Car Hunting Tips

[Stacy's a freak]

Please help! I am ready for a new car and I would love any tips a person can give me to negotiate at the dealership. My last fews cars were purchased used (around 30k miles). I have decided that the interest rates are low enough to get a new car this time.

I have:

1. Researched my existing car's trade-in value.

2. Found out my existing car's payoff (90k miles on my 2007 Nissan Sentra and starting to have things go wrong with it - not due to be paid off for another 16 months).

3. Made an appointment tomorrow morning to see a Honda dealer (looking at a Civic). I will also make appointments to see other cars - the Civic is just the first one.

Before you all say it, know that I have been thinking about this for about a year now. Yes, I could stick with my existing car until it is paid off but I would rather have something newer and worry less about repairs. And I am concerned that I will go upsidedown on the loan. I wish that I had gotten a 4 year loan when I bought the used car - not a 5 year loan. Lesson learned there...

So in short, I am looking for negotiating tactics, help on how much mark-up cars might have, etc. I certainly do not want to screw a salesperson out of his/her livelihood but I also do not want to get taken myself (this can sometimes happen to a woman in a car dealership).

TIA!

 

[purplegirl247]

You can do a lot of haggling over the Internet now, and not have to enter a dealership at all (except for the test drive, I suppose). Basically, just email a bunch of local dealerships and telling them what you have and what you want, then wait for their response.

I've also heard that it's best to negotiate the new car price separate from your trade-in, financing and/or current loan; otherwise it's too easy for them to play with the numbers (not in your favor).

Am glad you are going to avoid another long-term loan. Buying a new car when you still owe on the old isn't the best situation to be in.

GL!

 

[mickeyfanfl]

try out truecar.com

 

[mikehn]

I dont think you are ready to walk into that dealership yet. I think you should spend another week doing more research on the new car you are interested in first. Truecar is a good starting point. If you walk in that dealership cold, it is gonna be very stressful.

 

[glk2009]

With our last car, we used the email approach once we had decided on a car. My DH emailed different dealerships and got pricing that way. We picked the best price and we were on our way. =) Very stress free.

This time around we are using a car broker who gets paid a commission by the dealership but brings cars to us to test drive and also knows the best price to aim for. And we are also comparing his info to truecar.com.

HTH!

 

[erincon23]

We just bought a new Civic. Do you belong to a Costco? They have a new (and used) car program, where you indicate which car you're interested in and dealers will contact you and give you a flat rate. We tried that, but Honda wasn't among the dealers who called us, and DH really wanted either a Civic or an Accord.

We ended up buying a service loaner car with 6700 miles on it, and got more than 25% off the sticker price. The car had no dings, dents,stains or issues, and had lots of extras on it (some we would have asked for, some we didn't care about, but they didn't affect the price too much). I'd ask if they have something like that available -- since it's already depreciated, we got a good deal, I think.

Good luck! I hope you find something you like at a good price!

 

[Zydebearsmom]

Be careful if buying a used car. Carfax is not 100% accurate. They only have info on car problems if they were reported by the dealership or DMV. For example, I bought a 2011 Nissan armada with 9500 miles. Found out once the car started having transmission problems that the engine had been replaced at 4500 miles. That info was not on the carfax and neither was the previous transmission problems because the dealership never reported the problems. Be careful.

 

[CC12005]

Cancel your appointment. They know they pretty much have you sold when you walk through that door. Send email requests stating you are ready to buy now to local dealers through a service such as Edmunds.com. Go with the lowest price. You will never negotiate the lowest price in person. Online they know it's all about the bottom line to bring you in. Don't accept the first offer for your trade-in. There is always a second offer in the waiting. Print out the value of your trade-in (retail, trade-in, etc.) So you can show them you are informed when they lie and tell you it is worth less. Also shop online for the loan, so you have a back-up if they decide to jack up your interest rates. The most important tip, NEVER TELL THEM HOW MUCH YOU CAN AFFORD OR WANT TO PAY PER MONTH. The little four square box they pull out to ask how much down you can put, how much do you want to pay per month, etc. is used to rip you off. Once they have a feel for how much they can take you for a month, they know how much they can charge you in interest. Then they will always raise the price some more. Get your bottom line price, bottom line interested rate, the numbers will speak for themselves. Don't let them create your sales price & interest rate for you.

