Tips for buying a new vehicle?

[powayroger]

For those in the know (Auto sales and people that buy frequently).
Might be forced to buy a new vehicle. Don’t feel like sinking more money into wife’s car (Mechanic can’t figure out the problem. Could be fuel pump, which could cost $900). Will probably buy new and pay cash.

So in trying to negotiate a the best price possible, I’m aware that we bring up the trade in last (Heck, price doesn’t matter, it’ll be a token amount we get from the dealer for the car and I don’t want to go thru the hassle of selling it) and we don’t want to appear to be interested too much in a vehicle.

But what about getting the price? Would we get a lower price if we negotiate financing, and then pay it right off, or would we get a better price just paying cash right off the bat?


Back in December 2007, what I did when I bought my civic, is I investigated the price then sent out emails to dealers that I would like to deal with to get the best price. I suggested a price. Most of the dealers said thanks, but no thanks. While I preferred to go with my city’s Honda dealer, they would not go lower, so the price war was between a dealer in Riverside and one in San Diego. It looked like we would be traveling to Riverside, but at the last moment, San Diego beat the Riverside price and we went with them. That is what I did last time. Is there a better way?

Thanks!

 

[The_Jeff]

I like the ruse of financing then paying it off. But of course it has to make financial sense. Someone might get a commission with financing so they'd be willing to give some up on the cash price.

What kind of vehicle are you getting, another Honda? Their dealers seem a little cocky as you've already noticed.

You could set up a double blind experiment between using another (your wifes?) email and emailing all over vs going to the showrooms.

 

[Chris142]

Show up late in the afternoon and haggle past their closing time. A few hrs of this will get you a reasonal price. They do not want to lose a sale after hrs of haggling.

If you talk financing talk total price and not monthly payments. Bring a calculator to do the math unless your real good at it in your head.

 

[aquariuscsm]

Originally Posted By: Chris142
Show up late in the afternoon and haggle past their closing time.


^^2nd. That`s what I did when I bought my car. I got the EXACT deal that I had the intentions of getting before I even went to the dealership. I finally left around midnight :^)

 

[Kuato]

I prefer talking to them in person. Be armed with information (for example from Consumer Reports new car service) about how much the vehicle cost the dealer, and aim for a price 4-500 above that - which is a fair profit for the dealer. (note: for in-demand vehicles and some foreign models, a higher profit margin will be appropriate)

Be ready to walk out if they don't agree to your price. 90% of the time they will follow you out and ask for another chance to "speak to the manager". Tell them that YOU would like to speak to the manager, if they're not authorized to make the best deal. Stick to your price, period, and again be ready to walk out.

After they agree on the price, they'll try to sell you extras, or tell you that the rebate is already included (which is bull, since you haven't talked about it yet). I had 1 dealer that showed me the final paperwork...it had a column for "advertising" and it was $142. I asked and was told that this was to help cover the dealership's advertising costs. I told them that there was no way I would pay for their advertising costs; we went back and forth for 1/2 an hour but eventually they caved and reduced the overall cost. You have to let them know that you will walk away.

Then comes financing. They'll try to rip you here also, but since you can pay it off if they mess with you here, just see what more concessions you can get on the price. Maybe talk it up that if they could lower the price a little more you could take another 2% on the loan interest.

I've put this in a nice order here, but many dealerships will bring out a sheet of paper divided up into 4 squares, one for price, another for payment, another for interest rate and another for your trade in. They'll start by asking what payment you can afford, and work from there to get the best deal for THEM. Keep in mind that each of these items is a separate negotiation, but they try to confuse the buyer by putting them all on the same page and working the numbers.

On your trade in, take it to a Carmax first and see what they would give you - they will cut you a check on the spot if they buy your car. If the dealer won't give you that much, no prob just take it back to Carmax; they give you a week and a mileage limitation during which they'll give you the same price. But they might, you never know up front. If they won't give you enough for your trade in, then it gets removed from what they can monkey with....for the best deal, have them appraise your car for trade in before you even let them know what type of car you plan to buy.

Hopefully that helps....

 

[hardcore302]

Buy a Mustang GT or GT500.

 

[dishdude]

My last vehicle was the first time I tried the email thing, and it worked out great. I will never haggle in person again. They play games and drag it out so they wear you down...can't do that over email!

