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Hi, I had just gotten financing from my finance institution (blank check up to a certain amount) and I can only use it at a auto fanchise (no individual lots or brokers) so I'm thinking of a used Toyota, Honda, etc.
I've bought my first car from an individual lot 3 years ago and it was for a cheap car so it was easy..in and out. When I walk into a dealer and tell them I already have financing, is it best to not let them know the full amount? I would like buy 5 thousand dollars less then I am allowed.
If there is a vehicle I love and it's higher then I'd like, would saying "I have such and such right now can I give you this much off the price"?
Hi, I had just gotten financing from my finance institution (blank check up to a certain amount) and I can only use it at a auto fanchise (no individual lots or brokers) so I'm thinking of a used Toyota, Honda, etc.
I've bought my first car from an individual lot 3 years ago and it was for a cheap car so it was easy..in and out. When I walk into a dealer and tell them I already have financing, is it best to not let them know the full amount? I would like buy 5 thousand dollars less then I am allowed.
If there is a vehicle I love and it's higher then I'd like, would saying "I have such and such right now can I give you this much off the price"?
I appreciate any help. Thank you.
Great question, LJeen
Since a dealer actually benefits from the financing, I would NOT reveal your status until a price for the vehicle of your choice is established.
Thanks for the quick reply Bummer. So what your saying is go in and pretend to just look and test drive maybe..offer an amount a bit lower then what they are asking (or even offer the asking price if I think it's low enough), they say okay and then I reply "who should I make my check out too?" LOL LOL
Exactly. And don't let them drive the conversation toward what kind of payment you are looking for and so on. Also, ask about documentation fees and other fees that you'll have to pay. You don't want to go into the finance office and see a total higher than the amount you are pre-approved for. That's when they'll try to push you toward their financing. Ask them for the out-the-door price for the car.
It can be a very easy, fast process, especially if you have a check. You find the car you like. You offer what you think is a fair price. You go back and forth a few times. Settle on a price for the car and ask for the out-the-door price including all fees and charges. You'll go into the finance office, they'll try to scare you into buying a warranty or fabric and rust protection. You'll shake your head because you've already made the check out for the amount they quoted before they tried to upsell you.
If at any time you feel wary or like you're getting screwed, walk away. There are too many cars out there to get so attached to one that you're willing to get taken for a ride to have it.
Thanks for the quick reply Bummer. So what your saying is go in and pretend to just look and test drive maybe..offer an amount a bit lower then what they are asking (or even offer the asking price if I think it's low enough), they say okay and then I reply "who should I make my check out too?" LOL LOL
EXACTLY, LJeen . . . except never offer asking price.
It is tough to speak for all dealers but most are expecting a little "negotiation" on price.
Also, be certain they are referring to the TOTAL so add-ons cannot be slipped in later.
Exactly. And don't let them drive the conversation toward what kind of payment you are looking for and so on. If at any time you feel wary or like you're getting screwed, walk away. There are too many cars out there to get so attached to one that you're willing to get taken for a ride to have it.
I just went out and bought a used Kia in November.
The price of the car you buy is directly proportional to how much you want to 'play the game'.
The more and better you play, the cheaper your end price will be.
Always remember that you're the customer, and that under no circumstances do you *HAVE* to sign anything until after you've decided you want that car.
Well, maybe their waiver for a test drive. But look it over before signing anything.
Tips:
Never accept asking price. Even just offering one low number will bring them down signficantly.
Test drive LOTS of cars. You're the customer, find what you want.
If you don't like the salesman, leave the dealership. Theres always others.
Never accept add-ons, etc. The price they ask, and the price you offer is it (taxes, and registration might be seperate)
Once you've gotten to a good price, ask to toss in incentives (Oil changes, the registration fees, wiper blades, tires, etc)
Take your time, don't rush and be willing to be snubbed by multiple salesmen who realize you won't be a quick sale.
Some dealerships are 'no haggle', where their price is fixed. Especially with these you can ask for incentives.
Also, look for dealerships that don't work off commission, or I found one that did commission based on volume, not on price. So, it wasn't about the 'most expensive' car, but 'the right' car.
Some dealerships are 'no haggle', where their price is fixed. Especially with these you can ask for incentives.
Also, look for dealerships that don't work off commission, or I found one that did commission based on volume, not on price. So, it wasn't about the 'most expensive' car, but 'the right' car.
We just bought a car through one of these places, just days ago.
We've bought quite a few cars, brand new and used, over the years, so we're fairly experienced. I never dread it, I kind of enjoy the process really.
Normally, I'm not attracted to these "no-haggle" dealers, but this one had THE car we wanted. We did extensive online searches and car-shopped on and off over the last few months. This the 2nd time we've bought from a "no-haggle".
I totally agree with Radek that there is room for incentives in these places; they're taking care of us quite well. Their price was very competitive, the same car ultimately would have cost us roughly $1000 more elsewhere, based on our comparisons.
Regarding the bank check:
It's leverage in your pocket, so reveal it at the right time.
Don't discuss monthly payments, discuss the total price of the car (figure the payments yourself ahead of time). Try not to discuss trade-in until the end if you can.
Let them ask you how you'll be paying and just calmly state that you 'have that taken care of, you have a bank check'. Leave it at that. It's really not their business how much the check is for, they need to show you cars in the price range you tell them.
When you actually make the deal, you can see if they can beat your bank's rate if you wish. I use my credit union for financing and no dealer has been able to beat it yet, but I always give them a chance to try.
In addition to what I wrote above, my tips would be:
Shop extensively online before heading to the dealership
Narrow your car choices down to one or two cars if you can - down to the model years
Research reliability, safety and resale value - all are important and can even help you to keep your insurance rates down. Pick up a Consumer Reports Car Guide - they are a big help
Know the car values before heading to the lot - check Kelley Blue Book and others
Even a used car should have everything in working order, if it doesn't work, ask them to fix it before you take the car home. Same goes for anything missing (floor mats, etc.)
Ask for a full tank of gas.......I forgot to do that this time!
Research reliability, safety and resale value - all are important and can even help you to keep yourinsurance rates down. Pick up a Consumer Reports Car Guide - they are a big help
Ask for a full tank of gas.......I forgot to do that this time!
When I researched cars... I called my agent up and asked for quotes. She was more than glad, and they also tend to know which years, models, etc are better or worse.
For instance, I think the '03 Kia Sorentos had a higher insurance cost because of crashes or something... but the '04s didn't.
So, the '04 was better. Etc. That kind of information can be invaluable in shaving $$ off the hidden costs.
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