DawgTalkers.net Forums DawgTalk Tailgate Forum Need Advice on Buying New Car

I'm just getting ready to buy my first brand new car and would like advice about what things to expect or look out for during this "process".

I'm going to test drive some cars this weekend. The ones I really like are a Honda Accord and Honda CR-V. I also like the Toyota Rav-4 and Camry. I looked on the internet at Edmunds and got the invoice price. I know this is what the dealer paid the manufacturer. How much should I offer above the invoice price or below the sticker price?

I'm already pre-approved for financing through my bank. What does everyone think about getting the extended warranty? If I don't get the warranty now, can I still get one before the manufacturer's warranty runs out?

Any other helpful hints would help during this nerve wracking experience. Thanks

My Advice would be to buy used.

So I have no advice. Sorry

Shoot low, stay low. They're not going to let you leave the lot without giving you the lowest price possible.

Give them a LOW offer, they'll come back, mull over their offer, then go below them (a price you are COMFORTABLE paying)... when you give this offer, tell them that's as high as you can go. If they come back with a higher price, thank them for their time and head toward the door or agree on that price if they add extras (all weather mats, car starter, etc).

My wife and I recently bought an '07 RAV4 and love it. I'm drooling over the new Tundras, but am going to have to wait for a while.

I know the new car bug is hard to resist but if you can do resist. The cars you mentioned are all high resale value cars so you should get a decent ride for a lot less money.
I have bought about 10-12 new cars over the years but not since the 90s...stick with a one or two year old vehicle but spend the money on a thorough mechanic's evaluation before you buy.

edmunds.com
eBay.com
consumerreports.com

You can also skip the trip to the dealer to talk price. Most dealerships have an "internet salesperson" that will match just about any price over invoice. Since they know informed buyers can find the invoice price easily they don't waste time arguing final pricing. Try there too.

Oh yeah, if you can wait until the end of Summer just as the new 2008's roll out. I don't think that will help you now.

Relax. Don't do anything your gut tells you not to do.

I work with 30+ car salesmen and they can smell fear and worry. They will prey on you and say ANYTHING to make you sign papers.

*GAP is a great idea!
*Extended Warranty, it depends. You have a factory warranty already. The Extended warranty is up to you. You can buy it now and cancel it later, I'm not too sure about the other way around.
*Credit Life, Disability Ins, etc... is all a load of "You Know What" if you ask me.

Just find what you want and a salesperson you feel comfortable with. If some jerk ups you, don't be ashamed to ask to work with somebody else!

As far as what price to ask for, find a happy medium between invoice and sticker. They propbably won't give it to you for less than employee price. Any price is good to start with.

One thing to remember is that since you have financing through your bank already.... the dealer just lost every dime of the back end profit. Meaning, just the sales person makes money, not the dude who will have you sign all the papers. So, perhaps leave that part out as long as you can.

Good luck

Quote:

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wait until the end of Summer just as the new 2008's roll out.

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That's good advice.... we actually ALREADY have 2 or 3 models out for '08!

Another thing is go right at the end of the month if you can, or just before the 15th.
Salespeople have quotas they have to make by those dates and they are more apt to sell you one at a better price just to get it out the door so they can get their bonus!

Best advice I could give would be to buy used as well... Soon as you drive one of them new ones off the lot your in the red. I bought a Honda CRV a year ago used. A 2001 with only 33,000 miles... some old lady had it and barely broke it in. Best purchase I ever made.

Just a few things. The extended warranty is worthless. Its not through the actual motor company and has many exclusions and limitations. Not to mention the extra cash its going to add every month to your payment. Most salesman arent going to want to move very much on price, thats where they make their money. And they will play with you all day long until you relent. Your best bet to save would be to get more for your trade in. Its very good that your preapproved by a seperate entity, that frees you up to look around.
Dont buy at the first dealer you go to. Get a quote, and then spend some time looking around at other dealers. Make them compete with each other to get the best price possible. Make sure to let your salesman know you are serious about buying, but you are also serious about getting the best price. And that if he takes care of it, you will buy from him.

Going through the internet sales manager online is also a good way to get your best possible price with the least amount of dickering in the sales office all day.

