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We're looking at purchasing a car in the not too distant future, and want to get the wisdom of the crowd on our side.
1 -- When is the absolute best time of year to make the buy ??
We once bought a new car at the end of November and got a really good price on it. The dealership was completely devoid of customers after Thanksgiving, and the prospects for December weren't looking too good with the Holidays coming up. It took the salesman a few rounds of "I've got to run this price by my Manager" but the poor wretch finally caved and said yes to our low-ball offer.
2 -- When financing the car, is it better to use their Finance Dept with the low interest rate?? Or pay in-full the cash price at the time of purchase??
In a prior new car purchase, we used the dealers 0.9% loan along with a good down payment -- it seemed to ease the path during my price negotiations. In other words.....does the dealer count on making some money in his Finance Dept when discussing the Out-The-Door Price ?
3 -- Finally, do these answers apply to Certified Pre-Owned cars as well as brand new vehicles??
I'm interested in hearing everyone's thoughts on this subject.
Location: East of Seattle since 1992, 615' Elevation, Zone 8b - originally from SF Bay Area
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1) I have bought over a dozen new cars over the years, and love the process, it's great fun working those sales people! Yes, the beat time is late in the year, from Thanksgiving until 12/31. Better yet, during that time after snow, when no one is buying cars. Don't be afraid to walk out if the don't meet your deal, there are many other dealers to go to.
2) I like to use my credit union as they usually have lower interest rates, but sometimes a dealer can beat that with a special. Most recently we bought a 2020 Outback, and used their financing since it was 0% interest for 63 months. I can't imagine that they made anything on that financing, in fact it cost the, so they will not discount the price as much.
3) I never bought used certified.
There is also the negotiation for the trade, go in knowing what it's worth (KBB or NADA) and don't accept less than low book.
Thinking about my 5 most recent purchases, the amounts I negotiated off of the sticker price:
2020 Outback Premium $2,200
2017 F150 XLT 4x4 $12,000
2014 Ford Escape $$9,000
2007 Ford Ranger XLT 4x4 $4,000
2002 Jeep Liberty $10,000
Thank you sir !! That's good input on the best time of year to buy.
At their crazy low interest rate, I'm tempted to use their in-house financing....even if there's a balloon payment at the end.
I love the negotiation process with these guys. I have a funny story to tell --
During one long sit-down in a salesman's office, he made several trips to his manager with our low-ball offer. We were getting nowhere on the Final Price. My leg fell asleep from sitting in his office chair.....so I stood up to get the circulation back.
The Salesman immediately changed his tune to "OK sir, I think we can meet your price. Let's start the paper-work !!"
Maybe he should have more comfy chairs in his cubicle !!
does the dealer count on making some money in his Finance Dept when discussing the Out-The-Door Price ?
I would say yes. Also example, 25,000 at 0.9% OR 23,000 at 4% for 60 months start being the same thing. With today's low interest rates, 0.9 isn't as slam dunk as used to be.
That's why contary to some cash is king, the dealer does not want all cash as they make money financing. They may say 25,000 cash or 23,000 if you finance.
There's also so many other factors. Fords Chevys and Hyundais are dimes a dozen usually discounted. Subarus Jeeps etc. not as much.
Yes, that's why I am thinking about financing thru the dealer....it's essentially free money if the Interest rate is that low.
DW is looking at the Lexus IS250, which is why I say CPO might be the way we go. I bought a CPO Lexus ES model a few years back, and that was a nice car. 3 years and 100K miles full warranty.
The Bogles will take a bone like this subject and chew on it till the marrow stains their teeth.
I'm more interested in the "Reasonable Approach" than the 40 pages of self-praise they put out.
Right on, then reasonable I would say is decide how far you're willing to go for the car. We went outside of Raleigh where we live about 60 miles for a good deal on a used Chevy Equinox. Of course if you drive that far it sucks to drive back with nada, so maybe don't count on getting $2,000 off.
Also, how long are you keeping the car? Lexus holds value, but if you keep 8 or 10 years vs. 3 years, well, what is a $1,000 difference over 8 years?
And finally I wouldn't like you said stress too much. A Lexus is luxury car- you're not buying the cheapest thing. To me, if it's 35,000 car are you walking over $500 or even $1,000? That's like buying a house for 300k and walking out over $3,000- maybe you shouldn't be buying anyway at that point.
(not to discourage you from buying a Lexus- my dream is a Cadillac. If you want it, go for it).
We tend to keep our cars for a while. DW's current vehicle is 10 years old, but low mileage. There's a Lexus Dealer right here on Highway 17 -- Car Alley it's called, just about every dealership is on that stretch of road. That's why, if you get up to walk....your next stop is only a block away.
DW owned a Caddy, a CTS in triple black....that was a nice car. But brand new cars depreciate too rapidly for my tastes. I'm inclined to let someone else take the loss for the first few years.
The best way to buy a car is to never set foot in the dealership other than to take delivery where you have a bank check in your hand. All the pressure sales tactics rely on you being physically present at the dealership.
Most Internet forums for a particular car model have a “prices paid” thread. Edmunds has True Market Value. Use those sorts of sources to establish a fair price and don’t budge from it. There are lots of dealers. Any of them will be totally happy to service the car afterwards since most of their profit comes from their service bays.
The best way to buy a car is to never set foot in the dealership other than to take delivery where you have a bank check in your hand. All the pressure sales tactics rely on you being physically present at the dealership.
Most Internet forums for a particular car model have a “prices paid” thread. Edmunds has True Market Value. Use those sorts of sources to establish a fair price and don’t budge from it. There are lots of dealers. Any of them will be totally happy to service the car afterwards since most of their profit comes from their service bays.
Edmunds forum is really good to give current details on pricing for purchases/leasing. I’d also if your market has it work multiple dealerships against one another on pricing but I’m not against using the dealer for financing but that should come up at the end of the deal not the front end
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