I posted some good tips for buying a car the other day, but I wanted to give some of my tips from my experiences. I have only leased two cars, but I have learned so much. The first one I got screwed on, the second I got an amazing deal. Here is what I have to share:
- These people are there to sell you a car, to cater to you, so don’t let them push you around. If they aren’t helping you, then leave. If you want something done, tell them. I went into the Dodge dealership and asked the guy to run some numbers while my wife and I looked at a minivan. He should there while we looked, and I asked him again to run the numbers, but he just stood there with us. I knew this guy was going to be trouble, and I should have walked away right then. Needless to say, after we said no thanks, he followed us out to the car with 3 other people that worked at Dodge and threatened us. Another thing, go with your gut when you deal with these people. If the guy seems sleazy, he probably is.
- Don’t ever take the first offer. No No No. I don’t know how much I can emphasize this. The first number they give you is always inflated. I took the first deal on my Malibu and am grossly overpaying for it. More about this after #3.
- Go into the dealership with a number in mind of what you want to spend. Try to work the dealerships down to that number by using the tips in the last post. If you don’t want to go back and forth, here is a trick. Go to a dealership and tell them some other dealership offered you a similar car for X amount a month.
I was shopping for a Town and Country, and my dad found one for $200/month to lease. I went into the dealerships around me and told them they needed to beat this price. After their first offer of $260/month, I (again) told them about the $200 my dad found. He came back and said if they could give it to me for $200 would I take it. I was hoping he would beat it, but it brought the price down significantly.
- Find a salesperson that you like and try to stick with them. My dad has been buying from the same guy for over 10 years. The salesman bends over backwards to help my dad because they have done a lot of business together. If you can find someone that you like, keep going back as they will bend more for you the more business you give them.
In my last post, Grant commented to leave emotion at the door, which I completely agree with. The problem with me is that I absolutely hate going into car dealerships because of the time they waste. Why do I have to wait 30 minutes for someone to tell me the price of a car? I always go in knowing how much I can afford, how come they can’t come back with all my options? I do not understand why they are ran like this, but I don’t have a choice.
I think if you know how much you want to spend and DON’T TAKE THE FIRST OFFER, you should do pretty well at the car dealership. And if you want to use my little trick, you might save a bunch of money.
I love buying cars. My grandfather was the owner of the first dodge dealership in the stat of Michigan (no longer owned). My extended family has bought a lot of cars.
Never pay invoice. You might need to wait until the end of the month, but all cars (except concept or limited cars) can be had for 1% under invoice minus consumer incentives. Sometimes much less if there are dealer incentives too. Check the car websites and come prepared.
Be careful with car dealers - new or used. Check out this car dealer scam news feed to read for yourself.
I’d also recommend never basing your negotiations on a monthly payment. They have all different ways to screw you there. Go on the price of the vehicle, no extras, then negotiate each extra separately.