Buying a new car...need advice!

Matteo Escobar

Matteo Escobar

Gold Member
Joined
Feb 26, 2002
Messages
4,143
Do you guys have any tips or tricks for dealing with the salesman? How do I make sure that I'm getting the best deal? What hidden charges should I look out for? What, if anything should I demand?

Thanks!
 
I would recommend buying a low mileage, mint vehicle thats 2-4 years old, since most cars lose about 60% of their value in the first 48 months. But thats not what you asked. :)

As for a new one, find out on the internet what the dealership pays for the vehicle, and what hidden "kickbacks" the manufacturer pays the dealership, then factor in a small profit for the dealership. This gives you an idea of what you want to pay. I can't direct you to where to look on the internet, but maybe someone smarter than me can chime in. I know such places are out there, but haven't looked for them because I don't buy new.

cheers :thumbup:
 
What my parents do is go to at least two different dealers, and they tell them up front, if you don't give me a better price than the other guy I'll just go buy from them. NEVER tell them how much the other guy has offered to sell you a car for, or they'll just undercut that by a little bit, and you won't get the best price you can. Good Luck.
 
I agree with tthe above post. There are only a few things to know;
1. set 2 limits; an overall dollar limit, like 22000.00. Period. not a dollar more
and a monthly limit, like say, 400.00 period. you will not pay any more than these numbers under any circumstances. Not if it's a "great deal" or anything. Also, what the dealer will try if you have the above limits, is try to make you pay for 72 months. You should never ever finance a car over 36-48 months. that's 3-4 years, during which time, the car will be worth 15% of what you paid for it. Get a real idea of what you want to spend, and can really afford. Find out what maintenence costs-when I bought my passat, I got a great deal, then I found out that it only takes premium gas $$$$$ and synthetic oil. Damn. I walked out of that dealership about 4 times, told them my conditions, told them to go screw a number of times. I was very willing to walk away from anything that they had, and they knew it. It's not fun, which it should be, but considering the amount of money that you'll spend, take it seriously.
 
i agree with most of whats said-toyota's and honda's-hold value way above most vehicles-
use the net and look into reliabilty of the car and such-

as for the dealership-you cant find out almost what dealer cost is on the net-


avoid all the extra's-they want 1800 for a extended warranty-600 more for lifetime paint protection ect ect-

you should see on the final paperwork-all the costs-

find your own lender-dealers will tack on extra points and make money that way- get you a loan for 6% charge you 8.5% and get the extra 2.5%from the lender on top of the sale-
 
i agree with most of whats said-toyota's and honda's-hold value way above most vehicles-
use the net and look into reliabilty of the car and such-
Click to expand...
The Lexus SC430 holds it's value better than any other production car on the planet and is the singlemost reliable vehicle. If I could afford a brand-new car, I'd seriously consider one of those. For eleven consecutive years Lexus was the #1 rated brand for Initial Quality (finally beaten in 2006 by Porsche). A quote from the 2006 Initial Quality Survey:
Lexus models rank highest in every segment in which they compete. In addition, the LS 430 ties the Porsche Cayman for having the fewest quality problems in the industry.
Click to expand...

Honda and Toyota consistantly rank above average. But don't prejudice yourself against American brands; Cadillac, Buick, and Lincoln also consistently rank among the best vehicles on the market. Hyundai is ranked #3, below Porsche and Lexus, but above Toyota and Honda. Not bad for a budget-priced brand.

Here are the JD Power links.
2005 Initial Quality Survey:
http://www.jdpower.com/corporate/news/releases/pressrelease.asp?ID=2005069&search=1
2006 Initial Quality Survey
http://www.jdpower.com/corporate/news/releases/pressrelease.asp?ID=2006082&search=1
2005 Vehicle Dependability Study
http://www.jdpower.com/corporate/news/releases/pressrelease.asp?ID=2005089&search=1

Additionally, just because a car is well-built or lasts a long time, doesn't mean that people actually like them. Here is the 2005 APEAL Survey, a listing of which cars are actually best-liked by their owners:
http://www.jdpower.com/corporate/news/releases/pressrelease.asp?ID=2005174&search=1

Personally, the kind of new car I can afford, I wouldn't want. So I generally shop in the 4-6 yr-old market. It's easy to afford a used top-quality brand, and low-mileage used cars in excellent condition are abundant.

