new car buying advice

I'd advise against buying new altogether. A car a few years old is such a better value. I do understand that some folks just like new cars, so....

One of the first things they will do is try to put your butt in the seat. They know that once you sit in it, it's yours. Fight that off until you hear a number you like. It keeps emotions out of the negotiation.

Next, buy at the end of the month. Look now, negotiate now, but don't sign anything until the last week of the month. That's usually when their sales competitions end and they are looking to make a deal. String the salesman along, and towards the end of the month he'll be calling you to make a deal.

You should be paying less than sticker. You should not pay destination fees or other things like rust proofing, stain blocker, etc. They will charge you several hundreds of dollars for that same can of scotchguard you can buy for $5.

I'm sure there are people on this board who are car salesmen who can add to this.

gallandof said:

So im buying a new car soon (hopefully within the month) and was looking for advice. Should I be expecting to pay higher than sticker? or does price usually go down from sticker. Also is there anything I should be careful of as far as sales pitches etc...

if anyone is interested, im getting a 2012 mustang gt with the brembo package in Grabber blue.

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I would not buy a new car, personally. I sold cars for 4 years and I have seen people take a beating no matter what they have bought at some point (as far as new cars go). I would wait for a pre-owned one with about 20-30k miles on it. Since you are not buying immediatly you would have time to shop around.


BUT...


Seeing as how you are looking for advice ona NEW car I'll give you my input as I have experience in this area as an ex-car sales professional.

This will seem like a hassle but it will save you a lot of money. I have seen it done effectivly many times.


*Keep in mind that if the dealer knows you are going to take their quote and go shopping they will be very reluctant to give you a lower quote*

Just remember to keep doing your footwork and be patient. Don't be pressured. You can always walk away*

1. If the car you are buying is in high demand-meaning you cannot find it at more than two dealerships in your area, you will most likley pay sticker for it.

2. If it is not as rare as the dealer will make it out to seem, then you can shop at different dealers (try at least 3) for the best price. Get as close to the invoice price as you can at the first place. Get it in writing, then go to the next dealer. Then negotiate a price with them using the price quoted to you from the previous dealer.

3.Get as close to invoice as you can, usually they will at least match it and try to use some other kind of incentive (free oil changes for a couple of years maybe for example).

4. Go to the third dealer and do the same. By this time they should have a nice quote for you since you have two from competing dealers in the area.

5. Call the first dealer you when to and ask them if they can do better. If they can then start getting ready to pull the trigger.

*REMEMBER TO LOOK UP ALL INCENTIVES ONLINE FIRST!* Don't forget to get all the incentives you qualify for ie. Rebates for owner loyalty, rebates for college grad, and whatever else they have out there. If this is some-what of a niche car then there may not be as much incentives but always look anyway.

*KNOW YOUR CREDIT SCORE* Don't let them screw you on interest rates. Find out through your bank or credit union what you can get as far as interest rates. Under 4% is common nowadays if you good enough credit.

*BUY AT THE END OF THE MONTH* Yes it works, its simple why it does. They don't want to pay anymore insurance or floor costs to the manufacturer for having the car on their lot, and the need the numbers (in the brand new car situation).

This is also when a sales consultant will be more likley to go to bat for you in the tower/snake pit/desk when trying to get their managers to pencil the deal. The sales consultant is hunting for bounus money a lot harder by this time, their comissions depend on it and its all about volume in the last 4 or 5 days of the month. Many dealers pay bonuses retro active to the beginning of the month for certain sales goals. That ONE deal can be the difference in a $4,000 month or a $6,000 month for your consultant. Believe that they will be doing everything they can to sell that car for dirt cheap to you if they can, because this is when they make money from the manufactuere instead of from your pocket.

Be nice when negotiating. You don't have to be a dick, just stand your ground and be a gentleman. I always appreciated a man or woman who could negotiate but were respectful. Nothing wrong with trying to get the best deal on your new car. This is usually the second biggest financial decision next to buying a house for most people.

I hope this helps. I hope it all works out for you! Good luck and enjoy your car!