 

[Swimalie]

Enjoy test driving. Test drive any car you are interested in or might consider to buy. I just bought a new Subaru Forester in June. We test drove 3 cars after researching 2 years. The Forester stood out so we got it. Don't feel pressured in the dealership. It's easy to walk out.

As for the deal, if you belong to Costco, BJs or USAA, use them. The price you get from them, is the price you will pay. No negotiating, no hassles. If you can, sell your Nissan on your own. You will get a lot more for it privately. We sold our CR-V the day after buying the Forester on craigslist to the first person who called for just under what we were asking. It was seamless.

Good luck and enjoy!

 

[punkin712]

We just bought a new car, so I'll tell you about our "process".

It all began on a Friday afternoon when our "commuting car" (22 year old Toyota Celica! - I'm the original owner) wouldn't start for the 3rd time in as many months. Got towed to the shop and was told we needed a new coil to get started and back on the road. When they took out the old coil, the mechanic noticed that the date on it was 1989. Yep...original part! They suggested that if we wanted to keep the car in good working order, we'd need to do a pretty extensive overhaul, including new spark plugs, new brakes, etc. which would probably cost more than the car was worth. Decided not to spin the wheel again and start looking for a new car.

The next day (Saturday), we went on Edmunds.com and started to research cars. We decided on a 2012 Infiniti G37x, priced it out with the options we wanted and then had Edmunds email a few dealerships to get some quotes.

By Monday, we had responses from 3 dealerships. We contacted 2 by phone/email, negotiated a GREAT price from one of them ($2000 below invoice) and made an appointment to go to the dealership that Saturday to see the car, test drive it, and finalize the deal.

On Saturday afternoon, we arrived at the dealership, the car was exactly what we wanted, it drove great and an hour later we were headed home with our new car!

I'm sure part of our good experience was due to the dealership/salesman - he was fantastic! - and part of it was that we didn't talk to any salesmen until we knew exactly what we wanted and exactly what we were willing to pay. Do your research and don't be afraid to print out invoice prices and fair market values for the car you are looking at. Knowledge is power!

Good luck!

 

[Bob NC]

A lot of credit unions work with car buying services that will do your negotiating for you.

If you are a CU member give them a call and ask.

We tried it and they gave us a price for our trade in, negotiated with 3 different dealers, if we wanted they even would have delivered me the car and picked up my trade in all without leaving the comfort of my own home.

 

[Fly for a Walt Guy]

Please help! I am ready for a new car and I would love any tips a person can give me to negotiate at the dealership. My last fews cars were purchased used (around 30k miles). I have decided that the interest rates are low enough to get a new car this time.

Stacy-- what did you decide on? I was going to offer some advice, but realized this is almost a month old. I HATE negotiating, but can psych myself up for it when I have to. (I bought a new Honda about a year ago and love it!)

 

[pantherlj]

I would suggest pre qualifying for a loan.

I found a car I wanted at CarMax on a Saturday. They held if for 24 hours. I applied online with my bank and got a much better interest rate than car max was offering. It REALLY helps to do it on a weekday when they can provide you a letter. I had to the financing - was a pain but worth the points difference.

 

[the4fishes]

I highly recommend getting some internet quotes. We just bought a new Honda CRV last week. Our local dealership would only come down $500 for my husband, as "there really isn't much of a markup on these" we were told. So I went home, got some quotes via email giving me a much better deal. I forwarded the email to our local dealership and suddenly the price came down $2000 and I got a better interest rate too boot. I honestly think I could have gotten more for my trade in if I wanted to push it, but I was happy and sealed the deal. Plus I able to tease my husband that I got the better deal

 

[JennCa]

I would NEVER walk into a car dealership unless I had prearranged or prenegotitated all the details. They may it look like they are negotiating in person, but I can tell you it is almost always not a good deal to you.

If you know what car you want, call and ask for the fleet manager or internet manager and tell them you are calling several stores and what is their best price.

If you want to avoid the negotiation I would try Costco or carsdirect.com and get quotes that way.

