Tips on buying a new(er) car

[Alex_Adviser]

Best day: slowest is mid week. Another great thing is rainy or nasty weather. You don't want to be out and neither does anyone else but you can get great deals.

well i feel that the best day to make a deal on a new car is the last day of the month or year. Sales people often have monthly and yearly quotas and incentives to meet. They may be more willing to give in on price if they think they can make up their loss in other ways.

When you meet with the sales person and discuss the car (and options you want), the price quoted by the sales person may be very close to the Dealer List Price on your printout! You can then reveal your printout and tell the sales person what you are prepared to offer: the actual cost of the car plus what you think is a fair percentage for commission. (This commission percentage is a personal choice and only you and the dealer can determine what's fair)

Regards

[AutoSelect]

Great information.My tip for buying one is to buy a cheap car that will last. A cheaper car will have lower insurance as well.

[RedCentMan]

A new car? why

price drops the second you buy it by like 20% at least.

[WiseOwl]

Yes. Best day is midweek and best week is end of month.

Also, best negotiating strategy is KNOW THE DEALERS PRICE, and then start bargaining from about $500. above THEIR price.

[yournontoxiclife]

I also find it useful to talk turkey with printed info in your back pocket from prior research. Only pull it out when you need to. It also helps if you have called the dealer or emailed them ahead of time about the car. Then they think you're serious and will wheel and deal.
Above all, be prepared to STAND UP and leave when they get all "my manager says we can't go any lower" on you. You may not make it out of the parking lot. If you do, you will get a nice vmail or email on your way home. When that happens, you've got yourself a deal!

[tzsgti]

Since this thread was brought back to life i would like to add a couple more tips and a couple of misconceptions people have.

First of all you should start of buy ordering a consumer reports packet on that perticular car which usually cost 30-40 dollars but trust me its worth it. You will be able to see everything from invoice to holdback to dealer fees. Next step would be to do what everyone else mentioned and fax or email (which would be the best way since its usually the internet dept that deals with emails) exactly what you want and when you want it. Usually you will get a pretty competitive price with in a respective amount of time.

Misconception:
"price drops the second you buy it by like 20% at least"

Not always true at all. I totaly agree that buying a car two years old or even one year old with a reminder of the warranty would be the best bet since its lost alot of value but to say to be a car with in that year model with a couple of thousand miles will not always be that much less. It happens to be specially now where cars are marked down like crazy with factory rebates as much as 7-8k dollars or even no intrest loans that they offer that you are not saving much to go with that demo.

Take for instance a Pontiac G8 where this past month they are offering 4k dollars in rebates or 0 precent for 72 months. The prices of used ones on dealers lots are not much less if 500-100 dollars less then you can pick a new one for. A honda for example definetly does not lose 20 precent. Try buying almost any 2009 Honda with demo miles or even 5-8k miles and you may save 500-1000 at best. Next time you look at a lightly used car and it says Original sticker price 30k dollars now marked down to 21k ingnore that and look at what they were going for new.

So 20 precent is far stretched. 20 precent of MSRP? Possible. But not the purchase price.

[tzsgti]

Other things that don't hurt to check up on: Does the car use regular gas, premium, or diesel?

How much do simple parts cost? Air filter, fuel filter, transmission filter (if it's automatic), oil filter, PCV valve, windshield wipers, lights, TIRES etc. All things that have to be replaced periodically so it doesn't hurt to have an idea what they cost.

How easy are parts to access? In other words, can simple maintenance be performed by the cars owner, or is everything so jammed in there you can't do anything without removing a dozen other components that are in the way (I stay away from cars like that).

Great tip on the maintance and sites like consumer reports and edmunds have the true cost to own numbers for most cars.

Premium fuel is another thing people make way to much of a deal. The cost of preimum fuel is not as much people think it is. Here in NY/NJ the diffrence between premium fuel and regular can range from anywhere from 25-35 cents. Take some one who drives 12k miles a year and thier car gets an avg of 22mpg overall. now thats 545 gallons used over the years time. at 35 cents and you have a yearly cost of $190 dollars. Now cars that usually require this generally are cars that enthusisat buy and generally benefit from better performance. So for the cost $190 a year people are making a huge stink


Unless your buying a much older car other the subaru most cars that require premium generally cost more. In example luxury cars or performance cars. So if 190 bucks is an issue you shouldnt be buying the car.

