Help me negotiate new car

[Pea-n-Me]

Steve H: I used the end of Month and end of Year to my favor.

That’s how I got one of the best deals ever on one of my Jeeps, too - one day soon after Christmas. They let me take it for the day - with my puppy! - and were calling me at home to sweeten the deal. Got a remote starter put in and an amazing price. Went to same place a year or two later for something else and walked out, they weren’t dealing that day.

 

[Pea-n-Me]

Someone mentioned being $250 apart. Usually a salesperson might kick in their share of the commission just to make the sale. But I was in a battle once looking to buy a nice Commander and we were $1500 apart. I was there for three hours. I knew he could make the deal but didn’t want to, so I walked. A few days later bought a nicer Pacifica elsewhere. Well didn’t that Jeep salesman call me up at the end of the month trying to sell me the Commander again and ready to make the deal. Guess sales were slow. Said sorry, already bought something.

Had one of the worst car-buying experiences ever several years ago, just before Covid, helping DD buy her car. One big game of lies and unethical behavior at that place. (Too long to get into.) But it was an amazing price (because they’d priced it wrong but didn’t know) so we made it happen, but I had no respect for any of them except one salesperson who was upfront and nice (was going to say honest but not sure about that).

 

[happily single]

I’ve used this the past few times I’ve bought to find what I was looking for.
(Some of us remember when it used to be a monthly book you picked up at the convenience store.)
https://www.autotrader.com/

It helps you find vehicles out of your immediate area.
Don’t hesitate to use Advanced Search.
I’ve even had distant places offer to take the car to me to see. (Helps if they’re in a somewhat remote location.)

In the past I’ve used Mass Buying Power which was a predecessor to the AAA and Costco programs.
You bargained (or not) up from invoice cost, rather than down from MRSP.

Haven’t bought anything since Covid, though. (And hope I don’t have to!)
Good luck!

I remember the paper verison of the Auto Trader. I think there was even a different name at first, Yankee Trader, maybe? Gosh. I'm old!

 

[NotUrsula]

If you bank with a credit union and will finance through them, check to see if they have an assisted car-buying service. We used this when we bought a car for DS' college graduation gift; his credit union had a rep that actually went to each dealership with us and took our side in the negotiations, and the service did not cost a dime.

The downside is that the credit union rep will only go to dealerships that have done an agreement to work with them, but in our case (in the Tampa Bay area) that was 5 places; plenty enough to get a good selection.

 

[JLTraveling]

Someone mentioned being $250 apart. Usually a salesperson might kick in their share of the commission just to make the sale. But I was in a battle once looking to buy a nice Commander and we were $1500 apart. I was there for three hours. I knew he could make the deal but didn’t want to, so I walked. A few days later bought a nicer Pacifica elsewhere. Well didn’t that Jeep salesman call me up at the end of the month trying to sell me the Commander again and ready to make the deal. Guess sales were slow. Said sorry, already bought something.

Had one of the worst car-buying experiences ever several years ago, just before Covid, helping DD buy her car. One big game of lies and unethical behavior at that place. (Too long to get into.) But it was an amazing price (because they’d priced it wrong but didn’t know) so we made it happen, but I had no respect for any of them except one salesperson who was upfront and nice (was going to say honest but not sure about that).

My dad once went to buy a car on his day off. Driving a beat up old Toyota, wearing jeans and a sweatshirt. He couldn't even get somebody to help him. Out of curiosity, he went back after work on Monday. Driving a brand new Saab, wearing a coat and tie. Sales guys were falling all over themselves trying to make a deal. He played the game for a few minutes, then came right out and said why he wasn't buying from them.

And speaking of pricing things wrong, we were hunting all over the country for our current car (several years ago now). A used, late-model, low-mileage Hyundai Elantra GT with auto transmission. Finally found one several states away at a Subaru dealership. Negotiated online, came to a great deal, drove to the other state to pick it up. When we got in for the test drive, we thought we were in the wrong car. The mileage was lower than advertised, and it was a Blue edition with a bunch of upgrades. When we mentioned it to the dealer, he said, "Wow, you got a great deal!" Honored the price without blinking. They were great people to deal with, and I almost felt bad since I knew it was worth a few thousand more. But I know they wanted to get it off their lot, and I would definitely do business with them again after that experience.

 

[rowan1813]

do you belong to costco? their car purchase program is free of charge and takes the hassle out of haggling. there are also some nice perks. easy to use-just call the program and they connect you with the authorized dealerships.

This was exactly what I was going to suggest. My last 2 cars have been very easy and simple with the Costco program. It's an automatic and there is no negotiations or anything.

