New car negotiation help please!

[clarityat3am]

I'm looking into buying a new Yaris liftback. The one I priced out on the website is $14,245. I plan on trading in my 12 year old, Olds 88, which seems to have new problems every month. I'm going to ask for $1000-1500 for the trade in and I want to ask for the same off the sticker price of the new car. Tell me if you think this sounds like a good starting point or not! It's been 10 years since I actually bought a car so I don't really know how to make a deal anymore. Other tips on how not to get screwed over would be great to know too!

 

[Utoo]

Check out edmunds.com. They'll give you the dealer's cost, the sticker price, and the price that people in your area are paying. Since the Yaris is a new line, I doubt you'll get it at dealer's cost. However, it's not a hybrid or something in crazy demand, so I think you can try to get something between the dealer's cost and the sticker price.

As for your trade-in, check out bluebook.com. It'll give you a rough idea of what you can get for your car. Also, if your car has internal problems (engine, etc.), don't volunteer that information, as they don't usually do more than turn the car on and look at the exterior when deciding what to give you. My '92 Celica needed $2700 of engine & other work. It's Blue Book value was "N/A." But I got $300 for it!

I just bought a Toyota a few months ago (got a Prius ), and it looks like some of the Toyota dealers are now trying to sell their own private service plan, besides the extended warranty stuff that Toyota sells. My dealer tried to sell me a service plan that was only good if I brought the car to his dealership. Unless you plan on going to the same dealer every time you need service, don't go for that sort of thing.

Also, some dealerships have websites & have slightly lower prices online. See if that's true for your dealership. If it is, print out the lower price & bring it with you.

Anyway, lots of stuff. The best two things I can say are 1). Look at bluebook.com to figure out what your trade-in is worth, and 2). Find the dealer's cost on edmunds.com & try to get as close to that price as possible.

Good luck!

 

[clarityat3am]

Any advice for not getting the wool pulled over my eyes as far as the car loan goes?

 

[redkat]

don't finance through the car dealership. If you have a credit union finance there.

Also, if you belong to Costco or AAA go to their website look up the car you want to buy. They have a purchase program. It will tell you exactly what the dealer costs are and what you should pay which is Normally A LOT less than the sticker price. It also directs you to a dealer that participates in their program.

Last time I bought a car I brought in that printout and showed it to them. It lists the car I want and how much i'm paying for it. End of discussion.

 

[MsGiggles]

don't finance through the car dealership. If you have a credit union finance there.

Also, if you belong to Costco or AAA go to their website look up the car you want to buy. They have a purchase program. It will tell you exactly what the dealer costs are and what you should pay which is Normally A LOT less than the sticker price. It also directs you to a dealer that participates in their program.

Great advice

 

[clarityat3am]

I wish I belonged to either of those! I'm sure it would help a lot. I need this car asap, but I don't want them to know that. My credit is so-so. Would I still get a better deal through my bank you think?

 

[redkat]

find out what your credit score is: go to transunion dot com or equifax.com. That way you'll be able to figure out before you go into the dealer what kind of interest rate you should qualify for. Dont wait for them to tell you what your credit is like.

Taken from the website below:
How to avoid the scam: DON'T FINANCE AT THE DEALER if you have bad credit. Line up your own financing and compare to dealer's financing. Read our chapter on How to finance your car or use online car financing or your credit union instead. By using your own financing, you won't endure monthly payment scams, and the deal will be based on the selling price of the car, not monthly payments. If they start negotiating the car by monthly payment, it's time to leave. If they keep trying to shift your APR up or down depending on whether you buy a warranty or VIN etching, it's time to leave. But if you do finance through a car dealer, leave a deposit on your credit card, and do not take delivery of the car until the loan has been approved in writing a few days later. Then you know the lender has approved your loan. The dealer hands you the keys and say it's all right to drive off right now with the car, but don't do it. For buyers who lease, dealers sometimes call you a week later and claim they "made a mistake and you need to come back and sign a new contract." WRONG. Your lease is a contract, and the dealer cannot make you undo a contract. Just think, if you tried to get out of a lease, they would come after you in court right?

website

http://www.carbuyingtips.com/

 

[clarityat3am]

I know I rate in the "fair" category. It's not horrific, but it's not so great either. I'm going to apply through my bank and see what they say. Things like this just get me so nervous!

