Advice on buying new car

[Easto]

The wife and I are going to be in the market for a new car pretty soon. We have the advantage of not needing it right away so we have time to shop and compare (2 - 3 months window here).

Anyone have some links and/or advice regarding the actual price people are paying and stuff like that? We will be paying cash so I'm hoping that gives us a bit of leverage. I am aware of how dealerships try and work the deal by confusing you with different aspects of the sale which hide the actual cost until you're about ready to sign on the bottom line and I'm looking for advice on how to work that to our advantage.

[Ken]

If you are wanting to buy a new car and have an account at a credit union, they can give you all of the prices that you seek. (What dealer paid, loan value, depreciation schedule, etc.) Once you have what they consider to be the rock bottom price, go to the dealer and then make an offer. The salesman will need to go see the manager (a game) if they accept the deal quickly, it is a sign that they can go lower. Stick to your price, eventually they will cave just to move the vehicle off the lot...

[Dan]

I agree on the credit union advice,I bought my Honda new in 07,and got a great deal on interest at a local CU,I have really good credit too,so I made the deal with no down,just my sig.also,try and get the shortest loan term that you can afford.


and as far as cars go,honda,honda,honda

[Easto]

Thanks for the reminder regarding the CU. I do belong to one and they do offer those services. I really just want to find the best price possible, write a check and leave. And to Dan... we are looking at Hondas. We just need a good high mileage comfortable, realiable car that will take us into retirement, lol.

[Ken]

The credit union will give you the answer (price) that you seek... Go talk to them and act like you are interested in applying for a loan. (You don't have to take a loan from them...) Give them the make/model of the car you seek and they will give you pricing info such as what dealer paid... (It would be bad business for them to loan more on a car than it is worth... Another difference of CU's and banks...)

When you have your own financing in place (cash, preapproved loan, and such) you barter with the dealer for the "cash price out the door"... Same difference... In the eyes of the dealer, it is irrelevant whether you write a check or bring a check from a CU, the bottom line is they deposit the check into their acct and you drive the car away...

I believe that I still have an online membership with Consumer Reports. (I believe that it is an auto renew deal with them.) If you are interested in seeing the type of info they provide, let me know and I will see if my acct is still active, and if so, send you the credentials... Just let me know.

Some other pricing sources would be:

NADA (Many places use this)
http://www.nadaguides.com/

Kelley Blue Book
http://www.kbb.com/

Edmunds
http://beta.edmunds.com/

Car Prices
http://www.carprices.com/

MSN
http://autos.msn.com/research/autopricer/default.aspx

Consumer Reports
http://www.consumerreports.org/cro/cars/index.htm

[YeOldeStonecat]

2x things I focus on:
*Trade in value for the car I'm trading in. That's where most of your wiggle room is, and that's where the dealer will make more on the deal when they turn around and auction your traded in vehicle.
*"Out the door price". That means...at the end of the sale, the total amount of money you give the dealership...including all the dealer prep fees, this fee, that fee, tax, registration and plate of your new car, etc. Example...I will give the dealer $22,000.00 plus my old car, not a penny more, and I drive away in my new car. Not...we agree on $22,000.00 plus my old car...but once their cash register stops ringing up add-ons...it ends up being $23,968.45 by the time I drive out the door.

Most car dealerships now sell at factory invoice. They make their money on "volume" from the car makers, plus "service" fees.

You also have more leverage when looking at a car that is "on lot"...in their inventory, not having a special order made.

[Easto]

Thanks for the tips.

The wife and I went to a local car shopping mall in the area and you're right about making more on their used cars. None of the dealerships had new cars on the front lot. Everything on the front lot was used and the new cars were in the back.