May need to buy a car - help!

[jzunic]

Ugh - my 1 month old son and I were in an accident last week (an oncoming car hit some water, skidded, and drove right into the driver's side of our car!) - thankfully, no one was hurt, but it looks like the car is going to be a write-off Such a pain, as it was totally paid off and only had about 50K miles on it... And with a new baby, the last thing we were planning to do is buy a vehicle!

Anyways, we only have the one car (my husband takes a scooter to work), so we need to replace it. Fortunately, we have more than enough in savings to buy it outright, so we don't have to worry about car payments.

What are the best tips for buying a car, new or used? If we're not financing it, should we tell the dealer upfront or not?

Also, if anyone has recently researched vehicles and can pass along their results, or if you just really like your car, can you please share? With the baby, we have very little time to do proper research and test-drives! We're looking for a 4D sedan or a small SUV, safety and fuel-efficiency are top priorities. Hopefully under $20,000...

TIA!

[MonkeyMama]

April/May were really goot times to buy, not quite sure on June. But look at the '1 at this price' ads in the paper - there are generally phenomenal deals in the spring.

Try to look for a car that is an older year but not driven - those are always the best deals. & now is the time to buy those as they are making way for the new models and want to clear out the ones that are sitting from last year. USually why April/May is good but there may be some left.

It's funny you ask because in the past we have always shopped with cash and frankly most car dealers would not even want to do business with us. I was just mentioning this in my blog. We bought a car last year and went with the dealer financing (not much more expensive than we usually shop for) and the difference was night and day. The rolled out the red carpet for us. We pretended our income and cash was much more modest than it was of course. But if you can make sure there is no prepayment penalty and read ALL The fine print really I would do the dealer financing, and then turn around and pay it back within a month or 2. We did that last time and it was sweet. They were way more willing to bend on price. Usually they just get pissed they can't talk us into more than we can afford and rather not even make the sale. Amazing but that had been our experience twice. (My hubby loves buying from dealers and I pretty much refused before our last experience - all my prior cars had been bought from private parties). So just a heads up - certainly my experience paying cash - not good - I have a long list of dealers I will never set foot in again around here.

OF course the dealers will tell you anything, so you have to read the contract, but refuse to make a purchase with a prepayment penalty and they will probably remove it. On mine there was some nominal fee but they didn't even charge it in the end when I paid it off right away. I lucked out.

[zetta]

My biggest tip is to decide on two or three models you are very interested in, and pay for the consumer reports price guide. This will lay out for you the amount that the dealer paid for the car, and will help you decide whether you are getting a good deal or not.

When we shop for cars, we always tell the saleperson, "We want to negotiate the price first, and then we'll talk about financing." Don't even discuss whether you're paying cash or not until the price of the car is settled.

We've been very happy with our 2005 Honda Pilot. It was $34k new, but if you are willing to consider a used one you might be able to find something in your price range. The gas milage isn't great, though, so a smaller SUV like the CRV might be better. I sometimes think we should've considered getting a station wagon instead of an SUV.

[Fern]

I've done exactly what zetta said, ie, don't talk about financing until you settle on the car and price first.

Also, New Car Prices, Used Car Pricing, Car Reviews by Edmunds Car Buying Guide is a good resource, especially to put a value on slightly used vehicles.

You can't go wrong with a Honda/toyota for energy efficiency; just make sure it has front, rear and side airbags.

I also saved a lot of time, after deciding what model and exactly what add-ons i wanted, by sending a fax to a half dozen or so area dealers and asking for their best price. Now you could easily do this via email. It cuts out all the haggling back and forth, and that's how i bought my little honda.

[jIM_Ohio]

I'll second honda (accord) or Toyota (Corolla). Look for 2006 or 2005 models. I would NOT tell them about payment until after they tell you the cost. See if you can knock it down (easier to knock down a 2005 than it would be a 2006 or 2007).

