Buying a new car

[CardonaLJ**]

So I'm finally buying a new car thanks to a pre-approved loan through my credit union. Now mind you, I got approved for about 28k but only asked for 22k. Im looking at a 2013 Versa (yea dont flame me too hard).

But thats not why I'm here. I have two questions. I've never actually bought a new car. My previous two cars were both used. Im expecting the check from the bank sometime next week. Now my question is, do i go there with the check in hand or do i get the dealership to agree on a price and then go to the bank and have them cut the dealership for that amount? I'm assuming its the latter. I already know what I want as far as the car goes (white, technology package, splash guards, and carpeted floors). Around here its going for about 18k give or take. Im sure I can get them down a few grand since im paying everything upfront to the dealership (how much so i don't know.)

Second question is, what amount should i throw at them? I want to go in and say 16.5k (i have a shitty trade in so im factoring that in as well). Is that too low or a good ball park estimate?

 

[MWB1982]

I'd get that Kia Forte Koup. Those cars probably do anything that Nissan can do and those Kia's got a turbo charger in it so they got a little bit of juice in them.

You can at least have some fun in that car and still get great gas miles. Maybe not as good as the Nissan but close enough...

That is what I would get if I was looking for a car in that class range.

 

[Josh]

Yes, agree on the price first and then go to your bank and get a certified cheque for that amount made out to the dealership.

I bought my truck brand new, sticker price was around $22K plus 12% tax, I got it for $20K including tax, with no trade in. If you have a trade-in, no matter how shitty, you should start negotiating at $5K less than sticker price and be willing to settle for $2500-$3000 off of the sticker price. The key is you need to be willing to walk away from the deal. I've literally had salesmen chase me down as I was walking off the lot and give in to my demands. It's a buyers market man.

 

[philth]

Yes, agree on the price first and then go to your bank and get a certified cheque for that amount made out to the dealership.

I bought my truck brand new, sticker price was around $22K plus 12% tax, I got it for $20K including tax, with no trade in. If you have a trade-in, no matter how shitty, you should start negotiating at $5K less than sticker price and be willing to settle for $2500-$3000 off of the sticker price. The key is you need to be willing to walk away from the deal. I've literally had salesmen chase me down as I was walking off the lot and give in to my demands. It's a buyers market man.

excellent advice. always be willing to walk away.

educate yourself on the car you want as well, there's plenty of info and forums online. I've walked into places and known more than the salesperson did about the car. I usually walk out of there though, or ask for someone who knows something. I'm not giving a sale to someone who can't tell me more than what I already know.

 

[CardonaLJ**]

I'd get that Kia Forte Koup. Those cars probably do anything that Nissan can do and those Kia's got a turbo charger in it so they got a little bit of juice in them.

You can at least have some fun in that car and still get great gas miles. Maybe not as good as the Nissan but close enough...

That is what I would get if I was looking for a car in that class range.

i didnt look at the forte koup. actually looks nice. main problem is its about 3k more than the versa with the same package. plus i have a 3 year old and 2 doors arent gonna cut it for me. nice ass car tho

 

[CardonaLJ**]

Yes, agree on the price first and then go to your bank and get a certified cheque for that amount made out to the dealership.

I bought my truck brand new, sticker price was around $22K plus 12% tax, I got it for $20K including tax, with no trade in. If you have a trade-in, no matter how shitty, you should start negotiating at $5K less than sticker price and be willing to settle for $2500-$3000 off of the sticker price. The key is you need to be willing to walk away from the deal. I've literally had salesmen chase me down as I was walking off the lot and give in to my demands. It's a buyers market man.

my last car i bought used. they wanted about 5.5k for it. i said look i have 3k i can give to you right here right now tot ake it off your hands. they mulled it over and said sure. after all was said and done i paid about 3.5 for the car, tax, title, registration, and inspection.

now that will be the car im trading in. problem is, its got high mileage (about to hit 156k) muffler tip is broken off, a few dents and dings, and the main thing is I havent gotten the inspection or registration renewed. so im sure thats going to hurt me

 

[Snakesolidsnake]

Never bought a car with financing already locked on; I would just talk to the dealership about it. It might just be as easy as cutting them a check for the exact amount, but I imagine every dealership has their own methods. It could also be a call to the bank to confirm you have the funding outright.

