I almost never delve into my real life, but, everyone once in a while something like this shows up, and it makes me laugh. People will often ask how to go about buying a car, and I’ll usually tell them the exact opposite of what they read online. Why? For one thing, doing that stuff wastes everyone’s time. Then you start wondering why this is taking so long. Why it’s such a hassle. Let’s delve into this, before I give you a book length post
23 Things Car Dealerships Don’t Want You To Know
Purchasing a new or used vehicle usually involves a lot of time, stress and money. Although people have to face this task an average of about every 11 1/2 years when buying a new car, there are secrets to purchasing a car that can make the process a whole lot faster, easier and cheaper.
Huh? The average is 4 years. Is this supposed to be about when they force us into EVs and we have 9-10 year loans?
1. Conduct Research Ahead of Time
Nearly 90% of car buyers use the internet to research autos before making a purchase, according to Autotrader. Sites such as Kelley Blue Book, Autotrader.com and Edmunds are equipped to provide shoppers with information that is crucial to the car-buying process, such as available rebates.
Yes, please. Too many have no idea what they’re looking for, don’t know the features, the prices, anything.
2. Pay With Cash
If you want to get a great deal on a used car, cash is king, said Doug Nordman, author of “The Military Guide to Financial Independence and Retirement.”
Yeah, maybe for a used from a private seller, as mentioned, but, really, the industry is set up for you to finance. Cash really means nothing anymore. Plus, don’t think you are going to get ANY discount in the current marketplace.
4. Don’t Pay More Than $500 Over Invoice
You can offer a car dealer anywhere from $100 to $500 over a new car invoice price and still walk away with a great deal, according to InsiderCarSecrets, a consumer advice website for car buyers. The site recommended offering $100 over invoice price on lower-priced vehicles, or $500 on a more expensive model.
I am skipping over a few that make sense. This one doesn’t. Perhaps many years down the road. Right now, don’t even bother trying to negotiate. No one has time for that, and you will be broomed if you continue. #5 is about getting discounts and freebies, too. Don’t bother.
6. Give Them One More Chance To Accept Your Offer
If you make an offer, and the salesperson comes back from the manager with anything other than a “yes,” you should get up and start to leave, InsiderCarSecrets recommended. If the salesperson tries to get you to stay, the site said you should only give them one more chance to make a deal.
If your offer made sense, they’d take it during normal times. Take the done deal, try and hold gross on the next. Don’t bother with this now.
9. Get an ‘Out the Door’ Price
Sometimes a dealer will offer you a low quote, only to add additional charges later that bump up the sales price. Always let the dealer know you want an “out the door” price, which includes all the taxes and fees associated with the purchase of a new car. That way you won’t waste time settling on a number, only to be surprised by a much higher price later, according to Edmunds.
I recommend this at all times, before, now, and in the future. I have no problem with this. Others don’t. Worry about the others. Some will tell you a big discount, leaving out the destination charge. I know exactly which ones do that.
10. Keep Your Trade-In a Secret
If your car salesperson asks whether you’re trading in your old vehicle, simply tell him or her you aren’t planning on it. This might not be entirely accurate, but keeping the trade-in value of your car out of the negotiation can help you get a better deal on your car. Once you have a firm price set on your car purchase, you can ask about trading in your car, said InsiderCarSecrets.
No. No no no. Don’t do this. First, you waste your time. It could have been done while you were test driving. Now you just added time. You want to sit around waiting? You’ve now annoyed the commission based sales person, who has to waste their time, and will think you’re playing the normal games which go nowhere. Put it in early. Guess what? You can say “no.” The final decision is yours. If you throw it in after negotiation (not that that’s happening now), you will not get as much for it.
11. Have a Good Attitude
You’ll catch a lot more flies with honey than vinegar — especially during the car-buying process. Buying a new car can be stressful and unpleasant, but maintaining a good attitude and keeping calm can make the experience easier. It might be the salesperson’s job to be nice to you, but they’ll be more willing to help you get a great deal if you treat them well in return, according to InsiderCarSecrets.
If you’re miserable, a jerk, mean, demanding, abusive, etc, then why would the salesperson work to take your side?
15. Know Your Credit Score
If you need to finance your car purchase, your credit score and history will majorly impact your monthly payments. Before you start shopping for a car, pull your credit reports and credit scores from the three major credit bureaus: Equifax, Experian and TransUnion.
Hell to the yeah. And your actual, real budget. And how much down.
21. Negotiate in a Neutral Location
Reader’s Digest points out that car dealers are taught during training that they should negotiate at their desks. Psychologically, buyers will view the dealer behind the desk as being in control, which may lead them to pay more than they really want to. Instead, consider doing your negotiations in a neutral location, such as outside, alongside the car you’re interested in.
What, back in 1975? Sales doesn’t set the price. They send the customer’s offer up to the desk manager with a computer. ‘Taint doing that outside.
22. Negotiate Like a Pro
When it comes to negotiating, don’t lose sight of what you want to pay. Armed with your research, you’ll know a fair price, and don’t let salespeople intimidate or pressure you into paying more. Even if you love the car, let the dealer know you are ready to walk away.
Don’t bother right now, or anytime in the near future. If things ever get back to normal, make a realistic offer and I can be flexible.
23. Give the Car One Final Inspection Before You Drive Off
If you haven’t done this already, give your car a careful once over. If you notice any scratches, dings or any other issues, request to schedule time with the dealer to get them repaired at no cost, according to RealCarTips. You can even do this after you’ve signed the contract and received the keys — just be sure to do this before you drive off the lot.
