How do you negotiate a new car? (1 Viewer)

[Gawain]

In the field of "being a man" my negotiating skills are non-existent.

Bought a new 2013 Civic EX holdover on Saturday and was god-awful at the whole thing. I'm going to have to do it again in two years when we need a family car.

Ended up paying 20,330.43 plus tax and DMV fees. Had walked in with 12K in cash to buy a 10-11K used car but ended up putting 10K down and financing the remainder.

I feel like I got rooked and would prefer not to have the same feeling again. How should I have done it?

 

[Lowen1]

www.carbuyingtips.com

www.edmunds.com

www.truecar.com

www.kbb.com

do some research before you go to the dealership.

know what you are willing to pay.

have financing arranged before you go to the dealer (talk to your credit union or bank).

you need to control the negotiation.

be prepared to walk.

 

[BobbyLayne]

Almost five years ago, but I thought Judge Smails nailed it:

http://forums.footballguys.com/forum/index.php?showtopic=486298&hl=buying

 

[belljr]

What was sticker?

 

[johnnycakes]

In the field of "being a man" my negotiating skills are non-existent.

Bought a new 2013 Civic EX holdover on Saturday and was god-awful at the whole thing. I'm going to have to do it again in two years when we need a family car.

Ended up paying 20,330.43 plus tax and DMV fees. Had walked in with 12K in cash to buy a 10-11K used car but ended up putting 10K down and financing the remainder.

I feel like I got rooked and would prefer not to have the same feeling again. How should I have done it?

This isn't a problem in negotiating. the problem is lack of discipline... you didn't stick to buying what you went for.

 

[Gawain]

Lowen1, on 23 Jun 2014 - 12:51 PM, said:www.carbuyingtips.com

www.edmunds.com

www.truecar.com

www.kbb.com

do some research before you go to the dealership.

know what you are willing to pay.

have financing arranged before you go to the dealer (talk to your credit union or bank).

you need to control the negotiation.

be prepared to walk.

I kinda get this and smart phones are awesome because you can pull up info when the sales people go to the back to do whatever it is they do back there.

Two major problems were I brought the wife, who was not willing to walk because she had a Civic in college and it reminded her of Glory Days and I was so focused on buying used for cash I didn't think about financing and am at 3% from the dealers place (though my credit isn't the greatest, think it was a 705).

I was more curious for the actual experience, where you're sitting with the sales guy and numbers are being thrown around.

 

[JohnnyU]

Now that we can find out what the wholesale price of a car is via the internet (and salesman hate the internet ), it comes down to supply and demand. If it's not a hot car and you wait until next year's model comes out, you shouldn't pay more than $300 to $500 over wholesale cost to the dealer. He/she will be looking to unload last year's model at a great price. Another rule of thumb is never to factor your trade in into the cost of the new car you wish to buy. If you do that, then you will end up giving your trade in away for nothing, because they simply will alter the cost of the new car upward Don't even mention a trade in until you already have the cost of the new car negotiated, or better yet, sell your old car yourself. It's easy to do with all the sites available (ebay, craigslist, etc). Also, when the salesman asks you how much you want your monthly payments to be, simply tell them you're only interested in the price of the car and not how much your monthly payments will be. DO NOT allow them to continue the conversation about monthly payments, because they will use that to their advantage to make more money. Again, if next year's model is already out and the car you wish to buy is new, but is the previous year's model, DO NOT pay more than a few hundred dollars over wholesale cost to the dealer and DO NOT use your car as trade in until the final cost of the new car has been negotiated, or don't use it at all and do not let the salesman corner you about what you want your monthly payments to be, but only be interested in the price of the car. If the salesman acts like you're taking food out of this kids mouths, just walk away. My guess is that he's not going to let you leave the parking lot and will eventually succumb to your demands. If he doesn't, then find someone who will meet your offer. He knows he's lost you if he lets you leave the dealership and will do everything he can do to keep you there. Hold your ground no matter what. Also, don't fall in love with the vehicle you're thinking about buying, and don't show your enthusiasm for the car to the salesman.

If it's a hot car, then forget about negotiating a whole lot because the dealer has the upper hand. The key is to buy a vehicle that doesn't have such high demand and use what you know about the wholesale price.

 

[fantasycurse42]

2013 Honda Civic for over $20k (plus tax and DMV fees)... Without doing any research or looking into this for one second, it would sound like you got taken to the cleaners. I could be wrong, but that sounds very high, especially for a year old model.

ETA: You also don't want to mention how you intend to pay until the end... They make money on financing and if they know you're all cash from the onset, they may start higher.

