Buying a New Car
Thing No 6
Find out how many “days supply” of the car are in the pipeline.
If there is 180-day supply, they are screwed and you’re sitting pretty. If there’s a 17-day supply, they’re looking a little better than you. Color factors in here too. You have more negotiating room if you’re willing to let go of the hottest color. In general, rich people used to like black, then, they liked silver, now they’re all about pewter. He might not give you a penny off the pewter (because it’s difficult to find in the dealer inventory) but will negotiate on black, which is easier for him to get his mitts on.
Thing No 7
Shop for financing elsewhere.
Sometimes, even if you tell them you are not interested in financing, they will ask you to fill out a credit application anyway because this is where some of the big money is for the dealer. Don’t. Once you figure out what kind of financing can be had elsewhere you can lay that on him and see if he can do better but do beware; once you fill out that credit app, you are applying for credit – better to let him know your credit score and find out what kind of terms he can offer. You might even do better to go to the manufacturing financing directly (GMAC, Ford Credit et al) because the dealer usually will add a point or two for his commission. Sadly, sometimes, the finance rate and the incentive (e.g. rebate) are co-dependent meaning, you can either get 0% financing or a $2000 rebate. This is going to require some math on your part. Math-phobes need not panic. Go to bankrate.com or banksite.com or consumerreports.org These guys have lots of handy-dandy tools that make it easy for you to figure out your end cost including calculators that let you compare the rebate to financing rate.
Thing No 8
Shop for extended warranties elsewhere.
Same goes for extended warranties – shop for them @ smartwarranty.com or warrantydirect.com.
Thing No 9
Don’t go in assuming cash, lease or finance.
Each deal at any given time changes what the right choice is. If you were going to pay cash but can get three years at 0% financing, you’ll do better to take the free loan. Let the deal drive the terms not the other way around.
Thing No 10
Use all the dirty tricks.
• Go in just before closing
• Carry a folder stuffed with Internet research from www.edmunds.com (or your screenplay – he won’t know the difference.)
• Bring a “quarterback”. Girls, do bring the boyfriend or daddy figure especially if he really is prone to posture his masculinity. He’s the bad cop and there is no good cop. Guys, bring the wife. Same dynamic.
• Don’t tell them you have a trade-in until you’re happy with the price.
• Leave. Be clear that you are leaving because you can’t settle on price. He might try to play it cool but even if he does, screw him. What do you care who you buy it from?
Thing No 11
Don’t fall for their dirty tricks.
Do not, we repeat, do not engage in any discussion about “what you want to pay per month for this car.” That is a big open door for them to shift down payment, terms, interest rate and God knows what to make a killing off you while hitting your “emotional number.”
Thing No 12
Get a Buyer's Order.
This formal dealership document should include your personal information, the car's make, model, package, additional options and the price. It will be signed by the manager and often will indicate a "good 'til" date. Pack this baby in your folder when you visit competing dealerships – it’s a BS killer.
Thing No 13
Go to at least 3 dealerships.
Including a small one if possible. They’re under less pressure to screw you and you’ll often get a cleaner deal. We know this isn't consistent with the Generation Y ethos of do it all online and then show up with a sheet of paper and a price. Trust us, you want to shop around.
Thing No 14
Don’t order a car.
Yeah, he’ll order you a car if you really insist but that is delayed gratification for him. He’d rather “sell-down” his inventory or even do a “dealer trade” which means he’ll dig deeper into his profit to make the sale today. If he finds you the car at another dealer, you’ll pay a fee to have it transferred. It shouldn’t have more mileage on it than the trip when it arrives.
Thing No 15
Buy this year’s model when next year’s is just about to come out or has come out.
This is an oldie but a goodie. Your resale value will take a hit but if you plan to keep the car for awhile (by then your resale value will be crap anyway) these guys are under A LOT of pressure to “sell-down” the previous inventory i.e. get it the hell off the lot if for no other reason than space.
Now, when you say "hello", you’ll be saying, “pity the fool that messes with me.”