That seems like a good price to ask, just remember a few things: First, let them know upfront that you want to talk bottom line. This should be obvious since you aren't negotiating payments with them, but this is a huge thing that dealerships do when negotiating price. The difference between 20,000 and 21,000 is evident to everyone, but the difference in payments of 320 and 340 isn't so obvious over the long run. I say this because every though you will be talking bottom line, they will get you set on a price then try to add things to it to jack it up (extended warranty, paint coating, etc.). Make sure all of the options you want are included before you start negotiating price.

Second, your price sounds good, just be prepared to spend several hours to get it. They'll name a price, you'll counter, they'll go talk to their manager and come back with a counter offer; lather, rinse, repeat. Be firm, but reasonable: remember, they have to make a profit on this vehicle. Start low, let the price work its way to the middle.

Remember, the most important tool you have is the ability to walk away. There are other Nissan dealers nearby (I hope); if you're not getting the price you want, attempting to leave will give you all of the power. Either they will budge on the price (more likely) or you were never going to get the price you wanted. NEVER LET THEM HAVE YOUR KEYS while they are "checking" your trade-in. This is a tactic to get you to stay and negotiate.

One last thing: check the tax rates in the cities of the dealerships. A half % change can mean another hundred dollars in your pocket.

 

[CardonaLJ**]

thanks for the advice everyone. i mean ive heard the same stuff all the time but was just wondering. also, say they dont have the color i want or the available trim or packages. i know what i want. im sure if they have to order it from the factory i can knock or have the delivery cost waived i assume?

 

[IIIIIIII]

it's pretty standard to low-ball dealerships at first. you are the one with options, not them. remember that.

they'll give you a, "what the fuck" kind of look. then you tell them thanks and that you'll look elsewhere. it will probably be then that they will beg you to come back, and you both can then decide on a reasonable amount.

i saw this with my father first-hand. he went in to buy a chevy silverado. he told them that he wasn't going to pay more than a certain amount. the manager said that he was offended by the offer. my father said, ok...thanks for your help. they then begged him to come back, and the rest was history.

 

[Kanster]

Why not a Maxima?

 

[CardonaLJ**]

Why not a Maxima?

price, gas mileage. I travel upstate to Putnam county often so i need something that isnt going to put a dent in my wallet on gas alone.

 

[djacobox372]

Don't let them know about the financing, act like you think you have bad credit, and use their financing department, tell them you only have a very small down payment. Don't worry about the interest rate they give you just concentrate on getting the lowest price on the car.

They'll think they're going to make a ton of $$ off financing you and will be more likely to work with you on getting a low price on the car if they think that.

You can refinance the car and pay off the crappy loan they give you immediately after buying it. Car loans are simple interest loans with no penalties associated with paying them down early.

If you walk in with cash/check in hand they'll know right away that they're not going to make a dime off of financing you so they'll stick you with a higher sales price.

Also be aware that even though they are using outside banks and it would "seem" that the bank is the one making the $$ off of the interest and the car dealer is "on your side," that's not how it works. The salesman will work an agreement with the bank for them to charge you as much interest as he thinks you're willing to accept and the bank will kick back part of that to the dealer (you'll never know this number)--this is how they make most of their $$ on new cars.

One more thing: don't buy into the wizard of oz act where the dealer has to go to the "back office." Just leave if you're left alone for more than a couple of minutes. He's just in the back surfing sherdog or watching youtube trying to make you sit as long as possible.

When buying a new car you have all the power, since you can always go to another dealer and place the same order for the exact same car. It's a bit tricker when buying used, because the dealer may be the only one around selling the car you want.