I currently sell new fords and a mustang GT is not hard to find. If it doesn't have exactly what you want they are easy to get through a simple dealer trade. If you were looking for the Cobra (we currently have 4 on our lot), I would say expect to pay sticker.

Just remember there are things that the dealer has no control over and can not negotiate:
1. Taxes
2. Destination and delivery fees
3. License and registration
4. Invoice

Car buying doesn't have to be hard. If you let your salesman know what you want it can actually be really easy. And it really isn't worth it to go to 2 or 3 dealerships. Everyone pays the same for the car and can sell it for the same amount. Sure 1 dealer might sell it for $100 less but is all the extra work worth the $1 a month in your payment.

Plus when you waste a salesman's time it is just like kicking them in the balls when you go buy the same car from someone else because they just spent all that time working for you for free. If they are an ass, then it doesn't matter, but if you have a good, professional salesman just do the right thing and don't waste his time.

Watch the crap they add on when you're signing the paperwork. They'll try to add on extra warranties and service plans and all sorts of things. They look for you to be signing and not reading! Read everything and ask if it doesn't make sense.

This one is more if you're financing it there. Don't sign anything that they haven't signed as well! Someone shady could change something and you don't have a copy with their signature to use in your defense.

One that worked for a friend of my, Don't pay for options you don't want. Be firm about telling them to take it off if they're trying to charge you for it. They'll drop the charge! This was over the factory alarm system. They wanted to add on something like $1200 for it on a new Ford Ranger. The finally dropped the charge.

And as mentioned before, end of the week is good. End of the month is even better. Always have quotas to make and bonuses to hit.

new car buying advice:

don't

1. find the invoice price online for your car and packages.
keep to your guns ... you want sticker price.

2. dont let them confuse you with .. monthly payments scam!!!! talk about your out the door price!!!

3. go to at least 3 dealers and have them fight for your business!!!

4. go to your bank, credit union, and online financial service.. get a good quote first. what is your best interest rate. after you finish talking about price. tell them you have x interest rate form Y bank. can you beat it? NOT MATCH, but BEAT!!

5. there are 3 things they make money on. only talk about one part at a time. they will try to confuse you with cross talk. get the best deal you can on eat part; by talking about only 1 part at a time!
Price on Car
interest rate on loan
trade in on your old car.

6. remember you dont have to give them more than 1 part of the sale.. they have to earn each part from you!!!
example:
purchase car from dealer
loan from bank of you choice
sell your car yourself for better return on value!

dan330 said:

6. remember you dont have to give them more than 1 part of the sale.. they have to earn each part from you!!!
example:
purchase car from dealer
loan from bank of you choice
sell your car yourself for better return on value!

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Also remember when trading in a car you are taxed on purchase price minus trade in value. If you are in an area with a high sales tax this can make a BIG difference. Factor that difference in, plus not having to deal with selling it on your own and it is worth it sometimes to get a little less money than selling it yourself

Honestly, I shopped for a car salesperson, before I even decided on the car.

The one I found, quoted 4,000 dollars less then everyone in a 100 mile radius, over the internet, and even special ordered the car from the factory, threw in fog lights, trunk liner, and free extended warranty. I had to wait for 3 more weeks for the car to be shipped to the dealer, when I showed up, they knocked off 500 more dollars, because they got a quote for an other dealer that week for a cheaper price.

I would shop for a car salesman, take them for a test drive, find one that wants you to be happy and buy the car from them.

RiverOfIce said:

Honestly, I shopped for a car salesperson, before I even decided on the car.

The one I found, quoted 4,000 dollars less then everyone in a 100 mile radius, over the internet, and even special ordered the car from the factory, threw in fog lights, trunk liner, and free extended warranty. I had to wait for 3 more weeks for the car to be shipped to the dealer, when I showed up, they knocked off 500 more dollars, because they got a quote for an other dealer that week for a cheaper price.

I would shop for a car salesman, take them for a test drive, find one that wants you to be happy and buy the car from them.

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Best car buying advice I have ever heard on these forums, or anywhere online frankly.

