Journal PotatoHead's Journal: car salesman 4
Man, I hate buying a car. Recent post topic prompted me to write this:
Want to get a car for the best price? Here is how:
Research the car you are planning to buy. Get the invoice price and expect to pay about 3 percent above that. (This is becoming less effective these days, but remains a decent indicator of the true price you should pay. Watch for dealers and their 'invoice sales' --they are manupulating the numbers.
Have some money to put down on the loan if you are going that route. Get your own loan if you can, it saves a lot of hassle at the dealership.
Be prepared to deal long and hard. If you can't do this, find somebody who will.
Learn the value of your trade in car in advance of your purchase.
At the dealership, ask them how they value your trade. Get a number from them before you select a car; otherwise, they will simply attempt to pad your trade into the price of the car, netting them a free trade.
They will fight you on this, continue until you get a number. Do not listen to the "it depends on the car you buy" line.
Having done that, go out and pick your car. Drive a couple of them, if you want. If you want to be mean, plan ahead with your wife or a friend. No matter what car you bring, they say they love it, but the color is wrong. This gives you a nice out to test drive a car hard, then choose another one!
Having nailed down the car, it is time to discuss the terms of the purchase. Most dealerships will have you work through a proxy; namely, the bozo you are talking to. Ideally, you make this process as hard as possible. When they go away to talk with the "man in charge", you go away also. Walk to the other end of the lot, grabbing your free coffee on the way, and go look at other cars and talk to people each time. They will have to come find you. This cuts down the number of times they will try this.
When they ask you what you think the car is worth, you need to low ball the price below invoice. (I suggest 3 percent below actually.) Continue working hard to keep your price low. Ask them to justify their price. Do not let them know you have looked at invoice prices. Just keep working hard to marginalize their value proposition until they either show the invoice, or agree to a price that is acceptable.
Do not ever pay MSRP. That is the suggested price for suckers. It is wise to avoid cars with branded option packages. Nothing but price padding in there. For example, the "Eddie Bauer" edition of a given Ford car will be almost $10K higher than the other model with only a few thousand in additional options. --Stay away.
Once you nail the price and get written confirmation of this, you are set to deal again in financing, unless you have your own loan.
By the way, they will try and get you to sign a committment to buy. "If we meet your price, you will buy the car right?" No, an agreement on price is only half of the deal. Don't tell them that, simple continue to reaffirm your desire to agree on price. Imply that you will buy, but never actually say you will buy because you might not, depending on how they will try and hose you on the back end of the deal.
Do not reveal your amount down early. The price of the car and the terms of the loan are two seperate items. Keep that clear in your mind.
Once price is firmly established, you can begin to discuss loan terms. It is in your best interests to have as much down as possible. Your cash plus your trade count as a down payment.
Do not sign the first contract they hand you. Dealerships make a lot of money on the sale price; failing that, they make it on shitty contracts.
Examine the first contract closely. Ask for a pen and remove all insurance charges, undercoating (because it is already on the damn car.) ad charges, and anything else that adds to the price of the car. Look at the total loan amount. That is what you will pay for the car, so you have to do all the dealing again!
Continue with this process until you have a contract that closely reflects the price you agreed to the first time.
Good luck, this proces can take a very long time, but is worth it.
Never EVER get a loan from the car dealer. (Score:2)
Re:Never EVER get a loan from the car dealer. (Score:2)
Would have done the bank thing, but my credit was an issue. (long story on that one)
The reality is that it depends. A dealership can get you a deal, if you are prepared to work hard to get one.
Reminds me of a movie I saw (Score:1)
Anyhow, I've never bought a new car, and I'm not planning to.
Got a little 1996 Daewoo which will do nicely until oil prices go up too high for me to afford filling it with petrol (or gas, as "USians" call it).
Got it second-hand, at AUD2,000 less than listed market value
Re:Reminds me of a movie I saw (Score:2)
I have gone the used car route as well. Currently driving a 90 Toyota. Can't beat it for dollars per mile.
Getting that car was a lot of fun, but in the end the whole deal was just too much money. Glad it's over. I must admit though, I did have one hell of a time keeping those bozos busy!