 

[LardAss**]

Why pay interest on a rapidly depreciating asset?

Don't get me wrong, I'm a bit of a car wonk myself and definitely appreciate a good automobile but that's something I've *never* understood. My daily driver is 21 years old not because I'm at a want to afford something else, but because I'd be dipped in shit before paying $300-$400 a month @ interest on something that's losing value with each passing day.

Consider buying a lightly used, preowned car and instead, deposit the difference every month in your emergency fund or investment portfolio.

 

[CardonaLJ**]

Why pay interest on a rapidly depreciating asset?

Don't get me wrong, I'm a bit of a car wonk myself and definitely appreciate a good automobile but that's something I've *never* understood. My daily driver is 21 years old not because I'm at a want to afford something else, but because I'd be dipped in shit before paying $300-$400 a month @ interest on something that's losing value with each passing day.

Consider buying a lightly used, preowned car and instead, deposit the difference every month in your emergency fund or investment portfolio.

ehh. im tired of used cars tbh

 

[CardonaLJ**]

Don't let them know about the financing, act like you think you have bad credit, and use their financing department, tell them you only have a very small down payment. Don't worry about the interest rate they give you just concentrate on getting the lowest price on the car.

They'll think they're going to make a ton of $$ off financing you and will be more likely to work with you on getting a low price on the car if they think that.

You can refinance the car and pay off the crappy loan they give you immediately after buying it. Car loans are simple interest loans with no penalties associated with paying them down early.

If you walk in with cash/check in hand they'll know right away that they're not going to make a dime off of financing you so they'll stick you with a higher sales price.

Also be aware that even though they are using outside banks and it would "seem" that the bank is the one making the $$ off of the interest and the car dealer is "on your side," that's not how it works. The salesman will work an agreement with the bank for them to charge you as much interest as he thinks you're willing to accept and the bank will kick back part of that to the dealer (you'll never know this number)--this is how they make most of their $$ on new cars.

One more thing: don't buy into the wizard of oz act where the dealer has to go to the "back office." Just leave if you're left alone for more than a couple of minutes. He's just in the back surfing sherdog or watching youtube trying to make you sit as long as possible.

When buying a new car you have all the power, since you can always go to another dealer and place the same order for the exact same car. It's a bit tricker when buying used, because the dealer may be the only one around selling the car you want.

makes sense...but seems like too much imo. afterall its my own personal bank that im getting the loan through, not the car dealership or their financing department

 

[Chesten_Hesten]

If paying for gas becomes an issue later, remember Bridget the Midget can help!

 

[Senzo Tanaka]

It depends on the dealer as well. I financed through Capital One and walked in with a blank check for 20k. The car I wanted was 23k and they wouldn't budge even though I had the money right there.

Either way, I think Capital One is pretty cool. Their rates are low and being able to just walk in with a guaranteed amount is good bargaining power at the right dealer. It's instant money for them.

 

[CardonaLJ**]

It depends on the dealer as well. I financed through Capital One and walked in with a blank check for 20k. The car I wanted was 23k and they wouldn't budge even though I had the money right there.

Either way, I think Capital One is pretty cool. Their rates are low and being able to just walk in with a guaranteed amount is good bargaining power at the right dealer. It's instant money for them.

thats good and all but what i dont want happening is me walking in with 22k and the car i want is about 18k and them trying to push shit onto me that i could careless for. what do i do then?

 

[philth]

thats good and all but what i dont want happening is me walking in with 22k and the car i want is about 18k and them trying to push shit onto me that i could careless for. what do i do then?

tell them what you want, nothing more. if they push, leave your contact info, tell them you'll go check out other options, and walk out.

they'll chase after you, or call you a few hours later.

 

[Satsui Ryu]

Most dealerships are subsidized by their parent company and make all their money on parts, service, and options so start your low balling a little under what the dealership paid for the car then go from there.