advice for buying a new car
- Thread starter dude2003
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Friend, here is a sound piece of advice:
Do not buy a brand new car! Buy a used car man.
Remember, "used car" does not mean it had to be crappy or dilapidated.....it just means it was owned by someone else first.
When a new car is bought and driven off of the car lot, it automatically loses a chunk of it's value. A used car will have already lost that chunk, and therefore is cheaper for you. Hell, get a 04-05 model pre-owned car; it's still basically new, but you get to benefit from someone else's loss.
I know there is a huge appeal to being the first owner of the car, and just buying a brand new car is so much fun. But it just isn't a financially-sound decision. Cars are one of the single worst investments in the world, as they lose value every year, at an exponential rate. Buying a used car helps lessen that burden.
I know this just sounds like old-man advice, but it's great advice, and you'd be a fool to ignore it.
Do not buy a brand new car! Buy a used car man.
Remember, "used car" does not mean it had to be crappy or dilapidated.....it just means it was owned by someone else first.
When a new car is bought and driven off of the car lot, it automatically loses a chunk of it's value. A used car will have already lost that chunk, and therefore is cheaper for you. Hell, get a 04-05 model pre-owned car; it's still basically new, but you get to benefit from someone else's loss.
I know there is a huge appeal to being the first owner of the car, and just buying a brand new car is so much fun. But it just isn't a financially-sound decision. Cars are one of the single worst investments in the world, as they lose value every year, at an exponential rate. Buying a used car helps lessen that burden.
I know this just sounds like old-man advice, but it's great advice, and you'd be a fool to ignore it.
I forgot something:
If you are dead set on buying a new car, then check around on the internet to find the dealer cost, which will tell you what they paid for the car. Then you know how much profit they are tacking onto the price, and you can use that as bargaining leverage. Basically, you have to be an asshole to get the price to where you want it. You may even have to leave the dealership, but they'll call you and ask you to come back. Also, the best time to buy a car is the end of the month, as they will be trying to move some vehicles to meet their monthly quota.
If you are dead set on buying a new car, then check around on the internet to find the dealer cost, which will tell you what they paid for the car. Then you know how much profit they are tacking onto the price, and you can use that as bargaining leverage. Basically, you have to be an asshole to get the price to where you want it. You may even have to leave the dealership, but they'll call you and ask you to come back. Also, the best time to buy a car is the end of the month, as they will be trying to move some vehicles to meet their monthly quota.
soliddragon
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First, if you haven't yet, look around online and get an idea of what promos are going on in your area. AND get a quote from a reputable online source, like... http://www.carsdirect.com
IMO:
1. Never deal on car payment
2. I deal on the price of the car FIRST after I have secured a price, I bring in the topic of tradein value.
3. Never go in when you are desperate for a car! Seriously, the most important aspect of the deal is knowing you can walk away if they are not willing to deal with you.
4. Try to secure financing before going into the dealership. Having this also gives you the upper hand, if they want to make a sale most dealers will attempt to meet or beat whatever interest rate you may have. They also may throw in perks.
IMO:
1. Never deal on car payment
2. I deal on the price of the car FIRST after I have secured a price, I bring in the topic of tradein value.
3. Never go in when you are desperate for a car! Seriously, the most important aspect of the deal is knowing you can walk away if they are not willing to deal with you.
4. Try to secure financing before going into the dealership. Having this also gives you the upper hand, if they want to make a sale most dealers will attempt to meet or beat whatever interest rate you may have. They also may throw in perks.
ontop of what soliddragon said
1. Get 2 seperate dealerships competing. When I got my car, I went into a dealership in ct, and one in se RI. One would call me with there couteroffer to my asking price. I would then call the other one and see what he could get me. This went back and forth at least 5 times. It actually got below what I was looking for originally. Once one of the dealers says no mas and buy it from the other dealership, you can try one more attempt at price reduction/added perks from the other guy.
2.
1. Get 2 seperate dealerships competing. When I got my car, I went into a dealership in ct, and one in se RI. One would call me with there couteroffer to my asking price. I would then call the other one and see what he could get me. This went back and forth at least 5 times. It actually got below what I was looking for originally. Once one of the dealers says no mas and buy it from the other dealership, you can try one more attempt at price reduction/added perks from the other guy.
