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Old 06-20-2012, 06:58 PM   #11
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Line up financing with your own bank or better yet, credit union. Decide how much you want to spend on a car. Don't tell them about your financing until you've agreed on a price. Drive all the cars in the lot. Don't get any extended warranty. I never take the car the day I see it, no matter how much I like it.
I like looking at cars, but the sales people can be horrible.

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Old 06-20-2012, 07:02 PM   #12
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Originally Posted by landshark
I just do the research all online, find the car I want at a price that is right, walk in, tell the salesman I want that one. And then drive it home. If I need to be talking and haggling it down, either I don't want it bad enough, or I am looking at cars out of my budget range (typically the later). You need to remember, while you want a deal, the salesman's livelihood is completely based upon his selling cars, and his selling cars for a price he can keep his job with.

With my wife's car we looked at several makes, once she settled on a make and model, we found a dealer where we could also get service, Price was in our range (Actually just out of as we decided last minute we wanted the model with EVERY option available, so had to add $2,000, big deal) Salesman was also a past homebrewer.

Forgot. When I have a trade I will always have a price in mind, THIS PRICE. then do a give and take. Say you have a trade you value at $21,000, when they come back at $20,500, it's a mute point to haggle over the $500. You can, but the point is less. Now if the come back at $18,000. Then you can argue. But also be sure you are reasonable in your amount. I traded a 2500 Dodge 4x4 Diesel the NADA and KBB valued at $24,000. However, I knew we had rolled it and it had been repaired (about the same amount of $$ in damage), so I when they offered $21,500, I was happy with that.
You are a salesman's dream. He does no effort for the sale and you way over pay. NEVER pay sticker price!! They have such a markup and they also get holdbacks from the manufacturer if they sell a certain quota, and they pay quite a bit less than what they say they do. They will NOT sell a car for a loss, just get it down as far as you can, they will cry mercy when they have to. And still make a profit! Just not as much. Trust me, I went through this a year ago when I bought my jeep, and I had a jeep salesman on a forum helping me with the ends and outs of how it works. It did give me a leg up knowing some inside info.
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Old 06-20-2012, 07:23 PM   #13
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You are a salesman's dream. He does no effort for the sale and you way over pay. NEVER pay sticker price!! They have such a markup and they also get holdbacks from the manufacturer if they sell a certain quota, and they pay quite a bit less than what they say they do. They will NOT sell a car for a loss, just get it down as far as you can, they will cry mercy when they have to. And still make a profit! Just not as much. Trust me, I went through this a year ago when I bought my jeep, and I had a jeep salesman on a forum helping me with the ends and outs of how it works. It did give me a leg up knowing some inside info.
I may be his dream, But I look at cars I want and at prices I can afford and what I am willing to spend I don't get bent out of shape over $2000 over the coarse of 4-5 year loan. I've bought 3 cars from dealers in the last 4 years, 2 of those were brand new. I do however look at all the dealers around town and look for what I want. If they have what I want and the price I am willing to pay for that. I get it. With new vehicles most of the prices are all in the same ballpark if you have it selected down to model and options.

Another thing I look at when buying a vehicle is service department. Are they fair and honest. I bought my 535xi from a Chevy dealer just on the reason their service department had been awesome with my wife's old Cavalier. And they had what I was wanting on their used car lot. I bought the extended warranty through them so if any issues came up, just bring it to them and problem is fixed and they deal w/ the local BMW dealer, who I don't like. If you don't like the dealer, that is a reason to walk. But people being bent out of shape over $2,000 when spending $40,000+ just doesn't make sense to me.

Also, as stated by SZ, having a loan lined up is an excellent idea and is highly recommended. However, if for some reason you cannot get financed, typically the dealers will have access to loan companies who are more willing to lend to anyone.

Another thing to consider, depending how may miles she drives in a year. Is leasing the car. Depends on how many miles she drives though.
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Old 06-20-2012, 07:39 PM   #14
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I've had the same car since '03 so I don't know much about buying a car, but my neighbor told me about his experience...

He was able to talk with multiple dealerships over email instead of driving to the lots and talking directly with them. I think he went to the car lots in the first place to meet a salesperson, but after that he was able to do things at home on his computer. There's a lot less pressure this way, you can easily research on the internet, and you can get things in writing before you make the decision. He would email one dealer and say "I can get the car for X, what can you do?" They would go lower and he would email the other dealer until he got a good deal.