Good Luck in your search,
-Bob
 
Sorry for the blathering that was irrelevent to the original question... I bet Matteo already knows how to pick a vehicle...

Anyhoo, the best luck I've had dealing with salesmen/dealerships were the times that I didn't actually need a car. Seems they can pick up on that. Act like you don't really need a new car, you're "in the market" but not in a hurry, just stopping by to check out some new models.

And as mentioned above, don't be afraid to walk away. No matter what they say, dealers are up to their ears in cars and almost anything you test drive will still be there next week. "Thanks for the information and test drive, but that car's out of my price range. Too bad, I sort of liked it and thought I might afford one." Then go home. Chances are they'll call you with a better offer.

Other times I've gotten good offers, when the dealership doesn't have exactly what you want. Be very particular about model, color, options, etc. "Sorry we don't have one just like that, but we'll cut you a great deal on this other car."

Good Luck,
-Bob
 
All good advice. The only thing I would add is that if you've got a trade, don't let them play games with you on it. In other words, make them keep the trade value and the overall cost of the new car SEPARATE. They like to give you an overall "net" amount for the new vehicle which usually involves funny business, i.e. "Well, we'll give you $1000 more for your trade, but the price of the new car will go up about $800 for "administrative costs" associated with "refurbishing" your trade". Get the blue book of your trade (dealer should give at least the low value). If he offers less than low value, stand firm until he gives at least that, and make sure the numbers on the new vehicle haven't changed in the process.

Walking Man is right about working two dealers. That's the only way to make sure you are treated fairly.
 
Don't forget after the "sale" but before delivery they will hit you up for abunch of other crap, service contracts, dealer prep, fabric protection, service coupons, extended warranty, payment insurance, it's frekin infinite the crap the invent to try and get your money.
 
DaveH said:
Don't forget after the "sale" but before delivery they will hit you up for abunch of other crap, service contracts, dealer prep, fabric protection, service coupons, extended warranty, payment insurance, it's frekin infinite the crap the invent to try and get your money.
Click to expand...

Oh yeah. Ripoff city on all of those. Don't forget "undercoating". I bought a truck once and they tried to sell me spray-on bedliner too for $500. I said no and paid $250 to the same people who they contract with to do it for me. That same finance guy tried to sell me an extended warranty like this " you know, my Explorer's transmission went out at exactly 60,000 miles. You'll probably want to protect yourself against a huge expense like that. " My response was that if my brand new truck would not last even 60,000 miles, it was time for me to walk out the door without signing a thing....
 
Try the "Rizzo Method": (excellent reading)

http://www.e46fanatics.com/faq/rizzo.html


Also keep in mind the following:

The salesman's game is to draw out the selling process as long as possible. If you have 4 hours invested in haggling over the price, you're more likely to give in and say "fine, I'll take it". That's a fact. When your salesman leaves to "go talk to the manager", he's really just hanging out back smoking cigarettes and goofing off, trying to wear you down by making you wait. Also, if they wait long enough you will get hungry, your blood sugar will drop and you will make irrational decisions.

If possible, deal through the internet sales guy or fleet sales guy - they don't have time for the waiting game and they know that their customers will walk if they try to play it.

If you do get sucked into the waiting game, make sure you're prepared to play. Have snacks handy. Don't be afraid to order a pizza. Have the proper mindset that you can be there for 8 hours. Don't be afraid to leave and let the salesman call you back.