 

[AcerFC]

Fightingchance.com

Ywia

Worked awesome for me

 

[Lowen1]

Lowen1, on 23 Jun 2014 - 12:51 PM, said:www.carbuyingtips.com

www.edmunds.com

www.truecar.com

www.kbb.com

do some research before you go to the dealership.

know what you are willing to pay.

have financing arranged before you go to the dealer (talk to your credit union or bank).

you need to control the negotiation.

be prepared to walk.

I kinda get this and smart phones are awesome because you can pull up info when the sales people go to the back to do whatever it is they do back there.

Two major problems were I brought the wife, who was not willing to walk because she had a Civic in college and it reminded her of Glory Days and I was so focused on buying used for cash I didn't think about financing and am at 3% from the dealers place (though my credit isn't the greatest, think it was a 705).

I was more curious for the actual experience, where you're sitting with the sales guy and numbers are being thrown around.

have your bottom line walk away number in mind. be cool. you own the negotiation. act like you are in charge. ask for their best offer. then tell him what you are willing to pay. tell him you have all the information (because you do). don't talk about financing, trade in or anything else until you strike a deal on the new car price. then talk trade in and financing.

and if you are a costco member - get the costco price. usually better than most people can do without a very lengthy negotiation. might even be worth it for you to spend the $50 to join costco just to get the costco price - no hassle, no negotiation, just a pretty good price. Sure you can do better if you want to play the game and play dealers off each other but since you left your man card at the door, the costco way might be best.

 

[BobbyLayne]

Good rule to remember is you should be negotiating the price of vehicle, not the monthly payment.

If you are trading in an existing vehicle, those are separate transactions. Negotiate the price on the new car. Then and only the negotiate the trade in.

 

[Payne]

Good advice so far.

Don't even discuss trade in until you have the price settled on the new car. This has been said, but it needs to be repeated.

Pit dealerships against each other. I just purchased a new vehicle and I emailed the four closest dealerships and went to the cheapest one. If you like them, great. If you don't, take the offer you received to a different dealership. They will match it.

Don't be afraid to walk away. My wife hated "playing that game", but it saved us over $2,000.

 

[RUSF18]

Black dot/white star thing.

 

[RUSF18]

I can't imagine ever being sentimental over a Civic, of all things.

 

[snogger]

Good advice so far.

Don't even discuss trade in until you have the price settled on the new car. This has been said, but it needs to be repeated.

Pit dealerships against each other. I just purchased a new vehicle and I emailed the four closest dealerships and went to the cheapest one. If you like them, great. If you don't, take the offer you received to a different dealership. They will match it.

Don't be afraid to walk away. My wife hated "playing that game", but it saved us over $2,000.

That is my plan come September( ala Labor Day sales) Already know I'm getting a 2014 Ford Escape..

It is just matter of hitting up the local Ford dealer where we've personally bought 2 trucks from them, and my In-laws have bought numerous cars/trucks from them and tell them.. " I like buying local and we have done so in the past, but I have been looking at what the other dealerships nearby have on their lots"

Then going to show them a printout of what the other dealers have on the lot and point out the differences in any price, options, etc.. and say "can you match/do better?"

Oh and have no trade in as I'm giving my 2004 Ford Taurus to my daughter as she'll get her license in December.

Depending on what they come back with I was thinking of $1000 to $1500 down.. but wife right now wants to say "Nothing down take it or leave it"

 

[Gawain]

BobbyLayne, on 23 Jun 2014 - 1:31 PM, said:Good rule to remember is you should be negotiating the price of vehicle, not the monthly payment.

If you are trading in an existing vehicle, those are separate transactions. Negotiate the price on the new car. Then and only the negotiate the trade in.

Can you expand this for me?

If you know your likely interest rate (or what you'd qualify for), why couldn't you just do the math and work out a rate that is the equivalent of what you'd have to borrow?

I started at a 4% rate borrowing $9500...which meant that I was asking for a monthly payment of $190 over 60 months. They came back at $221 for 60. I went up to $200 for 60 and it ended up as $200.32 or so at 3%.

Is it just because you can't predict your interest rate with absolute certainty? I'd think it would be better to determine a monthly payment and then not be as concerned with the interest rate.

 

[stbugs]

BobbyLayne, on 23 Jun 2014 - 1:31 PM, said:Good rule to remember is you should be negotiating the price of vehicle, not the monthly payment.

If you are trading in an existing vehicle, those are separate transactions. Negotiate the price on the new car. Then and only the negotiate the trade in.

Can you expand this for me?

