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+--- Thread: Used car from dealership. Tips? (/showthread.php?tid=166643)
Used car from dealership. Tips? - smacks - 04-26-2014
Looking for a used Toyota 4runner from a local dealership. I know exactly what I want, what it's worth, and am not in hurry. I certainly willing to walk away if I can't get what I need. I have about $10k to put down, and the truck I'm looking for should be about $15k according to KBB and Edmunds, so i'll need to finance the balance.
Aside from being armed with this information and a stack of cash, what other tips or tactics do you guys use when negotiating the price of used car from a dealership? I don't care what the monthly payment is, and I know enough to negotiate the selling price...
What's a decent interest rate on a short term (2 years) used car loan like this? Do I let on that I have 10K to put down before talking price?
I would like to think it's pretty straightforward, but I've hated every dealership experience I've ever had...
TIA
Re: Used car from dealership. Tips? - Kraniac - 04-26-2014
Man, I've killed on Craigslist in the past couple of years. I know it requires a bit more effort and care but it sure seems like it's a buyers market there on the list.
Sorry to comment against your topic wish but i just had to interject..Though, I do live in a large Craigs market so maybe that plays in. You may not.
RE tactic. I would talk price initially without mentioning your 10k Try to feel them out and then frame that 10K as a "what if" at first.
Re: Used car from dealership. Tips? - MarkD - 04-26-2014
1. Try to arrange finacing ahead of time at a credit union or maybe a bank--they should offer you better price and allow you to be in effect a "cash" customer.
2. Always understand that the financing dept will be there to make offers to increase their profit. Dealerships never sell cars they don't make money on. What is difficult is that you never know what the dealership has in the car.
3. I have had some success in telling salesmen what you are looking for and they call you to come look at it before gets ready to be sold. (Couldnot find a low mileage cars). Good way to get first crack on it. I also had a friend that knew the salesmen and would buy from the dealership with any processing or make ready and got good deals that way.
Good luck.
Re: Used car from dealership. Tips? - Jack D. - 04-26-2014
This has been discussed a few times here in the past. See http://forums.macresource.com/read.php?1,637243,637326#msg-637326 and do a forum search for used cars.
And remember: The salesman is not your friend.
Re: Used car from dealership. Tips? - deckeda - 04-26-2014
As you've probably noticed, the negation on price typically dovetails with questions about financing. You can demure and say you haven't decided on what, if any amount, you'll finance. This is an honest strategy, because the amount you finance probably impacts the rate you get. It's good to not get distracted by monthly payments. People who can't really afford the car worry about monthly payments and dealers take advantage of that.
I have a feeling it won't matter a lot if, on the other hand, you reveal you've got a big down payment, because the dealer often expects people to trade in cars (which is a big down payment.)
Talk to your bank about the loan and take that info with you to the dealer, who will probably be able to beat it a little. The bank might post this online or the branch might be open today for a few hours. Once, when buying a new car, I knew what my bank would charge and simply verbalized it to the dealer--no "proof" necessary--and he said, "OK, we can do it for X" and it was cheaper.
Couple of things to keep in mind:
1) Doing it all at the dealer means you pay for that convenience, so don't get upset if somewhere the cost is higher than buying from a private party (aka "paying more than I think I "should")
2) If you secure a loan first--independently--you can park that money in your checking account and be able to pounce on a good deal from a private party. In in the past I've liked search autotrader.com if the local craigslist seems dry.
Good luck!
Re: Used car from dealership. Tips? - deckeda - 04-26-2014
To emphasize what MarkD said about the dealership ... the finance guy holds the keys to the castle ... use him if it's to your advantage but avoid his office if you can.
Re: Used car from dealership. Tips? - Acer - 04-26-2014
I've often heard the "cash gets a better deal" advice, but when I've tried it the dealership hardly bats an eye. I think it's because it removes the financing profit center.
On the other had, I suck at car negotiation.
I've had positive experiences with Capital One auto loans. Apply online, competitive rate, they send you a blank check that you simply write out to the dealer when you seal the deal. I've used it twice, for used and new, and everything went smoothly. No early payment penalties.
Re: Used car from dealership. Tips? - bik - 04-26-2014
If you want to really work for it, you may be able to get a better deal by working with the dealer on financing, but you would really have to play their game, at which they are well practiced.
If you want to get the best deal you can while minimizing the games, get financing separately ahead of time. (I've also had good experience with Capital One blank checks.)
Tell them they've got competition, but not exactly the same competition.
Tell them you really like a Nissan you saw at another dealer - don't tell them the dealer, price, or any details, especially since they won't be true.
Tell them you are leaning toward the 4Runner, but you want to drive both the Toyota and then the Nissan again.
When they inevitably ask you what it will take to "get the deal done today," be ready with reasonable demands. After having driven the Toyota, work on a list of things you want fixed/replaced.
Ask for new tires if they are close to low.
Ask if you can see a maintenance report from when they brought the car in and checked it.
Don't get sucked into warranties. It's a profit center for used car dealers. You'l pay well over $1,000 for a warranty that covers anything. They'll fear you into believing that a million things could break and it will cost a fortune to repair them all. The truth is, if the car has reasonable mileage and runs well now, it will probably run well beyond the length of any warranty, and any major repairs would probably cost less than you'd spend on the warranty.
Re: Used car from dealership. Tips? - OWC Jamie - 04-26-2014
Cash gets the deal might work at a used car dealer or private sale on craigslist and even then I doubt it.
I wouldn't expose that card until after an offer is made. Well after.
At a new car dealer you're just letting the salesman know up front he's not getting a kickback from the financing. You've shown your card(s).
I got a better deal by asking for an offer on the Fit I just bought via website.
I walked in a hour after getting the offer anonymously and the guy up on deck on the lot wanted me to sign a deal paper , yeah, I'm a sucker but give me an offer right now because I'm not playing games and his offer was $1300 dollars over the anonymous offer on the same car.
The next day I went in with a blank check to see the girl who made the online offer and she balked at a cash deal price but took it.
Even if a dealer offers you better financing look at what's on paper at financing real carefully.
Interest rates and fees can change at the last second.
I bought my last two cars with cash, but I'd have my own financing in my pocket before I walked on to a dealer lot. New or used car.
Re: Used car from dealership. Tips? - rjmacs - 04-26-2014
Also, if you can get a low-interest loan for the whole price, and the loan has no penalty for early repayment, you can finance the car and pay $10,000 your first month.