Tips For Buying Car At Dealership

#1
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IngloriousBastard

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#1
First off let me introduce myself. I am a 19 year old Sophomore attending a college in northern Mississippi, about a mile from Memphis. I am hoping to possibly attend Tennessee next year (depends on whether or not I'm considered in-state or not), and I am in serious need of a more dependable car (I drive a 95 Mit. w/ 164k).
While going to school full-time I have managed to save up enough to buy the car, but would like to save as much as possible. I am interested in a 2005 Honda Civic 2dr Coupe with 65k on it being sold for $9,000 at a dealership. Anyone who has experience with dealerships, I am asking for help. Are there any tips and tricks, and how much should I try to drop the price down?
Any help would be greatly appreciated. Thanks.
 
#2
#2
Good advice here:


Confessions of a Car Salesman


Actually just posted the last page of a rather long article with lots of good stuff but you kind of have to take notes and deduce whats going on while reading between the lines. Worth the read if you have the time. But this page gives good solid advice.
 
#3
#3
never buy on your first visit to a dealership

never tell the salesman how much you have to put down or what kind of payment you're looking for

don't let them overvalue your trade in, all they'll do then is increase the price of the car you're buying by that amount to "make it look" like your trade was worth more.

9 grand is too much for a 5 year old civic with 65k.

you don't have any friends in a car dealership
 
#7
#7
Not knowing the condition or anything else about the vehicle, $9k seems to be a competitive resale price for the car. You need to spend some time doing some research... here's a good link.

2005 Honda Civic - Select A Trim - Kelley Blue Book

Also, whenever negotiating with a dealership always have at least two other options (at lower cost) available... whether you would seriously consider them or not. The dealership has to believe that they need to go lower to get your business.

Lastly, and you may not like it, but I would suggest having an older adult (father if possible) go with you to the dealership. I don't agree with it, but the reality is that most dealerships will not give a 19 year old the same respect or consideration as an older individual.
 
#8
#8
I like Carmax. Not the best prices out there, but not exactly bad. If your time is money, you'll be saving money because it can be so quick and easy.
 
#9
#9
Update. I have been doing a good bit of research and I am now seriously thinking about buying a 2005 Nissan Sentra with 66k on it instead. I have been in there before and talked it down from 8,650 to 7200 with my trade in before walking out, but I've decided to just try and sell private party with my old car (they originally offered me only $300 for it). After doing some research, I have come to the conclusion that trade-in value is also typically what used car lots usually pay for the cars that they sell. The average value of the trade-in on the Sentra is from 4,225 to 5,800, so I'm just gonna go ahead and assume a value of 5,300 as what they paid for the car. I'm going to originally offer 6,700 for the car (including their "fees") and I will be secretly willing to reach 7,300 and nothing more. The price it's advertised for is 8,650. Those with experience, is this logic right?
 
#10
#10
Sounds good. If you think it's a good deal run with it.


Here is another option that I have been able to achieve only once but its well worth the attempt and the time to to do. Find a smaller car lot without a lot of traffic and the owner is the salesman, should be easy in today's economy. Talk a while get to know him a little and just casually mention that you don't see anything on the lot you like and ask him if he going to a car auction to resupply anytime soon. Offer him $500 if you can go with him and have him bid for the car you like. You can save 60-70 percent or more off of that $7300.
 
#11
#11
Well, it sounds workable to me. Just stick to your battle plan, you seem to be going in with a good idea of what you are going to do.
 
#12
#12
personally i'd buy from a private person and just have the dealership give it the once over before buying it.
 
#14
#14
All the advice I have seen so far has been sound. As a person who negotiates contracts for a living, I can offer this for advice:

1. If you can purchase this used car with cash, do it. Do not finance with them.

2. Don't let the salesman know you have cash. Negotiate with them and give them an offer. For example, if you think you can get out the door on the 2005 Sentra for $6,500 including fees and taxes, put that down as your offer. Their line of thinking is that you are young and probably will have to finance and they will make their money on the interest.

3. If they ask what you want your monthly payment to be, they are factoring in a finance payment. Just say you are not concerned with a monthly payment, just a bottom dollar price. Same for a trade (like others have said). If you have a trade, don't let them know up front. The trade and sale of the car are two separate transactions. People always combine the two.

4. If all esle fails, pull out the cash. Show it to them. Say $6,500 is my offer, here is the cash. If you don't want it, I will go to the next dealer. They will think long and hard when you play that card. Dealers want to reduce inventory and get other things on the lot. They are not in the business to hoard cars on the lot. So a profit for them (even small ones) is their ultimate goal. Not every deal for them is a gold mine.

Remember, there are thousands of cars out there for sale. As the buyer, you have the power.

Sorry if this offends any car dealers.
 
#15
#15
IngloriousBastard said:
First off let me introduce myself. I am a 19 year old Sophomore attending a college in northern Mississippi, about a mile from Memphis. I am hoping to possibly attend Tennessee next year (depends on whether or not I'm considered in-state or not), and I am in serious need of a more dependable car (I drive a 95 Mit. w/ 164k).
While going to school full-time I have managed to save up enough to buy the car, but would like to save as much as possible. I am interested in a 2005 Honda Civic 2dr Coupe with 65k on it being sold for $9,000 at a dealership. Anyone who has experience with dealerships, I am asking for help. Are there any tips and tricks, and how much should I try to drop the price down?
Any help would be greatly appreciated. Thanks.
Click to expand...

PM me Ingbast. Ill help with what I can. (Know a lil bit ab the car game)
Posted via VolNation Mobile
 
#16
#16
Mini Me said:
All the advice I have seen so far has been sound. As a person who negotiates contracts for a living, I can offer this for advice:

1. If you can purchase this used car with cash, do it. Do not finance with them.

2. Don't let the salesman know you have cash. Negotiate with them and give them an offer. For example, if you think you can get out the door on the 2005 Sentra for $6,500 including fees and taxes, put that down as your offer. Their line of thinking is that you are young and probably will have to finance and they will make their money on the interest.

3. If they ask what you want your monthly payment to be, they are factoring in a finance payment. Just say you are not concerned with a monthly payment, just a bottom dollar price. Same for a trade (like others have said). If you have a trade, don't let them know up front. The trade and sale of the car are two separate transactions. People always combine the two.

4. If all esle fails, pull out the cash. Show it to them. Say $6,500 is my offer, here is the cash. If you don't want it, I will go to the next dealer. They will think long and hard when you play that card. Dealers want to reduce inventory and get other things on the lot. They are not in the business to hoard cars on the lot. So a profit for them (even small ones) is their ultimate goal. Not every deal for them is a gold mine.

Remember, there are thousands of cars out there for sale. As the buyer, you have the power.

Sorry if this offends any car dealers.
Click to expand...

Only if by offended you mean a little dissapointed that there is 1 more informed buyer in this kids particular market, then maybe. I don't see anything offensive in your post. Good points imo. I'm no longer in auto sales but was from 03-08 and worked for some strong car guys- learned enough to know the majority of people aren't prepared to negotiate with any REAL salesmen. Then again, the majority of salesmen are weak.
Posted via VolNation Mobile
Edit: I should add that (correct me please if you know different as I'd love to know your market) the "10 and 15 pounders" as they are called in the busineSs (10k+ profits)are fewer and fewer these days. In the 80's and 90's- early 00's- profits on deals on avg were much higher. The internet has had a lot to do with this as well as caps and laws regarding financing. Its a dirty and tough business.
 
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