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Tips for buying a New Car....


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#1 aleraiders

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Posted 13 February 2013 - 04:03 AM

Well i finally have enough to buy a new toyota tacoma ($25K) cash....I've done some research and I've learned some good tips...


Don't tell the salesperson whether its cash or credit until the price is set

The last weekend of every month is the best time to buy

Don't give too much information because the dealers are trying to size me up

You can always walk away...


Question


how much can i get the truck for if the MSRP is $25K?
(ive read from 5-20%)

Any other tips???

Don't you just love it when stupid people think you're stupid.....


#2 powercreep

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Posted 13 February 2013 - 04:16 AM

I disagree about cash vs credit. If you walk in with a fistful of dollars and they know that they'll get money today I would think that would help decrease the overall price of the vehicle. They aren't making any money off financing...just bottom line price.

And yeah, don't EVER buy a vehicle the first day. Get the salesman's card and give them a call a day or two later. Or, if you're comfortable with it, leave them your number after you give them a price and tell them to think it over and walk out.

#3 parKer

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Posted 13 February 2013 - 04:21 AM

Before you head to the dealer, check sites like edmunds.com or kbb.com to find the "true value" of the car. It will show you 3 prices: (1) MSRP, (2) dealer invoice, and (3) true market value or fair purchase price. #3 will tell you how much others in your area have typically paid for the same vehicle so you can compare that with what the dealer offers you.

With these prices printed out, you have the upper hand when it comes time to haggle. I think these sites will also tell you if there are any current dealer incentives or rebates, allowing you to bargain with them even more.

Good luck!


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#4 dohdough

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Posted 13 February 2013 - 04:46 AM

None of that stuff really matters. Edmunds is actually the best site for pricing info.

Know the MSRP, invoice, and market value of the car you want with options and you're mostly there. From there, all you need to do is set a reasonable amount that you're willing to pay. Shopping for a new car is relatively easy cause the car is new. If you have no trade-in? Even better.

You also have to realize that these salesmen do this for a fulltime job and it's hard to compete with that.

Personally, I think that if you qualify for one of their promotional interest rates at 0.9%(not sure if they have it right now), you should take it because it beats inflation and is really free money. This also allows you to avoid draining you bank account all at once.

#5 aleraiders

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Posted 13 February 2013 - 04:48 AM

@parKer - the true market value is only about 1,000 lower than the MSRP....does that seem right?

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#6 dohdough

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Posted 13 February 2013 - 04:59 AM

@parKer - the true market value is only about 1,000 lower than the MSRP....does that seem right?

If it's a 2013 model, then yes.

#7 aleraiders

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Posted 13 February 2013 - 05:06 AM

i was expecting somewhere around 17K-20K

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#8 dohdough

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Posted 13 February 2013 - 05:10 AM

Hahaha...no way. At least not for a brand new model year that was released pretty recently. What's invoice?

#9 rodeojones903

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Posted 13 February 2013 - 06:18 AM

Offer 2-3% over invoice and nothing more. Walk away if they say no. Go back a few days later and try again if you don't get a call from the dealership before that.

#10 Methoes

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Posted 13 February 2013 - 06:19 AM

You should able to get it around 20K if it's a brand new 2013 truck. If it's used... from a dealer... it's hit or miss on the price. (Likly around $23 - $22.5)

There a many ways to negotiate down a price. Always walk away if you are not happy with the price. If they stop you while you are leaving that means they need to sell it. So don't cave in to their price. You can always try it again at another dealership.

Another way is to ask for more is to ask them to throw in extra stuff (i.e. mud flaps, floor mats, special key rings)

For $25K - You can drive a 2010 BMW M5 (why do you want a truck?)

#11 dohdough

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Posted 13 February 2013 - 06:29 AM

You should able to get it around 20K if it's a brand new 2013 truck. If it's used... from a dealer... it's hit or miss on the price. (Likly around $23 - $22.5)

There a many ways to negotiate down a price. Always walk away if you are not happy with the price. If they stop you while you are leaving that means they need to sell it. So don't cave in to their price. You can always try it again at another dealership.

Another way is to ask for more is to ask them to throw in extra stuff (i.e. mud flaps, floor mats, special key rings)

For $25K - You can drive a 2010 BMW M5 (why do you want a truck?)


The car he's looking at has an invoice of $23.5 before destination. $20k is impossible if I'm looking at the same one he is with the same msrp.

I'd love to know where I can get a 2010 M5 for $25k though. I can't even get a 2010 IS350 for that! At that price, I would've gotten it yesterday! The M5 is one sexy beast...

#12 62t

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Posted 13 February 2013 - 06:31 AM

Holiday deal is usually pretty good, so try going next week.

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#13 smallsharkbigbite

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Posted 13 February 2013 - 11:30 AM

I bought a car last year. Note, it sucks. Seriously I think we spent 3 hours at the dealer the day we bought the car. It shouldn't be that painful. But hopefully it'll last us at least 10 years like our other cars.