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Old 06-20-2012, 07:54 PM   #15
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I am brutal with salespeople but I walk away happy every time. I can't disagree with landshark more but I need people like him out there paying sticker so the salesperson will sell to me at a loss. I've only ever bought used because there's a lot more flexibility in price and negotiation and I believe a good used car is better value in many cases than a new car (but not always). New cars only have wiggle room in the fees and mark up (which there is a lot) but there's still room to negotiate and play dealerships against each other.

Here's a few pointers:

Research as much as you can. Thanks to the interwebz you have access to an incredible amount of information. Research the car invoice price (do not believe you have to pay more than invoice, there is still profit made in selling at or below invoice) but also research the dealership. Look on those review sites like yelp. If there's a lot of reviews saying the dealership was shady, stay away. That means you're probably not getting honest negotiation out of them. Don't even waste your time with them. If the sales people are shady it very likely goes to the top and is encouraged. There's crafty sales technique and there's dishonesty.

Don't let them take anything from you until you are ready to sign a contract. Don't let them have the keys to your car unless you are going with the keys. Definitely do not let them hold your license or make a copy of it. Often times dealers will use it to run your credit (illegally) or at a minimum keep the copy to send you junk mail. Legally you do not have to turn your license over to them. After all, if you're going to drive a car, why wouldn't you need your license? Also, do not let them run a credit report while you test drive. Why let them run the report before you know you're even buying from them?

Come to the dealership with a prepared, approved finance offer. So do some research around the intertubes for good deals. Check local banks and credit unions. Get approved for a deal and know how to get it closed right away. Some banks will give you a check, others will have processes for the dealership to fix. However, don't turn away a good deal from the dealership. Sometimes they will offer you a better deal, especially if you have great credit.

Don't negotiate the price based on a monthly payment. The dealership will just figure out how to max out your monthly payment with mark ups, fees and interest. It's almost impossible to negotiate once they have showed you they are meeting your payment requirements. Instead, negotiate total price with everything included. Since you know you have your financing set up, you know what monthly payments you are approved for and how much car you can afford within it.

Be mysterious about your financing options. They will ask you if you're going to finance with them. Tell them you aren't sure. The dealership gets a cut of the fees and/or interest to sell you a loan, so they can give a little on price if they are making it up in finance charges. So if you get them to negotiate with the idea they are financing you then you can get more flexibility out of them. By being mysterious you can also sometimes force them to give you a superior financing offer. If their offer sucks then you can always say you decided to finance with your bank.

Don't be afraid to use your credit card to finance a down payment, if you have to put one down. The reason you might do this is for the cash back option. A $2000 down payment on your card at 1% cash back is a nice $20 batch of homebrew. Let the dealership buy you a batch of homebrew. If you have the card and the ability to do it, pay with the card instead of check or cash. You can also split and put some on a card and some by check or cash. Dealerships like to say they can only put so much on a credit card but their service agreement with visa and mastercard says they must accept all valid charges regardless of the amount. The reason why they refuse to let you charge more is because it costs them more. So you can threaten to walk over it, if you want, and get your way. You could tell them to run the card several times to get to the full amount if they are just positive they can't go higher.

Another fun tactic during price negotiations is to turn their useless concessions against them. When they offer to throw in options for free, ask how much it would cost to have the option installed at a later date. Then tell them to keep the option and deduct that amount off the price, since they already agreed to give you a concession of that value. I usually wait to spring it on them until the end when I think we've reached a middle ground, just to get that last chip off the price.

Importantly, do not be afraid to walk. Ever. No matter how far in the process you go.

Do some research of comparable vehicles and how much they are selling for in your area. In addition to playing off dealerships of the same manufacturer against each other, you can also play off similar cars that sell for less. If you're buying an accord, what does a camry cost? What does a similar ford or chevy run for? hyundai? You probably can't get prices down on a BMW by saying a similar kia is much cheaper but cars in the similar class definitely play against each other. Get offers on a ford and take it to a chevy dealership. You can just up a little in quality. Take that accord you're after. Go find invoice on a taurus or whatever ford sells in the same market as an accord. Look at the difference in local sticker prices between the ford and accord. Take the difference and add it to the ford invoice. Is it more or less than the accord invoice? If it's less or equal, then go to the honda dealership and point out that ford dealership X gave you an offer at invoice but you would rather buy a honda and you know the honda sells for so much more so you could buy the honda at ford's offer plus the difference in sticker. Any argument that the honda is a superior car is justified by the difference you've already added to ford's alleged offer.

