First time car buying questions (yet another?)

[Atty]

So, I've finally got a job that pays enough to balance a car payment easily but I have no idea what I am doing.

A) Do I wait and accumulate a lot of cash to put down or put down a modest amount with the ability to pay over my monthly payment? (An extra $100-$200 a month.)

B) When is the best time to buy? Do I wait endlessly for an awesome incentive or work with the dealership(s) to get the best deal?

C) Trade in my 1999 Camry w/ 130k miles or privately sell it?

D) Tips? Tricks?

Looking at a Genesis Coupe 2.0T, more than likely something used in the high teens, if not lower. As much as I want a 2013 (interior, engine boost, etc) is tempting but a $7,000 difference isn't.

Might cross shop a used 350/70z if the price is right, not sure its the better option though.

Will edit if I think of anything else to worry about.

Any help would be greatly appreciated!

 

[KDKPSJ]

A) Totally up to you. I am kinda person thinking that when you are young, you don't really have to save much money because your salary will be at least twice in 10 years... that's of course depends on your career path. If you don't agree with me or your career path is not guaranteed, I'd save as much money that you can make car payment and living expense for few months with zero income.

B) Usually the best time is either year end when the dealer wants to make their sales figure look good, or when the new model year of the car you want hits the dealer. For example, when I bought my 2009 G37, it was about three months after 2010 G37 hits the dealer, and the dealer wanted to let their old stock go asap.. As a result, I was able to get 09 G37 for about 8k under invoice, while 2010 G37 was going for about invoice.

C) Privately selling is always better, but it's definitely a better idea to get some quote from the dealer or car buying company (Carmax), so you know what you can expect.

D) Just ready to walk out, and they will beg you. Then it's time to negotiate.

 

[RPD]

A tip about dealing with salesmen, you HAVE to have the mentality that they NEED you, not the other way around. Don't fall for their pressure or tactics. Know what you want to buy AND pay before going. Don't let them talk about just a monthly payment figure, but get the total price first, then worry about getting the monthly payment.

 

[mvbighead]

A tip about dealing with salesmen, you HAVE to have the mentality that they NEED you, not the other way around. Don't fall for their pressure or tactics. Know what you want to buy AND pay before going. Don't let them talk about just a monthly payment figure, but get the total price first, then worry about getting the monthly payment.

This, and what everydae said on the D part.

Be ready to walk out. That's the one thing with my car buying experience that I should've been more willing to do.

Also, find yourself several options at several different dealers. Push on each one to get the lowest TOTAL figure you can. If one is willing to give you 18, try to get the other to 17 or 17.5. Then work them against each other. You work enough, and you will get their bottom figure.

Once you get to that point, keep whatever you have in writing and bring it in. I had worked a figure out with a dealer, and low and behold, I get the number down to where I want it, I go in, and all of a sudden the number they agreed to didn't mean anything, which leads back to...

BE READY TO WALK OUT.

 

[Brovane]

I would second what everyone is saying.

Don't let them negotiate on the monthly payment. A lot of times they will try to create confusion by instead of negotiating on price negotiate on the monthly payment. Come in with financing already setup. Also don't let them negotiate on a trade in. Basically negotiate on the price of the vehicle. What I do, is usually e-mail several dealerships so you don't even have to walk in and ask for pricing. I tell them exactly what I want and ask for a quote. Usually they will give you a good price to start with over e-mail versus if you are a walk-in. Once you are happy with the price via e-mail you then go into the dealership.

 

[pauldun170]

Whatever you do, make sure you factor insurance costs in your planning

 

[rh71]

What I do, is usually e-mail several dealerships so you don't even have to walk in and ask for pricing. I tell them exactly what I want and ask for a quote. Usually they will give you a good price to start with over e-mail versus if you are a walk-in. Once you are happy with the price via e-mail you then go into the dealership.

