Help me negotiate new car

[barkley]

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!

when we did the costco program there was no negotiating b/c costco already has done that with the dealerships who participate in their programs BUT there WAS a promotion going on for financing that despite planning on paying cash for our car we did opt for. ACTUALLY-now that i think about it.....we kind of 'stacked' deals:

1. asked the dealership the minimum amount we had to finance (made sure there was no pre-payment penalty) to get whatever deal the manufacturer was offering at the time,

2. asked maximum amount the dealership would permit to be put on a credit card (i want to say it was between $5K and $10K at the time),

3. structured the buy as full costco pre-negotiated price
- minimum amount to qualify for financing reduction*
= reduced price
- maximum amount allowed on credit card**
- remainder in cash


* took about 24 hours for the manufacturer credit company automated system to be available to us by phone-when it was we did a phone payment in full (so no interest paid)

** when the credit card charge showed up online we did a phone payment in full (so no interest paid PLUS we got a nice chunk of credit card reward points).

 

[China Expat]

Stay out of the dealership and buy your car online!

 

[travelbug]

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.

Thanks for this sample scenario. Love the broken record approach to keep financing out of the discussion, until the price is agreed on.

 

[travelbug]

when we did the costco program there was no negotiating b/c costco already has done that with the dealerships who participate in their programs BUT there WAS a promotion going on for financing that despite planning on paying cash for our car we did opt for. ACTUALLY-now that i think about it.....we kind of 'stacked' deals:

1. asked the dealership the minimum amount we had to finance (made sure there was no pre-payment penalty) to get whatever deal the manufacturer was offering at the time,

2. asked maximum amount the dealership would permit to be put on a credit card (i want to say it was between $5K and $10K at the time),

3. structured the buy as full costco pre-negotiated price
- minimum amount to qualify for financing reduction*
= reduced price
- maximum amount allowed on credit card**
- remainder in cash


* took about 24 hours for the manufacturer credit company automated system to be available to us by phone-when it was we did a phone payment in full (so no interest paid)

** when the credit card charge showed up online we did a phone payment in full (so no interest paid PLUS we got a nice chunk of credit card reward points).

I had no idea that Costco has a car purchasing program until seeing it in this thread. Thanks, Barkley, for laying it out so clearly. Sounds like a great strategy. Does Costco only negotiate pricing on new cars or do they do used as well? I'm normally interested in used cars about 1-3 years old, but I haven't bothered to even look around for the past year or two because prices have been so crazy. A new car would be great if I could get an awesome deal so it would make better financial sense than buying a recent model used car.

I also have to figure out when the timing is good so I can start seriously looking.

 

[barkley]

I had no idea that Costco has a car purchasing program until seeing it in this thread. Thanks, Barkley, for laying it out so clearly. Sounds like a great strategy. Does Costco only negotiate pricing on new cars or do they do used as well? I'm normally interested in used cars about 1-3 years old, but I haven't bothered to even look around for the past year or two because prices have been so crazy. A new car would be great if I could get an awesome deal so it would make better financial sense than buying a recent model used car.

I also have to figure out when the timing is good so I can start seriously looking.

google costco auto program-you enter your zip code for information in your area. they do new and used. the website explains everything, lets you do a search for vehicles, shows what additional manufacturer incentives there are....very user friendly.

 

[tvguy]

Stay out of the dealership and buy your car online!

Not sure there will be many online places left soon.

 

[tvguy]

2. asked maximum amount the dealership would permit to be put on a credit card (i want to say it was between $5K and $10K at the time),

Or ask if they will even take a credit card or debit card at all. My daughter planned to use her debit card for her down payment, but the dealer only takes cash or check for down payments. Her credit union was already closed for the day (a Saturday and they close at 2 pm).....so I had to go to my bank and get a cashiers check for her.
And it was Hertz Car Sales. Not like their rental side isn't set up to accept electronic payment, but the sales side, isn't.

 

[jeff_h]

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?

I've always had my financing approved before going to the dealership, and have provided the name of the lender to the dealer, but I can't remember the dealer saying they "needed to verify the terms of the loan" because that's none of their business and it's between you and the lender. Sounds like the dealer is trolling for info so they can tempt you with a rate that's lower by ¼% and then act like they're your best friend for doing so! The dealer is also giving you that artificial deadline garbage that you need to sign the final agreement tomorrow - baloney. Sorry but this doesn't sound like a dealer that I would use, but sadly most of them are that way these days.

 

[sam_gordon]

Not sure there will be many online places left soon.

Actually, you can negotiate with brick and mortar dealerships via email. Get a price you're happy with before going in for the test drive.

 

[tvguy]

Actually, you can negotiate with brick and mortar dealerships via email. Get a price you're happy with before going in for the test drive.

I attempted that in 2018. In the 20 minutes it took for me to get to the dealership to do so, the car "disappeared". They couldn't find it. Never will do that again. Only had versions of that car that had $10,000 more in options.

