Car negotiating tips? - Dallas Cowboys Forum

**WoodysGirl** · 01-14-2013

Anyone remember the duct tape Honda I posted about a long time ago? Yeah, well, I wrecked it and it went bye bye.

So because I'm getting a better than I anticipated settlement check from the insurance company, I'm going to buy another cash car.

I bought the last Honda from an owner, but some of the better cars are with the dealers. So I'm wondering how far down a dealer will come down if I get as close to $1500 for the car, but offering a cashier's check.

Stryker44 · 01-14-2013

I always like to bring someone with me...either a friend, girlfriend, or familiy member. Act like the purchase is a mutual decision (even if the car is for me and solely in my name). If I go alone, I'm less likely to be impartial and objective about the purchase.

I act very enthusiastic about getting the car, and have the other person be the "stingy" one so to speak. Act as if the car purchase is part of a mutual budget you both share. Have them name drop other dealers, etc. Have them announce what your limit is right off the bat and say something to the effect of being able to pay that much in cash, but no more.

I've payed the "bad" one so to speak as well, but never when I'm purchasing my own car. Because usually when I do, I'm just wanting to get into any vehicle as I'm likely without a car...and I'm not inclined to fight for the best deal I can.

CowboyStar88 · 01-14-2013

Depends where you are. After I closed my business last summer I went to work for an auto broker called Autoland here in CA and its crazy to see what the dealers pay for cars. I will say go to a dealer who moves a lot of inventory the reason I say this is because you can get some dealer cash to help with lowering the price. Now if you want to know what the dealer pays for the car PM what you are looking for and I will get you a price and take it I the local dealer and see what they are willing to give you. Usually there is some back end cash for financing etc...

Boys122 · 01-14-2013

It depends on what state you're in, but I know in New York most of the used car dealers around here that sell used cars will go down quite a bit if you are indeed paying cash.

I think the last car we bought that we paid cash for we went from 2400 down 1700. Ask for a car fax, they should provide one. I use to work on cars and trucks so I went through it with a fine tooth comb. If you don't know anything about cars bring someone that does. The more you know the better price you'll get. At least here in New York it will. Hope this helps.

**jobberone** · 01-14-2013

If you can wait until the end of the month. However, there are a lot of great deals out there (there were up to the end of the year) esp for leases. It's too difficult to discuss interacting with car dealers here. Take some one who's been around the block and let them be the front.

What kind of car are you looking for, do you wish to lease or buy, and I gathered you wanted a used vehicle. Unless you are into the buy and drive until its dead crowd (maybe for you) then a new car has cheaper money. If you drive and move on every two or three years then you look at cost of ownership over that period adding in the value of a new car and warranty.

Or you can go the used route. I like a car about 18 to 24 months old or one that has stopped depreciating like a 5-7 year old Mercedes or Honda/Camry.

Hopeuhavechange · 01-14-2013

Not crystal clear on your question but I think you're asking if a dealer has incentive to make you a better offer on a cash purchase. Not at all, they want the pts on financing and a few other tactics...service contracts, extended warranties and a few other goodies that apply to a new car purchase, not pre-owned.

I'd steer clear of most dealers on used cars except a Carmax, etc. Just firmly decline any options if you must do so.

CowboyStar88 · 01-14-2013

Quote:

Originally Posted by Hopeuhavechange

Not crystal clear on your question but I think you're asking if a dealer has incentive to make you a better offer on a cash purchase. Not at all, they want the pts on financing and a few other tactics...service contracts, extended warranties and a few other goodies that apply to a new car purchase, not pre-owned.

I'd steer clear of most dealers on used cars except a Carmax, etc. Just firmly decline any options if you must do so.

Ding ding! Doesn't matter if you are paying cash. The dealer would rather you finance so they can make money on the hold back and the rate increase. The reason is nowadays there isn't a huge mark up from invoice to MSRP. I stare at these things all day from every manufacturer and I can tell you what the finance hold back is on a car. I can tell you the average hold back on finance is 400-800 bucks.

**WoodysGirl** · 01-14-2013

Thanks guys. That's all good information and pretty much tells me what I needed to know. I'm just looking to pay cash, no financing. Last thing I need is a car payment. I want a 2007 Honda Accord...sedan, instead of my old coupe, this time. I have a max budget based on the settlement check and potentially a piece of my paycheck. I don't want to have to go into my savings to add to the overall cost.

I'd prefer to stick with owners, but the dealers have pretty good prices that if they come down a $1000-$1500, then I can get the car I want without alot of miles. I'm not really in a time crunch other than I'm trying to do it while I have a rental car and while my Mom is here to help me get around. I'm in Texas, BTW.

CowboyStar88 · 01-14-2013

Doesn't hurt to ask. Find the car make a call. What's the worse that could happen? They say no or counter that's about it.

**WoodysGirl** · 01-14-2013

Quote:

Originally Posted by CowboyStar88

Doesn't hurt to ask. Find the car make a call. What's the worse that could happen? They say no or counter that's about it.

That's true. I've bought a few cars before, but whenever I've dealt with dealers, I've had my uncle involved to help get the right financing. He used to work for GMAC as a finance guy.

But for cash cars, I've usually gone it alone and wanted to get more opinions on the process.

CowboyStar88 · 01-14-2013

WG I think you will be just fine

just call them up and hit em with the offer! I think you could expect them to split it. Maybe come off 750 bucks or so. Just depends where they are at in the car. If they are in it right shouldn't be a problem, but if they a buried in the car might pose a problem. Keep us posted.

**WoodysGirl** · 01-14-2013

Quote:

Originally Posted by CowboyStar88

WG I think you will be just fine

just call them up and hit em with the offer! I think you could expect them to split it. Maybe come off 750 bucks or so. Just depends where they are at in the car. If they are in it right shouldn't be a problem, but if they a buried in the car might pose a problem. Keep us posted.

Will do!

viman96 · 01-14-2013

Talk to the dealerships about financing through them. The sales people can make commission on which loan they get you to sign. This is in addition to the commission on the sale of the vehicle.

You know when the sales person goes behind the wall and comes back with a loan? What is happening is they have submitted your information to a few banks and the majority of them if not all of them will submit their loan to the dealership to offer you. The banks provide an incentive ($$) if the dealerships gets you to choose their loan.

So why go through this hassle? Most dealerships will negotiate more with you if they believe they are going to make money off you for the life of the loan. The day after the loan goes through, you pay off the car with your cashiers check.

Or another option which I have done a few times is act like I'm going to finance with them. I get the bottom line dollar in writing and then at the end tell them I'm going with the pre-approved loan from my bank. Or in your case you have a cashiers check to purchase the vehicle.

Bigdog · 01-14-2013

I just bought a car last month. I went to truecar.com and the price they give you is the price the dealership has to give you. I saved almost 5,000 off because I was negotiating between two different dealerships.

McLovin · 01-15-2013

One option is ebay

I have bought my last 4 cars off ebay. I suppose there is a risk, but if you find a seller with a good rating and the carfax makes sense ( mileage, clean, etc) really about ss good as you can get. I have had NO issues.

If you are worried about financing, most banks or redit unions will lend sight unseen and some give a check to make you cash buyer.

Just a thought. I just love not having to deal w greasy salespeople asking "how much do you want your payments?" And other bs. The transaction was over in 25 minutes.

I hate dealerships