I'm buying a new car for the first time! I need coaching.

Miscellaneous and Personal Stuff I Must Share
1

Hokay, I’ve reached the age of 53 without ever having bought a new vehicle myself. Our current commuter car is in the process of biting the dust, however, and I’m ready to test my negotiating abilities.

Pros:

I’m good at concealing enthusiasm, so the salesman shouldn’t think I’m an easy mark.

We’re not desperate for a vehicle NOW. The old one should last awhile longer.

We have our own financing through a credit union.

We can afford a large down payment.

Cons:

I haven’t done this before.

I HATE slimy salespeople. HATE them!

We want a Honda, and they’re popular, so there might be slim room for negotiating.

Can anyone give a newbie some tips on how to get my price on a car? It’s a Honda Crosstour, by the way. Thanks for any help.

2

Expect to pay a minimum of this ($26,886) plus 400 for “freight”/shipping, depending on where you are, Sticker/MSRP is $29,670. They’ll start you off at MSRP+Addendums, if they’re any good. Be firm, and use the advice below, and you’ll get a sticker or better deal. (Sorry, I don’t currently know what dealercash, if there is any, on a crosstour is.)

If you have any further questions, I’d be glad to share my experience.

3

I think Consumer’s Union will send you a complete report on the vehicle that you are considering - prices, what the various options cost the dealer, all kinds of stuff like that so you’re negotiating with some knowledge on your side.

I purchased my current vehicle (albeit used) from a large factory dealer so I assume some similar experiences will apply. Once they understood that I was in fact doing more than just kicking tires they got increasingly (and ridiculously) aggressive. A trick that I’d read online was to not only be prepared to walk out the door but to actually do so - at one point I got tired of something the manager was saying so I just got up, said “Excuse me” and walked out the front door. All I was doing was going to get a pencil from my car but the guy immediately agreed to a term I’d been proposing and suggested that it had been his idea all along.

It’s a silly dance, frankly.

Just remember that you are in control until you hand over your money. Do your research ahead of time and know what you can pay (and what you want to pay, which is a much smaller number). I’d say don’t go in with a checkbook in your hand, prevents you from making a mistake in the heat of the moment. You don’t have to be rude but absolutely do not let anyone talk you into anything that you don’t want. If you feel that someone is being obnoxious to you tell them politely why you don’t like it and that they need to behave, and if they don’t then turn around and leave.

4

I had to buy a car sort of unexpectedly (I was trying to get a bit more time out of it since I was unemployed at the time–yeah, it never rains, it pours) last summer. My new-when-I-got-it 1994 Accord needed a new transmission NOW. In fact, it was sitting in the dealer’s parking lot because it was beyond my driving it safely. I bought it at that dealership and always had it serviced there.

My regular service rep recommended the sales guy and paved the way with him. I went in, was treated like a queen, didn’t get any car sales guy crap. Of course, it was the last weekend of cash for clunkers (my old one wasn’t–mileage was too good) and they were so busy writing orders it wasn’t funny. The sales guy told me the price before my butt hit the guest chair at his desk and before I even looked at the Civics, which is what I wanted. No fooling around. Real good price. I had done my homework on the internet. Then I test drove a car and got a fully-equipped Civic for less than I paid for the not-so-loaded Accord 15 years ago… and if you know Hondas, the new Civic is about the same size as the old Accord. Picked it up 2 days later.

5

Consumer Union’s don’t have any special access to option cost. They’ll lend up to 125% of book on most new cars, going by MSRP (I think that’s right – not positive, finance was never my thing) and probable resale value (they’ll lend more on Honda/Toyota/Ford than Chyrsler/GMC/Buick).

You actually should have your checkbook with you.

One tactic that’s used is the “ultra-lowball,” which is basically a price that’s way below what they’d usually sell it for. They give you the price knowing you’ll walk out (and shop prices, and since no one else will match it, they’ll get “last crack” at you), and if you accept it and make a fuss, sometimes they’ll make good.

6

I got an internet quote when I bought mine a couple of months ago. The sticker was $27K. When I got there, they offered the low price of $23K because they have trouble selling the one with a standard transmission. I then showed them the e-mail saying $21K. They weren’t pleased, but I was happy with that. Get an internet quote, if possible.

7

Yep. I’ve never bought a new car. But from what I’ve read, you definitely want to shop online first.

A couple other tips:

When negotiating a price, it may be better to communicate with sales agents through email than in person.

Before walking onto a lot, you should have your financing already confirmed. Before shopping for a car, go to a credit union (preferred) or bank and determine the amount of money you can comfortably borrow. And *then *shop for the car.

8

Shop online to get prices. Print out the best ones and take them with you, especially for the dealerships that you’ll visit. Remember, they need to sell you a car much more than you need to buy a car from any particular dealership. Never, ever lose sight of that idea.

Finance through your own bank or credit union. Don’t let the dealership finance you, or make arrangements for financing. They make a LOT of money by doing it this way. Don’t let them do it to you.

Take along a coolheaded friend, or your SO if s/he’s also coolheaded. This person’s goal is to act as the Voice of Reason when you get excited about a particular vehicle. I’m the Voice of Reason when my husband goes carshopping, because I hate negotiating for cars, I don’t get excited about cars, but I can recognize when the dealership is trying to pull a fast one on financing. My husband will fall in love with a vehicle, and then price is no object to him. The VoR’s role is to say “Let’s go, they aren’t serious about selling us a car at a reasonable price” and then prompting the buyer to stand up and walk away. Dealerships have to see the buyer getting ready to walk out the door before they’ll start offering a reasonable deal.

