Car Shopping

Be sure to read Inky_Wretch's comments too. My suggestions, as he says, are not always perfect, but you never know if it might help you. Worth a try.

 

Ask OTD for car buying tips. IIRC, he used to sell cars. You should check out the Honda CRV too. It's a small SUV (about the size of the RAV4). Most of friends out here have one b/c they can't afford subarus yet.

 

I disagree. I think everyone is making better cars these days. If you can't get 100,000 miles out of your engine, you have a real lemon or you might try changing your oil.

 

When have a minute, I'll try to search for a post a made a while back that had a few tips in it.

 

I'd like one of these with the hemi engine:

 

I found what I'd posted. I'll flesh it out a little bit.

First of all, if you have a relationship with a credit union, apply for a loan there before you go in. It'll probably be the best deal, and it will give you some bargaining power when they try to give you a loan (more on that later).

Also, check sites like Edmunds.com which will tell you how much cars like the one you want are selling for.

When you go to the dealer, allow yourself all day. Don't go in at 10 if you have to be at work by 2. You will make a mistake.

The best way to buy a car is to negotiate the price of the new car first (NOT by payments, by the bottom-line price of the car). THEN, deal with the trade-in. When the salesman asks how much can you afford a month, be evasive. Don't give him a monthly payment--you're hosed then. He'll then ask you if you're willing to buy the car today for the list price plus whatever markups they've got on it. One-word answer: "No." Let him stew, then he'll ask something like "What will it take to get you to buy this car today?" Sinply say what number you're willing to pay for the car (it should be somewhat less than the number you got from Edmunds).

Don't elaborate. Use as few words as possible. Don't bring up how you need the car for work, or you don't need two cars if you buy this, or anything else. If your wife's with you, she needs to remain quiet (this would also go for Rosie's husband). ANYTHING YOU SAY CAN BE USED AGAINST YOU. If you need to discuss something, go outside--some dealers have their sales areas wired.

He'll have you initial your offer (DON'T WORRY--NOTHING'S FINAL UNTIL YOU SIGN THE SALES CONTRACT) and take the sheet to his boss. He'll be back a few minutes later with another offer. Spend a lot of time studying the offer, like you're looking for the holy grail. This will get the guy nervous. Then, reject the offer. He'll then ask for a counter offer. Come up some, and the steps will repeat.

If you don't see a number you can agree on, walk out. Just get up and start heading for the door. 90% chance you'll be followed and you'll get a better offer. Always remember that there are lots of cars out there, and the salesman's invested time in you and his boss will be pissed if he doesn't make a sale.

Finally, you'll get to a number you can agree on. At that point, you go to the finance room. When you get there, start checking things carefully. Make sure they're not putting on some add-on (lame alarm, rust-proofing, etc.) you don't need. You can almost always get it aftermarket for less if you really need it. And most extended warranties are a ripoff.

Another thing to watch for is bogus "delivery charges" added on the contract. Those are dealer charges, they're not mandated by the state. They'll tell you everyone pays them, and maybe everyone does, but you can use that to get something else from them. Keep in mind, the negotiations are still going on.You can still walk at any time. If they won't budge on the delivery charge, get them to throw in (free) an extended warranty or something. One time, at the very end, I made them give me a ball cap from the parts department, or I was going to walk. I still have that cap.

When they start running numbers (they'll have you fill out a credit check), they'll give you a payment. At that point, ask what the percentage is. Now (AND NOT BEFORE) tell them you've arranged a loan through your bank or credit union at a lower rate. Do this even if you haven't arranged the loan. They will usually meet or beat the rate they gave you before.

Any questions? PM me. GOOD LUCK

 

rallen's comment about taking a male with you is right on point. and make sure it's a white male. rosie notwithstanding, we read about this stuff in one of my law school classes: studies show clear discrimination in price, meaning that white males are almost always offered better deals than women and minorities. it's sad, but true.

 

One other thing. If you can wait until the end of the model year and eat the natural depreciation (knowing you have just bought a brand new car), clearance sales are a gas. No pun intended. Yes, the car is a year old, but it is still brand new.

 

That's awesome. You're my hero. I won't leave without a cap on my head. You explain it so well. My wife has access to a credit union through her job, but we've never opened an account. Would you suggest opening one and then immediately asking for a loan? Or would it be easier to ask for a loan through our bank?

 

My Camry has 280,000 kms on it (approx 170,00 miles) and still going strong.

I read a stat (or maybe it was a Toyota ad) that something like 90% of all Toyota's built since 1988 are still on the road.

 

Heinie, just have your wife ask what the rate is for a new car loan.

If they say it's 7 percent and the dealer offers 8, say "I can get a loan at my credit union for 7 percent."

 

Toyotas and Hondas are great cars. I just think the perception that American cars are junk is not accurate. At least any more.