How to get a good deal on a new car?

[superseiyan]

This will be contrary to popular wisdom, but I feel people haggle too much about negotiating on the margins.

First of all, is your cashflow right? Second of all, do you have SOME savings (not a silly amount, just some).

If the answer to both is yes, then all you need to know is what type of car you want and how much you can afford in cash (or to pay monthly if you're financing/leasing). That's it. Once you know what you can afford, it's very easy for me, I just pick up something that fits the price or monthly criteria I've set. I check out cars.com/autotrader as an idea of what cars are selling for in the market (sometimes they're a little off from Edmunds). I've heard that in the age of the internet, with so much competition, sellers tend to sell similar cars at similar prices anyway since they too can use search engines and know what the competition is selling for what price.

I don't play games with the dealers. I've picked up two cars in the past few months, one on a lease, and the other used. Both were doen within a day. I knew what I wanted, knew what I could afford.

BTW, one area I break from most Americans (I don't knwo what the culture is in Europe) is first of all I don't care about miles, and second of all, I dont' view cars as an investment (in that I attach a lot of value to financial terms like depreciation, assets/liability, etc), but rather as a utility or good to be used.

Where to spend the time should be in deciding what type of car to get. Once that's decided, actually getting the car is very easy.

I mean a car is not like buying a house.

[TXRunner]

For me it depended on the dealership. In one place the guy wouldn't budge at all and told us that if we didn't buy it that the next minute someone else would come and buy the car for full price so he didn't care if he got our business or not. This was Honda. We went to a Hyundai and they were a lot more flexible and offered us interest rates that Honda said were not possible with our credit score at the time. Wherever we have gone, once they get to their bottom interest rate or price and then you walk out, they always call you back the next day with something better, saying they got us some special deal, even the Honda guy.

Here is good car buying guide if you have the patience to read the whole thing.

http://www.fool.com/car/car.htm

[AAVC]

Originally Posted by smokingGun

check on edmunds TMV : New Cars - Edmunds.com

also truecar : New Cars Pricing and Comparisons Local, Regional and National Car Price Reports at TrueCar

Those two are usually in-sync with their pricing. Sometimes there are discrepancies involving rebates that don't get factored in. Make sure to check on Edmunds rebates section ( Incentives and Rebates ) to make sure that any dealer gives you the entire cash back (many only apply part and pocket the rest for themselves)

Got it! Thanks!

So once you know the invoice price what kind of flexibility do you have from there? How much more should you go over? I went to Edmunds.com and found out what others are paying in my area for a similar vehicle - very useful, which is very similar to the invoice price. I find that confusing...

[kanhawk]

Be sure to check out what rebates the manufacturers are offering. The hotter the car, the fewer rebates you are likely to see. For instance, the Honda Accord right now is an "it" car, very high demand and you may not get much of a deal. They do have a $750 rebate available, but many other cars right now in the same class have a $1500-$2500 rebate from the manufacturer.
Also beware of a lot car buying stories you hear from friends and others where it became an epic battle of will between the buyer and the car dealer and after hours of sweaty negotiations they got an incredible deal, right before the dealership closed! A lot of car buying stories are like fish stories.

[getmeoutofhere]

Originally Posted by kanhawk

Also beware of a lot car buying stories you hear from friends and others where it became an epic battle of will between the buyer and the car dealer and after hours of sweaty negotiations they got an incredible deal, right before the dealership closed! A lot of car buying stories are like fish stories.

Gee, you think?

I love it when people tell me how many thousands of dollars under invoice they paid for car, then you do the math and realize the dealer would have had to lose about $7500 for that deal to go down, but the person insists they are just that good at negotiating.

[texdav]

I would first pick a vehicle and otions and then do research on sites like edmonds.com to determine the price you are willing to pay. Then shop.