Be wary when the salescritter or manager starts talking about how much you can afford to pay per month. Don’t negotiate on those terms. Don’t let them know how much you can pay per month. Ask how much the car is going to COST, not per month, but the total, including tax, title, fees, and interest. Be ready to stand up and walk out if they insist on telling you about the monthly payments instead of the total cost.

Be ready to stand up and walk out twice, and then allow yourself to be led back to the negotiations. On the third time, walk out and don’t return. Also, you can get a deal in writing, and tell them that you want to think about it for a few days. Use this time to shop for other cars, and show the other dealers the written agreement. I wouldn’t plan on the agreement to last for more than a few days, a week at most. But you can use that agreement for that week.

You won’t be able to get a fair deal from some dealerships. Accept this and move on to the next dealership. One of them will be fairer than the others, it’s just a matter of weeding out the really greedy ones first.

9

2 things to keep in mind:

  1. With all the huge discounts & incentives that Toyota is offering to recapture market share, you might see many of the other car makers coming down in price over the next few months. It may not hurt to wait a little bit.

  2. When you do decide to buy, always remember that there will be a car on the lot that you like just as much tomorrow. Don’t be afraid to walk away, and try to keep your emotions in check.

10

This. This. This! Great advice overall but flat-out REFUSE to discuss monthly payments. Politely inform them of this the first time. The second time, firmly tell them you’ve already told them you are not concerned about monthly minimums and if they bring it up again then you walk. If they come back to it a third time, walk out and mean it.

11

Bring someone else with you, or stock up on iPod games, because the constant stalling gets really tiring, and eventually you just want the whole thing to be over.

12

This is not a price negotiating tip, but if you bring a car to trade in and the salesman wants to take it for a test drive, DO NOT get out of the car afterwards until he gives you the keys. I made this mistake once and when I wanted to leave sans deal they jerked me around for a few minutes before “finding” my keys. Pissed me off to no end.

13

God this is terrible. I thank you all for this advice - I may be buying my first new car soon - but this really just makes me want to go to the old cars. ugh.

14

From my experience, your negotiating power has a lot to with how many of the model they are moving. The Crosstour is a great looking car and may be very popular. If they are having difficulty keeping them on the lot, you may not be able to land one for much less than msrp.

When I was looking for a new car a few months back, I got online quotes from all the dealers within a 75 mile radius. Once someone had the right price (about $1500 less than everyone else) I simply walked into the dealership and purchased the car in a no hassle transaction.

It was a pleasurable experience for everyone. The dealer got a sale without having to do much of any selling. I got the car I wanted at the price I wanted.

15

I am the voice of reason in this relationship, so that’s why I’m going out to do the negotiating. I already have financing lined up through a credit union that I joined for this very purpose.

I know that $26,886 is the invoice price, and that the MSRP is $30,308. I hope to land a price of about $28,500, after asking initially for $28,000. Does this sound reasonable? I’ll use your tactics, Todderbob. It may very well be that the Crosstour is popular enough that it’ll whittle away at my advantage, though. I’ll report back on my success or lack thereof.

Did I mention that I despise car salesmen?

16

I just took a look and I have to say I kind of like the Crosstour in an old Saab kind of way.

17

We used to have a mid-size Honda Accord station wagon, and we just loved it. We sold it several years ago, and have always wanted to buy something similar, but Honda stopped making wagons for the U.S. market.

Now they’ve come out with the Crosstour, which isn’t precisely a wagon, but it’s close enough. We’ve driven it and the Hyundai touring Elantra and various other mid-size hatchback/wagons, and the Crosstour was the clear winner. It’s really a sweet vehicle.

18

Another option to go with is through e-mail. You basically know what car you want and you know how much you want to spend. So with that in mind, find 4 dealerships and contact their website representative. Ask for their best deal. They’re not going to mess with you too much because you’re not in the showroom and have no ability to keep you around except by giving you the lowest price they can.
The downside: four car dealerships have all your contact info. And you will never. Ever. Stop their mailings.

19

According to Edmunds, you shouldn’t pay a penny over $28,000 in your area.

Call a couple dealers on the phone, and tell them you’ll buy one for $28,000, Out the Door. The first one to give it to you gets your business.

20

Honda doesn’t do this.

They set their prices, and they stick with them. You’ve never seen a rebate on a Honda.

Any car they sell, they can replace – at most – 45 to 60 days after it’s sold.

Unless they’re absolutely running out of that model car (2-door v6 accords are notorious for this), you can usually get one on the cheap.

This is very good.

No! Do not offer 28,000! Offer 26,886. They’ll tell you they can’t sell it to you for that, because they’re losing money.

Depending on how they do their books, they are. So they’re not going to sell it to you for that price. They’re going to want to include a few other things, fight them on every one. Tell them you want holdback included in your price (holdback), and that you know they don’t pay invoice for their cars.

You’re willing to pay them some profit, but only if they cut the shit (be concise and to the point about it). Bring you a legit deal that puts you out the door at under 28,000. They’ll probably come back with a deal around 28,900, work them back down from there.
Edit: ** Labrador Deceiver** says you shouldn’t pay above 28k in your area, but Edmunds isn’t the best judge of local pricing. You get it below 28, in my opinion, though.

Don’t hate 'em, they’re just trying to feed their families, and believe it or not, the things that most people hate them for are the most effective ways to do it.