News: SMF - Just Installed!
Welcome, Guest. Please login or register.

Login with username, password and session length

The Housing Bubble Blog ForumWall Street, Washington and Personal FInanceNew BoardNew car buying advice?
Pages: 1 [2] Print
Author Topic: New car buying advice?  (Read 4181 times)
Willi
Newbie
*
Posts: 41



View Profile
« Reply #15 on: August 18, 2008, 01:13:33 AM »

1 Don't buy a new car.   Avoid the first year's depreciation, it is bound to be less than any repairs you will have to make on a decent year old car.

2. Pay cash  see:
http://www.daveramsey/etc/lms/drive_free/player.cfm
Logged
Willi
Newbie
*
Posts: 41



View Profile
« Reply #16 on: August 20, 2008, 03:36:30 AM »

Er...make that "less" in 1 above "greater" .  Dyslexia wears many hats Angry.
Logged
JackRussell
Guest
« Reply #17 on: August 20, 2008, 05:25:40 AM »

Er...make that "less" in 1 above "greater" .  Dyslexia wears many hats Angry.

I would suggest that whatever you get have very good fuel economy.  >40mpg if possible.
Logged
WT Economist
Newbie
*
Posts: 2


View Profile
« Reply #18 on: August 21, 2008, 05:31:11 AM »

I suggest moving somewhere that you don't need a car, and getting a bike instead.  Bank the savings.
Logged
hip in zilker
Newbie
*
Posts: 33


View Profile
« Reply #19 on: August 23, 2008, 09:06:06 PM »

Thanks so much for the advice everyone.  Edmunds and Carfax were both very helpful. Also, I picked up this useful buyers’ guide at the credit union:
https://www.ufcu.org/learning/vehicle/wheels/buyers/index.php

I mainly cycle and walk and most of the time haven't had a car or had very old ones. I drive regularly to see elderly mom out of state not near major airport. At present, I don't mind putting some money toward having a newer reliable vehicle.

I bought a 2008 Nissan Altima 4-cyl with 16,000 miles for $17,910 + tax & title - immaculate. Cash. It was $19, 700, was dropped to $17,910 at the weekend. I bargained without success, then tried to get them to put some Michelin HydroEdge tires on it, which wouldn’t have been much of an outlay for them. They wouldn’t; said they were selling at a loss, having $18,400 in it. All I could do was to get them to give me an extra key, repair the dings and chips, and detail it better. I really liked it while I hadn’t been enthusiastic about anything else I tried in 6 visits to 5 dealerships, it’s extremely clean, a good enough price, and good enough mileage for someone who doesn't drive much.

I first tried a new Honda Accord, found it stodgy. Tried a Civic, found it zippy, but too small for my comfort zone.

I tried a new Toyota Camry 4-cyl, having in mind to order a hybrid. The dealership wouldn’t go down a penny from the MSRP, nor would they offer me a decent price for my 94 Seville as a trade so I walked.

I really intended to get a new car for a change. But when it came down to it, I could only stomach the thought of the depreciation in the case of a hybrid, which I wanted and which I figured wouldn’t depreciate as much, what with the waiting list for new ones. But I also couldn’t stomach the dealership not budging a penny off MSRP.

My nephew got a decent 2005 Nissan Altima 6-cyl at a different dealership for $15,450 + tax & title. That vehicle had been reduced by $1000 the previous weekend and we got them to go down another $500. I think he should have gotten them down more, but he wanted that vehicle and wasn't willing to walk and get back to them in a couple days as I suggested.

It seems like most of their sales now are in small and medium size vehicles and they’re filling the lots with them, pricing them to turn over, skimping on the inputs like detailing, and not bargaining or offering perks.

Nephew paid $5000 down and got a 30-month loan at 4.95% for the balance from the credit union with my co-signature.

