Tips and tricks when buying, trading or selling

[Kens ss]

After reading several threads recently concerning value of trade in's or price of cars. I was inspired to share some tips and tricks that I have learned over the years. I am certainly no expert but being a car nut, I have bought, sold and traded many cars over the years.
(Myth, cash buyers do not get a better deal, other than saving interest, to the seller money is money, whether it's cash or bank check)

I thought others can chime in as well.

Here are a few of my tips.

1: search for a car you are interested in on the web 1st. Check out, all the options, sub models, specs etc . Check forums, ratings, complaints etc.
Check value using NADA guides, as this is what most banks use. Research finance options from various sources such as credit unions.

2: shop dealer websites, autotrader, eBay, etc. note :many dealers offer a internet price less than what they will tell you if you walk on the lot.

3: buying and selling privately while a little more work, but not difficult , can yield a higher selling price for your car. In addition, many private sellers are more interested in paying off thier loan, rather than demanding top dollar. I have acquired some incredible deals this way. If you are not a cash buyer, before looking at a private purchase, check with your bank, credit union, home equity, etc. use loan calculators to figure out the financing, payments, interest ahead of time. This way, you can make an offer on a car and leave him/her a small deposit, and tell them you will be back in a couple days to close they deal. Then secure your loan and bring the seller his check.

3a: selling privately, if you have a bank lien is easy. Simply get your back payoff amount. Let the buyer know you have a lien. They simply pay the bank and you the difference, even if they are financing, their bank will verify and cut the two checks, one directly to your bank. Then they simply get a 30 tag, while they wait for your title release.


Now some tips for buying at a dealer. Remember you cannot fool a dealer, but you can prevent them from fooling you!
1: as stated above, do all the research ahead of time, before ever stepping into a lot.

2:when the salesman approaches you , tell him/her, that your are there to see the specific car you already searched. NEVER say you are looking to trade, NEVER tell them what you can afford to pay each month (remember if you did your homework, you already know approx what your payments will be and under the terms, you picked) , never tell them you are financing. This will be discussed later, but if you disclose this up front, the salesman, is already going to be calculating in his head, how he can take advantage of you.

3: if you like the car that you specifically when to look at, let the negotiations begin! If acceptable, shake hands and lock in the price.

4: now, if you were intending to trade. Tell him that you are interested in trading your car. Once again, if you did your homework, you know the value of your car already, of course don't expect them to pay you retail 'ain't gonna happen'. If they offer too low, let them know, that won't work and try to negotiate a better price be prepared to walk.. If you get an offer you are willing to accept pay cash or go to next step.

5:if financing, move onto the finance guy. Do not buy, paint or interior protection or similar, if they offer extended warranty, make sure the terms are reasonable (usually this is marked up big time, and you can buy cheaper from your bank, or elsewhere. Just make sure you did your homework and verified ratings of extended warranty companies, as some are junk.

5a: verify the terms of the loans he is offering, if the terms are worse than you found befor going, tell him, you found better financing. They get kickbacks from the finance companies and will try to push it. Of course if the terms meet or beat what you researched, then by all means go for it.

Hopefully this may help....

others?

[Red2014SS]

A good friend of mine runs the financing dept at a local Ford dealership. Another friend owns seven dealerships. Here is one trick I've learned from them....

Paying cash or obtaining your own financing can save you money at a dealership. Lots of times, it depends on the model you are buying. Take a Ford Focus for example... Its one of the least expensive cars that Ford sells. The dealer knows that most buyers of these cars are lower income people. Many times, dealerships will advertise prices on these models that are around $500 beneath the actual amount the dealer paid for the car. They know that if they can lure you in with a low price, they can make a big profit on the kickback from a higher interest loan, extended warranty, paint protection, etc.

So go set up your financing at a credit union, your own bank, or get cash. Walk into the dealership and negotiate your price. Let the dealer think you are financing with them, then, at the last minute, reveal your real plan. Refuse all offers for extended warranty, etc. It is possible to buy a car for less than the dealer paid. You may also find that they suddenly refuse to sell to you.

