04-26-2014, 11:55 PM
space-time wrote:
all this is great advice for buying a USED car from a dealer. What would change if one were to buy a NEW car? would most advice here still apply?
Yes, I think so.
A few thoughts:
- Do your test driving separately and ahead of time. If you are going to different dealers, test driving different models to decide what you want, you're simply not going be able to nail down the best price at that time.
- Once you have decided on the model, trim level, and options, you want to research the "Dealer Invoice" cost.
- Different models will demand different premiums, but for many cars your goal should be $100-300 over dealer cost. Sometimes you can get lower than "Invoice" depending on the situation. And some cars will demand a premium and you will be lucky to get lower than $1000 over invoice.
- Shop at a couple different new car dealers and get an idea for who you feel most comfortable dealing with. Unlike used cars, new cars are all the same and come with the same factory warranty and expected reliability.
- If you are not 100% decided on the car, don't waste much time talking price. If they don't think you're serious or don't think you're ready (If you seem wishy-washy) they won't try too hard and they will be fine with letting you walk.
- Once you're ready to buy, tell them you are prepared to buy TODAY, but only for the right deal. If it's the first dealer you've been to and they don't get close, don't hesitate to walk.
- Go in with financing already arranged.
- Every time the dealer tries to talk with you about "dollars-per-month" remind him that you have financing and you only want to talk about the straight-up price.
- Only after agreeing on the price, see if the dealer can offer any better financing.
- Manufacturers may have special incentives - rebates and low-interest financing. It might be tough to get $100 over invoice AND a big rebate, but give it a try!