New Car Negotiating

[NeedMoreFans]

I have only owned two cars in my life, and have bought both from my parents. My wife and I are seriously considering buying a new car. Mine is in the shop every 2 months with at least $500 in repairs, and we want to get something different for when we decide to have kids. I have a couple different cars in mind, but want to know what kind of prices I can start with.

 

When negotiating, how low can you go on an initial offer? Say the MSRP is $20,000. I know I'm not going to pay that much, but how low would a solid initial offer be? $18K? I know I should offer at least the invoice price, but I have no idea what that would be (unless that is disclosed by the salesman). What car negotiating tips do you all have?

[Roscoe Chill]

I always have a price in mind from the research I have done on the car and also a price in mind on what I am trading in. The first new car I bought three years ago or so, They gave me $1000 more or so than what I was expecting on my trade in, and the price of the car was around what I expected so I made a deal.

I bought another new car this summer and again, the total price in mind was lower than I expected, I got more than I was expecting for my trade in, and my payments were $35 less a month for the 2010 version than they were for the 2007.

I'm not a good haggler, I don't like dancing around the issues. If it's a deal that you feel is fair or better than you expected after doing your research, I'm a believer in getting it done.

My dad, and other older guys will haggle and haggle and hem and haw, but personally I think that's just wasting everyone's time. They're from another era. Of course you could always try the "Can you do better?" but in my experience they don't. http://forum.brewerfan.net/images/smilies/smile.gif

I would assume you're financing, but if you're paying cash that's a whole different ball game.

[1992casey]

My dad, and other older guys will haggle and haggle and hem and haw, but personally I think that's just wasting everyone's time. They're from another era.

 

My brother won't haggle; he's too concerned that the salesperson will get his or her "fair share." But my sister-in-law haggles. She buys all their vehicles. http://forum.brewerfan.net/images/smilies/smile.gif

 

My advice is to know the price that the dealer paid for the vehicle and to get prices with and without a trade-in. Even if your intention is to trade in no matter what, this information helps you sort things out.

[DatHoser]

A couple of sites to look at for what you really should pay are edmunds.com and kbb.com (Kelley Blue Book). They have tools to help you figure out what a fair price should be for a new car.

[NeedMoreFans]

Where do you go to find the invoice price (with options included)? I have found many websites, but I seem to get different answers. The other issue I have been having is finding out exactly what options are included with some of the cars I have been researching. I have not gone to the lots, but most dealers have their inventory online. I think they purposely hide some details just to get you into the dealer.

[DatHoser]

On Edmunds web site, for example, the front page has a selection for new cars. From there you enter your zip code, select the car (a bit convoluted, but not too bad), and then price with options.

[Gobias Industries]

Do it by email. Seriously. They'll usually just quote you the bottom dollar, as those guys are at the bottom of the food chain and go for volume more than making big profits.

 

As DatHoser said, Edmunds is an excellent tool.

[WV Brew]

There is also a holdback of 1-3% that the dealer gets above invoice. Don't forget that.

[jimmyjeromehardy7]

I agree with what Casey said, agree to a price of the car without the trade-in and then negotiate the trade-in value. And never tell them what you want to pay on a monthly basis as your car payment because they will then 'back into' a number for the price of the car.

[OglivieHomePerm]

I learned everything that I know about buying a car from George Costanza:

 

"You never tell 'em you like the car. You're not sure what you want. You don't even know why you're here. "

 

"...no rust-proofing. Commit to nothing. If you have to speak - mumble. "

 

"No matter what they say, you say, 'I’ll walk out of here right now!' "

[nate82]

Clark Howard is always a great resource to use when making financial decisions.

 

http://clarkhoward.com/shownotes/category/5/124/179/

 

This one is on buying a new car.

[Patrick425]

I used this site last time I bought a new car (6.5 years ago). It's a little poorly organized but I found it pretty helpful. I believe there is a spreadsheet somewhere on the site that will help you come up with a fair price to pay:

 

http://www.carbuyingtips.com/

 

I think new car buying is much easier than used car buying. There are a lot less variables (condition of car, mileage, etc) and with a little research you can find out exactly what the dealer paid for the car.

 

My advice is to do as much research as possible, print it all out, and have a firm idea of what you want to pay. Don't budge from it. Go into the dealer with all this stuff in a folder. He or she will try to discredit the data you gathered, but who are you going to trust? The car dealer that is trying to sell you a car and collect his/her commission or independent information that you gathered yourself? Stick to your guns, don't get pushed around!

