Buying a new car

[kenny]

I always pay cash, never finance, and never trade in a car.
I sell my old car private party.
I'm a tightwad.

So how should I negotiate the best price?
A paper bag full of cash, a personal check, or charge it to a credit card on the first day of the billing cycle to get 58 day's free use of someone else's money?
(Of course paying it off in full on the last day that does not accrue any interest.)

Would the dealer see these as equal, or one as better for them, therefore making it possible to negotiate a lower price than with the other two?

 

[Tacori E-ring]

In my experience they hate cash buyers. I also bought my last car in cash. They make money off of financing so I wouldn't be upfront with how you plan to pay. Good luck. I really struggled negotiating. I ended up buying a year used from a dealer. I have heard end of the month is better so they can meet their quotas.

 

[PintoBean]

I did 0% financing for my Prius.

Some people use Costco auto program to get a better price.

Sometimes the internet sales dept has different promos so if you know the dealership you would like to buy from request an internet quote as well.

Don't discuss how you would purchase the car because I've also heard that cash doesn't motivate them bc then they can't make money off financing. Negotiate the best price first.

 

[the_mother_thing]

Don't discuss how you would purchase the car because I've also heard that cash doesn't motivate them bc then they can't make money off financing. Negotiate the best price first.

^^THIS^^ YOU have the power here; don't give any of it to the salesperson and their games.

Also, when I settled on exactly what car I wanted (model, year, color choices I was good with), I called the reputable make dealers within 50 miles, confirmed they had a vehicle in my specs, and asked them to give me the absolutely best price (and perks) for the car. And I let them know they were competing for my business. When they started in on the "well, it depends on trade-in and financing .." I was direct in telling them that I wasn't interested in discussing those things at this time; I just wanted the best price/perks. This was for a new car, so it was apples to apples, I ended up paying just under $7k under sticker.

I did the same 14 years ago when I bought my last new car with similar success as well.

Good luck!

 

[nala]

Google Kelly blue book true price ( or something like that) for your zip code. Then show that site to your dealers so he knows you mean business. And tell them you will not be financing with them so no need to play the multiple payments scenario games with you. If you have the time and energy and no don't care to waste their time and energy, shop around. Personally, I don't shop around Bc I don't feel great about wasting their time. They need to make a living. And if they can meet me bottom line, I don't nickel and dime them, esp if they go out of their way to provide me great customer service.

 

[monarch64]

Find out invoice price of exactly what you want; go in with cash, walk if they don't take it. They're not going to let you walk.

 

[lambskin]

Cash is always king. The business has to pay a percentage of the sale to the credit card company if you use credit so they may up the price. 0% financing allows you to spread out your money for investment. If you can charge it with a credit card that gives you flight miles/hotel points (and pay it off the first month without paying interest) you can get a few free trips. But you have to make sure your limit is high enough. Keep the Octavia at home when you negotiate.

 

[kenny]

JoCoChen: $7K under sticker? Whoa!
That had to be a very expensive car ... for which there's tons of fat to negotiate off the price.
I'm buying a lowly Honda Fit ... which for me, all things considered, is my current dream car.

I got my first price today on the Fit I want.
The Costco member price, is $1060 under MSRP ... actually better than I expected on a cheapo car.
That quote is in writing and good for 7 days.
I'll walk it around the 83 zillion Honda dealers here in Southern California.

This is going to be fun.

 

[the_mother_thing]

JoCoChen: $7K under sticker? Whoa!
That had to be a very expensive car ... for which there's tons of fat to negotiate off the price.

Nope! It was an Accord. I just don't like going dealer to dealer, playing their games, wasting my time, etc. once I make up my mind. Too many bad experiences at dealerships, including one where - when I was married and hubs was deployed at the time - the salesman asked me three different times "if I could buy a car without my husband's approval." I left, bought from his competitor, and drove back by to show him I could.

Ain't nobody got time for that.

 

[kenny]

Loading an Accord with options can easily push it near $40 K.
My Fit is less than half that.

I read everywhere car makers make little $$$ on their cheapest entry level models.
Their nicer models pay the bills.

 

[Dancing Fire]

The best deal I have negotiated was on my DD #2's new 2014 Honda Accord sport. The MSRP was like $28,600 ?? and we paid $25,200 out the door. DD #1 bought a 2015 Honda Accord for $1k under MSRP out the door.

 

[Queenie60]

I suggest finding a dealership that moves lots of inventory. I've learned that the manufacturers give incentives to the dealerships that move the most inventory. This gives them the opportunity to offer you the most discounts. I bought a new car in November and because I didn't purchase the first day I went in, continued to text and email the sales person - I was able to get about $5,000 off of the car. It was a dealership that sells a lot of cars. Good luck - doesn't matter if you're paying cash or financing, they'll cut a deal for you.

