How to purchase a new car ...

[raildogg]

So lets assume you are going to purchase a new car. How do you do it? Do you ask the dealer to lower down the price?

Do you tell the dealer that "Car A is selling for $xxx. If you can lower this car to $xxx, I will buy it". What are good moves?

Speak from experience or just share your thoughts and what you have learned.

 

[RossMAN]

http://www.tfnn.net/forum/index.php?topic=12262.0

 

[soydios]

@RossMAN:
Good read.

 

[CowZ]

Well doing some basic research on the car you want to buy is a good start. Find out the MSRP first and the dealer markup ranges between 3-5 thousand for fleetrate I believe? For new and in demand cars, its basically hopeless getting it below msrp. If you're looking at older models but still brandnew cars you'll have an easy time as the dealers wants to get rid of them. Also, shopping around ofcourse helps alot and basically play each dealer by saying someone is offering what. Eventually they'll start lowering their price. Basically, play the dealers, don't let them play you. You know all they want is the sale and they want you to buy it as much as you want to buy it yourself. With a little patience, you'll get the price knocked down a couple thousand or maybe extra options free of charge. Just out of curiosity, what car are you looking in to?

 

[trmiv]

Never, ever, ever deal with the greasy salesmen on the lot. Always email the internet/fleet manager about the car you are interested in and get a price from them. Your best bet is to email a few internet/fleet people at different dealerships and see what price they offer on what you want. I did this for the vehicle we just bought, and ended up paying about $300 under what carsdirect.com and edmunds said was the best I could expect to pay. Buying from the internet/fleet manager is the best way to buy a car, and will change your opinion of car buying.

 

[compuwiz1]

It's not a big mystery. Financing is probably the biggest mystery many folks face, ie, best interest rate, terms, payments, etc.
Where the most mis-understandings take place, are, in properly calculating the price / value of the car. Information is available, but sometimes it's out dated.

If you go into a dealership and offer $15,000 for a car with a sticker price of $32,000, you will get a good buy. Who you are dealing with will quickly extend his hand, while he says; goodbye!

Understand what car fits your budget, then be prepared to offer a fair profit. You don't work for free, and neither does your sales person. Generally, if you ask to see the invoice, so you can ascertain what cost is, most credible dealers will oblige you. Then, depending on the model, supply, and demand, you should be able to make a fair offer.

A couple hundred over invoice on, say, a Mazda 3, or Honda Civic, may very well work, and at the outside, $500 max, should do the trick. OTOH, don't expect to buy a flagship model for that short of a margine. If you are looking at a Pilot, or an Accord, well those are not "cheap sell" models. Depending on where you live, you could expect to pay sticker for them.

But it's not that mysterious.

Originally posted by: trmiv
Never, ever, ever deal with the greasy salesmen on the lot. Always email the internet/fleet manager about the car you are interested in and get a price from them. Your best bet is to email a few internet/fleet people at different dealerships and see what price they offer on what you want. I did this for the vehicle we just bought, and ended up paying about $300 under what carsdirect.com and edmunds said was the best I could expect to pay. Buying from the internet/fleet manager is the best way to buy a car, and will change your opinion of car buying.

Are you jealous of those "greasy salesmen"? They work very hard, long hours, in the sun, standing on their feet, waiting for A-holes to come in with attitudes like yours. When all is said and done, I can assure you that in every 20 houses on your block, you usually have one of those "greasy salesmen". You know, the one with the nicest house, the nicest yard, and the nicest cars parked out front.

Infact, in the nicer golf course districted homes, usually the nicest home is owned by, either the most prominent plastic surgeon, or a sales manager at a car store.

 

[Colt45]

<slavic accent> how much for cash </slavic accent>

 

[chuckywang]

Originally posted by: RossMAN
http://www.tfnn.net/forum/index.php?topic=12262.0

Good advice, but I wonder if it works with high demand vehicles like the Honda Civic. People are willing to pay MSRP for those so the dealership don't need to move on pricing. Maybe come back later on in the year when the they are only left with the cars that didn't sell?

