[quote name='Nineswords']First off - Don't buy new. As soon as you drive it off the lot, it deprecates. Meaning, if you buy it from the dealer, drive it home, attempt to sell it the next day, you will not get even close to what you paid for it.
Don't trade in your vehicle, attempt to sell it outright first. Typically you will get more if you sell to a private party, then if you traded it in.
If you do decide to trade it in, negotiate the price of the vehicle you want FIRST. (See next paragraph) Don't mention you have a trade in, if you are asked, either avoid the question or say you have it up for sale. Don't go to the dealership with your car that is going to be used for trade. Have a friend drive you or use a different vehicle.
Negotiate the price of the vehicle, but don't mention trade in. Get the dealer to the point of a firm price and sleep on it, think about it. Don't fall for.. "Well, we had three other people look at this vehicle today." There are other vehicles around....do some research on the vehicle you will like to buy. If it's used, look it up with Kelly Blue Book (
www.kbb.com) and
www.Edmunds.com. Dealers use them both, if they tell you they don't, then they are lying. Go to other car lots to see if they have simlar vehicles and what they are selling it for. Call used car lots to see how much they would sell the vehicle you want, see what they would give in trade. Take the difference from trade to what they would sell it for on their lot. Arm yourself with information.....and use it to get the price you want.
After you have a firm price and almost ready to sign.....ask what you can get for your car. Don't let the dealer change the firm price. It's the firm price less the trade-in. Don't except big bucks for your trade-in. If you still owe on it, and it's a reasonable amount left on your loan, say that you will take what you owe on your vehicle so you have to roll your old loan into your new one. Why pay on a vehicle you don't own anymore. Inflate your loan amount a little to get a better trade-in. Trade-in's typically get shipped to auction...go to the web sites above to get the auction amount of your vehicle...again arm yourself with information.
Financing....check with your bank and/or credit union to see what rate they can offer you. Check with they dealer's financing to see if they can beat that rate. You may be able to talk a better deal if you take the dealers financing because they are "double-dipping". They earn margin on the sale of the vehicle, plus earning interest on the sale when you finance with them.
Watch for strange charges on the bill of sale....Question items that don't make sense, why would you pay for an inspection fee, or a title search. They can't sell a vehicle legally if it doesn't have a clear title. Why should you pay for them to check on clear title.
Take the car for a test drive by yourself or with a friend or family member, get their opinion. If it's used, take it to a trusted mechanic to have them look at it, get their opinion.
Remember everything is negotable...time is on your side, don't let them dictate when you should make the deal...if they are appling too much pressure.....don't be afraid to sleep on it, ask questions, take your time. Don't sign day one, wait.....don't cave to the pressure...there are millions of vehicles out there, if they one you wanted is gone the next day...then it wasn't meant to be.
One big thing....car buying is all about relationships. Don't be an ass, be respectful and take your time. Building a good relationship might score you a better deal too.
Good Luck.[/quote]
I'm with you on everything used with the caveat being not to buy new. Still, well written and pretty much exactly what I said on not getting suckered into extra stipulations in the contract that you do not need, just worded better and without my anecdote. This post should be thrown into a FAQ of some sort on car buying. Really really well done. I commend you sir