Looking to buy a new Honda civic ex. What do I need to know?

[Judyat]

Thanks everyone for the great advice. We have been looking at kbb and Edmunds for invoice price vs msrp. They both list 21,605 as msrp. One list the invoice at 20,329 and kbb lists it at 20,136. KBB says a fair purchase price is $20,097. Not sure if that includes destination fee? The car comes with pretty much everything we want so it's really just adding the destination fee. MRSPETE I hope we can stick to what you said. You're right they do try to butter you up and get what they can. Sticking to the price and not letting them have the details of how you will pay for it. Can't give them an inch or they will go for the mile. And just have to remember to leave if they won't deal. There are several dealers around so we can walk away and still have others to go to.

 

[ThereYouSeeHer]

Thanks everyone for the great advice. We have been looking at kbb and Edmunds for invoice price vs msrp. They both list 21,605 as msrp. One list the invoice at 20,329 and kbb lists it at 20,136. KBB says a fair purchase price is $20,097. Not sure if that includes destination fee? The car comes with pretty much everything we want so it's really just adding the destination fee. MRSPETE I hope we can stick to what you said. You're right they do try to butter you up and get what they can. Sticking to the price and not letting them have the details of how you will pay for it. Can't give them an inch or they will go for the mile. And just have to remember to leave if they won't deal. There are several dealers around so we can walk away and still have others to go to.

Remember that there can be a number of fees and other charges, including a dealer fee (sometimes called a document fee, which can be viewed as profit to the dealer, potentially $500), inspection fee (potentially $30), sales tax (potentially $800), and tag and title fee (potentially $75). They may also upsell you on warranties, maintenance plans, undercoating or additional amenities. Also, the more dealers you visit, the more you'll be able to understand what price points are in your area. Best wishes for a successful outcome!

 

[S. C.]

Hondas and Toyotas really seem to hold their value. I looked at a used van and with the cheaper financing with the new cars, it was not much more than the used. I didn't want one with a lot of miles and they really didn't haggle with the price as much with the used one either, it seemed set, they didn't really have a choice either so it may have been that the used inventory was low at the time. I got a letter last month from my Honda dealer saying they needed used cars and asked that I come in to test drive a new one and trade in my 3 year old CRV.

Got that same letter about my Traverse from GM. I think the dealers are just trying to sell us a new car.

 

[sluggozmom]

I bought a '13 EX-L in February.
I got quotes from a number of dealers near and far. One was $500 below invoice and included a limited lifetime warranty. They were 2 hours away, and had horrible reviews online.
After I was offered a price by a dealer, I responded that I wanted the remote, with installation included. I never spoke to anyone. when I got replies asking me to call for a quote I deleted it.

In the end, I went with the dealer that was 20 minutes from home. They located my car (white on black) and had it delivered to them in 2 days. At no cost to me.
I paid $1 under invoice, they included the Honda remote start II, installed, a tank of gas, and 4 oil changes.
They were the only dealer to add all the fees in with the quote, so I knew exactly what I'd be paying when I got there. And when I did get there, I told them my credit union was offering 1.9% financing, and if they could beat it they could have that business too... they got me 1.69% and I went with them.

Love Love Love my Civic...

 

[MrsPete]

Dealer financing is fine if you get 0 or low rate. I think our friends got either 0 or 1.49. Just say no to the extras - GAP, warranty, etc.

Thing is, if they give you dealer financing at those impossibly low numbers, one of three things is true:

Either you've paid essentially sticker price so that they're making a good profit.

OR they're giving you a balloon payment so that the low financing is good for perhaps 12 months, and then you must either pay off the loan, OR see the interest rate soar, OR refinance with your bank.

OR they've manipulated the deal so that they essentially got your trade for free, and that's their profit.

They aren't actually going to finance your car for nothing or next to nothing. They're going to make a good profit some way -- they're just hiding the actual facts.