If you know your likely interest rate (or what you'd qualify for), why couldn't you just do the math and work out a rate that is the equivalent of what you'd have to borrow?

I started at a 4% rate borrowing $9500...which meant that I was asking for a monthly payment of $190 over 60 months. They came back at $221 for 60. I went up to $200 for 60 and it ended up as $200.32 or so at 3%.

Is it just because you can't predict your interest rate with absolute certainty? I'd think it would be better to determine a monthly payment and then not be as concerned with the interest rate.

Yeah, without knowing the options, I just went to Edmunds and they list the 2013 Civic EX with MSRP of $19,755, wholesale of $18,423 and average paid of $17,114. Seems like you got bent over.

Also, you started $190, got a 1% better rate and then ended up paying more per month? I am assuming you financed more, but definitely means you didn't have a plan and most likely paid more than you should have. Seems like the wife got in the way of $$$, which happens all the time.

 

[AhrnCityPahnder]

BobbyLayne, on 23 Jun 2014 - 1:31 PM, said:Good rule to remember is you should be negotiating the price of vehicle, not the monthly payment.

If you are trading in an existing vehicle, those are separate transactions. Negotiate the price on the new car. Then and only the negotiate the trade in.

Can you expand this for me?

If you know your likely interest rate (or what you'd qualify for), why couldn't you just do the math and work out a rate that is the equivalent of what you'd have to borrow?

I started at a 4% rate borrowing $9500...which meant that I was asking for a monthly payment of $190 over 60 months. They came back at $221 for 60. I went up to $200 for 60 and it ended up as $200.32 or so at 3%.

Is it just because you can't predict your interest rate with absolute certainty? I'd think it would be better to determine a monthly payment and then not be as concerned with the interest rate.

If you're talking about only one loan length, then monthly payments are fine.

But a crappy salesman tactic is to tell you "since you can afford $200 a month, why not take a look at this car for $200 a month", then upsell you to something and then make your loan 84 months. And just like that you spent another 3 grand (bottom line price).

 

[JohnnyU]

BobbyLayne, on 23 Jun 2014 - 1:31 PM, said:Good rule to remember is you should be negotiating the price of vehicle, not the monthly payment.

If you are trading in an existing vehicle, those are separate transactions. Negotiate the price on the new car. Then and only the negotiate the trade in.

Can you expand this for me?

If you know your likely interest rate (or what you'd qualify for), why couldn't you just do the math and work out a rate that is the equivalent of what you'd have to borrow?

I started at a 4% rate borrowing $9500...which meant that I was asking for a monthly payment of $190 over 60 months. They came back at $221 for 60. I went up to $200 for 60 and it ended up as $200.32 or so at 3%.

Is it just because you can't predict your interest rate with absolute certainty? I'd think it would be better to determine a monthly payment and then not be as concerned with the interest rate.

Because you should be concerned about the cost of the vehicle, not the monthly payments when negotiating the price of the car. Hell, a dealer can just add more months to lower your payments, along with controlling the interest rate to lower the monthly payment. You're still paying his price, he just makes it look better. Work the financing after you know the price of the car, period!!

 

[Gawain]

stbugs, on 23 Jun 2014 - 2:49 PM, said:

Gawain, on 23 Jun 2014 - 2:38 PM, said:

BobbyLayne, on 23 Jun 2014 - 1:31 PM, said:BobbyLayne, on 23 Jun 2014 - 1:31 PM, said:Good rule to remember is you should be negotiating the price of vehicle, not the monthly payment.

If you are trading in an existing vehicle, those are separate transactions. Negotiate the price on the new car. Then and only the negotiate the trade in.

Can you expand this for me?

If you know your likely interest rate (or what you'd qualify for), why couldn't you just do the math and work out a rate that is the equivalent of what you'd have to borrow?

I started at a 4% rate borrowing $9500...which meant that I was asking for a monthly payment of $190 over 60 months. They came back at $221 for 60. I went up to $200 for 60 and it ended up as $200.32 or so at 3%.

Is it just because you can't predict your interest rate with absolute certainty? I'd think it would be better to determine a monthly payment and then not be as concerned with the interest rate.

Yeah, without knowing the options, I just went to Edmunds and they list the 2013 Civic EX with MSRP of $19,755, wholesale of $18,423 and average paid of $17,114. Seems like you got bent over.

Also, you started $190, got a 1% better rate and then ended up paying more per month? I am assuming you financed more, but definitely means you didn't have a plan and most likely paid more than you should have. Seems like the wife got in the way of $$$, which happens all the time.

Oof. If I paid more than MSRP, can I just declare myself horrible now?