Ever if you get it at invoice they are making money, there are dealer hold backs, bonuses for when they sell a certain amount, kick backs are all around.

Check on line to see if there are any special deals going on, either rebates or financing that would be helpful to you and get preapproved at a credit union or wherever else you want to consider for the loan.

My 2 cents (that hopefully will save you big bucks!)

Jenn

 

[DisneyB]

Having spent close to 15 years working in the car business I have a few pieces of advice. First always get an internet quote on the car you want. These are usually fairly aggressive numbers. I would then take that quote to a competing dealer and ask them to beat it. That gives you a good base line target. Also I would always treat the selling price of the new car and your trade value separate. Don't let the dealer show you a "trade difference". It is too easy to hide the numbers that way. Negotiate the new car first and then the trade value. Never negotiate based on payments. That is the easiest way of getting ripped off. Get your prices set and the payments will be simple math from there (as a general guide figure payments to be around $18 per month for every $1000 financed). Finally I would avoid any insurances/undercoatings/paint protection or any other products offered by the finance office. This is where dealers make most profits on the sale of a car.

Whatever you buy make sure it is what you want. It is far more expensive to settle on a car and trade it in a few years later than to buy the one you will be happy with for ten years.

 

[Gumbo4x4]

Agree with all the pricing suggestions here & will add that if at all possible, sell your car outright rather than trade it. You will almost always get more REAL money for your car that way. And while it's a good idea to have pricing off the internet when you go to buy, I'd spend some time first researching what car you really WANT. Go drive a Ford, a Chevy, a Honda, a Toyota, whatever. Make sure there isn't something you'd rather have. If you have 2-3 favorites, see which one is the better deal. The OP mentioned a Civic. The current gen of Civic isn't coming nearly as highly recommended as past years. The mid 2000's were actually somewhat problematic. And the "all new" 2011 model had such luke-warm reviews, Honda is already ramping up to completely redo it again.

 

[lost*in*cyberspace]

The OP mentioned a Civic. The current gen of Civic isn't coming nearly as highly recommended as past years. The mid 2000's were actually somewhat problematic. And the "all new" 2011 model had such luke-warm reviews, Honda is already ramping up to completely redo it again.

I agree about the Civic. Get the April 2012 issue of Consumer Reports which is out now. It's their annual car issue and has a lot of good information.

 

[Gumbo4x4]

You also need to compare cars based on how you option them rather than base price. Many mid-level cars come standard with features that are optional on entry-level cars. And by the time you option up the entry-level car the way you want it, you may end up paying MORE for LESS car.

Chevy Cruze vs. Malibu is a good example. The Malibu has a much higher base price, but comes standard with many things that are options on the Cruze. By the time you add $3-4,000 worth of typical options to the Cruze, you're in Malibu price territory. And because the 2013 Malibu is coming out soon, there is a $3,000 rebate on the 2012, so you could potentially get one comparably equipped to a Cruze for less $$$. The Cruze on the other hand is a top 10 selling car, so getting a heavy discount is not going to happen.

Another comparison (this time out of brand) is the Mini Cooper vs. the Volvo C30 coupe. The Volvo starts about $4,000 higher, but the Mini is really, really stripped down at the base car level. What's more, the options are very expensive. So, by the time you add AC, a decent radio, and a few other features that are standard on the Volvo, you're going to pay more than you would for the C30 which comes with a larger, more powerful engine & is just as "cute" of a car.

 

[MrsPete]

Go test drive everything . . . But don't negotiate. Once you've settled on THE CAR, then go back and talk money. Read Consumer Reports, read online reviews before you make up your mind.

When you go in to talk money, do not test drive. The dealership wants you to get behind the wheel, to smell the new car, to connect emotionally with the car. Refuse. You've already made up your mind. This day is just for talking money.

Keep the transaction simple. Refuse to discuss anything except TOTAL OUT THE DOOR PRICE. If you allow yourself to be drawn into conversation about payments, trade ins, down payments, they'll beat you because they do this each and every day. They will try hard to sway the conversation in those directions. Bring it back to total, out the door price. You'll have done your research ahead of time and will know that X amount translates to X amount per month, if you're going to finance.

If you must borrow, do it through the bank or credit union. You will usually come out cheaper.