BTW, anyone near Seattle give me a shot if you want a new Ford or Hyundai, or any used car. Just PM me and I'll hook you up!

I have a question about buying used (with 20-30k miles or so). You guys are still talking about buying from a dealer, right? I'm not seeing these cars selling for THAT much less than a new car.

lordofthereef said:

I have a question about buying used (with 20-30k miles or so). You guys are still talking about buying from a dealer, right? I'm not seeing these cars selling for THAT much less than a new car.

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That is going to depend a lot on the type of car. If you are looking at a car that is hard to find or supply is running short (ie, toyota and honda right now) then used car prices are going to go up due to supply and demand. Sometimes there is little to no benefit of buying used, sometimes there is a huge benefit, just depends on the model you are looking for

gallandof said:

awesome advice just what I'm looking for. one thing i have a question on in your post. you mention rarity, is that including options or just based off the base model. in my current situation I can find tons of the base car, but havent found any with the options i want.

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If the one with the options you want is a popular car, you might have to pay the sticker price for it. Here is an example of when I sold Hyundais:

The Hyundai Sonata just hit (2011 body style) and it was a VERY popular car. We had a whole bunch of the base models. But what people wanted were the SE model and the Limited model. The SE model was the most popular because it has 2 more HP than the other ones, it had nicer rims and options, and a dual exhaust. It was very very nice looking.

I had several customers coming in for them the day we would get them off the truck. And every single one of them was sold at sticker price. Every single one of them. That is how popular this car was. If somebody wanted one. They paid full price.

I have had people walk away from me angry because I could not give them any discount. They would go to otehr places and the same thing would happen. There just were not enough of the SE models to find to get that discount that they could get on the GLS (base model).

So: If the car you want is in the same situation as the mentioned Sonata, you may have a harder time getting a discounted price.

lordofthereef said:

I have a question about buying used (with 20-30k miles or so). You guys are still talking about buying from a dealer, right? I'm not seeing these cars selling for THAT much less than a new car.

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Brand new cars depreciate a lot once they are registered to somebody. If the price is not far from that of a new one like it, then they are asking too much. That used car price can be negotiated a lot.

Sometimes if you find a Demo (one that has been driven by a manager or salesperson) you can get that one for a discounted price, and still have full warranty on it. The car will have a few thousand miles on it. BUt can be worth it to buy.

As for shopping around. If you feel you can do better than go shopping. Just because you spend a lot of time with a salesperson does not mean you have to buy from them. When it comes down to it, it is about your hard earned money.

They may spend a lot of time with you and not get a sale that day from you, but we all know that going into the business, or after being in the business for a week.

Just remember how hard you work for your money.

dan330 said:

1. find the invoice price online for your car and packages.
keep to your guns ... you want sticker price.

2. dont let them confuse you with .. monthly payments scam!!!! talk about your out the door price!!!

3. go to at least 3 dealers and have them fight for your business!!!

4. go to your bank, credit union, and online financial service.. get a good quote first. what is your best interest rate. after you finish talking about price. tell them you have x interest rate form Y bank. can you beat it? NOT MATCH, but BEAT!!

5. there are 3 things they make money on. only talk about one part at a time. they will try to confuse you with cross talk. get the best deal you can on eat part; by talking about only 1 part at a time!
Price on Car
interest rate on loan
trade in on your old car.

6. remember you dont have to give them more than 1 part of the sale.. they have to earn each part from you!!!
example:
purchase car from dealer
loan from bank of you choice
sell your car yourself for better return on value!

Click to expand...

Good advice-- As for #6 I understand what you are saying, and many of my previous clients have felt the same way, but what they have found is that selling their cars by themselves is very time consuming and a huge hassle a lot of the time. When trading in their cars they find that it is better to take a little loss on how much they will get for it rather than take a loss on their time and efforts dealing with people coming and driving their car.

If you have the time then go for it, if not consider trading in.

Most people have just traded their cars in that I have dealt with, unless they had somebody lined up to buy the car already.