 

(cleaned up link --1992)

[thebruce44]

My advice is to do as much research as possible, print it all out, and have a firm idea of what you want to pay. Don't budge from it. Go into the dealer with all this stuff in a folder. He or she will try to discredit the data you gathered, but who are you going to trust? The car dealer that is trying to sell you a car and collect his/her commission or independent information that you gathered yourself? Stick to your guns, don't get pushed around!

I agree with this. When I got my new car 6 years ago, I brought in a manilla envelope and set it right on the desk. I had a print out from KBB of my trade in, a printout of the invoice price of what I wanted, and other misc notes. Of course you still have to play their game, but when its black and white in front of both of you that process goes much quicker. There is a correct price and you both know it, but the dealer will do everything they can to move away from that price by tricking you or bringing emotion into it.

 

As a last resort, they will play good cop bad cop with their manager or tell you lines like "we need to make some money here" and that is somewhat true. They need to make a sale and if they wont meet your price there is a great chance someone in the area will, especially in this economy. They know that and you have to let them know that that you know that too. Then the threat of walking away becomes much more real.

[Invader3K]

New cars are more sexy, but my advice would be to buy a used car in the 2-5 years old range. Cars depreciate quickly once they are off the "new" lot, so you can get a good deal on a car that doesn't have a ton of miles on it. Paying cash is always a better deal than financing as well.

[thebruce44]

Invader3K[/b]]New cars are more sexy, but my advice would be to buy a used car in the 2-5 years old range. Cars depreciate quickly once they are off the "new" lot, so you can get a good deal on a car that doesn't have a ton of miles on it. Paying cash is always a better deal than financing as well.

I was just reading somewhere that the old addage of how bad it is to buy new doesn't really apply in the last couple of years because automakers are providing such lower prices and incentives. When you buy new, you also know that you aren't getting something that was treated like crap with no maintenance before you. Long term, the article was saying that all things considered new cars are the better investment right now.

 

 

[Patrick425]

If you are not comfortable with their "final number", leave your phone number and walk out. Don't fall for any of the "have to do it today to get this deal" stuff. Trust me, they will call you.

[1992casey]

And never tell them what you want to pay on a monthly basis as your car payment because they will then 'back into' a number for the price of the car.

 

Never tell them what you want to pay, period. http://forum.brewerfan.net/images/smilies/smile.gif

 

And as OglivieHomePerm's Profile said, don't tell them what you want. That can come later. Express interest in several vehicles, get some idea of what the dealer will offer to sell them to you for, go home, and mull things over before going back. I learned this one time when I truly didn't know what I wanted. All I knew is that the car I was driving needed to be replaced.

[Invader3K]

I was just reading somewhere that the old addage of how bad it is to buy new doesn't really apply in the last couple of years because automakers are providing such lower prices and incentives. When you buy new, you also know that you aren't getting something that was treated like crap with no maintenance before you. Long term, the article was saying that all things considered new cars are the better investment right now.

You're probably right for the short term. Here's an article that backs up what you said: http://clarkhoward.com/shownotes/category/5/124/180/

[NeedMoreFans]

I did my homework, and came up with what was deemed a fair number. The sticker price was well above that number. The crazy part is the price they came up with was right at the price I was going to offer. That, and the trade-in was what I was hoping for. With all the incentives and rebates, I actually got the car for about $800 lower than I was anticipating.

 

Also, with the new vs. used... We went new because used cars really aren't that much cheaper right now than new. Plus, new had some extra safety features that some of the used didn't have. We wanted a Toyota, and used Toyotas are hard to find.

[thebruce44]

Also, with the new vs. used... We went new because used cars really aren't that much cheaper right now than new. Plus, new had some extra safety features that some of the used didn't have. We wanted a Toyota, and used Toyotas are hard to find.

Ironically, that may be the one brand of car I would buy used. Especially if safety is a concern. I am sure they will get their act together soon though, they are too good of a company not to.

[Invader3K]

Ironically, that may be the one brand of car I would buy used. Especially if safety is a concern. I am sure they will get their act together soon though, they are too good of a company not to.

My understanding is all that has basically been taken care of due to Toyota's massive recall efforts. I could be wrong, but I don't remember hearing anything about Toyota's safety issues for several months now.

[SquirrelMaster]

Not a safety issue, but still a recall nonetheless.

 

http://news.yahoo.com/vid...BirAXfACQ5_OGnO8Ofg3xZ54

[logan82]

I would buy new unless you plan on replacing the car as soon as you have it paid off. When I bought my car I E-mailed several different dealers telling them exactly what I wanted and asked what price they would give me. I got the price I wanted from one of the dealers and that is where I bought my car. I live in a location where I had to travel at least an hour to get to a dealer so I had about 3 within 90 minutes and it really didn't matter to me which one I went to.