Buying a new car - Advice? I know there are some wheel-and-dealers out there...?

Question

Alright - so does anyone here have advice regarding buying a car? I am going to attempt to trade in my vehicle (which I'm a $1,500 upside down on) for a newer car. I know there are people out there that are really good at working a deal so I'm curious as to what kinds of questions to ask and what kinds of deals to request? Come on, give me the inside on getting a good deal on a new car! :) Thanks!

Answer 1

There's no secret handshake, back-door way, it's just using common sense. Do your homework.

Before you set out, check websites like edmunds.com and research the vehicles you are interested in. Edmunds will also show you current incentives on vehicles, both factory-to-dealer and factory-to-customer ("rebates"). Make note of the incentives offered, and keep them on hand for when you work the price of the new car. This will help you in your upside-down situation, as you'll probably need to use a rebate in lieu of more down payment in order to cover the negative equity. Using invoice pricing (and it's never 100% accurate on the web, but it's a good idea), decide what you're willing to pay on the new vehicle, and work your deal from there.

For example, say you want a $20,000 Accord. You see that invoice price is $18,500. So, you decide to offer $18,750 on the car. Negotiate up from there, not down from sticker. If you go in with the attitude of "I want to pay $1000 under invoice", then be prepared to be showed the door. Then, have them add in rebates or any incentives AFTER you've worked out the price of the new car. Discuss your trade later. Don't discuss your trade-in value until AFTER you've secured the price on the new car. If they refuse to work the price on the new car without working your trade value at the same time, politely refuse and go to another dealer. You have that option. Be polite but firm, and say "I want to get the price of the car in stone first". Get everything in writing.

If you've seen that you're upside-down $1500 by consulting Kelley Blue Book or another online source, you'll probably find that you're off. The dealer will come back with a lower figure. Again, this is up for negotiation AFTER you've secured the price of the new car. If you're not in a hurry, mention that you'll just sell it outright.

Again, work the deal as mentioned and you'll come out OK. Make that known up front and you'll have control.

A quick note... if you go in with an attitude, then expect a battle on your hands. If you go in informed and polite, the dealer will be more than willing to work with you, especially if they know. You can politely tell them that you are more than willing to shop around until you "make your deal as you want it".

If you're looking at a "hot" in-demand vehicle, though, the above scenario may change. Be prepared to pay what the dealer asks if that's the case.

When you're in the finance office, you will be offered a slew of products. The only one worth looking into is gap insurance. This covers you in case you wreck the car, it's stolen, etc and it's not worth what the insurance company gives you (in which case the difference comes out of YOUR pocket). It's worth the extra $5 a month.

By being informed, you'll be able to tell whether or not you've made a good deal. Make it fun, test the car thoroughly (keep in mind, once you sign paperwork and drive off, it's yours, there is no return period by law unless the dealer has one).