A car buying question.....

[darkstar]

I've never purchased a car w/out a trade in. In my limited experience, it seems that the dealing was always on the price of the trade-in. 6 of one, I know, but we've been looking at cars w/out intent to trade-in, and I'm completely unsure the extent to which negotiations are are part of that process, if new vs used purchase have varying standards, etc.

If all these transactions are open to wheeling and dealing, what's your approach? Ask them kindly to just say what they can let it go for and be done w/ it? Offer them 5% less than sticker price? 10%? Any rules of thumb at all?

This probably sounds pretty naive, but it's been a while, never even considered a new car, never bought one w/out trade in, etc. Thanks in advance.....

:hi:

[LeftyFingerPop]

1. There are several web sites where you can get....

the invoice price for the exact car you are looking for.

Find the price, add $300 to it, make that offer.

If they don't take it, walk away.

They will then phone you when sales are down.

Good luck!

[darkstar]

5. Thanks....

Feeling better overall? Feeling good tonight? Here's hoping so....

:toast:

[cloudbase]

2. This place has lots of good information

http://www.edmunds.com

[darkstar]

6. Thanks...just looked at it

Good stuff on negotiations strategies, true market values, etc.

Thanks again!!

:hi:

[PeaceNikki]

3. I think the wiggle-room depends on what you are looking to spend

The compact/sub-compact market cars are not stickered with as large of mark-ups as the sedans.

I bought a new car in December and, since my transmission was dead, I got a whopping $100 trade-in.

[skygazer]

4. Good point

I bought my little sub-sub-compact car from a friend who is a car salesman. The dealership ended up making about $25 on it. :rofl:

[darkstar]

9. Thanks for the input, P=Nikki !!!

:hi:

Sorry about your old car. What are you driving now? Do you like it?

[CreekDog]

7. it's easier to negotiate without the trade-in complicating things

look at the car you want at more than one dealer ask for their best price and tell them you will buy it where the price is best.

if they ask you about financing you can always say that you intend to go with their financing if it's competitive, which means they will make more money on the car (at no difference in cost to you). but always have a loan offer from your own source as leverage.

regarding negotiating tactics, my advice is that to get the best price you have to admit that you want to buy the car and get it over with but indicate that if it's not the right price you will keep looking.

best wishes. (left the dealer 3 times before buying my current car)

caveat: depends also what kind of car you are buying (if it's popular, you might not catch a break), but nothing is selling well, so I wouldn't worry about this for the moment.

[darkstar]

8. Good point..but I guess that's where

internet reviews and consumer ratings come in. We're considering this '05 Accord w/ 18K miles. Probably lotsa folks looking that very car, I'd guess, if the reviews are any indication. Which is one reason we're looking at these. Plus, roughly dame MPG as the 08 Honda Fit at 34 mpg.

Thanks for the reply. Things to think about...

:hi:

[CreekDog]

10. oh, a used car? negotiate hard

they have to move those things and if it was a trade-in, they probably paid (on balance) wholesale cost (you can look it up on Kelley Blue Book).

[LeftyMom]

11. I buy cars very frequently for my family's business:

I see you're buying used. That's good. Unless you want an uncommon car or need a special feature few people buy, used is the way to go in most cases.

I have no personal experience with negotiating financing, as we buy outright, but the advice upthread on that looks sound. I'd add to check with your local credit unions, often the rates and policies are more favorable than at banks. Usually dealers give all the best financing deals to new buyers, so if you're financing, do the math and make sure you're still getting a better deal with your used car- you probably are, the Honda dealers usually don't have to do big discounts on new inventory financing to move cars like Ford and GM have trained their customers to expect.

As far as cars go, you've picked a good one. Reliable, economical, and (this is the best part) really, really common. You'll get a much better deal in most places because you're looking at a car that's ubiquitous on the used market. The upside is this: almost every dealer in America has a late model Accord or three on the lot. Maybe you've got your heart set on this one, but 1. You don't have to tell the dealer that and 2. If they don't want to play ball, you can probably find another just like it nearby. I use cars.com for this, since all of our local paper's listings are on there as well as plenty of dealer ads, I also search Craigslist for pretty much any area in driving distance- I figure for a good enough deal I'm willing to put in about six hours behind the wheel.

As long as you do your research, you should have a good idea of potential defects and headaches in that model year. With that information, get the car inspected by your mechanic! (If you don't have a mechanic you trust to do your pre-inspction, see if your AAA branch does them. Ours does for about $70.) If he finds anything major walk and thank your lucky stars you didn't buy the car. If he finds anything minor use it to talk the price down. If the dealer gives you any crap about getting the car inspected, go somewhere else.

HTH!

[triguy46]

12. Have your financing approved in advance before you step on the lot.