Mind throwing me a link?I had an invoice of $20,136 and an MSRP of $21,605, but I might just be a bad googler.

 

[fightingillini]

BobbyLayne, on 23 Jun 2014 - 1:31 PM, said:Good rule to remember is you should be negotiating the price of vehicle, not the monthly payment.

If you are trading in an existing vehicle, those are separate transactions. Negotiate the price on the new car. Then and only the negotiate the trade in.

Can you expand this for me?

If you know your likely interest rate (or what you'd qualify for), why couldn't you just do the math and work out a rate that is the equivalent of what you'd have to borrow?

I started at a 4% rate borrowing $9500...which meant that I was asking for a monthly payment of $190 over 60 months. They came back at $221 for 60. I went up to $200 for 60 and it ended up as $200.32 or so at 3%.

Is it just because you can't predict your interest rate with absolute certainty? I'd think it would be better to determine a monthly payment and then not be as concerned with the interest rate.

Because you should be concerned about the cost of the vehicle, not the monthly payments when negotiating the price of the car. Hell, a dealer can just add more months to lower your payments, along with controlling the interest rate to lower the monthly payment. You're still paying his price, he just makes it look better. Work the financing after you know the price of the car, period!!

Correct.

You should negotiate everything separately......1st price, 2nd trade in, 3rd interest rate. Salespeople can easily manipulate the terms to make you "overpay" for your car but make your monthly payment.

When going to the dealership, always have the invoice price of the car in your head.......invoices can easily be found on a site like Edmunds.com. Along with the invoice price, research what others have been paying for the car.

Second, I would go a few banks and get the best car loan rate that you can find. Then you can use it as leverage (once you negotiated the price of the car and the value of your trade in, if you have one)

Third, walk away if you have to. There are plenty of dealerships around (if you live in a big city). Make them compete for your business.

Couple of other things.

1) I always bring a calculator with a finanicial calculation capability. I always verify the company's payments and interest....I don't trust them at all. Dealerships will tell you it's simple interest.....it isn't. It's compound interest throughout the loan, but they allocate principal and interest in equal installments.....this is different from a mortgage, where the initial payments are almost entirely interest to start. Also, I believe they negotiate with me differently, since they know I have the knowledge of how things are calculated.....they aren't going to pull a fast one on me.

2) Dealers will try and sell you extras. Don't buy them unless it's absolutely necessary. Additional options usually are a great deal for the dealership.

3) same with additional warranties.......Dealers make a killing on these. If you want addtiional warranty, shop around other private companies.

Summary, go to the dealership knowing what you're willing to pay for the car, and take charge of the negotiation.

 

[stbugs]

stbugs, on 23 Jun 2014 - 2:49 PM, said:

Gawain, on 23 Jun 2014 - 2:38 PM, said:

BobbyLayne, on 23 Jun 2014 - 1:31 PM, said:BobbyLayne, on 23 Jun 2014 - 1:31 PM, said:Good rule to remember is you should be negotiating the price of vehicle, not the monthly payment.

If you are trading in an existing vehicle, those are separate transactions. Negotiate the price on the new car. Then and only the negotiate the trade in.

Can you expand this for me?

If you know your likely interest rate (or what you'd qualify for), why couldn't you just do the math and work out a rate that is the equivalent of what you'd have to borrow?

I started at a 4% rate borrowing $9500...which meant that I was asking for a monthly payment of $190 over 60 months. They came back at $221 for 60. I went up to $200 for 60 and it ended up as $200.32 or so at 3%.

Is it just because you can't predict your interest rate with absolute certainty? I'd think it would be better to determine a monthly payment and then not be as concerned with the interest rate.

Yeah, without knowing the options, I just went to Edmunds and they list the 2013 Civic EX with MSRP of $19,755, wholesale of $18,423 and average paid of $17,114. Seems like you got bent over.

Also, you started $190, got a 1% better rate and then ended up paying more per month? I am assuming you financed more, but definitely means you didn't have a plan and most likely paid more than you should have. Seems like the wife got in the way of $$$, which happens all the time.

Oof. If I paid more than MSRP, can I just declare myself horrible now?

Mind throwing me a link?I had an invoice of $20,136 and an MSRP of $21,605, but I might just be a bad googler.

http://www.edmunds.com/honda/civic/2013/

I just googled and clicked on the Edmunds link knowing it would give you a little more info. Options can definitely change the price, so maybe you did OK. Also, depends on what was in their MSRP. The last new car I got a couple years ago, I was able to go through a friend who could get fleet pricing for Toyota's, so not only did I save on the base, but also all options and there was were no add-ons, like dealer crap or even a destination charge. I'm not a great negotiator, so it was nice using his pricing abilities.

