Howdy, I am considering trading in a 2019 GMC pickup for a 2026 Ram pickup. I was never, am not now, and since this is probably my last new vehicle purchase, a Sharp car trader. So I have questions and need advice. This is going to be a cash purchase.

1. What is currently the discount off MSRP for a new vehicle? What is the minimum discount acceptable?
2. It is my understanding that you do not divulge it is cash until the deal is made.
3. Both the trade and purchase vehicle are top of the line, so I think that the dealer has more $'s to play with on discount than a lower end vehicle, true?
4. I know that tax is paid on the difference of the purchase less trade value, true?
5. Title and License Fee are fixed by my county, Aransas, true?

Now the advice section.
1. I have read, seen YouTube's on what to expect when you walk into the Finance Dept to finalize the deal. This is the time they have 'gotcha' and try to tack on additional charges that are not required.
2. What fees/charges are acceptable and what are fluff that the dealer tries to lop on to make extra dollars.
3. Can you negotiate/flat out refuse to pay things that are not actually a part of the legal transfer requirements.
4. In reference to #3, what are the only required Legal Fees that a dealer can charge?
5. I WILL NOT be purchasing any kind of Extended Warranty or Insurance at all, no special insurance for tires or whatever, use USAA as car insurer.

THANKS for Helping an Old Ag!!!!

Some structural suggestions related to negotiating:

1. Don't make any reference to Blue Book or Edmunds values in the discussions (for your trade in).
2. Go to some other dealership and slip a $100 to someone, or beg someone here, to pull you Black Book and recent auction results prices for you. Use those values for negotiating (again for your trade in).
3. Negotiate in good faith, meaning your goal is to get what you want not to make any deal. Be prepared to walk away. If they won't even budge, be polite but just walk away.
4. Dealerships pay an indirect cost for carrying inventory. If you find the one you want, write down the VIN and research the details (again may have to slip $100 to a guy somewhere). Average holding cost nationwide for a new car is $40 all the way up to $150 per day. If the car's been on their lot for 2 months, that's a couple $1000s they're eating in profit. Use any of that information to your advantage. It's easier to research for used cars, but it can be done for new cars as well.
5. Salesmen will get about 5% of the profit on the sale price. So if your truck has a theoretical profit of $1000, the salesman will get $50. They often get as much as 25% commission on the profit of upsale garbage (financing, WeatherTech floor mats, paint protector film). It might feel greasy, but you can sometimes finagle the salesman to work with the sales manager to come down on the sales price in exchange for buying the other crap you don't want. How does this help you? When you get to the finance office, the salesman isn't there anymore and you can tell them to take all that junk off, tell them you're using your own financing, etc.
6. You will get a lot more for your existing if you sell it private party. You can put all the values in an Excel spreadsheet to figure out what's beneficial when including taxes.
7. You can absolutely argue against all the extra "processing fees" and junk. They won't like it, but again be prepared to walk away.
8. Go in with a solid list of comparable trucks and their listed prices in a 200 mile radius (you can get from TrueCar or Cars.com or whatever). Don't be a low-information buyer.
9. USAA hasn't been a good value for about 10 years. Their premiums can be as much as double other national carriers for the same coverage, and their customer service / claims processing is legitimately worse than many competitors.

Wow!! Will check them out, THANKS!!!

Roger350 said:

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If you want a hassle free purchase experience where most of the above is not an issue, look up Mark Dodge in Lake Charles, LA. Many people fly in a drive home from all over the country to buy their RAM trucks from Mark Dodge. You aren't that far from Lake Charles, they may even deliver the truck to your door and drive your trade-in back.

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For sure. Aaron, the GM, and his team do it right. Repeat buyer here and will be purchasing from them again in the future.

Good advice here. Only other thing I can add is that I've had success in negotiating out-the-door price for deals like this. Take the lowest advertised price you can find on the same truck without dealer add-ons, subtract about 5%, Then subtract your car's value, add in TT&L and tell the salesman you need to be out the door for that price. Tell them they can add the dealer add-ons, but it won't affect the price you are willing to pay.

I've had salesmen play some creative games with the numbers like reducing the price of the vehicle to reduce taxes while increasing something else to get to my number.

agnerd: Howdy, You Sir are Correct!!!! Spent HOURS at the dealership with all kinds of silly and needless attempts to have to pay more than agreed, finally the succumbed and we agreed on what we started with, many hours before.