault for showing the customer champagne only to find out they can only afford Kool Aid.

But then again sometimes the customer will tell the salesperson how much they can afford so the salesperson will show them top of the line stuff because the customer lied to them. The truth comes out at the table when the money is laid down.

[musubi]

Re: car buying experience

^^^

Wow. craigwatanabe, that is probably one of the most informative things I've ever read about the car buying experience.

I'll definitely bring a pre-approval letter from my bank next time I purchase a car from a dealership!

Big "MAHALO" for a very enlightening post!

[JAvendan]

Re: Tony Hyundai experience

i went through the costco auto program and found it very quick.

i typically go through the fleet/internet manager and it appears they are one in the same these days.

we got our odyssey for approx. $2300 under invoice.

the costco price is $1500 under invoice but because honda was giving manufacturer to dealer incentives of $2500 i asked for more.

of course, i asked for both the $1500 and $2500 but no joy.

always know what is available and don't be afraid to ask.

did i get the best deal - no... but i believe i got a very fair deal.

in end, it's what you feel is acceptable!

i was there approx. 1.5 hours.

joel

ps t-minus 1 week to touch down in oahu - yay!

[tutusue]

Re: Tony Hyundai experience

[...]Did I get a rock bottom price? -- probably not,[...]

[...]did i get the best deal - no... but i believe i got a very fair deal.[...]

Is there really any sure way to tell if one has gotten the rock bottom, best deal? Just curious...

[GeckoGeek]

Re: Tony Hyundai experience

Is there really any sure way to tell if one has gotten the rock bottom, best deal?

Sure! Brag about it. You'll find out pretty quick if someone got better.

[tutusue]

Re: Tony Hyundai experience

Sure! Brag about it. You'll find out pretty quick if someone got better.

Well, yah, I guess that's one way. But it seems to me that "someone" would need to have bought the exact same car with all the same options. Or, am I missing something? Could be as I haven't purchased a new car since the early '80s!

[JAvendan]

Re: Tony Hyundai experience

Is there really any sure way to tell if one has gotten the rock bottom, best deal? Just curious...

aloha tutusue!

when i was looking into purchasing i found various websites where people were posting the prices paid - negotiated price, tax, registration, etc.

my price was not rock botton... was not the best.

but i'm not in mid-west or east coast. nor was i emailing 10 dealerships... nor did i visit those 10 dealerships for a month.

i leveraged what i had - credit union and costco. costco was better.

i then researched what incentives where available and if i could take advantage of them.

in the end i saved $2300 below invoice, saved some money on the accessories, got the finance rate i wanted (3.9 from honda) and a tank of gas!!!

i'm comfortable with my payment (even facing furloughs - i live in california and work for the state!)... and happy with the deal.

so, go get a car and stimulate this economy ... or not

joel

ps still t-minus 1 week and counting... antie lynn, we still on for a lunch date?

[tutusue]

Re: Tony Hyundai experience

[...]so, go get a car and stimulate this economy ... or not [...]

Thanks for your input, Joel. Actually, it's a "not" for me! I buy a used car about once every 10 years. I have 7 years to go!

[GeckoGeek]

Re: Tony Hyundai experience

however dealerships will walk away from a customer if they are simply grinding the price below MSRP. Anything above MSRP is fair game. Anything below it is really being unfair to the dealership.

You've got to be kidding. Anything below Manufacturer Suggested Retail Price is "unfair" to the dealership? I don't believe it. Anything above MSRP is either price gouging or a highly desired car.

Are you sure you're not thinking of some other price? Maybe Dealer Invoice?

[Nords]

Re: Tony Hyundai experience

Is there really any sure way to tell if one has gotten the rock bottom, best deal? Just curious...

Only if you can hear the yelling & desk-pounding from behind the closed doors off the sales floor...

But that's just what I've read. Haven't bought new since 1981.

[matapule]

Re: Tony Hyundai experience

I buy a used car about once every 10 years. I have 7 years to go!

She's the little old lady from west Makaha
Go granny, go granny, go granny, go.



(the Beach Boys)

[tutusue]

Re: Tony Hyundai experience

Only if you can hear the yelling & desk-pounding from behind the closed doors off the sales floor...

But that's just what I've read. Haven't bought new since 1981.

Bwahahaha!!!
That was probably the year that I last bought a new car, too.

She's the little old lady from west Makaha
Go granny, go granny, go granny, go.



(the Beach Boys)

Well, I did keep the Porsche for 15 years (thought it was 20 but, nope)! That was my fave granny car!
(I used to attend Beach Boys concerts before they were popular...The Doors, too! That truly makes me a granny!)

[craigwatanabe]

Re: Tony Hyundai experience

Is there really any sure way to tell if one has gotten the rock bottom, best deal? Just curious...

Look at the Maroni Sticker. That's the big sticker on the window of the car. On it you'll find the final price from the factory. Typically the manufacturer will list their MSRP. Yes it's "Suggested" however manufacturers really don't like it when a dealership sells below MSRP unless it's approved by them.

Next to the Maroni sticker is the dealership sticker which is usually that thin strip indicating the delivery costs, dealer prep and other add-ons that result in a marked up price over MSRP. This area of pricing is fair game to the consumer in which there is room for negotiating. This is where the dealership allows for the commission to it's salespeople. The dealership already made money in the retail markup from it's wholesale buy.

But when a vehicle sits on a lot too long, like over 60-days now the bank which issued a loan to the dealership to buy a fleet of vehicles for resale starts assessing an interest fee. That's why dealerships must jack up the price over MSRP because it can forecast an interest payment if the vehicle doesn't move which will cut into retail profits.

Old stock has tremendous room for negotiating down to MSRP. How can you tell an old stock from fresh stock? You can have two identical vehicles with identical mileage on the clock with identical trim and color packages with identical cosmetic issues (if any) basically mirror images of each other. One is marked down a couple thousand dollars over the other, why? Because the marked down vehicle is old stock and is about ready to be assessed an interest charge from the bank to the dealership. It behooves the dealership to sell that car immediately before interest charges are implimented.

To ask for old stock vehicles saves both the company and you a lot of money making it a win-win situation but a loss of commission for the salesperson. If you like that person or trusted him/her then you should allow for them to make their commission because that's how they earn their income. Car salespeople work strictly on commission. If they don't sell a car all month they get no paycheck. So how can you tell an old stock from fresh stock? Every car that goes on the lot for sale must have a Hawaii Safety Check sticker issued at the time it arrives on the dealer's lot. It may not have a registration sticker but it MUST have a safety check sticker.

Look for the oldest sticker and if it's two months old, this is the one you want because there is a lot of room for pricing. This is why the Costco program has it's limitations. You cannot negotiate the price of the vehicle. You may think you're getting a great deal and you may...but a quick stroll down the car lot may reveal better hidden incentives on certain vehicles that can result in an even lower price...a wayyyyyy lower price.

Another way to ensure no or low haggling over pricing is to buy near the end of the month where salespeople are more interested in selling cars for unit count as opposed to commission. Most car dealerships offer incentives to their sales force. If they can sell a certain amount of vehicles by the end of the month, they receive a nice bonus on top of the commissions. Sometimes if you need just one more unit to make the minimum for a nice bonus of maybe $200 for that month, a salesperson will sacrifice their commission and push the price as low as possible. The sales manager doesn't mind either (but won't show it) because the sales manager's income is based on total number of units sold each month with no commission. In many cases sales managers will sell their used car inventory on the auction to other used car dealers just to move units so they can justify their income.

Buy old stock and buy at the end of the month if you want the best deals from any car dealership.