 

[MrsPete]

. . . One was $500 below invoice and included a limited lifetime warranty . . . I paid $1 under invoice . . .

Earlier I pointed out that the dealers have multiple invoices, and they do not indicate what the dealer actually paid for the car. If you need any evidence of the truth of my statement, this is it. No dealer is going to lose money on a car; even if he were going out of business, Honda would take the cars back from him and sell them at a good price to another dealer. Thus, it's crystal clear that these statements do not accurately indicate what he paid for the car.

Reiterating what I said earlier: Never, never believe the dealer's invoice.

 

[MrsPete]

Got that same letter about my Traverse from GM. I think the dealers are just trying to sell us a new car.

Yeah, I've had several of those letters: We are running short on used-car inventory. We very much want to buy your Honda.

It's nothing but an attempt to get me to come in and buy a new Honda, which I do not need to do at this point!

 

[sluggozmom]

Earlier I pointed out that the dealers have multiple invoices, and they do not indicate what the dealer actually paid for the car. If you need any evidence of the truth of my statement, this is it. No dealer is going to lose money on a car; even if he were going out of business, Honda would take the cars back from him and sell them at a good price to another dealer. Thus, it's crystal clear that these statements do not accurately indicate what he paid for the car.

Reiterating what I said earlier: Never, never believe the dealer's invoice.

Yes, I read what you pointed out.
I was offering up my experience.

 

[reagansmommy]

Thing is, if they give you dealer financing at those impossibly low numbers, one of three things is true:

Either you've paid essentially sticker price so that they're making a good profit.

OR they're giving you a balloon payment so that the low financing is good for perhaps 12 months, and then you must either pay off the loan, OR see the interest rate soar, OR refinance with your bank.

OR they've manipulated the deal so that they essentially got your trade for free, and that's their profit.

They aren't actually going to finance your car for nothing or next to nothing. They're going to make a good profit some way -- they're just hiding the actual facts.

This isn't entirely true. Sales managers and the dealership itself get big (read: a large chunk of their compensation) volume bonus. Finance managers have to hit a certain number of contracts to keep preferential rate with certain banks. Go on one of the last two or three days of the month and if they are close to a big bonus they will let you know. None of the dealerships have a problem losing (and I mean actually selling for less than they have in it) a few hundred dollars to hit a big volume incentive with the automaker or bank.

 

[MrsPete]

Yes, I read what you pointed out.
I was offering up my experience.

Understood. I was pointing out that your experience backs up/proves my previous statement.

 

[dd50]

Study up. Use KBB.com and edmunds.com to get ideas on how to buy a new car and prices, as well as what your trade might be worth, remember to negotiate the new car and you trade separatly. Those sites will list MSRP and Dealer Invoice as well as what you should pay for said automobile. Remember, you are in control, you are the one buying, you have the cash, you don't like the deal walk out. There are always more dealerships that want to make a deal. That doesn't mean offer 20k on a car that's worth 32k, but by studying up and using the hints and prices you find on line you should know what a good deal is and can bargain accordingly. When you do come up with a deal, then ask about a further discount about paying cash. Depending on how much you can get for a rate to finance, you might be better to finance and put that money away and let it work for you.

I just bought a new 2013 Ford Explorer for $236 below dealer invoice earlier this week. I got it on the last day of the month when dealerships are looking to move cars to make quota for the month. I was dealing with one dealer and called the other and the second beat the price over the phone. I took the $2000 rebate over the 0% financing, but was still able to get a rate of 1.74% from a local credit union with the dealer doing all the work for it. I talked to a fraternity brother who's a finance manager at a different car manufacturer and he said that 1.74% was pretty much a wholesale rate.


When you study up and know what you want to and should be paying it's a great feeling, a lot better then feeling like you were taken.

Good luck

I agree and would also deal in out the door price instead of car price.

 

[buzz2400]

also check out truecar.com.

bjs has an auto program if you belong. I don't know about costco.

