car purchase advice
- Started
- Last post
- 16 Responses
- CanHasQBN
I want to buy a car that costs $31,800. I'm going to pay cash for it. Since I'm paying cash, about how much wiggle room does that give me as a starting offer price?
Do I say... "I'll pay you $28,000" cash right now, take it or leave it."? What seems like a fair deal?
Help me. For the love of god. HELP MEEE.
- akrok0
what car or cars are you looking into?
- monNom0
Car dealers make most of their money on the financing terms. The profit on the car purchase vs sale price is minor in comparison and really just gravy for the dealer... so you're probably not going to get a better deal for coming in with cash, since the dealer will actually make less money on the sale (ie: no back-end on the financing).
Buying used from a private party will save you a lot, and the fact that they probably don't have a finance company on speed-dial means they're more likely to take what's offered. (though some people would rather keep a care they no longer want than sell it at a deep discount.)
- ArtOrDie0
http://www.edmunds.com/car-buyin…
There's no easy answer to this, but the Edmunds "True Market Value" is a good place to start... And don't let them get away with rolling their eyes and scoffing like you're some mindless consumer picking random information off the internet. The TMV numbers are real and founded.
From Wikipedia (and also happens to be accurate, heh):
"The Edmunds.com True Market Value New Vehicle Calculator provides the estimated average price consumers are currently paying when buying new vehicles. The Edmunds.com True Market Value Used Vehicle Appraiser estimates the actual transaction prices for used vehicles bought and sold by dealers and private parties."Most importantly, don't be in love with one car or dealer. It's your money. The power should be completely in your hands. If you fall in love with one car, you give the power to the dealership. You should be completely willing to give them a "take it or leave it" ultimatum and, if necessary, to walk away and let them think about it for a day or two before calling them and asking them if they want to sell the car or not.
Refuse to pay for any of their extras like interior treatments or BS dealer security systems. Almost without fail, these are scams. If you're buying new, you will have to pay the destination charge, but you don't have to pay any dealership "handling" or "processing" fee on top of that.
Hope some or all of that helps...
- sine0
private purchase or through a dealer?
if it's private start by asking the seller if the price is negotiable and how low he's willing to go... then try to negotiate.
if it's a dealer... ask him to offer you a better cash deal, then negotiate from there.
- woah, when i started typing there wasn't any replies yet... already answeredsine
- akrok0
here's one for HALF price. >> http://www.cargurus.com/Cars/inv…
- < that site is pretty good, by the way.akrok
- lol. well, i hate black for cars... it's got the older look (the headlights)... and it's not the R-Design model with the nice wheels.CanHasQBN
- ...nice wheels.CanHasQBN
- thanks. i'll look around.CanHasQBN
- That's not half price. That's used (perhaps abused) and nearly out of warranty.ArtOrDie
- he can talk it down, from 17 to 15k.akrok
- abused. lol. previous owner raped it. lol.akrok
- i didn't know dolphins could drive.CanHasQBN
- only in florida, my friend. hah.akrok
- sine0
for a new car from dealer...
like someone else said they're making money on the financing. you're already saving by paying cash (or you should be).
don't pay for extras. look around for a better price at other dealers then ask the dealer if they can better that price.
- akrok0
- 600hp! I just shat all over my new leather seats.CanHasQBN
- http://www.atpturbo.…akrok
- lol!akrok
- CanHasQBN0
$29,479 INVOICE
$31,225 MSRP
$30,491 TRUE MARKET VALUEHmm. Maybe I'll start at ~$29,750 and go from there.
- toodee0
These are tips I've heard before, might not be relavent in the US:
Be ambiguous about finance, they might drop the price more if they think you're taking finance, then change your mind at the last minute.
Act like you've got a car to trade-in, they're supposed to give you a better deal for that too.
Dealers have monthly targets, if you buy just before the end of a slow month they're likely to give a bigger discount.
Wait 6 months and buy a used model. Only chumps buy retail.
- vaxorcist0
@toodee offers good advice....
Also, check Edmund's Total Cost of Ownership calculator:
http://www.edmunds.com/tco.htmlok... so a huge issue is how much car-lust you're infected with, and how much you'd rather have a certain car, than a great deal.....
if you'd rather have a great deal, than a specific car, you might get last year's $40,000 hot car for $33,000 ....depends on how much you crave hipness....
The nanosecond after you drive a new car off the lot, it loses 10-20% of its value. Chumps who continally buy new cars every year or two subsidize the rest of us who buy a year or two old car....
If you've GOT TO HAVE this year's HOT CAR, you'll pay a premium unless you can go to a dealer in a place like idaho, where people might rather have something else and that "hot car" is just sitting on the lot, and the dealer may transfer it to a dealer in LA, but the cost of doing so is only barely worth it and you show up with cash in hand.....
Also, beware of depreciation and insurance... total cost to own is a HUGE deal, some cars are WAAAY cheaper...
If you plan to buy new, try to get a car with low depreciation if you plan to sell it in a few years, if you plan to buy used, you can more easily look at great deals among cars with higher depreciation, but beware that cars with higher depreciation are less hipster-esque...
- formed0
Wait, buy used. The car will last you a while.
Go pick out a nice, new watch to keep your appetite for new toys wet. Or buy a vacation. That's the money you would save. Take your time to find the used one you want, no shortage of schmucks that buy and bring back after a few thousand miles (bravo to you for paying cash, I seem to be the only one I know that does that!).
- i can't buy used. there's nto enough of these are out there as "used". the style came out in '11. I've looked...CanHasQBN
- BattleAxe0
ask things like how much will you take for it, they bs that they wont budge from ticket price , but just be bullish, these people dont know you nor will you see them again so be firm
then make your offer to leave room to haggle , most dealers wont' let a deal go if its a $1500+- swing
also is there any other dealers with same car? gives you leverage , if you can just walk out and look else where
if they swing things there way maybe try perks , a free tint job, full gas, etc
imports will be pricy come maitanence time so make sure you understand what is and what is not covered under new car warranty
Gap coverage they might offer you , covers depreciation value of your car should it be stolen or totaled ( knocks on wood) we took it on ours
i have left the lot with free tint , $1000 off , full gas
don't be nice and friendly with sales person they are not your friend
- sine0
idk... i bought my first 'new' car at the beginning of this year. i don't think i'm ever going back to buying used. if you can afford it it's so much easier. the warranty, service plans, etc. just makes life so much easier. and for you to be able to buy a new car cash for 30 large money is obviously not really an issue... get what you want, save what you can, and live with the security of guaranteed service, warranty, etc.
- You can get all that used and get a superior car, or save a tonformed
- ArmandoEstrada0
yeah buying new is the way to go for me. Factory warranties and extended warranties for me, save $$ in the long run only IF youre planning on keeping it for a long time. I bought a lifetime warranty on mine that covers most repairs.
As far as buying advice, never tell them you have the cash. It will be the first thing they ask you, "how are you paying". Tell them you want to negotiate a price first, then discuss financials later. Look at the invoice price. See how much lower you can get them to go from that. Some will. Some wont. Dealers make $ even if they sell it to you at invoice.