No car is an investment though. If it's something he plans on keeping for a long time, he should get what he wants. It doesn't hurt to look at used ones too, though. They usually are better deals. It all depends on the buyer. I would never lease a car, but for some people, it's perfect.

I would also recommend the internet buy. I worked well for me. There is a lot less pressure that way. I don't know if its true any more but it use to be the dealer got the car for less than invoice . I believe they called it dealer holdback and it was about 2 or 3 percent. So don't be afraid to lowball or walk away. You can always go back. If you have a trade don't let them muddy the waters with that. Negotiate a cash deal and then see what they'll give you for your trade. I hate the hokey pokey they put buyers through but thats the game. Good Luck!

I agree that buying new is not the best idea either. I bought an Intrepid brand new in 2003 with a $400/month payment. Now it has about 100k miles (I used to do alot of driving) and shortly I will own this thing!

Making that car payment is not bad in the beginning while the car is still new, but when it's older and you are still paying like it's new, that will drive you nuts!

I mean, 400 bucks for a Dodge?? What was I thinking?!?!?! Meanwhile my brother got a great Impala one year old that an older guy turned in with 12k miles and his car payment is less than half of mine.

The whole you are going to lose value quickly thing is completely true. Buying something that is 1-2 yrs 'old' with low mileage is the best option in my opinion if you are going to finance a car.

hehe, most people know I swear by Honda's so lemme ask this.

What are you going to use the car for most?
How long do you want to own the car?


I just bought my first new car ever last July and I had a very nice experience. I bought mine at sticker price and got the extended warranty, LoJack at cost, paint protection at cost and the interior scotch guarded also at cost. I just absorbed the cost into the loan. I bought a 2006 Civic Si. Any Honda the resale value is very high. Plus the extended warranty is a great attraction to the next seller should you want to sell in 5 years. Hondas last forever if you take care of them. I have a 92 Accord still going strong at 150K and had an 85 that lasted well over 200K. I saw the extended warranty as a good investment only because if anything goes wrong it is covered, and with 5 computers onboard alone if something with that ever fails it's covered. If you don't have a guy your working with I can give you the guys name that worked with me. He was real fair and wasn't shady at all like most of the guys I have dealt with in the past. In fact the first guy I talked to kept blowing me off till he heard I put the deposit down, then he was all smiles I told him to FO

The Accord is a real nice car. I was close to buying one but had my heart set on the Si. In fact Honda asked me if I wanted to trade mine back in for a 2007 Si w/body kit and HFP wheels, ect, but I can't pull the trigger. I seriously love my car

First of all, do you have a trade in? If so - that complicates what I'm going to say, so let's assume no trade in.

That being the case - don't let them talk to you about the "monthly payment" when you ask the "out the door" price.....Get the selling price, title fee, tax, etc written down. No matter what they say, if that price is good today, it will be good tomorrow, or next week - don't get pressured into "today only".

In my opinion, ext. war. are a waste of money......that's my opinion. (if you DO choose to buy one, buy the warranty from the car manufacterer - i.e. - if you buy a honda, buy honda's ext. war.....if you buy a ford, buy fords ext. warranty - those are much better, but more expensive, than some "after market" warranty company) Keep in mind, most of the time, roughly half of the price of the ext. warranty goes to the dealership - buy a $1,500 warranty, the dealership just profited $750, roughly - (that's part of the reason you hear of people buying cars at "invoice - I got a great deal" - then, you find out they have a 7 yr. loan, gap ins, credit life and health, and an ext. warranty - so the dealership sold the car and add ons and made $1500 to $2500 unbeknownst to you, plus the interest rate hike they nail you with without you knowing, if you use their finance dept.)

One other thing - the invoice price is not what the dealership truly pays - there's this thing I call "holdback"....regardless, dealerships need to make money too.