 

[Corporate Thug]

Originally posted by: RossMAN
http://www.tfnn.net/forum/index.php?topic=12262.0

:thumbsup:

 

[akshatp]

Dont buy a new car. It depreciated 32% in the first year. Buy a 1 year old used car with 10k miles on it. Save that 1st yr deprciation and still get a basically new car...

 

[Imdmn04]

Originally posted by: akshatp
Dont buy a new car. It depreciated 32% in the first year. Buy a 1 year old used car with 10k miles on it. Save that 1st yr deprciation and still get a basically new car...

Maybe if you buy a Ford.

If you have the money, there is nothing wrong with buying a new car.

 

[akshatp]

Originally posted by: Imdmn04

Originally posted by: akshatp
Dont buy a new car. It depreciated 32% in the first year. Buy a 1 year old used car with 10k miles on it. Save that 1st yr deprciation and still get a basically new car...

Maybe if you buy a Ford.

If you have the money, there is nothing wrong with buying a new car.

I gathered from the original post that the OP is looking for the cheapest way to buy a car... hence my post

 

[trmiv]

Originally posted by: compuwiz1
It's not a big mystery. Financing is probably the biggest mystery many folks face, ie, best interest rate, terms, payments, etc.
Where the most mis-understandings take place, are, in properly calculating the price / value of the car. Information is available, but sometimes it's out dated.

If you go into a dealership and offer $15,000 for a car with a sticker price of $32,000, you will get a good buy. Who you are dealing with will quickly extend his hand, while he says; goodbye!

Understand what car fits your budget, then be prepared to offer a fair profit. You don't work for free, and neither does your sales person. Generally, if you ask to see the invoice, so you can ascertain what cost is, most credible dealers will oblige you. Then, depending on the model, supply, and demand, you should be able to make a fair offer.

A couple hundred over invoice on, say, a Mazda 3, or Honda Civic, may very well work, and at the outside, $500 max, should do the trick. OTOH, don't expect to buy a flagship model for that short of a margine. If you are looking at a Pilot, or an Accord, well those are not "cheap sell" models. Depending on where you live, you could expect to pay sticker for them.

But it's not that mysterious.

Originally posted by: trmiv
Never, ever, ever deal with the greasy salesmen on the lot. Always email the internet/fleet manager about the car you are interested in and get a price from them. Your best bet is to email a few internet/fleet people at different dealerships and see what price they offer on what you want. I did this for the vehicle we just bought, and ended up paying about $300 under what carsdirect.com and edmunds said was the best I could expect to pay. Buying from the internet/fleet manager is the best way to buy a car, and will change your opinion of car buying.

Are you jealous of those "greasy salesmen"? They work very hard, long hours, in the sun, standing on their feet, waiting for A-holes to come in with attitudes like yours. When all is said and done, I can assure you that in every 20 houses on your block, you usually have one of those "greasy salesmen". You know, the one with the nicest house, the nicest yard, and the nicest cars parked out front.

Infact, in the nicer golf course districted homes, usually the nicest home is owned by, either the most prominent plastic surgeon, or a sales manager at a car store.

A-holes like me? That's rich. I'm an a-hole because I don't want to be raped when I make a large purchase? I'm guessing you're a salesman. I'm sorry, I don't give two sh!ts how many "very hard, long hours, in the sun, standing on their feet" you spend, that doesn't make it my responsibilty to pay dealer suggested prices so you can get your money. I'm sorry if I actually do research and get the best price for a car, I don't exist to pay your salary. Yea, what an a-hole I am, being an informed consumer who wants to save his own hard earned money. You can get the next uninformed person that comes in the lot to pay MSRP (well, depending on the car, you may pay that regardless if you buy through the internet or not) or dealer price and make your money.

Dealing with the internet/fleet manager is the easiest way to buy a car, period OP. Do your research online first at carsdirect and edmunds. Find the best prices for the car you want with the options you want, email the internet people at the dealers in your area, and deal with them only. Make an appointment with them, go into the lot and meet with that person only. You'll be amazed how low pressure buying this way can be

 

[mugs]

http://www.fool.com/car/car.htm

Edit: And of course check the price on carsdirect.com and edmunds.com. I nearly bought a car through Carsdirect.com and was pleased with the experience. If you have a Costco membership, see what price they can get you on the car.