If you don’t I’ll have you do it. Walk around the entire thing, look on the roof, check the back seats.
And, I’ll give you a tip, if you want something, just place the order. Understand that build times can, and probably will, change. Running around, placing calls, going to dealerships, this won’t really help. It wastes time. Maybe you’ll get lucky. But, that’s rare.
So Teach do you think this might be the reason why Rimjob still drives his thirty year old Nissan sedan?
#LGBFJB
Bwaha! Lolgf
It’s interesting that Teach points out that dealerships are not discounting off sticker price.
It sounds like dealerships are taking advantage of their customers to increase their profits. Why not just admit that? That’s how capitalism works. If the supply is restricted, sellers can inflate their price.
I almost bought an Accord in the 80s, but the Honda dealership had an “ADP” sticker adding a grand to the cost. Fortunately, the nearby Toyota dealer sold Camry’s slightly below sticker, and we’ve bought Toyota’s since. Rav4, Tacoma, Camry’s… Great vehicles.
Some dealers are taking advantage, using what is called a “market adjustment”, meaning they are adding a thousand, 2, 3, even 6 above MSRP. What you have to understand is that sales are down at least 50% from normal, so, dealers cannot afford to discount like they used to. We have to be able to make money. And, depending on the manufacturer, the profits are slim. I can sell you multiple different types of new, and the gross is under $1,500. There is no backend money right now. There are no incentives. Production costs are way up, and only so much is being passed on in MSRP. Shipping is up about $200 per vehicle.
Consider, too, that it is a seller’s market because of the low inventory. And, believe me as a professional, not as a political guy, it is low. It is tough right now. I have customers with deposits on cars that will come in June, July, and August. Depending on the model, it can be anywhere from 20% to 50% of normal. We’d usually have 600-800 new on the lot. We have 5 available without names.
My place is not marking above MSRP. We are not discounting. We aren’t slapping on thousands in accessories. People will remember the dealers that took advantage. If my mom had done her new lease down here through me (we do not do out of state leases, just too many issues), I would have sent her a check for $3,000 for the trade. In her state? Nothing back. And everyone is doing market adjustments. For some small dealers, they may need it
https://themortgagereports.com/61853/30-year-mortgage-rates-chart?msclkid=bd5f7a7cc19811ecb6b9223689a2db76
What inflation and stagnation do to an economy! My kids were dumb enough to sell their house and make a huge profit. Then they were mindblown when they tried to buy a new one. A house they bought for 250,000 dollars 10 years ago now sells for 1 million where they live. They can’t afford the payment and interest rates have nowhere to go but UP!
They are now living in a 2 bedroom apartment created from an old barn and paying 1300.00 per month.
Gotta love what 20 years of war has done to the USA and democrats who have no idea how to fix the economy other than spending more to further drive up inflation. Cloward and Piven anyone????
Teach on keeping your trade-in a secret….
10 Once you have a firm price set on your car purchase, you can ask about trading in your car, said InsiderCarSecrets.
No. No no no. Don’t do this. First, you waste your time. It could have been done while you were test driving. Now you just added time. You want to sit around waiting? You’ve now annoyed the commission based sales person, who has to waste their time, and will think you’re playing the normal games which go nowhere. Put it in early. Guess what? You can say “no.” The final decision is yours. If you throw it in after negotiation (not that that’s happening now), you will not get as much for it.
Sales managers love the opportunity to conflate two deals at once – new car negotiation and the used car value – and it can cost the buyer hundreds if not thousands.
It may piss off a sales associate if you don’t roll over, but tough. They’ll try to gouge you for every penny regardless.
Here’s the thing: it’s 2022, not 1982. Most dealerships do not work like that anymore. I won’t say all. Really, whether you put your trade in or not, it will be the same. Let’s say you don’t, and I give you the max discount (during normal times). Then you throw the trade in. I might not give as much to offset. When you have both in there we’re working the discount and payment, because, at the end of the day, it doesn’t matter if I give you everything you want and the payment is $200 a month above your Real Budget.
Plus, I have to be here. I can sit around for an extra 20-30 minutes. No biggie.
Looks like every click-bait I have ever seen.
USA oil EXPORTS sets New record!! Is this why has prices are so high?
Here is my own list:
1. Use a car buying service like COSTCO. Pay the fleet price and drive away. No hassle and no contact with salesmen. No negotiating.
2. No need for a number 2. Number 1 covers everything. I don’t know why anyone still does this the old fashioned way. The only reason to go to a stealership is if you are buying a used car.
I did like #4. As if the “invoice price” isn’t totally arbitrary and under the control of the dealer.
In times like these, you have no negotiating power so most of those strategies are outdated and ineffective. Credit scores and being nice are irrelevant. There may as well be a “24”, wait until there is an inventory surplus then come back and try again.
During normal times stuff like that works. However, a lot of dealers bowed out of Costco, because the discounts they were giving were way too much, sometimes a $1000 bracket (below cost, a “bracket” deal). As a big dealer we would do brackets because others would be money makers.
That inventory surplus could be years in the making.
Honda is now going to jumping big with EVs
Will Teach himself agree to help force Americans into EVs?I think he will. Honda expects 40% of its total production to be Evs by 2030
If they want one I’ll sell them one. Again, I like the idea. I don’t like them being forced by government officials (who do not drive them themselves) on the public, especially if they are too expensive and lower ranges.
John-why do we need to buy EVs?