 

[happily single]

SMALL UPDATE: wow, have prices gotten high. I went to another dealership that had the same vehicle advertised for about $2k less. True story-as I got in my car to drive there my Check a engine light came on. Test drove the new car. Decided I needed to buy. Then the “real” price came out. Same as first dealership. Then there was a $199.99 “etching fee” which they refused to remove because “we do this to all cars we sell”. It absolutely sounds like what comes already done with the VIN number etched into the windows, etc. can anyone confirm this? I told them they needed to remove that and drop $500 off the price. They refuse to remove it, but decrease price of car by $700. So whatever. Now comes the possible deal breaker….I get sent to finance. I’ve now been st the dealership almost 3 hours. I can’t stay any longer. I ask them to call me or email me with the interest rate. They tell me they are not allowed to, blah, blah about how they are regulated as closely as banks, and they can’t disclose over the phone. I NEED to go in person to hear this. I call bull.

So, I am supposed to go back Monday afternoon, which was the earliest I could get there, to hear the interest rate. In the meantime I’m looking around at other dealerships. This Etching fee and refusing to disclose the interest on the phone is really getting to me

 

[OneOftheB's]

Do not step foot back into that or any other dealership until you have the offer in writing. In the meantime, call your bank or credit union to see what interest rate they will give you. This dealership knows they can string you along and wear you down

 

[travelbug]

If I am planning to pay for a car outright without any financing, at what point should I reveal that fact during the negotiation process (if there's any negotiating to be had)? I just want a good price for whatever car I'm interested in, without financing being part of the conversation. In the past, I recall that financing was brought into the conversation from the start. Any suggestions about that scenario would be appreciated. Thanks!

 

[jeff_h]

Then there was a $199.99 “etching fee” which they refused to remove because “we do this to all cars we sell”. It absolutely sounds like what comes already done with the VIN number etched into the windows, etc. can anyone confirm this?

This is a typical mark-up (I just went to a local Nissan dealer's website and checked the window sticker to see if they now do that from the plant, but it's not listed), and just because this dealer says "they do it on all of their cars" does not make if a default markup that you should have to pay for! Back when I was on active duty our base had an "Auto Hobby Shop" (as many bases had, probably still do) and they would do window etching for you, and they'd take your VIN and type it onto special acid-proof paper and then run some acid-like solution onto the windows to burn (aka "etch") the VIN into each window. The cost? $8. Of course that was on a military base and was almost 20 years ago and costs have obviously risen since then but not to $199! So IMHO that's just an overpriced mark-up and I'd tell them I am NOT buying from them due to trying to soak every unsuspecting customer that walks in the door.

 

[Dan Murphy]

If I am planning to pay for a car outright without any financing, at what point should I reveal that fact during the negotiation process (if there's any negotiating to be had)? I just want a good price for whatever car I'm interested in, without financing being part of the conversation. In the past, I recall that financing was brought into the conversation from the start. Any suggestions about that scenario would be appreciated. Thanks!

Oftentimes (almost always), a dealer gets a financial kickback, bonus, etc. for placing financing with any one of finance choices, including the manufacturer. Best is to first arrive at a price that the dealer will sell the car for. After deciding on a price, you can ask what additional price reductions or concessions they would be willing to give if you financed through them, even if you know you can and want to pay cash. If there is a decent reduction in price, it may be better to go the finance route, pay a month and then pay off the loan. Verify that there is no early prepayment penalties. If no reduction or concessions, just pay the cash and be done with it.

spelling​

 

[travelbug]

Oftentimes (almost always), a dealer gets a financial kickback, bonus, etc. for placing financing with any one of finance choices, including the manufacturer. Best is to first arrive at a price that the dealer will sell the car for. After deciding on a price, you can ask what additional price reductions or concessions they would be willing to give if you financed through them, even if you know you can and want to pay cash. If there is a decent reduction in price, it may be better to go the finance route, pay a month and then pay of the loan. Verify that there is no earlier prepayment penalties. If no reduction orr concessions, just pay the cash and be done with it.

That's very helpful. Thanks, Dan!

 

[Pea-n-Me]

SMALL UPDATE: wow, have prices gotten high. I went to another dealership that had the same vehicle advertised for about $2k less. True story-as I got in my car to drive there my Check a engine light came on. Test drove the new car. Decided I needed to buy. Then the “real” price came out. Same as first dealership. Then there was a $199.99 “etching fee” which they refused to remove because “we do this to all cars we sell”. It absolutely sounds like what comes already done with the VIN number etched into the windows, etc. can anyone confirm this? I told them they needed to remove that and drop $500 off the price. They refuse to remove it, but decrease price of car by $700. So whatever. Now comes the possible deal breaker….I get sent to finance. I’ve now been st the dealership almost 3 hours. I can’t stay any longer. I ask them to call me or email me with the interest rate. They tell me they are not allowed to, blah, blah about how they are regulated as closely as banks, and they can’t disclose over the phone. I NEED to go in person to hear this. I call bull.