I've also heard that the phones in the sales cubes are rigged so that the manager can listen to your conversation. This also means that when the salesman is off "talking to his manager", they can hear what you say. Don't say "hey, honey, I think I'd be willing to pay $25k . . but lets push for $23k" . . because they'll know your true floor.

Good luck. Car salesmen are slime.
 
I am not so very certain that extended service contracts are such a bad investment. I did not get one on the 1986 Escort that I bought and I wound up replacing the valve seals and the clutch as well as rebuilding the a/c twice. On my next car, a 1989 Plymouth Voyager with a 2.5 liter turbocharged engine and a 5-speed manual transmission, I bught the 70,000 mile warranty and had no problem with the engine or transmission until about 105,000 miles when the turbocharger went bad and needed replacement. I was advised by the Chrysler-Plymouth dealer as well as by the Goodyear dealer and two other mechanics that I consulted that turbos were consumable items that needed periodic replacement no matter how well you treated them, so I replaced it and then drove the car another 60-70 thousand miles with no other engine problems before I traded it on a 1998 Dodge Caravan with a 3.0 liter Mitsubishi SOHC V-6. I bought a 70,000 extended warranty on the Dodge and, at about 37,000, the valve seals went bad and needed replacing. The total bill was over $5,000, of which I paid about $250, IIRC. That more than paid for both of the extended warranty contracts.

When I bought my 2002 Ford Focus, I also bought an extended warranty contract on it and I also bought the extended warranty on the 2005 Mazda6 SportWagon that we bought last January. So far, I have not needed to use either one but if I do, it will assuredly pay for itself.
 
powernoodle said:
I would recommend buying a low mileage, mint vehicle thats 2-4 years old, since most cars lose about 60% of their value in the first 48 months. But thats not what you asked. :)

As for a new one, find out on the internet what the dealership pays for the vehicle, and what hidden "kickbacks" the manufacturer pays the dealership, then factor in a small profit for the dealership. This gives you an idea of what you want to pay. I can't direct you to where to look on the internet, but maybe someone smarter than me can chime in. I know such places are out there, but haven't looked for them because I don't buy new.

cheers :thumbup:
Click to expand...

Well, that depends where and what you're buying. I paid about 27K for a brand new Toyota Avensis SW. A 1-2 year old used one was 24K if in very good condition. Catalog price with the options I took was 32K.
I did it following these rules :
- shop near the end of the month, preferably a month when many people are on vacation or just back (low sales)
- find the lowest internet price for the car you want
- ask your dealer how much he wants
- he will call a price like in the middle between catalog price and the lowest internet price.
- tell him no thank you, it's too much
- he asks you how much you want to pay
- you call that lowest price
- he goes "no way, tha'ts crazy"
- you let him hassle bacl a couple of hundreds
 
what one of my old teacher taught me is when you are ready to buy the car and know how much you want to spend
-walk into a car dealership with a check (or a scrap of paper) made out for the amount that you will pay (usally 70-90%) of the sticker price
-set an egg timer for 1 minute and tell the saleman that you will walk out when it rings, if he walks out, or if he says anything other than yes or no

i've found this method works great because it is the opposite of what the saleman wants. he want to keep you there longer, and to make you do the decision making not him. this takes the preasure off you on onto him.

Why do you get the car for a low price??? because the more cars a dealer sells the more incentives the manufact. gives them. so in the long-run losing 1-3k selling you a car is a much better deal than losing 20+k and the incentives to another dealership
 
oh and if they want your keys to evaluate your car, if you're doing a tarde, don't give them to them. It's a nother stall tactic.

or give them to them and when they stall, whip out the cell phone and call the police. heh.
 
Do all your homework BEFORE going into the dealer. That way, you know already which car you want and how much would be fair market price. If you know where to look( www.edmunds.com, you can be armed with exactly how much the car cost the dealer(to include the options). Believe me, when you know exactly how much profit they stand to make, and they know you know this, your odds of getting a good deal increase dramatically. Walk into the dealer with an arm full of print outs. Don't be afraid to play one dealer against another.
 