 

[the_mother_thing]

Current Honda Fit incentives: https://www.edmunds.com/honda/fit/2016/deals/ Also, www.TrueCar.com will show you the average price in your area. Membership type clubs (like Costco) may very well give you the best deal with minimal haggling though.

One other place/dealer I would suggest is auctiondirect.com if you're not buying 'brand new'. (quick search results: http://www.auctiondirectusa.com/inventory?make=Honda&model=Fit&sort=Year&direction=desc ) I bought my previous car (Infinit G35) from them in 2010, and had a very respectful, low-stress, no-haggling experience, and paid a VERY fair price for it. They will also scour the country for you to find what you want (if you have the time/patience). Sometimes they find/get 'close-to-new' models with low miles due to early lease turn-ins, which is what my G35 was, and you can save a good bit off 'new' that way.

Hope that helps!

ETA: IF time is not 'of the essence', and you want new, the best time at this point to buy is in August/September (when they want to clear the lot for the '18 models), or toward the end of December so dealers can move 2017 models before having to pay tax/insurance on them in the new year.

 

[asscherisme]

When I bought my car last year, I also paid cash. I wanted to charge the whole thing to keep my money in my bank longer and get 1% cash back on my credit card. However, the dealer had a policy that they only let you put $5,000 onto your credit card because they have to pay fees on it. I ended up putting $5000 on my credit card (that was paid in full before the due date) and writing a personal check for the rest. I was surprised they took a personal check but they did.

Anyway, I didn't let them know I was paying cash until AFTER the price was negotiated. If they think you might finance through them, they are likely to give you a better price. Then just don't finance. Also, at one point, I literally got up and started to walk out and the manager ran to catch up with me and begged me not to leave. I ended up with a great price that I was happy with.

I agree with using edmunds, truecar, and look up what incentives the manufacturer is giving as well. Make sure you know not only the retail but the invoice the dealer is paying as well.

Good luck!

 

[Tekate]

I always pay cash, never finance, and never trade in a car.
I sell my old car private party.
I'm a tightwad.

So how should I negotiate the best price?
A paper bag full of cash, a personal check, or charge it to a credit card on the first day of the billing cycle to get 58 day's free use of someone else's money?
(Of course paying it off in full on the last day that does not accrue any interest.)

Would the dealer see these as equal, or one as better for them, therefore making it possible to negotiate a lower price than with the other two?

Use the internet salesman, you should get the best price. Don't tell them you have cash. Most car dealers won't put the whole thing on your card Kenny, but you can put some on, if you get miles or cash back, I'd put as much as I could on my Costco card Costco may have a deal for a car (if you like those honking big crap vehicles or just American).. My credit union in Raleigh NC had a power buy where we bought our Explorer thru them and we got a great deal. As you said, trading in your old car is't worth it. Private seller or one of the "we buy cars".. (we made 500.00$ more dollars on a car vs what CarMax would give us).. If you are buying used (assume not but just in case) we have foud that CarMax does give a decent price and mostly they are quite reliable, but we once bought a used Audi A4 convertible that turned into a nightmare (it was a fleet car) and we sold it back to them when we moved outta Austin. Never show excitement or anger.. just a meh attitude if you get involved in negotiations and always be willing to walk. My years of experience buying cars.

Peace.

 

[Karl_K]

Don't be afraid to be rude, its a game.
Figure out a price your willing to pay and if they don't want to play then move on after say 30min.
If they play the I have to talk to my boss scam as soon as they stand up get up and start to leave also.
Go at the end of the month, its too much I have to think about it for a couple weeks then stand up.
The last car I bought from a dealer used of course, ask was $5800 and I got it out the door for $3500 with plates plus tax.
I think I stood up 5 times and they were determined not to let me leave without buying.

 

[december-fire]

JoCoChen: $7K under sticker? Whoa!
That had to be a very expensive car ... for which there's tons of fat to negotiate off the price.

Nope! It was an Accord. I just don't like going dealer to dealer, playing their games, wasting my time, etc. once I make up my mind. Too many bad experiences at dealerships, including one where - when I was married and hubs was deployed at the time - the salesman asked me three different times "if I could buy a car without my husband's approval." I left, bought from his competitor, and drove back by to show him I could.

Ain't nobody got time for that.

You have a lot of restraint given that the salesman lived long enough to ask this insulting question three times!

