Need new car - need buying advice!!!

[The Iron Giant]

Help - one of our two cars died its final death yesterday and since it has over 100k miles we won't be fixing it (transmission died).

So we are now looking for a new car - probably a minivan since baby #3 is due in August

Just looking for any advice on how to get the best deal and any promotions that may be out there.

Right now we are leaning towards a Honda Odyssey, but are minds are open to your suggestions.

Thanks!

 

[WeLuvTink!]

I suggest you review Consumer Reports Auto Issue, which was out 1-2 months ago (you can probably get it at the library if you don't subscribe). It reviews all the vehicles for comfort, safety, value, etc. and makes recommendations. It also includes tips on how to get a good deal.

For a fee, they'll also send you a detailed report on the vehicle you want, unveiling what the vehicle really cost the dealer (including unpublished dealer rebates, incentives, etc.) so you can negotiate UP from that price, instead of DOWN from the sticker price.

 

[CyndiLooWho]

My best advice is to line up your financing beforehand. We had to buy 2 cars and a motorbike pretty quickly when we moved back to the US last year, and knowing that we had financing made a big difference. We got a much better rate through the credit union than through the used dealership (the bigger, family car was used) and could have used it for the new car if they hadn't had a rate deal.

You can tell the dealer that you are going to be financing, but don't tell him you already have a pre-approved loan. They're more willing to deal with you if they know you're not paying cash and think they can get you to finance with them. Then, when you have the price all ironed out and they start talking financing, tell them that you have already gotten pre-approved at x%, but you will finance with them if they can beat it.

I've done that twice with used cars, and once got them to match the CU rate and once did not, but I still got the best price on the used car with them *thinking* they were going to get my financing business (and the one that met my pre-approved interest rate DID get my business b/c they tried so hard).


On new cars, do your homework. Pick either 2 dealerships or 2 different vehicles. You can always tell them that Josh Bleakenhoff Honda will give you the same vehicle for $XXXXX, and can they beat it and then walk if they don't. And yes, I have walked on deals that weren't good enough (most people get fixated and won't). You can also walk and wait a day or so, and they will often come back with a better offer.

I always go into a deal knowing how well a particular model is selling, what its Edmunds price is, and how much I'm willing to go. And I walk if the deal isn't right. I'd rather rent for a month (go through your ins co for the best deal) than buy what isn't right.

Another trick is to see what they have on the lot that's been there a while. American car companies give dealers extra incentive money on cars that have set on the lot for a certain number of days. Back in 2004, we bought a Mazda 6 with the body kit and other sporty options for the same price as a Mazda 3. For some reason, it just hadn't sold, so the dealer had money from Mazda, plus whatever cash back they were running at the time, plus normal negotiation. It was a super deal for us, and a great car. So ask to see if they have something that's been on the lot for a while and whether or not they have incentive money to lower its cost.

 

[Chicago526]

Just an idea, but if your old car is still otherwise in good shape, why not invest in a new transmision? Assuming the car is still running well, you could get another 50k-100k out if it for just a few thousand dollars. That's cheaper than a new or even a gently used car.

ETA: I just added up what I've spent in the last three years keeping my '98 Saturn running. I average $93 a month. You can't get a car payment for that! Of course, the actual costs come in lumps, $500 here, $300 there, but we've always had the money to fix it. And many of the costs were wear and tear anyway, things like new tires, brakes, and tune-ups. So our actual repair costs are less than $93 a month.

Just something to think about!

 

[kingcrab]

Help - one of our two cars died its final death yesterday and since it has over 100k miles we won't be fixing it (transmission died).

So we are now looking for a new car - probably a minivan since baby #3 is due in August

Just looking for any advice on how to get the best deal and any promotions that may be out there.

Right now we are leaning towards a Honda Odyssey, but are minds are open to your suggestions.

Thanks!

buy the Honda, and just try to ge the best price. Use the internet to find the best price, get quotes, and play the dealers against one another. Just remember they need you more than you need them.

My Honda Ridgeline has been perfect since I bought it in January of 2006. I drive about 900 miles a week commuting, and now have 164,000 miles on it, and it still runs like new.

 

[micheleq]

Best tip I ever got was to buy a car at the end of the month (when salespersons need to make their quotas) or at the end of the quarter (when they need to meet other sales goals).

 

[corndog]

Learn what holdback is and share it with the dealer.