Also, I think the internet salesperson has the ability to cut pricing deeper, and you know which dealers are serious and want your business before you step through the door.

 

[powayroger]

Will be replacing the wife’s Ford Contour. It has 95,000 on it and we’ve forked out $1400 in the last 3 months in repairs (Our mechanic is honest) and it’s back again and the mechanic can’t figure out what the problem is, but thinks it’s the fuel pump, which will be another $850+ more.

So we took a quick look at Hyundai and Kia today before church. I’ve done the research so I know that with those brands, we’re looking at the Elantra GLs (Hyundia) and the Soul and Rio5 SX (KIA). Civic is high on the list too.
We were impressed with the Hyundai. Very little pressure from the salesperson too, which gave them a star in my book. Still had 2010s in stock for about $2000 less.

So we headed to the KIA dealership. Night and day. I explained right off the bat what we were looking for (Had the trim line) but right away started pushing the extras, which I laughed at. The salesperson then said “I’ve heard your needs and I think I have what you need in the showroom”. So we go inside and he shows us the Sportage which is about $4000+ more than what is in our price range. I explained that money is the key and that we will be paying cash for the vehicle. He then stated “If you wait a few months, you would have enough cash for a car that really fills your need”. I chuckled and said that a BMW and a Mercedes Benz would fit my need more. Also a house in Ranch Santa Fe (Expensive area in San Diego). I don’t think he got the hint.

Wife and I left KIA, knowing that we won’t be back and that their stuff looked real cheap. Sorry for you KIA lovers.

 

[demarpaint]

Wait till late in the month, tell them you plan on financing, and don't have a trade. Be sure you know your credit score ahead of time, people with lousy credit are at a disadvantage! Make sure you know what tissue [dealer cost] is on the vehicle, hold back, and floor plan assistance. IIRC consumer reports spells it all out. Don't buy on the first visit.

Another way is: You can often price shop via email, and have dealers bidding against each other. You still have to know all the costs as mentioned above. They want to lure you into the store, to sell you face to face on their playing field. You spell out you are shopping online and won't come in until they give you a price in the email. Make sure that you spell out, turn key, and drive, no hidden extras! Make sure you know exactly what you want, and spell it out. If they screw up move onto someone else. I have an unfair advantage since I worked in car sales, but the game is quite easy if you call the shots, know cost, and buy exactly what you specify. If you deviate, you leave yourself open to get screwed!

Some of them can be tricked into giving you an interest rate and payments online too if you plan on financing. These are some key pointers, there's more if you plan on financing, but it would take a bit of time to go into all of that.
HTH

PS this is for new cars, used cars is another even more interesting game!

 

[The Critic]

Having helped my family and friends buy 2 cars in the last 18 months, here's what I learned.

Working directly with the dealer who has the vehicle you want is ideal. You will generally have more negotiating power if the dealer has the car, as opposed to them having to trade for it. Putting dealers up against one another is generally a good strategy, but I would also be vary of a dealer who's price is significantly lower than its competition--they are most likely trying to lure you in with a lower price and give you surprises when you walk in.

Also, know how much the car is selling for. Dealers will sometimes take losses on each unit sold in order to meet a certain sales quota, so they can get some additional money from the manufacturer. However, unless that kind of program exists, there's little reason for them to go below invoice minus holdback minus incentives. I also don't mind paying a 1 or 2 hundred bucks more if the dealer is local to me, and for a smooth transaction.

 

[MrCritical]

Unless you get a thrill from all that "negotiating", I'd pass. Salespeople here have a real life. They close at 7pm, maybe 7:15, and that would only be if they had started delivering you the car before 7.

It's a give and take process, so when they find our that you've been priced the same model they have somewhere else $2000 below cost, they tell you to go and buy it. They've played that stay open late game for nothing before, and are way too smart. It doesn't matter if you're buying a car, or the entire lot. No dealer within 200 miles of here does business like that.

Find an ad for the car you want. Call and find out if that car is in fact available for that price, how many they have at that price, and what is or isn't included in the price. Here it's illegal to advertise a car price that doesn't include prep and destination charges. Call or email another couple of dealers with that price, and see how they respond.

Last but not least, check the reputation of the dealers you intend to deal with. You don't want to end up with a vehicle from a Bill Heard Chevrolet.