Buying a New Vehicle: Barbservations and Money-Saving Strategies

 

My husband recently bought a new light truck and I helped him negotiate the terms of the sale. Below are some Barbservations and money-saving tips:

 

   

Dealer Market Adjustment- Say what? To the right of the standard dealer sticker was a “sidebar” sticker with the words “dealer market adjustment” and a cost of $2,995. I asked the salesman what that was for and he said “to cover the shortage.” I looked around the lot full of cars, side-eyed my husband, and later told the salesman, “we will not pay that” and he said “okay” and folded like a cheap suit. I later figured out that some people might actually pay the fee and others might let their guard down about the manufacturers suggested retail price (MSRP) after having the DMA waived.

 

Destination Fee- Remember that the MSRP is a negotiation starting point. The destination fee is another fee worth questioning. After all, getting a vehicle delivered is a dealer’s cost of doing business. Ask for that fee to be waived, too, or at least half of the amount charged, which was $2,095 on my husband’s truck. Other fees worth negotiating are “dealer service fee” and “non-tax fees.”

 

Ask for Discounts- Never ask for a price reduction with a yes-no question (e.g., are there any available discounts?). Rather, use language like “Tell me about your available discounts.” I said those exact words and then added “My husband is an Army Veteran.” The result was $500 off.

 

Credit Card Rewards- I happen to have a GM rewards Mastercard and my points saved another $717. Cash-back rewards cards (any type) are also a great resource for saving money toward the cost of the vehicle, This money is free and tax-free. We put $5,000 of the cost, which we had money saved for, on a credit card (dealer maximum) and that produced a $100 reward (2% back).

 

Separate Transactions- I made an advance decision rule to deflect discussions about a trade-in vehicle and financing using the phrase “we want a final price for the vehicle first.” Later, we discussed the trade-in price which was comparable to prices found in multiple online searches. Later, we disclosed that no financing would be involved. The salesman probably already knew this since we never once asked about the cost of a monthly payment.

 

To summarize, if you are buying a new vehicle, it pays to do online due diligence about the cost of new makes and models and the value of a trade in. Also, ask questions, resist paying questionable fees, request discounts, and keep parts of the transaction separate until a final price is determined.

 

I estimate that following the aforementioned steps saved us over $5,000 on the cost of the new truck. Could we have saved more? Perhaps, but $5,215 is a noteworthy milestone. I hope my story is helpful to readers who are considering buying a new vehicle in the future.