[mom-from-missouri]

I just got a brand new 4 door (plus hatchback) Chev Aveo, stickshift. I love it. I get 37 mpg on the highway, and not much less in town.
The car also comes in a 4 door sedan version. It is also available as an automatic. It is the least expensive car Chevy makes. We wheeled and dealed them down to $11,250. (or it may have been $11,500==I forget which without going out to look at the paperwork in the glove box).
Its little, easy to park, the hatchback is more than big enough for groceries and a stroller... The back seat has 3 sets of seatbelts, so I can get 3 kids in it.
If anyone remembers the old Chevy Chevettes, this is like the chevette reincarnated, only better and much roomier.
I've bragged on it so much, that 2 other people I know are now getting one after driving mine a few blocks.

Not every day you can buy a brand new car for that price (had 4 miles on it)

[project15]

Originally Posted by mom-from-missouri

We wheeled and dealed them down to $11,250. (or it may have been $11,500==I forget which without going out to look at the paperwork in the glove box).

Might want to take the paperwork out of the glove box. My wife (then girlfriend) had her car stolen. They recovered the car, but all her lease information was gone from the vehicle.

[disneysteve]

Defintely don't mention how you plan to pay until you have the price in writing. One thing should have nothing to do with the other.

As for what to buy, what is the car that was wrecked? Here's why I ask. We bought a 2000 Toyota Sienna new (it seemed like the way to go at the time). It was wrecked in August 2002. We got the insurance settlement and with that and about $2,000 cash, we were able to get a nearly identical 2000 Sienna used that actually had fewer miles than the one we had wrecked. So depending on the age and value of the car you are replacing, if you liked that car, you might be able to find one just like it for a good price.

[bigsaver]

How about a toyota yaris? Seems to be a nice car that gets good fuel mileage.

[zakity]

Did you buy a new car seat?

[m3racer]

1) narrow down your search and decide what car model fits in your price range
2) check the kelly blue book, edmunds, NDAS on the car you're interested in
3) Only offer the dealer the $$$ that is quoted between "fair" and "good" quality from a private party value
4) DO A PREBUYER'S INSPECTION FROM AN INDEPENDENT MECHANIC THAT YOU TRUST. TRUST ME ON THIS....THE $150 THAT YOU SPEND ON THIS WILL SAVE YOU $$$$$. ALSO YOU CAN NEGOTIATE WITH THE DEALER A LOWER PRICE IF YOU CAN LIST THINGS THAT ARE WRONG WITH THE CAR

Good luck!!

[Coleroo]

1. search online (carmax.com, ebay autos, etc) to get a good feel of what price range the car you are looking for is going for (years, makes, models)

2. get a kelly blue book report on the specific model you want

3. make sure you know specifics about the model you want - what the base version is, what comes standard, how much "extras" generally cost (some dealers put it on the window sticker ...i.e. air condition ad on = $1,459)

4. if local dealers are online, get a quote over email on what a new standard model car of the model you want there costs - keep the printout of the email to take with you

4. always let the dealer quote his price first (most will not want to tell you first) then you work them down but do not tell them what YOU are "willing to pay". get their price out of them, then lower it to what kelly blue book value is.

5. let the dealer know you have your own financing in place, period, and that you will be purchasing asap from someone with the right price.

6. If you can't get the price down, be willing to leave. Hand them your business card & number, with your final price and you'll be paying cash to the right dealer - then LEAVE. Do not look back.

7. Learn how to haggle - they'll put up sob stories, try to mess with your head, etc. You MUST know specifics and price ranges for the car you are purchasing if you want a good price. if the dealer knows you know this, they will be more willing to bargain with you. Have your reasearch papers with you and refer to them.

8. Dont lowball it - they want to make a profit too. Make sure the price you offer is reasonable for the going rates and features on it.

9. Shop at the end of the month - as a last resort they will say "well, maam, i'll tell you what... we do have some quotas to meet so we need to sell this"

10. Its always best to shop around august, sept, oct because thats when new models are coming out and the dealers are pushed to get rid of inventory.