We're buying this week and a couple weeks back I submitted a request on cars.com saying I was ready to buy. I have had 3 dealers constantly calling me fighting for my business but I planned on waiting to the end of the month (now). They're not willing to give me a 2nd number to compete off each other though unless I show up face to face. Obviously they don't want to play that back-and-forth game. Anyway, this week is the last week of the month and even the Ford salesguy during a test drive yesterday told me this is the week to buy because it's the end of the month. We're doing the Elantra though... and from what I can tell from truecar.com and edmund's tmv, the bargaining room is so small (less than $1k) that it may not even be worth a lengthy sit-down. There's 1 dealer of the 3 I'd rather buy from because they're close and have nice perks - I'm just gonna go in with the number I want to pay that will still be fair to them - and make it obvious I know all the numbers. That way I stay in control. I will use the numbers the other dealers gave me as well. If that fails, I will ask them to start throwing things in (hey those wheels from the Elantra coupe SE are nicer!).

One thing that gets complicated with all this is at some point you had to go in and test drive and that's when they hooked you up with a sales guy. But I already emailed the internet dept. They are now having me deal with the sales guy who drove with me so I'm not so sure I can do as well as if I just worked them thru internet sales.

 

[Railgun]

I don't know why everyone always says privately selling is always better. It some cases, perhaps many, it's not. There are tax considerations to take into account. A trade-in lessens your tax liability. If the car is 20k and your trade value is 3k, you are then on the hook for 17k from a tax perspective. Maybe you can get 4k for a private sale, but then you're still on the hook for 20k worth of a tax hit. It depends on your finance rate, tax rate, etc.

There are 12 states where this doesn't apply, so depending on where you live, it's a moot point, but see what the dealer offers and your finance rate and see what you can get selling to a private party. Do the math.

NJ is a state that isn't exempt so that explains that answer.

 

[ichy]

Keep your Camry and don't get on the car payment treadmill.

 

[onza]

If it were me, i'd keep the Camry a little longer but that doesn't answer your specific answers.

A) best method is to pay full in cash or finance it closely to 0% as possible.
B) End of year or end of month
C) If you are going to sell it, get a dealer trade in quote, then see what cars.com etc has your car going for and make your judgement based on that. (whoever is higher is the clear winner)
D) Show that you are shopping around and they are merely a tool and not an asset. You have to show them that you are not ready to buy at a moments notice. Don't show them any emotions, salesmen can read and manipulate people who show certain qualities.

Last tip, if you are in a relationship don't bring the significant other. lol

 

[mvbighead]

D) Show that you are shopping around and they are merely a tool and not an asset. You have to show them that you are not ready to buy at a moments notice. Don't show them any emotions, salesmen can read and manipulate people who show certain qualities.

Last tip, if you are in a relationship don't bring the significant other. lol

Oh my goodness, definitely these points!!!

Especially that last one. I recall going to look at a vehicle a while back from a fairly good sized used car lot. I go in looking for a Jeep, and the Jeep I looked had chunks painted with something that resembled white out, it clunked when shifting, sounded funny, etc. etc. At some point, the salesman realized I was going to want nothing to do with the car, and then started trying to steer me towards a minivan. I'm thinking WTF is your deal? I tell you I want a 4wd SUV, and you try to get me into a minivan?

The whole time the wife is looking at me like, "Well, um, I dunno?" After leaving, she was wondering if I'd be happy with anything we looked at, as in, when am I going to buy something and stop looking. Long story short, I tell her that I am not in a rush to buy a piece of shit or something that I don't want. You find the right vehicle, and then work your way from there.

So, if you leave your SO at home, you'll be able to focus more on the important aspects of the car you're looking at. Just know what she is happy with, and keep that in mind during the buying process. If she's there though, chances are she'll give you nudges to buy the thing, and the dealer will use that to not budge lower than they might have had the SO not been there.

 

[JCH13]

A) Biggest down payment you can safely muster, ideally paying 100% cash. Car payments are teh suck. Try to pay down fast and/or get 0% financing.

B) I agree with end of month/quarter/year, especially the end of a model year.

C) I'd trade it in unless you got a stupidly good deal from a private buyer. It's not worth the hassle for the money difference IMO. You won't have two cars at once, or zero cars at once.

D) I've found that letting them know you're ready to buy really butters them up. I like to pick my car, pick my price, then tell them "I will buy today for $x." Seems to make them very anxious and negotiable when they know they'll get the sale if they meet my price. Usually takes only a few minutes on the phone to get a verbal agreement.