Lexus SC430 holds it's value better than any other production car on the planet and is the singlemost reliable vehicle.
Click to expand...

Compared to what a ford temp? There are vehicles out there that run stronger and longer. They might not be cars though if that's what you meant.
 
Lexus SC430 holds it's value better than any other production car on the planet and is the singlemost reliable vehicle.
Click to expand...
Compared to what a ford temp? There are vehicles out there that run stronger and longer.
Click to expand...
Really? Which ones?
They might not be cars though if that's what you meant.
Click to expand...
The surveys I've listed below include all production vehicles, sedans, trucks, suvs, convertibles, and coupes. What mode of transportation are you comparing the Lexus SC430 to, a motorcycle? Jet airplane? Boat?

Here's where I got that data. You don't have to agree; I'm doing this so you won't think I made it up:
2004 IQS:
Lexus set a new IQS record with its Lexus SC 430, which is the best-performing model in the IQS history, scoring just 44 PP100.
Click to expand...
2005 IQS:
In the study, Toyota Motor Corporation earns 10 of the top model segment awards, with the Lexus SC 430 honored as the highest-ranking model for the second consecutive year, at 54 problems per 100 vehicles (PP100).
Click to expand...
2005 Vehicle Dependability Survey:
The Lexus LS 430, which earns a score of 90 PP100, is the first model in VDS history to receive fewer than 100 PP100.
Click to expand...

Dangit, I can't find the study that listed the SC430 as #1 for retaining value, but here's a list where it's #5 in 2005:
http://www.edmunds.com/reviews/list/top10/103629/article.html
Similar list at Kelly Blue Book:
http://www.kbb.com/kbbmedia/index.asp?pg=release&year=2003&date=1-6

Additionally, Lexus is ranked #1 in Customer Retention:
http://www.jdpower.com/corporate/news/releases/pressrelease.asp?ID=2005249&search=1

-Bob
 
FullerH said:
I am not so very certain that extended service contracts are such a bad investment. I did not get one on the 1986 Escort that I bought and I wound up replacing the valve seals and the clutch as well as rebuilding the a/c twice. On my next car, a 1989 Plymouth Voyager with a 2.5 liter turbocharged engine and a 5-speed manual transmission, I bught the 70,000 mile warranty and had no problem with the engine or transmission until about 105,000 miles when the turbocharger went bad and needed replacement. I was advised by the Chrysler-Plymouth dealer as well as by the Goodyear dealer and two other mechanics that I consulted that turbos were consumable items that needed periodic replacement no matter how well you treated them, so I replaced it and then drove the car another 60-70 thousand miles with no other engine problems before I traded it on a 1998 Dodge Caravan with a 3.0 liter Mitsubishi SOHC V-6. I bought a 70,000 extended warranty on the Dodge and, at about 37,000, the valve seals went bad and needed replacing. The total bill was over $5,000, of which I paid about $250, IIRC. That more than paid for both of the extended warranty contracts.

When I bought my 2002 Ford Focus, I also bought an extended warranty contract on it and I also bought the extended warranty on the 2005 Mazda6 SportWagon that we bought last January. So far, I have not needed to use either one but if I do, it will assuredly pay for itself.
Click to expand...


Ford, Mazda and Mitsubishi are all key words here... i have the extended warranty on my car (Subaru) because i'm dumb and financed for longer than my factory warranty and couldn't be without a car if something dumb happened. haven't really used it yet in 3 years though

i agree with the financing stuff mentioned above, and about the waiting... i can out wait anyone though ;)

another thing is to let them think you are financing with them when you are haggling price, etc... they get a cut from the bank, but you can often get a better rate on a new car through a credit union or another bank. check this out beforehand

another thing, in addition to waiting for the end of the month/year is to buy last/this years car new when the new model year has come out... they usually still have new ones but really want to get rid of them. depending on the make, the 07's could already be out so the 06's should be cheaper
 
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