 

[Golf4food]

Regarding pre-approved financing - that is a fine idea when the automotive captive lenders are not offering 0% interest... what credit union is going to give you 0% or 1.9% interest right now? If you can qualify, take the dealer/company financing option at the lower rate unless they have alternate rebates that would bring your final cost lower with higher interest from a credit union loan (you'll have to know both factors and do the math). This assuming you buy new, of course. Used cars are very cheap right now also because new cars have so many rebates on them. A good time to buy either new or used - just make sure to do your homework and get a good deal.

Don't just focus in on the Honda either. Try the Toyota, Ford, Mazda, Mitsibishi, etc. (though I'd avoid anything Chrysler at this point). Do you need a minivan or would a mid-size SUV (that might get better gas mileage) work just as well for the same price but be cheaper to operate in the long run?

 

[Normangirls]

I have heard of two new possible tax incentives for new car buyers. I didn't keep the info since I'm not in the market, but check with your accountant (or research on-line) to see what the rules are. it may help you make up your mind one way or the other.

 

[horseshowmom]

I have heard of two new possible tax incentives for new car buyers. I didn't keep the info since I'm not in the market, but check with your accountant (or research on-line) to see what the rules are. it may help you make up your mind one way or the other.

I think you get the sales tax back (not sure though).

OP, check into a Taurus X. We just bought one, and we love it. It comes in a 6 or 7 passenger version. I'd never seen one until I started looking for a new car. It's a crossover vehicle which means it drives (and parks) like a car but has the plusses of a SUV or minivan.

You can get great deals on a 2009 because they're going to be phasing them out (parts won't be a problem because they're shared by more popular versions). Originally, the vehicle was called a Freestyle, but it was changed to Taurus X when they corrected some issues and jazzed it up some (for 2008 and 2009). I found some incredible deals. Be sure to check out autotrader.com and cars.com. Don't be afraid to extend your search out to 500 miles (that's what I did and had mine shipped).

Good luck!

 

[Kickapoo Joie Juice]

Here in Atlanta, my MIL was able to get an out the door price of $31,875 for a 2009 Honda Odyssey with leather and DVD.

I *think* it was the Woodstock Honda, she had a list of all the dealers in a 50 mile radius and she told them the color and the features and asked for the best out the door price. The ones that wouldn't deal she said, if you want me to come over there, checkbook in hand, tomorrow, give me your best number.

The guy that did got her money, and she was in and out of there in like, half an hour. She had pre-written the check, and told the guy, I'm coming in there with one check, I'm not writing another one.

The woman knows how to bargain.

If you want to get a REAL bargain, the Mercedes R class 7 passenger wagon/minivan/crossover sold for 60k in 2007, is currently selling for right at $30k with the bluetec engine that give you 30 mpg on the highway. It's a super-safe, super-luxurious car at, what, a 50% discount in 2 years? Crazy but awesome...

 

[MiniGirl]

Check out Edmunds.com. It is a great resource. Also see if you can find a copy of the book "Don't Get Taken Everytime" by Remar Sutton. It is a wonderful books that shows a lot of strategies the dealers use and how to defeat their logic. It also shows other ways the dealerships make money and how you can make the most of that.

 

[mpls_mm]

I just bought a Flex because I wanted the third row seat. Now you can check dealers inventory online and look at the "sticker" before you even go in. I found a model that I wanted that had been on the lot a while and went to see that one. The credit union had quoted 6%, but I was able to get 1% through Ford for the loan. There were a few incentives that totaled $3600 plus I got a deal on the car, and more than retail for my trade. It's only a year old and I was so sure I would be upside down. They also will make your payments for a year if you are laid off. I think going at the end of the month helps too. I wouldn't lock into any rates until you see what the car company offers, if my credit had been a little better I would've gotten the 0%.Wells fargo had quoted me 12%, so I really shopped around. There was also a year of free Sirius.

 

[PHXscuba]

My single best tip to avoid the negotiation and run-around at a new-car dealership is to contact the fleet/Internet department. Here's what I would do:
1. Decide what vehicle you want, using Edmunds.com, Consumer Reports, and test drive.
2. Contact the fleet/Internet departments at several local dealerships of that brand, via e-mail. Find your best deal via Internet/phone. Use the tips PPs have mentioned about financing.
3. DO NOT set foot on the lot until you have a deal in place, including an out-the-door price. Don't let them add after-market stuff without your approval.
4. When you go in, look the car over, sign the papers, and leave with your car/van. Shouldn't take more than 1-2 hours even if you finance there.