 

[Pantoot]

Originally posted by: compuwiz1

Infact, in the nicer golf course districted homes, usually the nicest home is owned by, either the most prominent plastic surgeon, or a sales manager at a car store.

Which is exactly the reason not to deal with the salesmen, you don't think they bought that nice house because their customers got away with the best deals, do you?

 

[Ryan]

Originally posted by: akshatp

Originally posted by: Imdmn04

Originally posted by: akshatp
Dont buy a new car. It depreciated 32% in the first year. Buy a 1 year old used car with 10k miles on it. Save that 1st yr deprciation and still get a basically new car...

Maybe if you buy a Ford.

If you have the money, there is nothing wrong with buying a new car.

I gathered from the original post that the OP is looking for the cheapest way to buy a car... hence my post

I agree with you - after purchasing a new car (04 Scion xB), I will never buy a new car again. If a car is how when it first comes out - just wait two years, and buy a certified used one for less.

 

[jhayx7]

Also, small town dealerships will have slightly higher prices than large town dealerships. I found the best price on my car (new '01 civic at the time) 50 miles away in a large town. I called up my local small town dealership and asked about the car I wanted (Black LX Sedan), they had one in stock, I asked about price and they wanted $16,500. Told the guy that X dealer in X town had it for $15,000, could they match the price. He said no. I said "thank you for your time" and hung up. They must have had caller id because 15 minutes later he called back saying his manager would do it for that price.

 

[SketchMaster]

Confessions of a Car Salesman.

 

[funboy6942]

Originally posted by: trmiv

Originally posted by: compuwiz1
It's not a big mystery. Financing is probably the biggest mystery many folks face, ie, best interest rate, terms, payments, etc.
Where the most mis-understandings take place, are, in properly calculating the price / value of the car. Information is available, but sometimes it's out dated.

If you go into a dealership and offer $15,000 for a car with a sticker price of $32,000, you will get a good buy. Who you are dealing with will quickly extend his hand, while he says; goodbye!

Understand what car fits your budget, then be prepared to offer a fair profit. You don't work for free, and neither does your sales person. Generally, if you ask to see the invoice, so you can ascertain what cost is, most credible dealers will oblige you. Then, depending on the model, supply, and demand, you should be able to make a fair offer.

A couple hundred over invoice on, say, a Mazda 3, or Honda Civic, may very well work, and at the outside, $500 max, should do the trick. OTOH, don't expect to buy a flagship model for that short of a margine. If you are looking at a Pilot, or an Accord, well those are not "cheap sell" models. Depending on where you live, you could expect to pay sticker for them.

But it's not that mysterious.

Originally posted by: trmiv
Never, ever, ever deal with the greasy salesmen on the lot. Always email the internet/fleet manager about the car you are interested in and get a price from them. Your best bet is to email a few internet/fleet people at different dealerships and see what price they offer on what you want. I did this for the vehicle we just bought, and ended up paying about $300 under what carsdirect.com and edmunds said was the best I could expect to pay. Buying from the internet/fleet manager is the best way to buy a car, and will change your opinion of car buying.

Are you jealous of those "greasy salesmen"? They work very hard, long hours, in the sun, standing on their feet, waiting for A-holes to come in with attitudes like yours. When all is said and done, I can assure you that in every 20 houses on your block, you usually have one of those "greasy salesmen". You know, the one with the nicest house, the nicest yard, and the nicest cars parked out front.

Infact, in the nicer golf course districted homes, usually the nicest home is owned by, either the most prominent plastic surgeon, or a sales manager at a car store.

A-holes like me? That's rich. I'm an a-hole because I don't want to be raped when I make a large purchase? I'm guessing you're a salesman. I'm sorry, I don't give two sh!ts how many "very hard, long hours, in the sun, standing on their feet" you spend, that doesn't make it my responsibilty to pay dealer suggested prices so you can get your money. I'm sorry if I actually do research and get the best price for a car, I don't exist to pay your salary. Yea, what an a-hole I am, being an informed consumer who wants to save his own hard earned money. You can get the next uninformed person that comes in the lot to pay MSRP (well, depending on the car, you may pay that regardless if you buy through the internet or not) or dealer price and make your money.