 

[fla4fun]

I attempted that in 2018. In the 20 minutes it took for me to get to the dealership to do so, the car "disappeared". They couldn't find it. Never will do that again. Only had versions of that car that had $10,000 more in options.

When I was getting my last car, the guy I was working with had to hide the keys to keep the other salespeople out of it. It arrived at the dealership late one afternoon, and I went the next morning to pick it up. It was a model they didn’t often carry at that particular dealership, so everyone was wanting to play with it. I was getting the top trim line due to some new safety equipment, so they couldn’t have talked me into a more expensive version. However, I have had dealers in the past try to pass off a lower version at the higher price. Dealers really need to stop thinking customers, especially women, are stupid!

 

[tvguy]

When I was getting my last car, the guy I was working with had to hide the keys to keep the other salespeople out of it. It arrived at the dealership late one afternoon, and I went the next morning to pick it up. It was a model they didn’t often carry at that particular dealership, so everyone was wanting to play with it. I was getting the top trim line due to some new safety equipment, so they couldn’t have talked me into a more expensive version. However, I have had dealers in the past try to pass off a lower version at the higher price. Dealers really need to stop thinking customers, especially women, are stupid!

I bought my last two cars off the lot. The basic model cars are pretty well equipped these days. Our 2020 Camry Hybrid has 1 option, (very over priced) floor mats. Our 2018 has no options. I don't need anything more.

 

[Pea-n-Me]

Using AAA for financing is super easy. Call them, give them some info, they verify your eligibility and get the best rate. Once you get the car under agreement you go in and sign the paperwork for the loan. Dealerships know it’s going to be one of the best rates available, and they will try to beat it.

 

[mrodgers]

Or ask if they will even take a credit card or debit card at all. My daughter planned to use her debit card for her down payment, but the dealer only takes cash or check for down payments. Her credit union was already closed for the day (a Saturday and they close at 2 pm).....so I had to go to my bank and get a cashiers check for her.
And it was Hertz Car Sales. Not like their rental side isn't set up to accept electronic payment, but the sales side, isn't.

I asked if I could put the down payment or some of it on a CC. I couldn't. So no problem, I pulled out the checkbook. Who wouldn't take their checkbook to something like a car dealer to buy a car? That concept is weird.

Especially in today's world where many charge you for using a CC. Nope, I'm not paying $450 in fees just to put a $10k down payment on the credit card to earn $100 in points. I have my checkbook with me from the expectation that I couldn't pay with a credit card.

 

[mrodgers]

Actually, you can negotiate with brick and mortar dealerships via email. Get a price you're happy with before going in for the test drive.

Do that around here and there's 90% chance you're not going to be happy when you arrive in person and the salesman tells you, "We don't actually have that one, but here's one just like it with $1000's of dealer add-ons that wasn't on the one you thought you were dealing on." Just about every person I know that was attempting that.

I attempted that in 2018. In the 20 minutes it took for me to get to the dealership to do so, the car "disappeared". They couldn't find it. Never will do that again. Only had versions of that car that had $10,000 more in options.

See... Ha! I should have looked at the next post...

 

[mrodgers]

I bought my last two cars off the lot. The basic model cars are pretty well equipped these days. Our 2020 Camry Hybrid has 1 option, (very over priced) floor mats. Our 2018 has no options. I don't need anything more.

There's not many options these days anyways. You select the trim you want to get the options you want, and also pay for all those extras of the higher trim you don't want.

Would love to have the upgraded radio setup, but definitely not willing to pay $8000 for what still amounts to a sub-par setup but also adds on all the lane assist can't drive it yourself nanny garbage that I don't want.

 

[tvguy]

There's not many options these days anyways. You select the trim you want to get the options you want, and also pay for all those extras of the higher trim you don't want.

Would love to have the upgraded radio setup, but definitely not willing to pay $8000 for what still amounts to a sub-par setup but also adds on all the lane assist can't drive it yourself nanny garbage that I don't want.

Yeah, the step up in trim levels can add $10,000 or more to the sticker price, and maybe $1,000 to the production cost.
Our Camry LE Hybrid had a base sticker price of $29,000, and the top trim line models had sticker prices of $48,000. NO WAY the differences cost Toyota $19,000 more to build.

 

[tvguy]

I asked if I could put the down payment or some of it on a CC. I couldn't. So no problem, I pulled out the checkbook. Who wouldn't take their checkbook to something like a car dealer to buy a car? That concept is weird.

Especially in today's world where many charge you for using a CC. Nope, I'm not paying $450 in fees just to put a $10k down payment on the credit card to earn $100 in points. I have my checkbook with me from the expectation that I couldn't pay with a credit card.

Well, at the time my daughter had a checking account, but never ordered checks because she always used her debit card to access the funds.
She has since purchased a house and has discovered many of the services she needs.........landscaping.........handman services......are cash or check only. She now has paper checks.