I am looking at buying a vw jetta. I emailed a bunch of vw dealers and got prices. they were all basically the same. the one dealer participating in the bjs auto program was cheaper so I probably will buy from them. Any dealer can locate a car for you at no charge (they only look in your area, not all over u.s.).

another thing to consider, the time that they stop making 2013's and start 2014's is slowly approaching so if you are really hung up on a certain color I wouldn't wait too long even though I am sure there are a lot of civics out there.

 

[Judyat]

After doing a lot of reading about buying a new car I am happy to report that it was much easier than what we read about. We really dreaded having to play games to get the best price. We were ready but all we really needed to know was the invoice price and what Edmunds and kbb said was the fair price. We also checked Costco and got their price and dealer in the area. And then we checked and got truecars price and it was about $300 less than Costco so we asked the dealer to match it and they did. Got an out the door price and told them we would be paying cash which was fine with them. They even took a personal check for most of it. The whole process took only a few days. It was really a relief not to have to play games and we have a beautiful new Honda civic. Good luck to anyone shopping for a car. Check Edmunds and kbb for invoice and fair prices for the models you are interested in. Get prices from Costco if you belong and true car. I think Costco gets a kickback on theirs. Not sure about true cars. I would suggest BJs too but the state we bought the car in doesn't have a BJs so not sure how they match up to Costco.

 

[ThereYouSeeHer]

After doing a lot of reading about buying a new car I am happy to report that it was much easier than what we read about. We really dreaded having to play games to get the best price. We were ready but all we really needed to know was the invoice price and what Edmunds and kbb said was the fair price. We also checked Costco and got their price and dealer in the area. And then we checked and got truecars price and it was about $300 less than Costco so we asked the dealer to match it and they did. Got an out the door price and told them we would be paying cash which was fine with them. They even took a personal check for most of it. The whole process took only a few days. It was really a relief not to have to play games and we have a beautiful new Honda civic. Good luck to anyone shopping for a car. Check Edmunds and kbb for invoice and fair prices for the models you are interested in. Get prices from Costco if you belong and true car. I think Costco gets a kickback on theirs. Not sure about true cars. I would suggest BJs too but the state we bought the car in doesn't have a BJs so not sure how they match up to Costco.

Good for you! Just curious...how did your total out-the-door price compare to MSRP and invoice?

 

[Judyat]

The total out the door price with destination fee and some extras that they had put on was less than the invoice price. There were a few other extras that we didn't go with which was fine with the dealer. They did have to get the car from a sister dealer since they didn't have the color we wanted but that only took a day.

 

[ThereYouSeeHer]

The total out the door price with destination fee and some extras that they had put on was less than the invoice price. There were a few other extras that we didn't go with which was fine with the dealer. They did have to get the car from a sister dealer since they didn't have the color we wanted but that only took a day.

Awesome. Enjoy your new car!

 

[Jimsig]

Congrats and enjoy!

 

[Judyat]

Thanks everyone. We should be good for 10+ years.

 

[Cynt]

You're purchasing a great car!! Hondas last forever. 11 years and 268K miles on my last accord. I didn't want to part with it so I dropped a new transmission in it at around 230K mile for $2700. I should have purchased a new one at that time but I didn't want a car note. LOL!! I'm on my 2nd Accord and so far so good. Other than the transmission no major repairs. I kept it well maintained. After 200K miles little quirky things starting going wrong. But what can you expect at 200K miles. Instead of paying $400 a year for maintenance it probably went up to $1000 a year just because things started wearing down and they needed to be replaced.

Try and purchase last years models. I purchased a brand new 2010 in July 2011 and got a great deal. I Saved a ton. Go to cars.com. Search locations up to 3-4 hours away from you. Sometimes you will find better deals. I live in the DFW metro area but I searched east TX and found better deals.

Happy searching!!

 

[leelee9878]

I will start to look for a new car soon and I have never bought a new car or from a dealer before so this thread is very helpful. Thanks!