Car Buying Tips

[chico4missions]

Woo Hoo just bought a new '08 Pilot! The experience with my dealer was great.... BUT it had nothing to do with my particular dealer. It had to do with how prepared I was going into the dealership. Duh, everyone researches the car they want to buy....but I'm talking about more in-depth preparations!

I used this website that totally prepared me for buying my new Pilot!

Here's the link: http://www.carbuyingtips.com/car1.htm

if you've got the time, read all 7 chapters. I don't agree with everything he says but he has some really helpful tips and the spread sheets he made are like gold! He exposes multiple dealer scams and plots. Wow I sound like an advertisement for him! But seriously, I saved literally thousands of $$$ using his spreadsheet! Basically the spreadsheet calculates an offer for you and shows what the dealer paid for the vehicle. The first couple chapters are kinda boring but insightful while chapter 4 has the spreadsheet.

Brief summary of my car buying process:
1. I made an offer (incredible offer, yet respectable)
2. Dealer refuses offer (laughs at offer)
3. I LEFT DEALERSHIP!
4. Next day Dealer calls with counter-offer (still higher than my offer)
5. I refuse and state my original offer
6. Next day & several counter-offers later...Dealer calls back & accepts offer
7. Saved $5K off of INVOICE (not MSRP... don't mix the two)

The key point is "I LEFT DEALERSHIP"; don't be afraid to leave

Anyways, I'm sure most of you know all this but I figured I'd post this info cuz it helped me! Check out that website! Peace-

[whizmo]

I'd like to hear how you managed $5K off invoice.

- Mark

[larryziegler]

Originally posted by whizmo
I'd like to hear how you managed $5K off invoice.

- Mark

Carsdirect.com has it priced at $3,500 under invoice, so anything's possible.

[TomStromie]

I purchased my Pilot through a fleet services company, and a fellow I work with purchased his Element through a credit bureau. We both got great deals with no hassle (other than a bunch of BS from the financing person at the dealership).

I won't deal with any of the floor salesman---too much hassle for me and too much profit for them.

[whizmo]

Originally posted by larryziegler


Carsdirect.com has it priced at $3,500 under invoice, so anything's possible.

Well, $3500 under invoice might be possible as Honda has a $3500 incentive at the moment, but $5000 is $1500 more than that.

- Mark

[chico4missions]

whizmo: I just gave my offer: it comprised of the $3500 Factory-to-Dealer incentive I also subtracted any BS dealer fees (no offense to any dealers on here) which included but not limited to... Dealer Prep Fees, Ad Fees, Dealer Markup (not at my particular Dealer), VIN Etching (can get at autoparts for $15-$20), and other misc charges. I wasn't about to pay $200/hr. for a guy who probably gets paid $8/hr to take plastic off my seats. They insisted that they couldn't take off those fees so I said fine charge me those fees but take it out of the price of the vehicle and I left the dealership with my offer unchanged.

Too many people go in and try to work down from their prices. Again they laughed at my offer but later came calling back!

TomStromie: I'd like to hear more about your experience with fleet purchase

- Grady

*also I'm in Oregon so no taxes for me

[sski]

Very good.

Problem for me is as far as know, invoice prices in Canada are not readily available and I'm not sure they should be. You don't go to Walmart and ask how much that sweater cost them? The retail price is $29.99, take it or leave it.

My wife owns her own business as I'm sure many of you on this board do, so I look at this from both sides (retailer and customer). The last thing you want is your customer knowing what your costs are. It's none of their damned business. You take the risks of self-employment and you deserve the rewards.

Having said this, I like a deal as much as the next guy. Whenever someone says "They can't do something" ie/ delete admin fees, I always correct them and "You can, you simply don't want to".

Your good deal will be offset by the next customer who simply accepts everything the dealer offers.

[jl_ss]

Originally posted by whizmo


Well, $3500 under invoice might be possible as Honda has a $3500 incentive at the moment, but $5000 is $1500 more than that.

- Mark

Holdback accounts for another $870. It also depends on how long it has been on the lot. Holdback generally accounts for the cost of keeping it on the lot for 3 months. Longer and they are losing money and may get rid of it just to stop the loss from continuing. They also may accept less thinking they are going to hard sell you on options/warranties etc or make it up in financing. If they don't succeed they just make it on the next person who comes in unprepared.

[chico4missions]

Originally posted by jl_ss


Holdback accounts for another $870.

Ya I forgot to mention that. Thanks JL_SS! I factored hold back and floorplan fees into my offer too. The website I mentioned above calculates it for you in the spreadsheet (usually 3% for US and 2% for imports).

It's totally true what you guys are saying about dealers "getting it from the next guy". They'll get theirs sooner or later. Most likely from someone who hasn't done research or trusts EVERY WORD they say.

JL_SS you're right about them accepting less thinking they were going to get me to buy more options/warranties etc. Unfortunately for them, I didn't budge or give into the "Max-Guard" and upholstry solvents etc... plus I did outside financing (wife's a banker = nice %rate)

- Grady

[krygny]

Originally posted by chico4missions
...
The key point is "I LEFT DEALERSHIP"; don't be afraid to leave
...

In the immortal words of George Costanza ...

"I WILL WALK OUTA HEAH!!"

[krygny]

This long series of articles, which has been on Edmunds for many years, is one of the best exposes of how car dealers work, I've ever seen. Must reading for new car buyers. All the stuff you knew, only suspected and didn't even know, in one place.

http://www.edmunds.com/advice/buying...2/article.html

[jl_ss]

Originally posted by chico4missions


Ya I forgot to mention that. Thanks JL_SS! I factored hold back and floorplan fees into my offer too. The website I mentioned above calculates it for you in the spreadsheet (usually 3% for US and 2% for imports).



- Grady

Holdback for Honda is 3% of the base (no options) MSRP. Here's a good collection of buying info articles: Link1 and Link2

[TomStromie]

Originally posted by chico4missions


TomStromie: I'd like to hear more about your experience with fleet purchase

- Grady

*also I'm in Oregon so no taxes for me

I live in Minnesota, and this company was listed on my company's website. You do not have to be an employee to use their services.

http://www.eapfleetservices.com/newvehicles.html

Like I said, I called them up, told them that I wanted a Honda Pilot, LX, in Aberdeen Green. They called me back in a few hours and told me the price. I agreed and arranged for a time to pick it up from the Honda dealer. I paid the dealer the amount due and that was it. Of course, the dealer tried to sell me an extended warranty, but I didn't bite. The dealer was very pokey, but not pushy. I dealt with the Internet Sales Manager.

The coworker I conviced to use this service called the above company on Friday and picked his Element up on Saturday--less than 24 hours later and he saved $2,700 over what the dealer had quoted him 2 days earlier on the same vehicle.