Dealing with the internet/fleet manager is the easiest way to buy a car, period OP. Do your research online first at carsdirect and edmunds. Find the best prices for the car you want with the options you want, email the internet people at the dealers in your area, and deal with them only. Make an appointment with them, go into the lot and meet with that person only. You'll be amazed how low pressure buying this way can be

Comming from a guy that used to sell cars at dealerships I honestly dont think there is anything wrong with a-holes either way be it the salesman or the customer. What matters really in the end is which one of the two is better at being the biggest a-hole and walks out being the big winner . That said when I sold I used to sell the car for the customer and went to bat really playing the dealerships hand since I knew how they worked.

I would sit down with my customers and tell them the bs I am supposed to play with them just tell me what you want to pay, Im going to point and a few things on the paper and knod your head, let me work them to get the price for them. Hell I didnt care because I wanted a sale myself and the only way that was/is going to happen for me was to be straight forward and tell them yes Im supposed to be sleasly and do the 4 square bs upfront but dont worry heres how it works.

You would be suprised how often that works and letting the customer know im not here for the dealership but for them because I win too with them getting a sale off the a-hole dealership I was working for. Sure I may try to push the car thats been sitting ont he lot the longest because the dealership sweatens my pot with spiffs and spins (extra money) but other then that when the car has been picked out I just tell them Im going to point and you either nod or make it look like your thowing a fit. I would go back to my manager and say look no way Im trying my best here, I done what you asked but we have a sale here if you get it to $$$$ they want. After about a half hour going back and forth and my manager goes and trys to squeese them (which I warn them about) for more, my customer gets what they wanted and asked me to get for them. I am playing both sides of the table but it was fun for me and I got a calm customer to who wasnt all worked up expecting to get a fight out of me.

And really if the dealership comes down to your price it matters on how hungry the dealership is for a sale, what time of the month it is (near or at the end is best), and how long that car your looking at has been on the lot (new or used). But I can promise you if you struck a deal they were not upside down on the sale and some money was made/saved all around.

So all I can say is when you go to the dealership OP I hope you get one that was like me or if they whip out the ole 4 square bs (one says the price, one is your trade in, one is money down, and one is a payment you want to be at) just tell the salesman look, lets knock the crap out I want it to be this and my down to be this and my payment to be this. Go tell your manager. If he comes back to play get up and act like your gonna walk and say hey listen get your manager over here or Im off to Joe Blow in whatever city. Do that and watch how fast the manager comes over and start kissing your ass because the gig is up.

At that point most of the time the ball is in your hands and if they come down to your asking or damn close you can bet thats thier best deal. Either take it or get it on paper tell them you will think about it and take it to the other dealership. Most times if you get a price on paper and walk out saying you will think about it and go to the next one they might have a deal where if they cant beat it (sometimes they advertise something like I will beat your best deal by $500 or I will give you $500), off you go back to the other place maybe with a few bucks more in your pocket, or if they can beat it you still win, with a better deal and your car.

 

[d3n]

I'd love to find more salesman like funnyboy42. I also love to find sites like CarsDirect becuase they let you list out options packages and know exactly what the dealership paid for the car, and how much markup they are putting on every single line item. The options are usually priced exactly.

So find a dealer online, look at the inventory with the options included. Price them out and take them with you to meet the sales guy if thats what your doing. Typically high demand or 'limited or loaded' versions are hard to come by for dealers so they wont be willing to cut a deal on them.

When I say hard to come by dealers do not 'order' anything from the factory. They get allocated cars based on things like inventory space, previous sales, customer satisfaction and all that. They might get one or two desirable models and about a dozen base models. If they have to order a custom car all they are doing is looking at other dealer inventories and trying to trade current inventory to get it. All your barganing goes out the window if they have to make that kind of effort. Find your car on a lot then make an offer. Move on if needed.