[Kens ss]

Another tip
If you did your research for a specific car and the salesman wants to show other cars. Looking is okay, but do research on it 1st, either by coming back after you looked into it. I have even researched on the fly right at the dealership using my iPhone.

But remember, you came in to see something your wanted and researched. So being steered to something else, may not be what you really really wanted, then again, you might get inspired to consider it. But you loose a lot of ground, if you are not fully educated on the other car.

I have actually gone to a dealership wanting to see the specific car I was interested in, only to be told it was sold. When the salesman, wanted to show me something else. I declined, as there were other dealerships that I wanted to visit, with cars I researched already.
He seemed to think it was a little strange, that I was that specific. But that is me.

Even the red vert I just bought. I wanted used 11 or 12, in either red or yellow SS/RS. I did not even bother to look at any colors even though, there were some pretty good deals to be had. I knew if I didn't get what I wanted, I would never be 100% satisfied.

[mlee]

Great Thread...

One thing I always try to do before trading in is at least give AutoTrader a shot and sell on my own for an amount above what my trade-in would be plus the taxes I would save on the new car.

The only time I've ever traded in is when I was in a hurry and I'm almost never in a hurry when buying a car. Be prepared to walk and be prepared to wait. Both are always a good thing even if you do lose that one car you thought you wanted..

[IMPERIALBLUE2SS]

Be willing to travel. You can save thousands by taking a road trip! Fly in, drive it home.

[cadyshac]

Originally Posted by IMPERIALBLUE2SS

Be willing to travel. You can save thousands by taking a road trip! Fly in, drive it home.

I did this my last 2 purchases, saved a big chunk both times!

[the_fast_one]

I don't know about other states but in Illinois you can save on sales tax when trading in. If you are close to a number that is fair for trade in but a little low for you, it is worth calculating what you will save in sales tax. If you have a 30k trade in on a 40k purchase then you only pay sales tax on 10k instead of 40k if you were an all cash buyer. Can add up to a few thousand depending on what you are buying.

[CRF8]

Same in FL


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[Kens ss]

Originally Posted by the_fast_one

I don't know about other states but in Illinois you can save on sales tax when trading in. If you are close to a number that is fair for trade in but a little low for you, it is worth calculating what you will save in sales tax. If you have a 30k trade in on a 40k purchase then you only pay sales tax on 10k instead of 40k if you were an all cash buyer. Can add up to a few thousand depending on what you are buying.

Yup same here, but only if trading for brand new, not used.

[yzark99]

Try to buy from a dealer on the last few days of the month. Salesmen must meet sales quotas to keep their jobs, and at the end of the month many will be sweating and willing to deal. It's not only the salesmen either. The sales manager will be more willing to get rid of a car rather than pay another month's fee to the manufacturer to keep that car on the lot unsold.

[baum]

Some of these are good some are not true.

1. know your banks/ a credit unions rates. cash and financing else were are not cheaper. most dealers now days give you a $500-1000 if you finance through them. If you have good credit you can negotiate your rate. (ex: i just paid cash for a car a month ago. if i would have financed it i would have saved another $500 on the cost in my case i didnt care)
2. yes dealers have "quotas" but their sales people dont get fired if they dont meet them. most dealers pay their sales a salary and not a commission anymore. with the internet and people can get multiple prices while at home the extra commission is not there anymore.
3. older cars on the lot are easier to get discounted more.

[enzia35]

Does an order say close to the end of the month count as a sale?

[baum]

Originally Posted by enzia35

Does an order say close to the end of the month count as a sale?

i may be wrong, but i believe its when you do the paper work.

[mlee]

Originally Posted by IMPERIALBLUE2SS

Be willing to travel. You can save thousands by taking a road trip! Fly in, drive it home.

I did this on my ZL1... the dealership picked me up at the airport.

Originally Posted by enzia35

Does an order say close to the end of the month count as a sale?

No... they just have your money for the car before it counts.