2.
dberuvides
Banned
NEVER LEASE!!!!!!!!!!! Paying 40% of something over a 3-4 year period and at the end not having anything to show for is stupid in my opinion.
Also bargain the price first and THEN the payment.
Also bargain the price first and THEN the payment.
One tip I've used is to always say 'What's my final on the road price?' That way you are negotiating the final cost and there won't be any 'Oh, but that price didn't include the paperwork or tax or tags, etc etc.' Even with that, the guy tried to pull the old 'Oh but this specific car has a pinstripe and mud guards and a few other pieces of crap already installed so that will be extra.' I just said I was told X would be the on the road price if that isn't right I'm walking out. He went back to talk to a 'manager' and a few minutes later came back and agreed to go with the already quoted final price.
Check edmunds.com for their TMV price, when I was shopping I found them to be pretty dead on as to the best deal I could get. You could also pay Consumer Reports for their guide on the car you are shopping. http://www.consumerreports.org/cro/...vice-and-prices-on-buying-a-new-car/index.htm If the price you have is already at what edmund's spits out, you're doing well IMO. Your best bet for haggling would be to go to a different dealer and see if they will give you the car for an amount somewhat less than you already have quoted.
Also, I found you couldn't get a serious quote any way other than being at the dealer in person. I did the internet quote thing and I was quoted a price over a thousand dollars higher through that then I got straight off in person - at the same dealership.
Car buying is a pain in the ass, but in some ways it's almost entertaining. Dealers try all kinds of tactics. They all do the 'What can I do to put you in that car today!' BS and some go further and try to bully you 'What are worried about if I will give you the price today? Are you scared to buy today? Are you just wasting my time?' Basically don't worry about pissing them off - you are nothing more than a sale to them, but don't be obnoxious just for the sake of doing it either.
The other great part about buying a car is when they switch gears to sell you the warranty plan. (Seinfeld pretty much nailed it in his stand up routine.) "Oh that car that is so great, well it's basically going to fall apart within the next few years so you definitely need an extended warranty."
ender I hear you on buying used, but when I priced newish used cars (1-3 years old with 5-20K miles) vs. buying a new car I found I could get the new car cheaper than the price at Carmax. And cars aren't investments, they are basically depreciating assets, but your point still holds.
If you have a trade-in and a Carmax in your area hit them first to see what they'll give you. My gf got much much more (I'm talking 4-5 times more) from Carmax than the dealer would have offered in trade. And if you don't plan to pay off the car right away I'd see what rate you can get from a bank or credit union and if the dealer can't compete with that finance it there.
Check edmunds.com for their TMV price, when I was shopping I found them to be pretty dead on as to the best deal I could get. You could also pay Consumer Reports for their guide on the car you are shopping. http://www.consumerreports.org/cro/...vice-and-prices-on-buying-a-new-car/index.htm If the price you have is already at what edmund's spits out, you're doing well IMO. Your best bet for haggling would be to go to a different dealer and see if they will give you the car for an amount somewhat less than you already have quoted.
Also, I found you couldn't get a serious quote any way other than being at the dealer in person. I did the internet quote thing and I was quoted a price over a thousand dollars higher through that then I got straight off in person - at the same dealership.
Car buying is a pain in the ass, but in some ways it's almost entertaining. Dealers try all kinds of tactics. They all do the 'What can I do to put you in that car today!' BS and some go further and try to bully you 'What are worried about if I will give you the price today? Are you scared to buy today? Are you just wasting my time?' Basically don't worry about pissing them off - you are nothing more than a sale to them, but don't be obnoxious just for the sake of doing it either.
The other great part about buying a car is when they switch gears to sell you the warranty plan. (Seinfeld pretty much nailed it in his stand up routine.) "Oh that car that is so great, well it's basically going to fall apart within the next few years so you definitely need an extended warranty."
ender I hear you on buying used, but when I priced newish used cars (1-3 years old with 5-20K miles) vs. buying a new car I found I could get the new car cheaper than the price at Carmax. And cars aren't investments, they are basically depreciating assets, but your point still holds.