I'm hoping to sell my 94 Seville (used to be mom's) for $4000 to some young guy that wants to pimp it out.
« Last Edit: August 23, 2008, 10:29:28 PM by hip in zilker » Logged
hip in zilker
Newbie
*
Posts: 33


View Profile
« Reply #20 on: August 23, 2008, 09:12:03 PM »

Oh yeah. I learned in the course of chatting with my sales guy that it is possible to get a vehicle for less by going in at the end of day on the last day of the month. Success will depend on how they are doing as to sales quotas. The sales guy and I were swapping stories about bargaining. He is West African and one night a South Asian guy came in just before closing on the last day of the month, and kept the place open until midnight even though the sales guy, wanting to go home, told him to leave. He bargained hard and walked out with a car sold at a loss (that brings a flat $150 commission), because the manager hadn’t met his quota for the month and wanted to make that sale, even though the sales guy just wanted to go home.

Logged
JackRussell
Guest
« Reply #21 on: August 24, 2008, 06:52:43 AM »

Oh yeah. I learned in the course of chatting with my sales guy that it is possible to get a vehicle for less by going in at the end of day on the last day of the month.

That does work.  Some years back I was shopping for a used car.  I saw it over a weekend, and then went home and looked up what blue book would be and all that.

I went back on the Monday night that followed, which happened to be the end of the month.  And it was snowing that night too.  I took another test drive - they had a rookie salesman in the car with me during the test drive, so I start to make small talk.  I ask him "how has your quarter gone - did you make your numbers?".  The kid says "not bad - we need to sell 2 more, and there is another guy in there looking at a different car".  He might as well have put a sign on his back that said "Kick me".

So we get back to the dealership and start haggling.  It took an hour or two to get them down to where I wanted them, but eventually got them to a good price. 

It takes so long because they only offer price cuts a little at a time.  And you have to be prepared to stand up and walk out if you don't get the price you want.  If you fall in love with the car, then they have you where they want you.
Logged
hip in zilker
Newbie
*
Posts: 33


View Profile
« Reply #22 on: August 24, 2008, 12:58:42 PM »

So the quotas are by quarter? I'd like to know more about that.

Regarding falling in love with the car, that was my nephew's weak point. I think no matter how poker-faced he had been, the sales people would have known it - from the combination of his age (24, without a car), his selection, and the fact that I had come into the picture.

I was willing to move on and buy later  (although not as much as I was at first). When I was leaving after test driving the vehicle I liked, the salesman had his manager come out and offer for me to take the car home overnight. It was intended to make me fall in love with the car and of course insured that I came back. But it certainly suited me. I liked the car but didn't want to commit, had the chance to try out the car without pressure or obligation, revisited my internet research including checking out the VIN # with that vehicle off the lot.

If I hadn't purchased that car, I would have favored them for further shopping - I liked the sales guy (most tried to bamboozle my nephew and this guy didn't) and I liked the taking the car home thing.

The sales guy mentioned that a portion of their sales are to people who buy a car that isn't particularly what they want and they don't get the best deal they could. They have been running around trying out a lot of cars and simply are sick of dealing with car salesmen and want it to end, especially if they think that somewhere along the way they had found "the perfect car" and then "lost" it (because they couldn't come to a deal, couldn't afford / finance it, someone else bought it first, spouse/ parents disapproved, whatever).




Logged
JackRussell
Guest
« Reply #23 on: August 24, 2008, 01:48:05 PM »

So the quotas are by quarter? I'd like to know more about that.

Don't know about the car business.  In my industry it goes by the quarter, so I inadvertently phrased it that way.  Now that I think about it, I probably just asked him if they were going to make their numbers or some such.
Logged
Winston Smith
Newbie
*
Posts: 6

aka mrktMaven


View Profile WWW
« Reply #24 on: September 06, 2008, 07:34:28 AM »

1.  Look at Consumer Reports for reliability.
2.  Look at Edmunds for invoice price, rebates, and post purchase experiences.
3.  Secure financing at your bank or credit union.  Shop around.
4.  Try a discount club's car buying program.
5.  Shop your trade.  If buying a Honda, call other dealers in and around town.
Logged

MinRec
Pages: 1 [2] Print 
« previous next »
Jump to:  
Powered by MySQL Powered by PHP Powered by SMF 1.1.5 | SMF © 2006-2008, Simple Machines LLC
Forum theme design by Tamuril. © 2008
Valid XHTML 1.0! Valid CSS!