Buying strategy

[gurgeh]

Per my other thread in this forum, it looks like my car may not be very happy. In order to avoid a couple of thousand (more) dollars which may include replacing the transmission, I've been told to trade in the one I've got while it isn't overly symptomatic.

If that turns out to be the case, I'm not sure what to do. I can trade it in and get another used car (better for me since I don't want to spend much), or trade it in and get a new car (less worry about things going wrong, may be get a great deal since it's December). I'm not sure how good a deal can be had with closeouts and whatnot, but as for basic buying strategy, how do I work it? Do we agree on the value of my tradein first, then negotiate the price of the car I want? Or do we find me a car, determine a price, and then see about agreeing on the value of my tradein?

And is there a way for a layman like myself to find out what the absolute, bare-assed minimum a dealer is willing to sell a new (previous year) model for? I really hated this process the last time I did it, and I like it even less now that there's an extra variable to factor in.

[Cubswin]

You will get the most for your trade-in if you sell it privately. Then again, I would have a guilty conscience if I went the private sale route and didnt disclose what I knew to be wrong about the car... but im not sure I would have the same guilt if I punted it to the dealership [img]/images/graemlins/shocked.gif[/img]

As far as getting a fair price on a new car... I would never pay more than a few hundred dollars over invoice and would most likely aim for invoice unless its car thats in high demand like the prius. If you are interested in a previous year model that is not moving you might be able to get it below invoice. Note that invoice is not true dealer cost as there is often 'hold back' of 2-3% or advertising kick backs the dealers receive. Year end is a good time to buy as there are often many incentives to move stock and meet year end goals.

Your first step is to go to edmunds and educate yourself about the cars you are interested in. I pay particular attention to true cost of ownership estimates as well as reviews from people who own the car. While at edmunds get teh invoice info and then head over to this thread. You will get all the advice you will need and then some.

[Shoe]

Definitely negotiate the best price you can for the new car before mentioning trade-in. They will just try to screw you over by playing the numbers game as much as possible, so this gives them one less variable to play around with until you have negotiated an acceptable price for your new car.

If you do bring up trade-in beforehand, you should be able to get the same price, just be aware of that and you are probably going to have to haggle a little more to get everything where you want it to be.

If you know what you are doing you should end up with the same result. The biggest tip I can give is be willing to walk out of there if they won't take you seriously and try to play too many games with you. And leave if you have to and find another dealership that is willing to listen to you if it comes to that.

[Kmon]

Both great advice, working at dealers and having 10+ cars go through my hands over the years. You must be able to walk out of a dealership. And for the trade in I like the idea of bringing that up once u settle on a price, then check kbb for a trade in value, u said the trans is messed up so you might come out a little ahead on the trade in as they might not catch it.

Do your research, don't pay anything over invoice within reason. Right now is the best time to buy a 2006.

GL

[Pedro Brazil]

hey. nice thread

[imported_Chuck Weinstock]

The used car value should be set ahead of any negotiations (or as said earlier not even mentioned until after you've negotiated a price.) You want them to give you a price that they'd pay for the car even if you did not do business with them on the new car.

Also, whatever you do, NEVER give them the keys to your current car while you are in the middle of negotiations for the new car (unless you know and really respect the dealer.) I did that once and was essentially held hostage for an extra 30 - 60 minutes while they tried to talk me into buying the new car. Needless to say, once I got my keys back, I was out of there and never looked back. I found out later that this is a common strategy among less-than-reputable dealers. (The one in question went out of business years ago, though I don't know if that was because of their business practices, or because of the consolidation that has taken place over the years.)

Chuck

[gusmahler]

[ QUOTE ]
Also, whatever you do, NEVER give them the keys to your current car while you are in the middle of negotiations for the new car (unless you know and really respect the dealer.) I did that once and was essentially held hostage for an extra 30 - 60 minutes while they tried to talk me into buying the new car.

[/ QUOTE ]

LOL. I remember one time I went into the dealer and mistakenly gave the keys to the trade in. We were going to walk out of the dealer when he mentioned that they still have the keys and can't find them. I said, "Don't worry, my wife brought her set of keys." Needless to say, they found my keys pretty quickly. And yes, we walked out of the dealer.

Some dealers are prepared for the walk out and call you back later. I demanded a price that wasn't even that good (something like $200 over invoice). The dealer wouldn't budge. I walked out. I found a dealer the next day who gave me the deal I wanted. About a week later, the first dealer called me back and asked if I was still in the market. I told him that another dealer matched my demand. He was really surprised.

[gusmahler]

[ QUOTE ]
You will get the most for your trade-in if you sell it privately.

[/ QUOTE ]

Yes. But it's also a lot less work to just trade it in. It's up to the individual to decide whether or not it is worth it.

E.g., your car might be worth $5k as a trade-in, but $6k if you sell it yourself. Is it worth $1k to not deal with the hassle? It depends.

I've only sold two cars. First was really easy. I put an ad in the paper, a guy called the same day, drove it around the block, gave me cash. Cheap, easy experience.

The other one, I had to list on three different web sites and placed two newspaper ads. And it still took nearly 2 months to sell. Definitely not worth the hassle that time.