This guy obviously hasn't read the studies that show women are the main decision-makers when it comes to car purchases. Although that may be because the men in their lives 'let' them.

By the way, you've given lots of great suggestions.

 

[maccers]

Yes, do not tell them how you're paying though they will ask repeatedly.

Also, don't forget about getting add-ons for free - e.g. car mats, oil changes, remote start etc.

 

[december-fire]

Kenny,

Are you looking for a new car, as in 2017?

If so, JoCoJenn is right; buy those towards the end of the year when car dealers want to clear out room for the 2018s.

Would you want a new 2016?

If the features on the 2016 are what you're looking for, there might be some new ones available; or ones with very low miles. That's the case here for some makes/models; might not be true for the Honda Fit in your area.

Lots of good advice here; don't wear your Octavia (let Dancing Fire babysit it until you buy a car), look around the end of the month, and don't appear to be in a rush to buy a car, or specifically one from that particular dealership.

Can you borrow a couple of young kids?
Years ago, when mine where young, I had to buy a new car on short notice. It just so happened that I found myself in the dealership, with the kids (who were and still are wonderful, but were still kids), and was negotiating price close to closing time - and at the end of the month. I got the price I wanted and wonder how much might have been the desire to get my little angels out the door.

Have fun!

 

[maccers]

JoCoChen: $7K under sticker? Whoa!
That had to be a very expensive car ... for which there's tons of fat to negotiate off the price.

Nope! It was an Accord. I just don't like going dealer to dealer, playing their games, wasting my time, etc. once I make up my mind. Too many bad experiences at dealerships, including one where - when I was married and hubs was deployed at the time - the salesman asked me three different times "if I could buy a car without my husband's approval." I left, bought from his competitor, and drove back by to show him I could.

Ain't nobody got time for that.

Sounds like the time a salesman tried to sell me a car by saying it that model was often bought for 'the wives whose husbands are executives. The wives who do yoga and take kids to soccer'. Clearly, he thought I looked like someone who that would appeal to. What an presumptive A**HOLE. We walked out of there so fast; hubby said 'I thought you were going to explode' and, well, I almost did.

 

[the_mother_thing]

Don't be afraid to be rude, its a game.
Figure out a price your willing to pay and if they don't want to play then move on after say 30min.
If they play the I have to talk to my boss scam as soon as they stand up get up and start to leave also.
Go at the end of the month, its too much I have to think about it for a couple weeks then stand up.
The last car I bought from a dealer used of course, ask was $5800 and I got it out the door for $3500 with plates plus tax.
I think I stood up 5 times and they were determined not to let me leave without buying.

I HATE that game; it's so disrespectful of buyers' time! When I was out just looking at various models to see what they looked like, interiors, features, etc. to narrow down my decision on make/model, I respectfully but clearly made it known that I wasn't interested in sitting down and playing the game; I only wanted to perform due diligence - look and see what cars had what features. When I had a couple specific questions re: options, we went inside under the premise of "I have a booklet for you that outlines every feature/option", but he instead went to the manager with my questions and each time returned with sales pitches, "well, let's talk about feature options once we know your budget ...", etc. After two trips to the manager & 20 mins, I told him I didn't appreciate my time being wasted, that I'd google the answers, and I left. I was further put off when he also tracked me down on FB, and sent me unsolicited messages with promos, etc.

I want salespeople to make/earn a living as much as anyone else. But be respectful; that's not too much to ask, especially when you're spending $$$. And my experiences have led to me (albeit a generalization) to placing most car salespeople a rung below ambulance-chasing lawyers, which is why I buy the way I do: the 4Cs - Call, Convey requirements, Cut the bull, Cash is king.

For Kenny or anyone else who might stumble across this thread, I will share one more consideration when car buying that I learned the hard way a few years ago: the 5th 'C' - Credit. Your credit score goes down over time if you have little/no recent revolving credit history. I lived entirely debt free for several years after selling my last home. When I went to get my (current home) mortgage about 10 years ago, even with >20% down, my interest rate wasn't quite as low as it could have been because my credit score was lower due to no recent revolving credit history (bank said that it's best to have 3 revolving accts). Frustrating as that is (being penalized for not having debt), it's a reality; I've since refi'd to get a much lower rate. Anyway, my bank offers a flexible vehicle financing product where they pre-approve buyers for up to X-amount for a vehicle loan w/clear, specific loan terms depending on what age & type of vehicle you choose to buy; this gives buyers more negotiating power and eliminates the need for dealers' financing gimmicks (which really are VERY crooked). I don't like having debt either, so when I bought my Accord, I used this product from my bank, kept the loan for a few months for the sole purpose of having a third revolving credit acct/history, then paid it off. The interest rate was super low, so I don't think it cost me maybe $20-30 in interest, and I figure I recouped that anyway in the price negotiation.