Also, line up financing before you go in with someone like a credit union or Chase Financing. Take your best offer to the dealer and they should be able to beat it. Thats better than them just giving you any old rate to meet a monthly payment amount.

Extended warranties are nice but you can shop around for them just like anything else. You do not have to buy a Honda 100,000 mile warranty from the same dealer as your car. Email diffrent dealers saying you are intrested on a warranty for your new car. Most would be happy to quote you and haggle by email. They like seeing good warranty sales numbers. I got my warrenty for a Toyota halved and it's still a Toyota Motor warranty.

Otherwise go ahead and delcine any add ons at the end of the deal and just buy them online after the fact.

 

[LS20]

so the way i see it, people get "deceived" by this "4 square" thing, and having the dealer manipulate payment, pay term, downpayment/trade-in, and interest rate, ultimately leading to a higher final price than planned.

now, i cant fathom how so many people are stupid and naive enough to be "mislead" by something like that. look, youre buying 1 car, so look at 1 dollar figure: the final one. hopefully, one would already know the desired car, with appropriate features and options. then, it takes about 20 keystrokes and 5 minutes to find out retail and invoice price. then, decide on 'fair' price willing to pay. wow, 10 minutes gone. negociate on that price. how is that so difficult for many?

 

[John]

I helped my fiancee purchase her 2005 Honda Pilot from a local dealer last year. I went to Edmunds and a few other sites to configure the Pilot with the trim level that she wanted and to get an idea of the invoice and TMV. I also researched the value of the trade-in so I knew what to expect from the dealer once they looked it over. I took copies of the reports to the salesman that she was dealing with since she stopped in a few days before, and I told him that we would buy today for "this" price. He made a few trips to the sales mgr. and kept telling me that he could not do "my" price, the reports I showed him weren't entirely accurate, they are losing money, etc.....so I told them I would drive to Austin where a dealership was willing to sell it for "my" price.

I wasn't trying to get out for invoice because Pilots were still in great demand (probably still are) and I didn't mind the dealership making a little cash since we all need to put food on the table. Out comes the sales manager to feed me more BS, but at least I knew he was the final hurdle to overcome. After another 45 min. session we closed the deal and the poor salesguy had to watch the entire time. I ended up paying an additional $500 over what I wanted, but they gave us $1000 more on the trade. Our credit union's best APR on a 5yr. note was 5.9% which was their absolute lowest at the time, but the dealership had a Honda financing promo going for 4.9% @ 60 mo. so we took that instead.

The extended warranties were grossly overpriced so we passed on that. I went to http://www.curryhondacare.com/ and saved $1000 on the exact warranty the dealer was offering. If your vehicle is covered by a Honda Care extended warranty, all repairs will be made by factory-trained Honda technicians at authorized Honda dealerships using only Genuine Honda or American Honda authorized parts.

In the end do your research and stand your ground. You are the one in control.

 

[d3n]

Originally posted by: John
I helped my fiancee purchase her 2005 Honda Pilot from a local dealer last year. I went to Edmunds and a few other sites to configure the Pilot with the trim level that she wanted and to get an idea of the invoice and TMV. I also researched the value of the trade-in so I knew what to expect from the dealer once they looked it over. I took copies of the reports to the salesman that she was dealing with since she stopped in a few days before, and I told him that we would buy today for "this" price. He made a few trips to the sales mgr. and kept telling me that he could not do "my" price, the reports I showed him weren't entirely accurate, they are losing money, etc.....so I told them I would drive to Austin where a dealership was willing to sell it for "my" price.

I wasn't trying to get out for invoice because Pilots were still in great demand (probably still are) and I didn't mind the dealership making a little cash since we all need to put food on the table. Out comes the sales manager to feed me more BS, but at least I knew he was the final hurdle to overcome. After another 45 min. session we closed the deal and the poor salesguy had to watch the entire time. I ended up paying an additional $500 over what I wanted, but they gave us $1000 more on the trade. Our credit union's best APR on a 5yr. note was 5.9% which was their absolute lowest at the time, but the dealership had a Honda financing promo going for 4.9% @ 60 mo. so we took that instead.

