Originally posted by: BarneyFife
Just make sure you use carfax and take it to a trusted mechanic to look at it. It will save you big money over new cars. Now if you're making 300k a year then you can buy a new one 🙂
Unfortunately there is nothing like Carfax that exists in Canada that I know of, so I can understand people wanting to have a brand new car. I decided last winter I wanted something new
er than my '92 Accord.
1) Trading in your old car is a rip off, I sold my car privately and got 3x (atleast) more than what the quotes I got from a few dealerships as a 'trade-in price'. Nevermind the fact that you never really know what you're getting as they tend to play with the numbers on the price of the new car back and forth to make it seem as if they are giving you more for your trade-in. If you really don't want to go through the (slight) hassle of selling your car privately, and you are going to trade in at the dealership negotiate the cash purchase price of the new car first before ever discussing your trade in! If they give you a hard time about this method, walk out!
2) If you are going to use dealer financing or lease, same as above, negotiate the cash purchase price of the new car first, then talk about lease rates and finance rates. You might do better to borrow the money from the bank, even with "0% financing". All the dealers that I looked at advertising "0%" don't go to that much trouble to hide the fact that you have to pay $1000-3000 more for the car in order to get this "deal". Do the math, its not 0% unless you get it on the same purchase price as what you would have paid cash! (I don't think they would ever do this)
3) get the dealer invoice cost, this is available online for the USA easily, in Canada the only method I've found is carcostcanada.com which requires you to pay for the dealer cost quote, but for me was well worth it! Make sure to include the cost of all options and packages that you are getting.
I don't care what car you are buying the dealership shouldn't make more than $500 (cdn) above dealer cost if you negotiated properly.
I ended up buying a new Civic 2002 LX sedan (canadian model, different from US LX sedan) because I did want a new car that I knew the history of, but at the same time didn't want to lose my shirt on depreciation.. Honda's and Toyotas have the best resale value and lowest depreciation, this is a fact. I was also looking at the Toyota Corrolla but to get the features I wanted, I would have had to taken packages with features I didn't want, and waste alot of money.
From my extensive research I would not recommend the Neon, or Focus, especially new, unless you plan to lease it for a few years and then turn it back. They do seem to have spotty track records from all the publications I read, including some major issues. The only American car I even considered was the Cavalier but it was ruled out also.
That Credit Check scam that the guy pulled on you is dirty, I wouldn't even talk to that dealership about other cars they are selling, I would demand the downpayment back, although I don't understand why you ever signed the credit card receipt. I think you must have had a real moment of weakness, smarten up, don't sign ANYTHING unless you are ready to buy. Never be afraid to get up and walk out! I walked out of 3 dealerships before I made the deal on my car.
Good luck.