 

[Smack Tripper]

www.carbuyingtips.com

www.edmunds.com

www.truecar.com

www.kbb.com

do some research before you go to the dealership.

know what you are willing to pay.

have financing arranged before you go to the dealer (talk to your credit union or bank).

you need to control the negotiation.

be prepared to walk.

the ultimate hammer in any negotiation in my experience.

 

[Gawain]

stbugs, on 23 Jun 2014 - 3:39 PM, said:

Gawain, on 23 Jun 2014 - 3:30 PM, said:

stbugs, on 23 Jun 2014 - 2:49 PM, said:stbugs, on 23 Jun 2014 - 2:49 PM, said:

Gawain, on 23 Jun 2014 - 2:38 PM, said:Gawain, on 23 Jun 2014 - 2:38 PM, said:

BobbyLayne, on 23 Jun 2014 - 1:31 PM, said:BobbyLayne, on 23 Jun 2014 - 1:31 PM, said:BobbyLayne, on 23 Jun 2014 - 1:31 PM, said:Good rule to remember is you should be negotiating the price of vehicle, not the monthly payment.

If you are trading in an existing vehicle, those are separate transactions. Negotiate the price on the new car. Then and only the negotiate the trade in.

Can you expand this for me?

If you know your likely interest rate (or what you'd qualify for), why couldn't you just do the math and work out a rate that is the equivalent of what you'd have to borrow?

I started at a 4% rate borrowing $9500...which meant that I was asking for a monthly payment of $190 over 60 months. They came back at $221 for 60. I went up to $200 for 60 and it ended up as $200.32 or so at 3%.

Is it just because you can't predict your interest rate with absolute certainty? I'd think it would be better to determine a monthly payment and then not be as concerned with the interest rate.

Yeah, without knowing the options, I just went to Edmunds and they list the 2013 Civic EX with MSRP of $19,755, wholesale of $18,423 and average paid of $17,114. Seems like you got bent over.

Also, you started $190, got a 1% better rate and then ended up paying more per month? I am assuming you financed more, but definitely means you didn't have a plan and most likely paid more than you should have. Seems like the wife got in the way of $$$, which happens all the time.

Oof. If I paid more than MSRP, can I just declare myself horrible now?

Mind throwing me a link?I had an invoice of $20,136 and an MSRP of $21,605, but I might just be a bad googler.

http://www.edmunds.com/honda/civic/2013/

I just googled and clicked on the Edmunds link knowing it would give you a little more info. Options can definitely change the price, so maybe you did OK. Also, depends on what was in their MSRP. The last new car I got a couple years ago, I was able to go through a friend who could get fleet pricing for Toyota's, so not only did I save on the base, but also all options and there was were no add-ons, like dealer crap or even a destination charge. I'm not a great negotiator, so it was nice using his pricing abilities.

Ahh, that was the LX...but it still means I paid $2,500 more because a certain someone needed a sun roof.

 

[Smack Tripper]

stbugs, on 23 Jun 2014 - 2:49 PM, said:

Gawain, on 23 Jun 2014 - 2:38 PM, said:

BobbyLayne, on 23 Jun 2014 - 1:31 PM, said:BobbyLayne, on 23 Jun 2014 - 1:31 PM, said:Good rule to remember is you should be negotiating the price of vehicle, not the monthly payment.

If you are trading in an existing vehicle, those are separate transactions. Negotiate the price on the new car. Then and only the negotiate the trade in.

Can you expand this for me?

If you know your likely interest rate (or what you'd qualify for), why couldn't you just do the math and work out a rate that is the equivalent of what you'd have to borrow?

I started at a 4% rate borrowing $9500...which meant that I was asking for a monthly payment of $190 over 60 months. They came back at $221 for 60. I went up to $200 for 60 and it ended up as $200.32 or so at 3%.

Is it just because you can't predict your interest rate with absolute certainty? I'd think it would be better to determine a monthly payment and then not be as concerned with the interest rate.

Yeah, without knowing the options, I just went to Edmunds and they list the 2013 Civic EX with MSRP of $19,755, wholesale of $18,423 and average paid of $17,114. Seems like you got bent over.

Also, you started $190, got a 1% better rate and then ended up paying more per month? I am assuming you financed more, but definitely means you didn't have a plan and most likely paid more than you should have. Seems like the wife got in the way of $$$, which happens all the time.

Oof. If I paid more than MSRP, can I just declare myself horrible now?