So, I am supposed to go back Monday afternoon, which was the earliest I could get there, to hear the interest rate. In the meantime I’m looking around at other dealerships. This Etching fee and refusing to disclose the interest on the phone is really getting to me

I’m surprised they let you walk out the door! Did you like the car? I mean, really like the car? Or was it something you can find anywhere? You might let it sit and see what happens - we’re getting closer to the end of the month. They usually have sales quotas they have to make so may be willing to deal more in a few days. Act like you’re no longer interested and see what happens. Unless you really want the car. But being willing to walk away sort of puts you in the driver’s seat (pun intended). If you have AAA it’s super easy to get financing over the phone, and they can usually get a very good rate. Sometimes the dealership can’t beat it, but they will match it anyway, and sweeten the deal usually if you take theirs (because they make money on it). Have some fun with it!

 

[Starport Seven-Five]

Now comes the possible deal breaker….I get sent to finance. I’ve now been st the dealership almost 3 hours. I can’t stay any longer. I ask them to call me or email me with the interest rate. They tell me they are not allowed to, blah, blah about how they are regulated as closely as banks, and they can’t disclose over the phone. I NEED to go in person to hear this. I call bull.

Do yourself a favor and try to get preapproved for a loan at a different bank before walking in. I usually use penfed and they have their rates online for reference:


Not sure what is typical rate from Nissan right now but I have used a penfed preapproval letter to knock a financing rate down twice while buying cars. It's funny what dealers can do on rates when they might lose the financing kickback.

 

[happily single]

Do yourself a favor and try to get preapproved for a loan at a different bank before walking in. I usually use penfed and they have their rates online for reference:
View attachment 742188

Not sure what is typical rate from Nissan right now but I have used a penfed preapproval letter to knock a financing rate down twice while buying cars. It's funny what dealers can do on rates when they might lose the financing kickback.

Thanks. I looked at PenFed as it came up in a search I did. It said that I need to be a member, which wouldn’t be a problem, but I thought I also read that you needed to be a member for 90 days.

 

[happily single]

I’m surprised they let you walk out the door! Did you like the car? I mean, really like the car? Or was it something you can find anywhere? You might let it sit and see what happens - we’re getting closer to the end of the month. They usually have sales quotas they have to make so may be willing to deal more in a few days. Act like you’re no longer interested and see what happens. Unless you really want the car. But being willing to walk away sort of puts you in the driver’s seat (pun intended). If you have AAA it’s super easy to get financing over the phone, and they can usually get a very good rate. Sometimes the dealership can’t beat it, but they will match it anyway, and sweeten the deal usually if you take theirs (because they make money on it). Have some fun with it!

There is nothing special about the car. I didn’t love it, but honestly I’ve owned so many cars in my life that I doubt I will ever fall in love.

But, today did it for me. As I was walking into work the salesman calls me to confirm I’m coming back Monday. I explain that I’ve called three other dealerships (a lie) and all of them were willing to discuss financials over the phone. He went on and on how I signed the privacy statement, yada yada. We go back and forth with me explaining I don’t feel it necessary to waste half a day when it can be discussed over the phone. He then called me back while I was with a client. We played two rounds of phone tag and I finally ended it with “this is ridiculous. Please leave me a voicemail telling me exactly what you need to tell me”. He hasn’t called me back. No doubt he will call Monday.

 

[sam_gordon]

If I am planning to pay for a car outright without any financing, at what point should I reveal that fact during the negotiation process (if there's any negotiating to be had)? I just want a good price for whatever car I'm interested in, without financing being part of the conversation. In the past, I recall that financing was brought into the conversation from the start. Any suggestions about that scenario would be appreciated. Thanks!

They ask about financing...
You: "Let me know what the out the door price is on the car."
They say "what do you want your monthly payment to be?"
You: "Tell me the out the door price on the car."
Them: "How many years do you want to pay this off?"
You: "If the next words out of your mouth are not the out the door price of the car, I'm leaving."
Them: "Well, we don't work like that."
You: "OK, bye."

You really have all the power. There's probably another car lot within walking distance. They know it.

 

[lpereira]

Finance through your bank. If the salesman won't tell you the flat price- no gimmicky additional charges then leave. It is as simple at that. " what do I need to write the check for to drive this car off this lot?" If the salesman balks you walks.

 

[_19disnA]

I agree. Walk out the door if they insist on adding useless extras. If they are serious about your business they will change their offer, if not buy from some other dealer. Some dealers are annoying with the gimmicks and nonsense but others are more honest about actually wanting to sell you a car.

 

[happily single]

Can anyone answer a finance question? I was approved through my bank. They are requesting a copy of the purchase agreement to finalize the approval. The dealership asked me for the bank name and address to put into the purchase agreement, which I provided. told me they will contact the bank to “verify the terms of the loan” and that I need to sign the final agreement tomorrow. I have not even seen a draft of the agreement-so there is no way I’m signing a final tomorrow. I responded that I do not give the dealership permission to contact the bank. Am I wrong in thinking they are over-stepping and they don’t need to verify anything with the bank at this stage?