The extended warranties were grossly overpriced so we passed on that. I went to http://www.curryhondacare.com/ and saved $1000 on the exact warranty the dealer was offering. If your vehicle is covered by a Honda Care extended warranty, all repairs will be made by factory-trained Honda technicians at authorized Honda dealerships using only Genuine Honda or American Honda authorized parts.

In the end do your research and stand your ground. You are the one in control.

Good point about them hitting you with the line about the lists off the websites not being accurate. They are blowing smoke.

Someone told me once that if it is a busy day do not spend more than fifteen minutes with the sales guy. By then he has too much to loose by letting you go with your orignal offer. Get to the sales manager inside fifteen minutes or you should be making plans to walk. Still, I realize that nothign goes according to plan. Good luck!

 

[jhayx7]

Originally posted by: SketchMaster
Confessions of a Car Salesman.

Wow, great read. Thanks!

 

[compuwiz1]

Originally posted by: trmiv

Originally posted by: compuwiz1
It's not a big mystery. Financing is probably the biggest mystery many folks face, ie, best interest rate, terms, payments, etc.
Where the most mis-understandings take place, are, in properly calculating the price / value of the car. Information is available, but sometimes it's out dated.

If you go into a dealership and offer $15,000 for a car with a sticker price of $32,000, you will get a good buy. Who you are dealing with will quickly extend his hand, while he says; goodbye!

Understand what car fits your budget, then be prepared to offer a fair profit. You don't work for free, and neither does your sales person. Generally, if you ask to see the invoice, so you can ascertain what cost is, most credible dealers will oblige you. Then, depending on the model, supply, and demand, you should be able to make a fair offer.

A couple hundred over invoice on, say, a Mazda 3, or Honda Civic, may very well work, and at the outside, $500 max, should do the trick. OTOH, don't expect to buy a flagship model for that short of a margine. If you are looking at a Pilot, or an Accord, well those are not "cheap sell" models. Depending on where you live, you could expect to pay sticker for them.

But it's not that mysterious.

Originally posted by: trmiv
Never, ever, ever deal with the greasy salesmen on the lot. Always email the internet/fleet manager about the car you are interested in and get a price from them. Your best bet is to email a few internet/fleet people at different dealerships and see what price they offer on what you want. I did this for the vehicle we just bought, and ended up paying about $300 under what carsdirect.com and edmunds said was the best I could expect to pay. Buying from the internet/fleet manager is the best way to buy a car, and will change your opinion of car buying.

Are you jealous of those "greasy salesmen"? They work very hard, long hours, in the sun, standing on their feet, waiting for A-holes to come in with attitudes like yours. When all is said and done, I can assure you that in every 20 houses on your block, you usually have one of those "greasy salesmen". You know, the one with the nicest house, the nicest yard, and the nicest cars parked out front.

Infact, in the nicer golf course districted homes, usually the nicest home is owned by, either the most prominent plastic surgeon, or a sales manager at a car store.

A-holes like me? That's rich. I'm an a-hole because I don't want to be raped when I make a large purchase? I'm guessing you're a salesman. I'm sorry, I don't give two sh!ts how many "very hard, long hours, in the sun, standing on their feet" you spend, that doesn't make it my responsibilty to pay dealer suggested prices so you can get your money. I'm sorry if I actually do research and get the best price for a car, I don't exist to pay your salary. Yea, what an a-hole I am, being an informed consumer who wants to save his own hard earned money. You can get the next uninformed person that comes in the lot to pay MSRP (well, depending on the car, you may pay that regardless if you buy through the internet or not) or dealer price and make your money.

Dealing with the internet/fleet manager is the easiest way to buy a car, period OP. Do your research online first at carsdirect and edmunds. Find the best prices for the car you want with the options you want, email the internet people at the dealers in your area, and deal with them only. Make an appointment with them, go into the lot and meet with that person only. You'll be amazed how low pressure buying this way can be

I was fine with everything you said, but the greasy salesmen part, as you speak of them, as though they are some lower form of life, than yourself. That was generalizing.
There are some good honest folks out there, who are of genuine assistance.