tips on negotiating the price of a new car

[fishrdan]

is my thought process flawed in thinking that the fuel savings alone will cover the cost.....kinda like getting a new car ( and a $9 lunch once a week) for free???

If all your numbers are correct, you could run a new car for the same price you are paying to run your existing (paid off) vehicle.

I did this 20 years ago when I sold a V8 mustang and bought a new Honda Civic, and gas was $1.xx/gallon back then! (Of course I was driving a lot.) Also factor in how much you don't have to pay to maintain your old vehicle as the new car should be virtually maintenance free for the first couple of years.

 

[bassman284]

bought the car last night, got a bunch more for my 2wd ranger than i could have imagined on a trade in. so it worked out well i think. my initial fuel mileage calculations seem out to lunch tho? the dealer filled it up while i was doing the paperwork, i drove 157 kms, topped it up on my way home from work tonight, $8.56 ( 6.58 liters). 4.2 L/100 kms ?

That's some impressive mileage, er kilometerage.

 

[nwcove]

That's some impressive mileage, er kilometerage.

yep....cant help but think my numbers are somehow skewed. my L/100 Km/ mpg, just dont add up to real world numbers.

 

[lakelover]

I always bring my own financing. They will usually work to beat it. Also separate the negotiation of the purchase price of the car and trade in value if you have one. They will work to blend the two. If they dont give me what I want on the trade, I will walk and tell them I will sell it myself and then maybe come back. Be ready to walk if the terms are not right. This means you need to know the terms you can live with - Purchase price, Trade in price, and interest rate. Before I go in I create a spreadsheet with all the costs - at least estimated so I know where I will be. This includes, license fees, tax, down payment, etc. If you don't know the specifics of the deal you won't be able to ensure the deal they write up is what you agreed to.

For purchase price, retrieve quotes from several different dealers via e-mail or through the Mfg portal. Look into deals from Costco if you are a member (they have a car purchasing service - Sams probably does as well) - you will probably get the best price using that route.

Excellent advice here, I think the most important is you have a lot of power in negotiations by truly being ready to walk and letting them know it. And doing it if you feel its necessary. Most often they will call you back, and will have some face-saving excuse to meet or at least get close to your "willing to pay" price. I have walked several times before and I know this works a lot of the time. They want your money at least as much as you want a car, but your advantage is that there are a whole LOT of cars out there. Don't fall in love with any car, it won't love you back. Remain objective, do a lot of research, know yourself, and you will be OK. Also, check out Consumer Research for lots of excellent info on cars and buying, and ratings on reliability.

I helped my son negotiate his recent car purchase and we were ready to walk on the last $200 difference, and the dealer caved in. I'm sure he still made money, and I don't hold it against him, it's his job. The right price is what's fair to both parties.

 

[generator12]

It also helps if you can truthfully state that "I'm ready to buy right now for this price, _____". You make it clear that you will do the deal immediately if they will meet the price, and that if they won't, you won't. Once it's clear that it's now or never, the ball is in their court. Of course, the price you state has to be fair to them as well.

 

[Volphin]

I toy with their financing offers and make them run numbers. But I always wait until the end of the deal and pay cash. It helps to pay yourself a car payment when your ride is paid off. It also pisses me off to pay to use other peoples money.