Sorry to derail, Kenny; just trying to be helpful as I've 'been to the puppet show and seen a LOT of frayed strings'. A lot of people don't understand just how important their credit score/history can be until they are in a time crunch to buy something, and learn the hard way like I did.

 

[the_mother_thing]

...don't wear your Octavia

I thought about that as well.

Sounds like the time a salesman tried to sell me a car by saying it that model was often bought for 'the wives whose husbands are executives. The wives who do yoga and take kids to soccer'. Clearly, he thought I looked like someone who that would appeal to. What an presumptive A**HOLE. We walked out of there so fast; hubby said 'I thought you were going to explode' and, well, I almost did.

Ugh! What a jerk! It amazes me that there are so many chauvinistic salespeople who can't grasp that 'the little lady' just might know what the heck she wants to drive AND what (and who) she's willing to pay for it.

 

[december-fire]

maccers,

You wrote (sorry, don't know how to just select that):
"Sounds like the time a salesman tried to sell me a car by saying it that model was often bought for 'the wives whose husbands are executives. The wives who do yoga and take kids to soccer'. Clearly, he thought I looked like someone who that would appeal to. What an presumptive A**HOLE. We walked out of there so fast; hubby said 'I thought you were going to explode' and, well, I almost did."

Geez

Going off topic:
Years ago, new neighbors invited me and my then husband over for a drink.
The wife asked where I worked, I replied federal government, and she said 'Oh, you're a secretary' and turned away to talk to the guys.
I didn't say anything, but I thought to myself 'Um, no, I'm not a secretary, but whatever'.
Not a comment about secretaries. I just didn't understand why she thought being a secretary was the only possible job for a woman in the federal government.

And now - back to you, Kenny!

 

[blackprophet]

Find out invoice price of exactly what you want; go in with cash, walk if they don't take it. They're not going to let you walk.

When I bought my car last year, I also paid cash. I wanted to charge the whole thing to keep my money in my bank longer and get 1% cash back on my credit card. However, the dealer had a policy that they only let you put $5,000 onto your credit card because they have to pay fees on it. I ended up putting $5000 on my credit card (that was paid in full before the due date) and writing a personal check for the rest. I was surprised they took a personal check but they did.

Anyway, I didn't let them know I was paying cash until AFTER the price was negotiated. If they think you might finance through them, they are likely to give you a better price. Then just don't finance. Also, at one point, I literally got up and started to walk out and the manager ran to catch up with me and begged me not to leave. I ended up with a great price that I was happy with.

I agree with using edmunds, truecar, and look up what incentives the manufacturer is giving as well. Make sure you know not only the retail but the invoice the dealer is paying as well.

Good luck!

How do you find out the invoice price?

 

[DAF]

What about TrueCar.com? They can tell you the price that people are paying in your area.

In October of 2003, I bought a 2003 Buick that listed for $29,985.00. Between a $5,000.00 rebate, other incentives and $3,500.00 in GM Credit Card points, I paid $19,500.00 for it. It was a great car. I sold it in 2013 when I bought a new car and it had over 269,000 miles on it. It is still running.

Didn't do as well on the 2013: $29,950 negotiated to $28,100.00, then $500.00 competition vehicle bonus and $3,883.00 in GM points.

 

[Tekate]

Find out invoice price of exactly what you want; go in with cash, walk if they don't take it. They're not going to let you walk.

When I bought my car last year, I also paid cash. I wanted to charge the whole thing to keep my money in my bank longer and get 1% cash back on my credit card. However, the dealer had a policy that they only let you put $5,000 onto your credit card because they have to pay fees on it. I ended up putting $5000 on my credit card (that was paid in full before the due date) and writing a personal check for the rest. I was surprised they took a personal check but they did.

Anyway, I didn't let them know I was paying cash until AFTER the price was negotiated. If they think you might finance through them, they are likely to give you a better price. Then just don't finance. Also, at one point, I literally got up and started to walk out and the manager ran to catch up with me and begged me not to leave. I ended up with a great price that I was happy with.

I agree with using edmunds, truecar, and look up what incentives the manufacturer is giving as well. Make sure you know not only the retail but the invoice the dealer is paying as well.

Good luck!

How do you find out the invoice price?

I know you used to be able to get it from consumer reports magazine.

 

[LadyMCh]

JoCoChen: $7K under sticker? Whoa!
That had to be a very expensive car ... for which there's tons of fat to negotiate off the price.