A few notes from my imperfect experience.

1. The "last day of the month" varies. We bought our car on the 1st of the month. The company had different financial months than just straight calender months. So that was actually the last day of the financial month for them.

2. You will have to walk away from their offer. We gave them a number, got the whole we can't do that. They came in $350 higher than we offered. We walked. They called us back and offered the # we wanted. We said we were tired and wanted to look around more. They called back again and came in $600 under where we wanted. So we decided to bite.

3. I don't know the popularity of the model you're talking about but if it's a popular model you are probably not going to get a huge amount off. There are websites that will give you invoice. If it's a popular model, you probably can not get invoice price (the car dealer makes money at invoice price). If it's not a popular model or they are desperate you may get it cheaper than invoice. Look at forums to see what other people are buying it. Also, look at sites claiming what other people are buying at. And know the better of a deal you get or push for, the more the process will suck.

4. Don't be afraid to call dealers that are a little bit of a drive. They may get a bigger volume discount and if you can work out a price that makes the travel worth it, you may get a better deal driving to pick it up. Obviously you need to inspect the car before purchasing, but if you are looking at new, you should get new.

5. During the negotiation phase, you need to let them know that you have cash to see if you can push them to a lower offer. Salespeople like hearing cash, because they know that sales can fall apart if they can't give you the financing because of credit issues. At 0.9% it's not a big money maker for the dealership so they didn't push that hard for me. I also dissagree that you should take financing just because it is cheap. Yes, 0.9% is cheaper than inflation and a great deal if you need it. But.... odds are you aren't making 0.9% in your bank account. So if you have the money, you should use it on the car like you planned and build back up your savings will pretend car payments and you'll be ahead. Now if you are somehow making more than that on your bank account, it is a no brainer to finance.

#14 SynGamer

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Posted 13 February 2013 - 11:58 AM

Doesn't appear anyone has said this yet, but be sure to actually TEST DRIVE the car(s) before making a decision. It amazes me how many people will walk into a showroom/lot and just buy a car (low-priced or high) without even test driving first.

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#15 benjamouth

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Posted 13 February 2013 - 01:52 PM

Doesn't appear anyone has said this yet, but be sure to actually TEST DRIVE the car(s) before making a decision. It amazes me how many people will walk into a showroom/lot and just buy a car (low-priced or high) without even test driving first.


Lol, I did that once, in my defense it was first car I ever bought, it was new and it turned out ok but I wouldn't ever do the same thing again.

The look of bewilderment I used to get from people when I told them I'd bought a car without test driving it was priceless :)

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#16 Confucius

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Posted 13 February 2013 - 02:06 PM

I disagree about cash vs credit. If you walk in with a fistful of dollars and they know that they'll get money today I would think that would help decrease the overall price of the vehicle. They aren't making any money off financing...just bottom line price.


This is not true.

It used to be that offering to pay cash would help your (like back in the 80s). Nowadays, the dealers want you to finance because they get an incentive from the finance companies.

Aleraiders was correct in his initial assumption.


Offer 2-3% over invoice and nothing more. Walk away if they say no. Go back a few days later and try again if you don't get a call from the dealership before that.


Pretty much this. Unless there is a unpublished dealer incentive, this pretty much lets the deal make his money without you being a sucker. So just find out the invoice of the car you want, offer this and be prepared to walk away. Negotiate on a price first. Then talk financing or trade in. All that other stuff is noise unless you have inside knowledge of when a dealer's month ends or if they have a sales promotion/contest at the dealership.

Edited by confoosious, 13 February 2013 - 02:34 PM.

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#17 parKer

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Posted 13 February 2013 - 05:22 PM

Another thing to think about is are there other things for the car that you want. Because the salesperson is one hurdle (car price). Another potential hurdle is the salesperson's boss - sometimes he/she is the one you have to give the check to or fill out the paperwork with.

If you are taken to this person's office (doesn't always happen at every dealer), they will try everything to get you to buy extras - extended warranty, special "today-only" pricing on extended warranties, special paint coating so you won't need car washes for 10 years, etc. It's their last chance to make more money off of you before you cut them a check.

Learn how to say no and stick to your plan and your car-buying experience will turn out fine.


Oh, and the true market value pricing (#3) is only to be used as a comparison point, not a starting point. Just because others paid $24K for a $25K truck does not mean that you should. You are a CAG after all.


Edit-
Last thing, if you are a Costco member, they have collaborations with some, not all, local dealers. This means that dealer has an established, discounted Costco price, so there is no need to haggle (and they don't push the extras crap at you). In my experience, the Costco pricing is very, very good and their bonuses are unmatched elsewhere. Bought a new Volvo XC60 T6 R-design for $500 over invoice and also received a $500 Costco gift card and an extra year of warranty and free maintenance for a total of 6 years (re: free oil changes and other greasemonkey/carwash stuff at the Volvo dealership). Sam's Club has a similar program, but I have no experience with it.