My best advice? Go to a salesperson you trust - and buy it from them. Also, factor in any warranty repairs you may have in the future.....i.e. the closer the dealership is to your home, the better off you are, as well as, when it gets right down to "out of warranty" time, the dealership will be much more helpful if you bought it from them. (when I sold cars, if a person went and bought the same car from a dealership in Toledo - 45 miles away - and did it because it was $100 cheaper (and people did), when they had "non drivability" warranty issues, we'd tell them to take it back to the dealership they bought it from)

Remember, the selling price is important, but the support AFTER the sale is important too - warranty work, proximity of the dealership, etc. And also, the dealership needs to make money, or they won't be there for you in the future.

I spent 11 years at a GM dealership - first in sales, then F&I, then as co-owner and Dealer - you don't need to take any of my advice, but I do know a little bit about the car business. (and yes, everyone knows someone that bought an ext. warranty and it "saved them" 2 grand 5 years later - however, "saved" is a stretch, because if they hadn't financed an extra $1500 or $1800 in the first place.....well, you see where I'm going.)

Unless you're leasing, gap insurance really isn't necessary.

I disagree on the GAP insurance. Depending on how big your GAP is then buy it, whether through the dealer or through your insurance company. Both ways usually work out to about the same money, though one is bought up front and you end up paying interest on it because its in your loan. If I remember right I paid about 250 bucks over the course of three years to my insurance company for it before the GAP was small enough for my tastes.

Before you decide, go drive either a Nissan Maxima or Altima,, either one.. Check it out before you buy,

maximas are fantastic cars,, a bit pricey by great cars that fast and realiable.

I can't say enough good things about Nissan.

I have a 1992 Nissan 300ZX Non Turbo 2 seater coupe,,, 188k miles and beat most anyting on the road,,,

So, buy what you want, but at least give them a look.

I have spent over 22 years in the car business (salesman, F&I manager, sales manager, general manager) 400 or 500 bucks over invoice is a fair price for both you AND the dealership. My advice would be to test drive the cars you want and make up your mind BEFORE you talk price. It's a waste of your time, and the salesmans to get into price on cars you don't intend to buy. Once you settle on the car you want THEN get into the figures.

You said you already had financing in place. If you know for sure the finance rate you can get (and the term) then let the dealership know you will finance with them if they can match or beat the finance rate. As far as buying anything in the finance office that depends on what you need. If your going to keep the car for 5 or 10 years, look into buying an extended warrenty (match it to the mile you drive) if you only drive 10K a year and you think you might keep the car 7 years look into a 7 yr 75 K warrenty. If you drive 20K a year look into a 5 year 100K warrenty. The GAP insurance is a good idea IF you are putting no money down, or are upside down on your trade. If you are putting 5K or more down you don't need it. As far as life and A-H. If you already have enough life insurance then pass on it. If you don't have life insurance, then it's a good idea to go with it. If you have A_H insurance already then you need to make sure you can pay ALL you bills on it. If not then it's a good idea to get it also. As far as alarm systems, or window etching PASS on those. If you have any other questions PM me anytime

Okay, here's my penny's worth of free advice. If you can get wait a few months, June is a good time to buy. This is about the time they start ordering and getting in the next years model and they want the year before off the lot...especially if you can find an 06 left over on the lot. Also, don't be all excited about anything you drive and buy right away. I know that people walk onto a car lot and drive a car and go home with it the same day. Try to avoid that. Go back and forth with the price and then tell the salesman you have to think about it and leave. Go back a few days later and show interest in the same car, see if they can do you any better with the price. Just to give you an example: when i bought my gto we messed with the sales guy for 2 weeks!!! I bought my car in june of 05 (and it's an 04 model) and they were really looking to get it off the lot as they were getting ready to order 06's. Twice we visited the lot and looked, took it out for a drive, acted like we liked it but just weren't sure about the price and walked off the lot without the car, but made sure the salesman had our phone number. We let the salesman stew and he finally called us back with a price so low that we couldn't even use my father in law's gm discount! We were paying less than we would have with it. Don't be afraid to walk away from a car if they aren't giving you what you want. Also, make sure you tell the salesman that you have another car somewhere else to look at...and follow up on it...don't look at just one place. You can't put all of your eggs in one basket. Play their game and play two dealerships against each other. Let the salesmen both know that you are working with someone else and see who is more willing to give you the best deal. If you get the right salesmen, they will fight for your business. They don't want to give their sales to someone else.