After I got "taken" with my first car purchase back in 2004, I decided to never let a dealer get the best of me again. We just purchased a new Aveo in late August 2006 and I used the method above - worked like a charm. I knew what i wanted, walked into the dealership and pointed to the car. The asking price was $12,800 (way too inflated!) for the used 2006 aveo with 2k miles and air condition (AC is not standard). It also had some nice tinted windowes and window guards (looks more sporty than the standard). It wasnt worth more than 10,500 and I made it known I wouldnt go higher. One clincher was that I had brought the email quote for a brand new 2006 base model aveo from their dealer for 9200 and I pointed out their own window sticker shows AC is only 1400 to add on. After about 45 mins, the manager and I agreed on $10,750 and we signed the deal. (It was funny, I learned these steps through lots of research online - right down to the "we have a quota to meet" tactic of buying at the end of the month... he said it word for word to me!!)

The point is - they want your business, but they will dominate you let them. Be informed! Know what you want. Set your price and stick to it - if they dont budge, go somewhere else.

[markusk]

Just a quick question for the pros out there....

If I am buying the car outright with cash, in what form should I have this "cash" when I go to the dealership? A cashier's check? A personal check?

[Scanner]

Personal check is fine.

I recommend buying your car through an internet service. I used cars.com the last time I did this.

Now here's the rub. You won't get the very lowest price as if you negotiated like a fiend.

However, if you are pressed for time, this may be the way to go. I had an accident too and needed a car quick as my car. ins. was yanking the rental reimbursement after they cut the check.

Truthfully, to get the very best deal, you have to be willing to walk a couple of times and really mean it. However, you can't leave the lot in a huff on a scooter as that doesn't give you a hell of lot of leverage (LOL).

An internet service will usually give you a few hundred under invoice (I think mine was $800 under invoice), which isn't bad but yes, not the lowest. But at least you know you aren't getting screwed.

Finally, as a side note, if you are going "econo", we have loved our Toyota Matrix. I also own a Ford Taurus that I bought used and have had no complaints as that model has been around a long time to work out the bugs and kinks.

There are other negotiating techniques (like pulling them to your side of the table) but I won't get into it but yes, don't pull financing off the table right away - leave it all on the table at the start of negotiations. Get the saleman to invest time and then be prepared to walk, not necessarily in a huff, but just a sad resignation.

[smokey0066]

Does anyone have experience with working with the fleet dealer sales associate? Do they provide better pricing?

We have a local car dealer that offers fleet pricing for all employees at the company I work for. Is this a good route to go and for those of you who have done it, Is there room to negotiate with fleet pricing?

thanks

[click4credit]

My suggestions would be to have a look at a Honda Fit or a Honda Civic Sedan. Both have great fuel economy and safety plus fantastic reliability. I have a Honda Fit and can not recommend it enough - it may look small but is incredably spacious inside even with 4 adults. The seating is very flexable with seats folding up and down flat on the floor. The Civic is very classy and comfortable. Both are under $20,000

[George23]

As far as financing is concerned - I have used Capital One's "Blank Check" program before to get prequalified for an auto loan and then just walk into any dealership and write the check up to my prequalified amount. That gives you a little bargaining power with the dealership. Also, be sure and shop around for auto insurance quotes as well once you get the new car (ideally, one should compare car insurance rates every 6 months or so but its easy to forget).

[boefixepa]

I have to say that Hyundai has done well for me. I have had both an accent and how an eltanra. They both have fabulous gas milage and have needed no major repairs. I traded in the accents with over 110K, it was pink and I could afford more, for the elantra becuase I had no mechanical problems with it. I've had the Elantra for 5 years now and it has 93K+ on it and has had only scheduled maintence, which is more than I can say for the first one. They also have the Sonata, roomier than the Elantra, and small SUV. The warrenty was the best offered at the time, but I think more are offering the 100K plan now. I was able to get that even though I bought it used.

Hope you find a great car, and glad to hear you and baby are okay. I would have been so mad at someone for hitting my car with my one month old in it!!!