We have bought our last 3 cars (including 2 Honda Odysseys -- love 'em) this way and it is SO much better than dealing with the salespeople. Fleet managers deal in volume, not price, so they want to deal with educated customers who know what they want, make a deal, and be done.

PHXscuba

 

[The Iron Giant]

Hi guys... OP here.

Thank you all for taking the time to post your tips. I learned a lot and will check back in to let you know how we made out.

In the meantime please feel free to add any more ideas you might have.

 

[CLEO Z]

I have no hints on deals, but had to tell you that I LOVE my Honda Odyssey. (I always forget how to spell it )

I've had it a year and it drives so much better than my old minivan (an oldsmobile that is no longer being made). It also drove better than the others I test drove. The Toyota was the closest, but the price difference was small, I really liked the Honda better and I HATED the pushy guy at the Toyota dealership.

My mom just bought her second Odyssey. Nothing wrong with the first -she just wanted a new one. She really loves it compared to the old Impala station wagon that she drove us around in in the '70's.

 

[bnhasak]

We just went through this. We went with the 09 Honda Odyssey but the 08 (still new) Kia Sedona was a close second. The Sedona had a great warranty, great safety rating and what was even better was the $7K rebates. We went with the Honda simply because we felt it was better for all the driving we do and we liked the ride of the car.

The Sedona was really nice though. It had all the bells and whistles for way less than the Honda.

Best of luck.

The tax rebate will be nice come tax time.

 

[IDoDis]

I used to sell new cars back in the day, and then worked for a credit union auto buying service where I was on "the other side of the fence." There's no dealer trick I haven't heard of.

Basic advice to save you some money and sanity:

1) Donate your non-running car to charity. You'll get a nice tax right off for it and the money will be used for a good cause. The charity will even come and pick it up from you (non-running).

2) If you trade in the non-running car, don't be fooled by the gimmick that you will be paid more than blue book value because you won't. It's all a play on numbers. No dealer in his right mind is going to pay more for a used car than what it's worth -- the dealers typically pay UNDER blue book value, but show it on paper to look otherwise. People are tricked into believing they are getting paid more than what the car is worth. News Flash -- They aren't.

3) Look at the sales contract CAREFULLY before you sign. Typically dealers will sneak in a charge that gets conveniently mixed in with the tax, title and licensing fees. It may say something like, "Dealer surcharge" or "Dealer Handling fee." It can be anywhere from $200 to $400 dollars and maybe even more. If you see a charge other than sales tax and the exact fees that your motor vehicle charges for licensing and registration (you can call your local MVD ahead of time to find out those fees for the minvan) SAY SOMETHING. Ask, "What is this 'dealer handling fee?'" They'll say, "Oh, that's the dealership's fee for doing all of the paperwork and processing at motor vehicle and for transferring your license plates."

Your reply should be, "Well, just charge me for the car and the sales tax then. I'll take the paperwork over to MVD and register it myself." They may wave the fee or they'll give you the paperwork to take to your local motor vehicle dept. Those extra fees are a complete rip-off and just an extra way to sneak in more profit.

4) Don't just shop price. Shop quality. I learned the hard way on this one when I opted to buy a Ford Windstar for a few thousand less than a Toyata Sienna. I've paid that extra few grand and then some several times over in repair bills. In fact, the check engine light just came on again in my van. I'm ready to drive it off a cliff!

Happy shopping.

 

[bmr12]

Lots of good advice above. Not knowing your financial situation, consider getting a used vehicle. For example, an '05 or '06 Odyssey will sell for 50 to 60% of the cost of a new one, a significant savings on something costing $30,000+. Yes, there's probably little or no warranty, and you'll have to pay more in repairs sooner, but $10-15,000 is savings will pay for a lot of that.

 

[MAH4546]

Lots of good advice above. Not knowing your financial situation, consider getting a used vehicle. For example, an '05 or '06 Odyssey will sell for 50 to 60% of the cost of a new one, a significant savings on something costing $30,000+. Yes, there's probably little or no warranty, and you'll have to pay more in repairs sooner, but $10-15,000 is savings will pay for a lot of that.

Now is an absolutely terrible time to buy a used car.

Deals on brand-new cars are too good right now. Some are so good that the bulk initial depreciation hit is essentially being taken up by the dealer's price cutting.

You can get an '06 Odyssey for 60% of a new one, but if dealers are willing to take 25-30% off new cars, which they are, wheres the real savings?