Wow - this is all good advice. Thanks a million
Couple of questions though

What is GAP insurance?
What else will they be trying to sell me as extras besides
the extended warranty?

The boyfriend of a co-worker is a Honda salesman and I spoke to him today. He said he'll tell his sales manager that I am a "friend of the family" to get me a "good deal" Yeah right

He said he could get me a "sweet deal" on the Accord, but the Honda CR-V would be more difficult because they can't even keep them in stock due to high demand.

As to trade-in, I currently have 2 cars - a 1993 Chevy Beretta that needs work (something wrong with brakes and wiper arm has flown off the windshield and is stuck in an upright position), so the car is in my garage not driveable. I also have a 1997 Oldsmobile Achieva with 68,000 miles in decent condition. I'm sure I could only trade in the Achieva and probably have to donate the Beretta to some organization. (Anyone know anything about doing that??)

I should have about $10,000 to put down with the Achieva trade-in and will finance the rest. Local bank is offering 6.24% on a 60 month auto loan. Anyone know what the dealerships are offering for financing?

BTW - I plan on keeping this car/SUV for a LONG time.

Some good advice here, but I'd like to add one thing.

Internet !!!

Many dealerships have online site, and you can check their inventory online. This means you can find the car and options you want before you even go to the lot, this ensures you get what you want without wasting yours and their time.

Find it, print out the sticker with the VIN, then go in and tell them you want to test drive this car, then start working on your deal.

Dealers invoices are great from Edmunds and stuff, but if the car on the lot has more or less options than the one you priced on Edmunds, then your $$ are wrong, so find the car online, color, options, etc... then find a dealers invoice.

There is ONE problem with shopping on line Most of the dealerships don't handle their websites in house, and many times the inventory is only updated 2 or 3 times a month. So the dealership may no longer have the car, OR they may have it but it might not be listed on line.

Thanks so much to everyone for their advice.

Wish me luck - gonna start test driving tomorrow

Test drive an Infiniti FX.

The luck of the Irish be with ya!

My advice (like others) is DON'T buy brand new.

My sister just saved about 12K by buying a car with 12K miles on it!!!!!!!

It's an ego thing to be the first one to put a mile on the car, the new car smell and so on.

But as soon as that euphoria wears off, you realize that those above feelings/features aren't worth the 5-8K you just lost.

Buy a demo, buy a formerly leased car (low miles), but don't buy new.

I did it and really shouldn't have!

Demo is a good idea. I forgot about those. Usually a sales manager or other employee breaks it in, up to 3,000 miles.... Just like new though, they normally take very good care of them.... good tip!

Doesn't Verizon sale cars too O&B?

LOL, I certainly hope not!!! I don't like words that start with V anymore. Wait!

I forgot about the Volkswagen I almost bought! She was a beaut!!

Go out on Sunday if you can and find a car you like. Write down all the options and everything else about it you can. Then there is a place on the internet that charges about 10 bucks to give you the rock bottom price that dealer can sell the car for. I can't remember the name but I'm sure you can find it. Then try to get as close to that number as you can. You're not going to beat them but at least you will know how well you did.

I'm different then all of you...

I have a 93 honda civic... I got it for 1,800 with 118,000 miles on it. I now have 156,000 miles. I paid 500 for tires 200 for brake pads rotors shoes and drums 125 for a timing belt replacement 200 for an upper control arms and lower ball joints on both sides also got 2 1/2 shafts totalling 300. I have spent about 3,500 all together. oh... I forgot to mention I got the car 3 years 2 mo. ago. I did some upgrades on the car... (that I'm not including b/c it's aftermarket crap) now I get about 40 miles to the gal and it's a damm pretty fast car The cost of the car only averages about to 48.00 a mo for what I paid for it and about another 50 for repairs. My car insurance is a lot lower then everyone else's plus I save about 200+ a mo on a car note with maintence.


my reccomendation is.... get a car get an older honda toyota or nissan that has been taken car of and save your money. (invest it into an IRA and make money on the money you will save)

I'll make it easy for you. Buy a Honda.

see my post above lol