Edited by parKer, 13 February 2013 - 05:39 PM.
added Costco experience


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#18 smallsharkbigbite

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Posted 13 February 2013 - 05:38 PM

Lol, I did that once, in my defense it was first car I ever bought, it was new and it turned out ok but I wouldn't ever do the same thing again.

The look of bewilderment I used to get from people when I told them I'd bought a car without test driving it was priceless :)


I bought a used motorcycle once without ever turning it on. LOL.

One other thing I'd like to point out. Salespeople are good at saying no to low prices because today that's all people ever focus on. They make bunches off the add-ons/accessories. If they are a stickler at $500 or $1,000 over sticker, you may be able to get them to throw in add-ons/accesories to make it worthwhile. Of course you actually have to want the add-ons, but they make so much more margin on those than the actual car.

#19 usickenme

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Posted 13 February 2013 - 06:36 PM

I bought my car through Costco. They partner with local dealers...you basically pick the one you want and you get it well below MSRP.

#20 dmaul1114

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Posted 13 February 2013 - 06:38 PM

Last thing, if you are a Costco member, they have collaborations with some, not all, local dealers. This means that dealer has an established, discounted Costco price, so there is no need to haggle (and they don't push the extras crap at you). In my experience, the Costco pricing is very, very good and their bonuses are unmatched elsewhere. Bought a new Volvo XC60 T6 R-design for $500 over invoice and also received a $500 Costco gift card and an extra year of warranty and free maintenance for a total of 6 years (re: free oil changes and other greasemonkey/carwash stuff at the Volvo dealership).


Was going to mention this. I haven't used it, but have heard great things about the program. I'll likely go that route the next time I need a car. Hopefully that's a ways down the road as my 2008 Mazda 3 I bought new still only has 25,000 miles on it since I'm a city dweller and live close to work and shopping etc.

#21 kube00

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Posted 13 February 2013 - 07:08 PM

Hmm I didnt know about the Costco thing, I'll have to try that next time.

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#22 irideabike

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Posted 13 February 2013 - 08:23 PM

This was a good topic to read as my wife and I are looking at purchasing an SUV. Still trying to decide new vs used though.
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#23 crunchewy

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Posted 13 February 2013 - 09:01 PM

I hate buying cars. We're going to have to buy one some time this year. I am not looking forward to it.
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#24 Strell

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Posted 13 February 2013 - 09:30 PM

When I bought a car last year, someone was on the phone with the dealership wanting the same car, and had already haggled them down to below the price I was hoping to get. Which made my timing REALLY good.


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#25 Donut2922

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Posted 14 February 2013 - 07:12 PM

Don't buy their warranty. Every car already comes with one. If it's dud, you'll find out before the manufacturing warranty expires.

#26 aleraiders

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Posted 15 February 2013 - 02:09 AM

This was a good topic to read as my wife and I are looking at purchasing an SUV. Still trying to decide new vs used though.


i was thinking about buying used also..but if im going to spend 15K plus on a used vehicle...then might as well spend another 5 or so to get a new one

trust me....we spend some sleepless nights talking about it

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#27 BillyBob29

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Posted 15 February 2013 - 02:46 AM

The single biggest factor in what discount, if any, you can get on a new car is the market you are shopping in. Does the dealer have a 10 day supply of autos or a 70 day supply? How many other dealers of that brand are in the area that they are competing with? If the dealer has tight supply they are far less likely to deal. Most dealers today have pretty tight supply, at least based on the car sales data being reported the past few months.

Also, there simply isn't a ton of markup on most cars under $35k, especially those that are light on high mark up features like navigation, leather packages etc.

Being a cash buyer doesn't pull the same weight as it used to. A lot of dealers make a large % of their actual profit on the deal through financing deals with various lenders so by taking that away you are limiting their profit potential.

There is nothing keeping you from exploring the finance option, possibly getting a better deal, and then just paying off the car when the first payment is due if you want to.

#28 aleraiders

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Posted 15 February 2013 - 04:34 AM

There is nothing keeping you from exploring the finance option, possibly getting a better deal, and then just paying off the car when the first payment is due if you want to.


this will be my first brand new car so this is a stupid question...ive thought about that...i didnt know i could do that....is that "legal"? meaning breaking the contract i signed?

i also thought about lying and saying i want to finance...and after we agree on a price...tell him i have cash...

Don't you just love it when stupid people think you're stupid.....


#29 Rosterking

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Posted 15 February 2013 - 04:57 AM

Don't buy it new.

#30 Viva Las Vegas

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Posted 15 February 2013 - 10:23 PM

this will be my first brand new car so this is a stupid question...ive thought about that...i didnt know i could do that....is that "legal"? meaning breaking the contract i signed?

i also thought about lying and saying i want to finance...and after we agree on a price...tell him i have cash...


Check the details. I'm not sure about car loans, but for example on a home loan you'll see some type of wording about no penalty for paying off the loan early.