Mind throwing me a link?I had an invoice of $20,136 and an MSRP of $21,605, but I might just be a bad googler.

what options do you have? Hard to pay over MSRP unless its a car in high demand.

I always like having a sunroof, you pay more but always helps the resale in my experience (limited it may be).

 

[Brony]

Lots of good advice. Have patience - remember that the deal isn't final until you sign. You have the power to walk away, so don't take it personal if they are trying to play games. Take a breath and don't sign until you're 100% comfortable.

 

[Freelove]

The sticker price looks fair, but could you tell me a little more about the clearcoat?

 

[eoMMan]

Just pull it out and slap it on the table. Let them see what you're working with.

 

[Smack Tripper]

The sticker price looks fair, but could you tell me a little more about the clearcoat?

oh wow, the undercarriage coating is an option? Well I'll take a car without it, thanks

 

[stbugs]

stbugs, on 23 Jun 2014 - 3:39 PM, said:

Gawain, on 23 Jun 2014 - 3:30 PM, said:

stbugs, on 23 Jun 2014 - 2:49 PM, said:stbugs, on 23 Jun 2014 - 2:49 PM, said:

Gawain, on 23 Jun 2014 - 2:38 PM, said:Gawain, on 23 Jun 2014 - 2:38 PM, said:

BobbyLayne, on 23 Jun 2014 - 1:31 PM, said:BobbyLayne, on 23 Jun 2014 - 1:31 PM, said:BobbyLayne, on 23 Jun 2014 - 1:31 PM, said:Good rule to remember is you should be negotiating the price of vehicle, not the monthly payment.

If you are trading in an existing vehicle, those are separate transactions. Negotiate the price on the new car. Then and only the negotiate the trade in.

Can you expand this for me?

If you know your likely interest rate (or what you'd qualify for), why couldn't you just do the math and work out a rate that is the equivalent of what you'd have to borrow?

I started at a 4% rate borrowing $9500...which meant that I was asking for a monthly payment of $190 over 60 months. They came back at $221 for 60. I went up to $200 for 60 and it ended up as $200.32 or so at 3%.

Is it just because you can't predict your interest rate with absolute certainty? I'd think it would be better to determine a monthly payment and then not be as concerned with the interest rate.

Yeah, without knowing the options, I just went to Edmunds and they list the 2013 Civic EX with MSRP of $19,755, wholesale of $18,423 and average paid of $17,114. Seems like you got bent over.

Also, you started $190, got a 1% better rate and then ended up paying more per month? I am assuming you financed more, but definitely means you didn't have a plan and most likely paid more than you should have. Seems like the wife got in the way of $$$, which happens all the time.

Oof. If I paid more than MSRP, can I just declare myself horrible now?

Mind throwing me a link?I had an invoice of $20,136 and an MSRP of $21,605, but I might just be a bad googler.

http://www.edmunds.com/honda/civic/2013/

I just googled and clicked on the Edmunds link knowing it would give you a little more info. Options can definitely change the price, so maybe you did OK. Also, depends on what was in their MSRP. The last new car I got a couple years ago, I was able to go through a friend who could get fleet pricing for Toyota's, so not only did I save on the base, but also all options and there was were no add-ons, like dealer crap or even a destination charge. I'm not a great negotiator, so it was nice using his pricing abilities.

Ahh, that was the LX...but it still means I paid $2,500 more because a certain someone needed a sun roof.

LOL, every time you are driving together, even in rain or snow, make sure you open it up an remind her how much extra it was.

 

[Smack Tripper]

when I was younger, buying my first car, I got hoodwinked with the "let us run a credit check with your license" thing. I did it like a fool, and they ran the full court press on getting me to sign on a car that day. They kept saying they were checking the credit when I said "look fellas, I need to think about this, not today". I had three guys in the office trying to close and I said "how can I sign for this when you don't "know" my credit". That didn't change anything but it was definitely super intense.

So to that end, I personally prefer not giving a single item that would preclude you from literally getting up and walking out.

 

[Gawain]

It reminds me of that King of the Hill, where Peggy finds out that Hank's special "football star" rate is sticker price.

As for options, it has alloy wheels, power moonroof, backup camera, the Honda Eco system (not even sure if that's an option) and the Nav system.

Does not have leather or satellite radio (has Pandora/Bluetooth, might be standard).

I'm sure I'll lose the special wheel lock converter thing, so am already budgeting up to replace that.

 

[fruity pebbles]

negotiate everything through email with several dealers. i didn't even walk into the dealership until it was time to pick up the car.

 

[Peter_Griffin]

Its simple.

For a new car, research the car you want online (down to the options, color, etc.)