If you have a trade-in and a Carmax in your area hit them first to see what they'll give you. My gf got much much more (I'm talking 4-5 times more) from Carmax than the dealer would have offered in trade. And if you don't plan to pay off the car right away I'd see what rate you can get from a bank or credit union and if the dealer can't compete with that finance it there.
thanks for all the advice. they certainly have been most helpful. i researched 1-2 year old cars and they are priced at $1k to $2k less than a brand new car. i'd rather buy a new car than a used car just because i don't like to buy things that have been used. thing is, i was quoted for a 2006 honda accord ex for $20k and all other research i've done on that car says it's $21k+. i would like them to lower it to $19k and i already have spoken to 2 dealerships and they are kind of competing already. i may have talked it down to $19,500 but i'm a cheapass so i want it for less. i'm not in a hurry to get a car so if i can't get my price then i don't need to buy a car. i have never haggled for anything so i was in need of advice on how to haggle. again, thanks for all the great advice and i wouldn't mind seeing some more as it will help both lurkers on cag and myself in buying a car.
[quote name='ITDEFX']here is some advice, buy whatever new car you want, but keep it AWAY from public parking lots or else you will get it door dinged [/quote]
tell me about it! i bought a brand new civic back in 2004 to give to my mom for mother's day. not even a year later, the driver's side doors were crushed by my neighbor who was backing out of their driveway. stupid bitch hit gas instead of brake
. i'm still pissed to think about it.
[/quote]tell me about it! i bought a brand new civic back in 2004 to give to my mom for mother's day. not even a year later, the driver's side doors were crushed by my neighbor who was backing out of their driveway. stupid bitch hit gas instead of brake
. i'm still pissed to think about it.
If you're going to buy a new car, make sure to look up the invoice price on Edmunds.com. What I also did was I "pricematched" at a bunch of dealerships; I took the lowest quote I got, went to another dealership and asked to see if they would beat that price, then I jumped to another dealership, etc. Also, a lot of the larger dealerships get special incentives from the car company if they sell a certain amount of cars by the end of that month; if you go in at the end of the month, you might be lucky and they'll give you a car for a good discount.
I bought my 2006 Toyota Corolla S with a sports package for $14,000 (before taxes and fees....would have gotten it for $13,something if I didn't want the sports package). If you look at Edmunds.com, that's a little over $1000 off the INVOICE price, which is supposed to be the price that they pay the manufacturer for the cars (it's always less than that because they get incentives).
I bought my 2006 Toyota Corolla S with a sports package for $14,000 (before taxes and fees....would have gotten it for $13,something if I didn't want the sports package). If you look at Edmunds.com, that's a little over $1000 off the INVOICE price, which is supposed to be the price that they pay the manufacturer for the cars (it's always less than that because they get incentives).
mik
CAGiversary!
[quote name='wubb']One tip I've used is to always say 'What's my final on the road price?' That way you are negotiating the final cost and there won't be any 'Oh, but that price didn't include the paperwork or tax or tags, etc etc.' Even with that, the guy tried to pull the old 'Oh but this specific car has a pinstripe and mud guards and a few other pieces of crap already installed so that will be extra.' I just said I was told X would be the on the road price if that isn't right I'm walking out. He went back to talk to a 'manager' and a few minutes later came back and agreed to go with the already quoted final price.[/quote]
I just bought a new car in March, and that's exactly what I did. I spent some time researching--and asking some questions on forums for owners of that specific car (a GREAT source of info on not only the car itself, but what you can expect to negotiate), then I went in with my "out-the-door" price--after trade-in, tax, etc. I told them if I couldn't drive out for that price, then I'd walk out for nothing.
It took 90 minutes or so of the little "let me go talk to my sales manager" dance, and a few guilt trips and free soda offers, but eventually, they agreed to the price.
Just be persistent, be firm, and be willing to walk.
I just bought a new car in March, and that's exactly what I did. I spent some time researching--and asking some questions on forums for owners of that specific car (a GREAT source of info on not only the car itself, but what you can expect to negotiate), then I went in with my "out-the-door" price--after trade-in, tax, etc. I told them if I couldn't drive out for that price, then I'd walk out for nothing.
It took 90 minutes or so of the little "let me go talk to my sales manager" dance, and a few guilt trips and free soda offers, but eventually, they agreed to the price.
Just be persistent, be firm, and be willing to walk.
RegalSin2020
Banned
Just get somebody who knows cars to follow you to buy a car. Like a freind who is a machanic or studies the subject.