Also, do not be afraid to deal with the internet sales manager through email rather than the salespeople in person.

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Old 06-20-2012, 07:58 PM   #16
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I may be his dream, But I look at cars I want and at prices I can afford and what I am willing to spend I don't get bent out of shape over $2000 over the coarse of 4-5 year loan. I've bought 3 cars from dealers in the last 4 years, 2 of those were brand new. I do however look at all the dealers around town and look for what I want. If they have what I want and the price I am willing to pay for that. I get it. With new vehicles most of the prices are all in the same ballpark if you have it selected down to model and options.
You don't see how a 5% reduction in price (plus the interest on that $2,000) is worth a little research and negotiation?
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Old 06-20-2012, 08:16 PM   #17
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I could care less if the dealership doesn't make money on the sale. I let them worry about it. I assume they aren't going to do business that puts them out of business.

Just remember it's SO easy to walk away! Once you are willing to do that over a car prices, you have all the control.

Added costs to the final contract? No thanks.

Remember that they might give you a good deal on trade-in, but they are making it up in price... Or rate... Or term... Dealers have all several methods of making the numbers work in their favor. A lot of people don't figure out that getting a guaranteed trade-in price only makes one of the other factors go up. The dealers aren't actually advertising the trade-in value because they care so much about you. They know that it gets people on their lot to begin with, then they can (often) have their with the pricing to make the customer buy the car.

Don't be afraid to haggle any of the rate, term, price, trade. Best is to get financing outside and just haggle price.

And if anyone refuses to return my keys, I have a cell phone which I can use to call the police to get them back. At that point they probably understand that I'm not buying a car from them and they can give up. There are WAY too many dealerships in driving distance, even in my neck of the woods, for me to want to do business with jerks like that.

Dealers today understand that there are many ways for customers to get the pricing on cars. Not like the good old days when they could tell you anything they wanted. Go get that information and use it to your advantage. For me, I buy used cars and that's even riskier, because you never know WHAT the heck has happened to that car and you are rolling the dice on repairs. But that's the financial situation I'm in. I can fix most things for less than someone who has to have it done by a mechanic.

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Old 06-20-2012, 08:17 PM   #18
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definitely do not let them do a credit check on you while you are test driving a vehicle. I had a dealership do this to me once when I was driving without my permission. I did not like the salesman's attitude so I walked away. next weekend I was at a different dealership at apply for financing on another vehicle that cost 5000 dollars less , but got turned down by the bank that had apparently approved me the week earlier. they told me that every time you have a credit check done whether you are approved for the financing or not it is a negative mark on your credit rating. so because they did that credit report without my permission my credit rating went down just enough to get me declined

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Old 06-20-2012, 08:22 PM   #19
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definitely do not let them do a credit check on you while you are test driving a vehicle. I had a dealership do this to me once when I was driving without my permission. I was approved for financing on the vehicle but I did not like the salesman's attitude so I walked away. next weekend I was at a different dealership at apply for financing on another vehicle that cost 5000 dollars less , but got turned down by the bank that had approved me the week earlier. they told me that every time you have a credit check done whether you are approved for the financing or not it is a negative mark on your credit rating. so because they did that credit report without my permission my credit rating went down just enough to get me declined
while its true you get a mark for every hard inquiry on our report, it's not THAT much of a hit.

and creditors generally take into account that a person is going to be shopping around for a loan and so there are naturally will be a lot of recent hard inquires. you must have been right on the edge in terms of score.

but if they're pulling hard inquires on you without your authorization, that's BS
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Old 06-20-2012, 08:29 PM   #20
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You don't see how a 5% reduction in price (plus the interest on that $2,000) is worth a little research and negotiation?
Never worried about it. And with the low interest rates that dealers give, it's typically mute anyways. However, like I said I'll research vehicles for months when I know I'm going to buy, and will typically find what I want at the lowest cost via online searching. Then I buy based off what I want and what I want to pay. If I know a dealer is overpriced on their cars in their lot. I don't even step foot on their lot.

However, I will pay an extra 500 to 1000 just if the dealer is a local dealer that I will be able to trust 2 years down the road when my vehicle needs serviced.

The deal is, be sure to feel comfortable at the dealer. If the dealer acts like a sleeze. he is a sleeze.
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