E-mail every dealer within driving distance that has the car you want and ask them to give you their best price (price of car only, don't worry about financing for now).

Accept the best offer.

Unless you have bad credit, the financing is going to be the same pretty much everywhere.

Don't buy extended warranties or any of the crap that the dealer tries to sell you.

I haven't negotiated with a car salesman since the 90s.

 

[Bigboy10182000]

Good advice so far.

Don't even discuss trade in until you have the price settled on the new car. This has been said, but it needs to be repeated.

Pit dealerships against each other. I just purchased a new vehicle and I emailed the four closest dealerships and went to the cheapest one. If you like them, great. If you don't, take the offer you received to a different dealership. They will match it.

Don't be afraid to walk away. My wife hated "playing that game", but it saved us over $2,000.

I did this about 2 hours after closing, when I bought my last car, and the guy flipped!

 

[snogger]

when I was younger, buying my first car, I got hoodwinked with the "let us run a credit check with your license" thing. I did it like a fool, and they ran the full court press on getting me to sign on a car that day. They kept saying they were checking the credit when I said "look fellas, I need to think about this, not today". I had three guys in the office trying to close and I said "how can I sign for this when you don't "know" my credit". That didn't change anything but it was definitely super intense.

So to that end, I personally prefer not giving a single item that would preclude you from literally getting up and walking out.

Had a similar thing happen to me a few years back, except the car I owned at the time was held hostage..

Out here in the "boonies" most dealers will allow us to take the car overnight so we can test drive it for longer then a few minutes.. So I stopped into a dealer a few miles away and left my car with them while I tested their car over night.. Good thing I did because the next morning the car started VERY rough, ran rough in idle for a minute or two until it was running just like the day before..

So returned to the dealer and told them the problem with the car and that I wasn't interested.. They said "Well, let's have our mechanic look it over and see what they can find" I said No, I didn't want them to "fix" something I was buying and that I would just take my car back and think about other options. The Salesman looked at me and said "well, we've already had some interest in your car and have it basically sold, so what can we do to find you something you like?

Told him to give me my keys... The car wasn't his to sell and after this little trick I wouldn't ever be doing business with them.. He still argued for a bit and tried to bring his manager into it..

At which time I picked up my cell and said, "Do I need to call the local authorities?" keys were handed back immediately and I got the heck out of there.

Surprise upon surprise 2 years later the dealership was so bad the manufacturer took back ownership and sold it to a new owner.

 

[Big Cat]

In the field of "being a man" my negotiating skills are non-existent.

Bought a new 2013 Civic EX holdover on Saturday and was god-awful at the whole thing. I'm going to have to do it again in two years when we need a family car.

Ended up paying 20,330.43 plus tax and DMV fees. Had walked in with 12K in cash to buy a 10-11K used car but ended up putting 10K down and financing the remainder.

I feel like I got rooked and would prefer not to have the same feeling again. How should I have done it?

This isn't a problem in negotiating. the problem is lack of discipline... you didn't stick to buying what you went for.

 

[Bruce Dickinson]

negotiate everything through email with several dealers. i didn't even walk into the dealership until it was time to pick up the car.

A friend of mine enjoys this part of the game so much, he volunteers to negotiate car prices for others. He's totally upfront with the dealers about what he's doing, too.He sends out 4-5 emails first thing in the morning, says he wants their best price on car X by close of business today, he lists the other dealers he's contacting, and he will be ready to come in and sign the contract first thing tomorrow. As the day progresses, he updates the salespeople with the score, "if you want this sale, you need to come in lower than $x". At the last hour, he sends out "if you can beat $y, I think your first to-do tomorrow will be signing a deal".

I didn't retain his services for my last car purchase, but I learned so much from watching him operate it was like he was talking into my earpiece. Talked to a few dealers, then met one for a test drive. When negotiations stalled, my wife just stood up, said "I think we're done here", and we walked out of the sales office.

The salesman chased us back to our car and dropped his price by $2000. We confirmed that offer would still be available tomorrow, and left.

While driving off the lot, we called another dealership and told them if they had the car we wanted with the specs we wanted and could beat the price we were just quoted, we would be up there tomorrow night to sign a contract.

 

[Bruce Dickinson]

I like the advice about buying the previous model year as the new models are arriving. It's also helpful to research if dealers have big incentives to get a new model year of a vehicle out on the road quickly - sometimes there are deals to be made there, too.

Ditto to the posts mentioning the price of the car and the financing of the car are separate negotiations.

If you're in a big enough city to have multiple dealerships selling the same vehicles, probably worth the trouble to read dealership reviews, too. Should prepare you for the slime level you are about to enter.