[msmorrisonspeaks]

Buy a used car. The most expensive miles on a car are the first 10,000. Let someone else drive those for you. Buying used can save a lot of money considering how little value the car has actually lost.

[maryannsms]

NEVER negotiate based on monthly payments. One of the most common questions a car salesmen will ask you is: "How much do you want to spend per month?" If you answer incorrectly... that salesman is going to know he has a sucker in his hands! The proper response to that question should be: "The monthly payments are not important - the sale price of the car is what is most important to me." Never enter a dealership and ask: "Can you get me this car for $XXX per month?"

[msmorrisonspeaks]

Another tip: Buy a used car. The most expensive miles on a car are the first 10,000. Let someone else drive those for you. Buying used can save a lot of money considering how little value the car has actually lost.

[tzsgti]

NEVER negotiate based on monthly payments. One of the most common questions a car salesmen will ask you is: "How much do you want to spend per month?" If you answer incorrectly... that salesman is going to know he has a sucker in his hands! The proper response to that question should be: "The monthly payments are not important - the sale price of the car is what is most important to me." Never enter a dealership and ask: "Can you get me this car for $XXX per month?"

Exactly. This is the number one thing i tell people when going to buy a car. If you can afford the payments means you are looking at a car thats too expensive for you. Also its really important that you negotiate three things seprately. In this order:

1) Purchase price- If thier are rebates make sure they are not tied to a Financing deal.
2)Trade in- Always mention this the last thing when you finally got the purchase price on paper.
3) Financing- You can always shop for this. If you are coming in with a pre approved loan do not mention this until you negotiated on the car. They will play around with the price if they know you are not financing with them.

If you have all three of these things separate then they will have less room to screw you and mess up the numbers. Then it becomes easy:
Purchase Price+tax and dealer fees - Trade in price and or down payment = amount financed. Use a finance calculator online to see what your payments are.

[lodoren]

I haven't seen this tip yet... go to car auctions. I have been able to buy our last 3 cars, CASH at 1/3 the price at car auctions. Do your research ahead of time, though and make sure you are prepared. Car auctions are not all the same. The best cars to go for are the repossessed ones. At the last auction we won at, we were able to not only get our car but get lifetime oil changes, extended warranty and basic maintenance FOR FREE! We've had one of the cars for over 8 years and the truck for 4 and have never had a problem!

[RMitchell]

Hey there everyone! I am currently looking for a newer and better car so as for me your tips are awesome! As far as I'm concerned it is better to buy a car of 1-2 years than a new one because during this period of time its price reduces on one third.

[selina_z]

eh, I am going to buy a car, and this post is really good and helpful. Thank you very much.

[Rainbow Traveller]

The tips will be:
1. One of the most important tips for saving money on a car loan is to arrange the financing before walking into the showroom, according to consumer advocate Clark Howard. With an estimated eight in ten shoppers financing their vehicles through the dealership, sellers often make extra money on the deal by boosting the interest rate on a car loan two or three percentage points higher than competing financial institutions such as credit unions or auto insurers.
2. A second smart approach for buying a new car is to avoid flipping "upside-down." That is good advice in terms of road safety, of course, but it has a special meaning with bank loans. Economists use that term to indicate a consumer who is paying more for a house or car than it is worth. Shoppers who arrange auto loans that run longer than 42 months run a serious risk of winding up in a depreciated vehicle, and owing more on their car than it is worth on the resale market.
Long-term auto loans can be attractive because they reduce the monthly payments – dividing the total sales price by a larger number of months produces a lower result. However, consumers ultimately pay dearly for that feature because they owe interest payments on the loan for a longer time, inflating the total payment in the end.
3. Stay skeptical about the value of unnecessary extras such as rustproofing, fabric protection and paint protectant, according to Consumer Reports. Some dealers will also offer a feature called VIN etching, which is intended to deter car thieves by scratching the vehicle identification number (VIN) onto the windows. Customers who want that feature can do it far cheaper at home than at the dealership, auto experts say. Likewise, modern vehicle bodies are already coated against rust, and most hardware stores sell inexpensive kits for protecting upholstery if a driver expects a dirty interior.
4. Hold off on buying the extended warranty, the magazine says. Cars manufactured in recent years have plenty of reliability for five years on the road.
5. Hire a mechanic. Buying a used car without getting an independent checkup from a garage that is not connected to the dealer is a recipe for waking up one day to an unpleasant – and costly – surprise that could have been avoided. Most repair shops offer this service for about $100.