I agree about test driving the salesman. I once had one who ignored my budget & requirements and said 'This is the car I'm going to sell you' - needless to say he didn't.

gallandof said:

So im buying a new car soon (hopefully within the month) and was looking for advice. Should I be expecting to pay higher than sticker? or does price usually go down from sticker. Also is there anything I should be careful of as far as sales pitches etc...

if anyone is interested, im getting a 2012 mustang gt with the brembo package in Grabber blue.

Click to expand...

Hassle-free car-buying experience from a nationwide network of certified dealers. - TrueCar A LOT of great advice on here so I don't have anything else to add except this site, it might help.
I'm never buying new again. Ever.

Davdi said:

I agree about test driving the salesman. I once had one who ignored my budget & requirements and said 'This is the car I'm going to sell you' - needless to say he didn't.

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The sad thing is that kind of pushy attitude has worked enough times for that salesman that he dared to try it on you.

I'm the kind of buyer who already has a make, model and trim level in mind before walking into the showroom. I guess that makes me an unusual buyer, but it works for me. Then again from my POV, the things that I see other car buyers hold up as being really important makes no sense to me. Cars, and especially new cars aren't "commodity items", so why do people treat them like they are? Another baffling thing is when car shoppers use generalized statistics that aren't guaranteed to apply to the car that they might get. What's the point? Just because other people bought brand x and have opinions doesn't mean they have the credentials to make their opinions worth anything.

I guess that what I'm saying can be boiled down to saying that there's no real substitute for becoming your own expert when it comes to major capital purchases. Your home and your car are usually the two most costly things that you'll ever buy. It seems natural to invest in becoming enough of an expert on those topics as you can spare, because you're going to have to live with those decisions for a long time.

lordofthereef said:

I have a question about buying used (with 20-30k miles or so). You guys are still talking about buying from a dealer, right? I'm not seeing these cars selling for THAT much less than a new car.

Click to expand...

No, go on Craigslist to buy used cars. Lurk around a little, learn how the used car ecosystem works, see what kind of prices things are listed at, and eventually make an offer.

By avoiding the stealership you cut out the middleman of used auto sales and save yourself a ton of cash

You can surely negotiate on the sticker price; it solely depends on the negotiating power of the user. Other than this, there are a number of things that you need to keep in mind while selecting your car. Such as engine capacity, make, model and above all inquire about the reputation of the dealer from whom you are going to purchase your car. In fact, when I purchased my first car from automotix.net, I carried a long list of concerns that I was suppose to satisfy before making final deal.

runekey said:

No, go on Craigslist to buy used cars. Lurk around a little, learn how the used car ecosystem works, see what kind of prices things are listed at, and eventually make an offer.

By avoiding the stealership you cut out the middleman of used auto sales and save yourself a ton of cash

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Unfortunately, now that BMW and Tesla are doing this, several states in the US (mine included) are using the government to block this and force you to buy from dealerships.

dibblebill said:

Unfortunately, now that BMW and Tesla are doing this, several states in the US (mine included) are using the government to block this and force you to buy from dealerships.

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Since when? What are BMW and Tesla doing? I've never heard of that before at all. I grew up in NC, and I know just a few weeks ago an old classmate just sold a car through a private sale. I think you might be misinformed.

chrlswltrs said:

Since when? What are BMW and Tesla doing? I've never heard of that before at all. I grew up in NC, and I know just a few weeks ago an old classmate just sold a car through a private sale. I think you might be misinformed.

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BMW and Tesla offered online auto sales direct from manufacturer- NC lawmakers are making that illegal for new cars. You may be able to sell used cars under the new law, but manufacturers will no longer be allowed to sell directly to you without a dealership. I see this going further and later being tweaked to force you to buy used cars via dealerships, as well.

Tesla and the Red-State Blues | Cato @ Liberty
Tesla takes on America's car dealers - May. 20, 2013

"You can't sell cars online, its not fair" is a very slippery slope that I see becoming "Its not fair that you can sell cars to friends without dealerships"

EDIT: The local paper, "Abuse and Disturber"
http://www.newsobserver.com/2013/05/09/2883125/law-would-stop-tesla-electric.html