 

[NCCommish]

www.carbuyingtips.com

www.edmunds.com

www.truecar.com

www.kbb.com

do some research before you go to the dealership.

know what you are willing to pay.

have financing arranged before you go to the dealer (talk to your credit union or bank).

you need to control the negotiation.

be prepared to walk.

Most important thing. Always be ready to walk.

 

[TheWalkmen]

First off, how are you?

Secondly, the shark move is to buy a luxury car from a desperate seller on craigslist.

 

[fantasycurse42]

Did you pay for the keys and the additional overcharge fee?

 

[pats3in4]

New cars are commodities. Call several dealers within your acceptable radius, ask for the fleet manager, provide the specs you want, request their bottom line price and you'll call them back after you do the same with the other dealers on your list. Email a followup to the fleet manager to get the quote with specs so there is no confusion or bait-and-switch. If you live in an urban area, you may contact 30+ dealers, get 4 or 5 to give an offer and (depending on model and demand) get one below invoice. That dealer will probably be the one about to hit a volume incentive from the manufacturer and will be willing to give you a great deal and make it up from the manufacturer.

Used cars are a different story. Edmunds True Value is probably your best online guide.

 

[Nugget]

blackdot

Like to address this more after work. I think there are some good and bad tactics being discussed. A car buying experience should be a blast - most would rather go to a dentist.

 

[[icon]]

Its simple.

For a new car, research the car you want online (down to the options, color, etc.)

E-mail every dealer within driving distance that has the car you want and ask them to give you their best price (price of car only, don't worry about financing for now).

Accept the best offer.

Unless you have bad credit, the financing is going to be the same pretty much everywhere.

Don't buy extended warranties or any of the crap that the dealer tries to sell you.

I haven't negotiated with a car salesman since the 90s.

This

 

[[icon]]

negotiate everything through email with several dealers. i didn't even walk into the dealership until it was time to pick up the car.

A friend of mine enjoys this part of the game so much, he volunteers to negotiate car prices for others. He's totally upfront with the dealers about what he's doing, too.He sends out 4-5 emails first thing in the morning, says he wants their best price on car X by close of business today, he lists the other dealers he's contacting, and he will be ready to come in and sign the contract first thing tomorrow. As the day progresses, he updates the salespeople with the score, "if you want this sale, you need to come in lower than $x". At the last hour, he sends out "if you can beat $y, I think your first to-do tomorrow will be signing a deal".

I didn't retain his services for my last car purchase, but I learned so much from watching him operate it was like he was talking into my earpiece. Talked to a few dealers, then met one for a test drive. When negotiations stalled, my wife just stood up, said "I think we're done here", and we walked out of the sales office.

The salesman chased us back to our car and dropped his price by $2000. We confirmed that offer would still be available tomorrow, and left.

While driving off the lot, we called another dealership and told them if they had the car we wanted with the specs we wanted and could beat the price we were just quoted, we would be up there tomorrow night to sign a contract.

 

[skol asylum]

 

[FatMax]

He sends out 4-5 emails first thing in the morning, says he wants their best price on car X by close of business today, he lists the other dealers he's contacting, and he will be ready to come in and sign the contract first thing tomorrow. As the day progresses, he updates the salespeople with the score, "if you want this sale, you need to come in lower than $x". At the last hour, he sends out "if you can beat $y, I think your first to-do tomorrow will be signing a deal".

That's pretty much the way I have bought my last two vehicles, except I don't give them a price. I just tell them that another dealership is lower. I figure that gives them enough room to cut each other's legs off even more without having a hard target.

Personally, I love buying cars. Heck, I even love going head to head with the slimy pricks in the finance office. It's fun.

 

[Smack Tripper]

New cars are commodities. Call several dealers within your acceptable radius, ask for the fleet manager, provide the specs you want, request their bottom line price and you'll call them back after you do the same with the other dealers on your list. Email a followup to the fleet manager to get the quote with specs so there is no confusion or bait-and-switch. If you live in an urban area, you may contact 30+ dealers, get 4 or 5 to give an offer and (depending on model and demand) get one below invoice. That dealer will probably be the one about to hit a volume incentive from the manufacturer and will be willing to give you a great deal and make it up from the manufacturer.

Used cars are a different story. Edmunds True Value is probably your best online guide.

good stuff, any general thoughts on used cars? I'm much more at home negotiating new on the guidelines you mention but there's obviously a different feel to used via dealers.

I'm worried about buying flood damaged cars locally after Sandy

 

[Dentist]

What if you are paying cash and aren't even using the financing department in any way.. how does that change the game