The other option that I like is to call two or more dealers and tell them: "I want this car, with these options, what's your bottom line best price? I will be asking other dealers to submit blind bids as well and I will buy from the lowest offer." When they say "well, what if derp and herp undercut me by $50?" you say "well, then you weren't at your absolute lowest price."

I think these two methods get better, faster, results than traditional haggling and playing hard-to-get with the dealer. Just my $0.02.

Edit: I always brought my significant other, she helped me keep my head on right once or twice and stopped me from one or two silly impulse purchases/high-pressure situations, but YMMV.

 

[onza]

The significant other comment was stemmed from having a friend as a General Manager at a chevy dealership. And most of his staff always persuade the wife before the guy. Because most women are emotionally driven.

Just a funny disclaimer I wanted to put in.

 

[JCH13]

The significant other comment was stemmed from having a friend as a General Manager at a chevy dealership. And most of his staff always persuade the wife before the guy. Because most women are emotionally driven.

Just a funny disclaimer I wanted to put in.

That makes sense, I can see how it could be dangerous in some situations!

 

[rsutoratosu]

Question about trade in, im have a 99 also, is that too old to trade in or they take any year ?

 

[onza]

Question about trade in, im have a 99 also, is that too old to trade in or they take any year ?

When you provide a post that isn't detailed enough for us to answer.

I'm going to go and say yes.

If you would have said, I have a 99 car, with 60k miles, never driven in the winter. I would say No it's not too old.

 

[NutBucket]

Anything more that 5 years old or so is generally going to get you crap for trade in value. I'd rather go through the process of selling myself.

 

[rsutoratosu]

mine is 99 with 120k camry, 10k less than ops

 

[jagec]

Question about trade in, im have a 99 also, is that too old to trade in or they take any year ?

They take almost anything, but how much $ they give you for it can vary drastically.

Often selling it private party is better, but I've had friends who traded in a serious POS car for more than they could have gotten for it private party.

 

[NutBucket]

Then clearly they got hosed on the price of the new car. The dealer is making their money somewhere and a POS trade is going straight to auction anyway.

 

[jagec]

Then clearly they got hosed on the price of the new car. The dealer is making their money somewhere and a POS trade is going straight to auction anyway.

It was a 93 or 94 Pontiac Sunbird. Red convertible, looked nice from the outside, but it had no power, a truly awful 3-speed auto tranny, abysmal fuel mileage, and the standard leaks that ragtops tend to get. It didn't have any mechanical problems at the time of the trade-in, but that car was a ticking time bomb, and never spent more than a few months on the road between major repairs.

Very clean engine and low miles, though, but I wouldn't have paid $200 for that car. Dealership gave them $1200 or so, and then turned around and listed it for $2500.

 

[Doppel]

I don't know why everyone always says privately selling is always better. It some cases, perhaps many, it's not. There are tax considerations to take into account. A trade-in lessens your tax liability. If the car is 20k and your trade value is 3k, you are then on the hook for 17k from a tax perspective. Maybe you can get 4k for a private sale, but then you're still on the hook for 20k worth of a tax hit. It depends on your finance rate, tax rate, etc.

There are 12 states where this doesn't apply, so depending on where you live, it's a moot point, but see what the dealer offers and your finance rate and see what you can get selling to a private party. Do the math.

NJ is a state that isn't exempt so that explains that answer.

Most of the time it's better but it's also a HUGE pain in the ass ALL of the time. Last car I traded in I probably ate a thousand bucks at the most vs private party, easily worth that to my time.

 

[jagec]

Most of the time it's better but it's also a HUGE pain in the ass ALL of the time. Last car I traded in I probably ate a thousand bucks at the most vs private party, easily worth that to my time.

Completely untrue, I have sold piles of cars private party and usually have the cash in my hand and an empty driveway within days of putting up the ad. Price them appropriately, deal in cash, and ignore "nonstandard" arrangements (meeting place, payment method etc), and it's easy.

 

[NutBucket]

Agreed. When I sold my Subaru Carmax offered $7500 or so. 2 days on NASIOC/CL/etc, a buyer flew in from out of state and gave me $10,500 cash. Seems well worth the time spent to me.

Same with my dad's old truck. For sale sign in the window and we had it sold for "piles" of cash within 10 days.