Buying a Car

[nurikabe]

I need to buy a new car.. something I truly dread doing.

Does anyone know of any sites where I can simply list the monthly I am willing to pay on a lease and get back a list of dealers? (Or anything like this...)

Thanks!

[chicagosuccess]

I used to manage a car dealership that had six different lines of cars (luxury and non-luxury.) Buying a car doesn't have to be a dreadful experience if you understand the processes that go into a purchase.

My guess is that you dread dealing with a smarmy salesperson that's going to use "car sales" terminology and phrasology like, "what can I do to get you take this home today" and things like that. Relax - it's going to be okay. Here are a couple of tips that might make your car purchase go easy and allow you to wrap it up at the first place you go to.

Get informed - go to Edmunds and price out the car you want. Get an idea of the TMV - true market value, but most importantly - take note of the invoice price. Find out exactly how much room there is between MSRP and invoice, and then find out if there are any special incentives, like cash back or dealer cash. Understand that the invoice price may not be exact due to something called "pack" which is a fee charged to dealers by manufacturers that shows up separate from invoice. Odds are, if the dealer has to pay it, so will you.

Be up front - let the salesperson know exactly what you're looking for and that you've done your homework. Calling first is a waste of time because just about any salesperson worth their salt will tell you to come in - if the vehicle exists they can trade for it with another dealer anyway. If you try and hide the fact that you're prepared, you are initiating the lack of trust and should expect it in kind.

If you're leasing - the payment and money down is the thing, but the price of the car is important as well. If you negotiate price first, payment and money down can be see-sawed to get to something acceptable. Let them know you have a payment and money down number you're looking to get to, but that it's based on what you believe will be a fair price for the car you want.

If you're purchasing - price of the car comes first - then payment/money down. It's basically the same concept as leasing but if you're purchasing and not leasing, the value of the car once it's yours is more important.

Understand - Every $1,000 is about $22/month on a purchase depending on location and credit. It's a pretty solid number to work with though. In other words, don't expect a payment to drop a hundred dollars because you got $1,000 off.

Let them know of the discount you expect - if you're buying a domestic, the only reason you shouldn't pay at about invoice or below, is if you're buying a Corvette, a Mustang with a V8, most Cadillacs, or any car that is a brand new model that's been on the lot for less than 3-4 months. So, even though the new Malibu is just a Malibu, the fact that it's completely redesigned will keep the price away from invoice for at least a few months. The rules are pretty much the same for basic Japanese and Korean cars.

Stand firm - going up $5 in a monthly payment to get a deal done is fine (remember this could be as much as $500 in the price of the car) but you would have to be way off if they're trying to tell you that you need to go up an extra $20.

Remember - dealers do have breaking point. There is a number at which the dealer has to say, "I can't sell you a car at that price." They are not going to give you a big discount and attempt to "make it up on the next guy."

Finally - the "let me check with my manager" syndrome is pretty much a required act. Most managers don't trust their salespeople to be capable of knowing how much room is in a deal without ruining the negotiation process, so most salespeople really don't know what they can take off. Be patient and you'll get what you want.