[quote name='dude2003']tell me about it! i bought a brand new civic back in 2004 to give to my mom for mother's day. not even a year later, the driver's side doors were crushed by my neighbor who was backing out of their driveway. stupid bitch hit gas instead of brake . i'm still pissed to think about it.[/QUOTE]
Damn, that is one hell of a great son. (Assuming you are male and with 'dude' in your board name I figure that's a safe assumption.)
CheapyD better hope CheapyMom doesn't see this thread!
. i'm still pissed to think about it.[/QUOTE]Damn, that is one hell of a great son. (Assuming you are male and with 'dude' in your board name I figure that's a safe assumption.)
CheapyD better hope CheapyMom doesn't see this thread!
[quote name='whoknows']A rule I've always been told about buying a new car: If you buy a car from a dealership make sure you can pay it off all at once.[/quote]
What the hell? Why wouldn't this apply to anywhere you are buying a car? You do realize that a dealership is going to give you a lower interest rate on a car loan on a NEW car versus a used car right?
What the hell? Why wouldn't this apply to anywhere you are buying a car? You do realize that a dealership is going to give you a lower interest rate on a car loan on a NEW car versus a used car right?
Well with a new car you could become upside-down on your loan if you make a smallish down payment and just min. monthly payments after that. Meaning you owe more on the loan than the car is worth so if it is totalled and your insurance just pays current value you wouldn't have enough to cover the balance of your car loan. That would suck.
I purchased my first car a few months ago and I'll reiterate what others have said: edmunds tmv is definately your friend and it'll work in your benefit to play dealers off against each other. In the end I ended up getting my 2004 Jetta for a few hundred below the TMV, but it probably helped that I live in an area with a large summer only population and I was buying in January.
Also, if you're looking at a used car make sure to run a carfax check on it. I was almost ready to buy one car after test driving it and haggling a good price for it, but after going home and running a carfax check I found out that it had already had 3 engine services; not exactly ideal for a 2004 model.
Also, if you're looking at a used car make sure to run a carfax check on it. I was almost ready to buy one car after test driving it and haggling a good price for it, but after going home and running a carfax check I found out that it had already had 3 engine services; not exactly ideal for a 2004 model.
If you're buying a used car, ask if it can be taken to your mechanic to be checked out. Most of the time if you're buying it at the dealership, someone will drive it there for you. It's even better if you can bring a friend who's a mechanic with you but unless it's certified preowned, you definately want to get it checked out.
[quote name='mtxbass1']What the hell? Why wouldn't this apply to anywhere you are buying a car? You do realize that a dealership is going to give you a lower interest rate on a car loan on a NEW car versus a used car right?[/QUOTE]
Obviously if you are buying a used car from someone (aka not dealership) then yeah, you'd pay in full. However, at dealerships doing payments will kill you with interest charged. Low interest is still interest.
Obviously if you are buying a used car from someone (aka not dealership) then yeah, you'd pay in full. However, at dealerships doing payments will kill you with interest charged. Low interest is still interest.
[quote name='whoknows']Obviously if you are buying a used car from someone (aka not dealership) then yeah, you'd pay in full. However, at dealerships doing payments will kill you with interest charged. Low interest is still interest.[/quote]
This is what you said earlier.
[quote name='whoknows']A rule I've always been told about buying a new car: If you buy a car from a dealership make sure you can pay it off all at once.[/quote]
Where do you mention anywhere in there about buying a used car from someone? Doing payments at a dealership on a NEW CAR will produce LOWER INTEREST than doing payments on a used car at the same dealership.
Auto loans almost always (95% of the time) have a LOWER interest rate on a new car. Most places give anywhere from 0-3% interest on a new car (obviously depends on your credit).
If you have a 0% apr, then how are you saving any money by spending cash upfront and paying in full?
This is what you said earlier.
[quote name='whoknows']A rule I've always been told about buying a new car: If you buy a car from a dealership make sure you can pay it off all at once.[/quote]
Where do you mention anywhere in there about buying a used car from someone? Doing payments at a dealership on a NEW CAR will produce LOWER INTEREST than doing payments on a used car at the same dealership.
Auto loans almost always (95% of the time) have a LOWER interest rate on a new car. Most places give anywhere from 0-3% interest on a new car (obviously depends on your credit).
If you have a 0% apr, then how are you saving any money by spending cash upfront and paying in full?
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