Nope! It was an Accord. I just don't like going dealer to dealer, playing their games, wasting my time, etc. once I make up my mind. Too many bad experiences at dealerships, including one where - when I was married and hubs was deployed at the time - the salesman asked me three different times "if I could buy a car without my husband's approval." I left, bought from his competitor, and drove back by to show him I could.

Ain't nobody got time for that.

OMG! This happened to me! I bought a Honda Civic for my husband in 2013 a couple weeks before he came back from deployment. The salesmen kept trying to up-sell me on models and options we didn't want. I got several "Why don't you ask your husband?" And "Come back with your husband." LIKE WE HADN'T TALKED ABOUT WHAT HE WANTED!!! Ugh! Most of the the time, they couldn't even answer my specific, research-based questions about the model and options I wanted, yet they still talked to me like I was an idiot. I ended up buying his car while I was out of town visiting friends. I went to a dealership about 4 hours before my flight was due to take off, plopped my ticket down on the salesman's desk, and told him he had 2 hours to beat "x" price, get all the papers signed, and have me in the car and gone or I was heading to the airport. I walked out with his new 2013 Honda Civic for $18.5k (including tax, title, EVERYTHING) and 0.9% financing in less than 2 hours. The price on the sticker BEFORE MSRP mark-up was $20,805. I thought that was a pretty good deal.

 

[LadyMCh]

Oh, also I second truecar.com and U.S. News & World Report. I always make it a point to know more about any high dollar item that I'm buying than the salesperson does. That doesn't really work here in PS-land, but, so far, it's worked for me in brick and mortar stores. I have no problem putting dealers in a bidding war against one another. Also, the end of the month is a good time to buy if they haven't made their quotas. I think January is supposed to be part of the slow season as many people are cash poor after traveling and gifting over the holidays.

 

[tyty333]

I feel for you Kenny...we just went through this process. We had planned on paying cash but they want you to take out
a loan (with their) company so they can get a kick back and thus give you a lower price on the car. You end up paying a little
bit of interest (no early payoff as long as you keep the loan 6 months). So, when the first bill comes in we will end up paying
about $30,000 to pay the loan down and then spend the next 5 months paying the small amount that is left. Its a pain to do
this but it saved us money.

Also, make sure they have the exact car you want in stock. They cant give you as good a deal if they have to go get the car
from another dealership.

Also, like Queenie mentioned...if you can find a dealer that moves a lot of cars you might do better. Some sell fewer cars and
have to make more off them...others go for selling mass amounts making less on each car.

There are also some 2016 new cars out there if that will fit your bill...I would think they would deal a lot more on those vehicals.

You should get a substantial discount on anything the dealer added to the car.

Good luck! Prepare yourself for battle... I'm sure you'll do just fine!

 

[telephone89]

Okay, so my BIL is a managing partner at a few dealership in the city. You are getting some bad advice here lol.

A lot of times they DO have to check with their boss. The sales person does NOT make the decision whether to accept your price or not. They generally have a set guideline that they need to follow. If you are asking under that, they need permission to move forward. They can't just accept an offer for $5 on a brand new car and expect it to go through. Their finance manager would throw it out and tell them to go back to the client.

Make sure you look at whatever fees are being charged. A lot of times they will take the price off the car, but add it back into fees (delivery, financing, whatever). So you FEEL like you saved a ton of money, but are paying a very similar price.

I also just asked my BIL if a slower car lot is better or a faster car lot (inventory turnover) is better. He said without a doubt go to a slower lot. The notion that a faster turnover would give them any incentive to give you a discount is just...doesn't even make sense. This is more true for used cars/trade ins but still applicable to new cars. With used cars, they have to decide if they want to keep the car on the lot (lets say it cost $5k for the dealership to buy it either on trade in or as a used car) and potentially sell it for $10k, or if they want to send it to auction and make $3k but at least have $3k CASH that they can now spend on new inventory. So a car that has been sitting on a lot might not have anything wrong with it, but its costing the dealership money to just have it sit there. They are MUCH more likely to let it go for closer to $5k, because they would still be making money over auction. New cars is worse, because they CAN'T send them to auction, so they are just hoping someone comes to buy em. That's where you'll get some good deals.

Good luck!

eta - 2 more things.
1 - he said financing is always preferred, because whoever they stick you with for financing will give them a kickback. But still not required.
2 - he said the best price was always buy privately with a mechanical inspection. Very little markup, and as long as you have a good mechanic (and a carfax report) you're in fine hands. Especially if buying it without the bank.