 

[Liesje]

I don't know anything about buying cars since I've never had one, but my favorite business prof told me that car loans are the worst possible type of debt and to avoid it at all costs. I'm not really sure how since I've never been in that situation...

 

[nbcrusader]

Buy a used car - something that is 3-5 years old. It is a far better investment than buying/leasing a new car.

 

[Justin24]

I traded my 2002 Honda Civic for a Toyota Yaris (S) 4 door sedan. Wonderful car. In the 3 weeks I have had it. I have filled it up once! I will need to fill it up again this weekend. I love it. I know you will love it also.

 

[RedRocksU2]

I would talk to Diamond.

 

[Mr. BAW]

I traded my 2002 Honda Civic for a Toyota Yaris (S) 4 door sedan. Wonderful car. In the 3 weeks I have had it. I have filled it up once! I will need to fill it up again this weekend. I love it. I know you will love it also.

BAW and I actually thought of buying a small "work only" car; we're self-employed and I'm driving the hell out of my 05' Nissan Altima; I've already got near 40K in a year and a half...we checked the consumer guide today and did some calculations...the Yaris has an 11.1 gal gas tank, under perfect highway conditions, you get 30 mpg; that's only 333 miles to the tank so you, Justin, probably don't drive too far, just like to and from...

Whereas my Altima has a 16 gal tank and I"ve maxed out at 420 miles per fill up several times = 26.25 per gal.

I can't see giving up the luxury for a few miles either way. but the Yaris does look like a fun car...Justin, what color did you get? stick or automatic? what the highest $$ amount of fuel have you bought?



PS - RedrocksU2, I don't think your Arizona friend is in the car business any longer...FYI.

 

[clarityat3am]

Thanks, everyone, for the helpful hints! I'm waiting to hear back from my bank. I'm so worried they won't approve me.

 

[Mr. BAW]

Don't be so sure about that; a good salesman has many lines of financing available to all category of buyers..and shop around, even if its for the same brand of car, hit different dealers throughout the area...in the end, just make sure you read the fine print...good luck, Happy Motoring.

 

[Justin24]

This is what my car looks like, although it's a darkish gray and with out the spoiler. Automatic and when I filled it up it cost me 35 bucks ( Thats due to the gas station I went to.) I was low on gas so I stopped at any gas station.

 

[clarityat3am]

Well my bank didn't approve my loan. Any idea what I can do now? I don't have anyone that can co-sign for me and I know my car won't last but a couple more months if that. Do you think the dealership would finance me now that the bank denied me? This is depressing.

 

[redkat]

That link I posted had some online car loans you can find out if you qualify for.

You may consider a used car which really is a better investment. I've been to a Carmax before I didn't buy but think this is the way I'll go next time. They are all used cars but certified and no haggling.

Good luck

 

[WildHoneyAlways]

I'd be careful with Carmax. The one closest to me has some nice cars but they are waaaay overpriced.

My car will probably die within the next year or so. I have no clue what i'll do once that happens. I do have AAA though. How many dealers did you go to with your print out Kat?

 

[redkat]

I thought the prices weren't too bad. of course they were mostly almost new cars and they come with warranties so they are definitley more than you'd pay buying used privately.

I only went to one dealer. It will tell you the dealer for that make who is closest to you that participates. So it's like one stop shopping. That dealer has already agreed on that price pretty much so you know what you're getting into.

 

[clarityat3am]

I'm going to call the place listed at the link tomorrow. I hope this works.

 

[Liesje]

How about a used car? To me it seems like if you can't get good financing from a bank or credit union, you're gonna get screwed by a dealer. Is the new car really worth the extra $$$ in interest and all the debt?

Or how about a lease? I don't know much about leasing cars, but my two years ago was the first time in decades that my parents have bought a car (it was used). Previously, we'd leased minivans because we couldn't afford to finance a new minivan.

 

[anitram]

Or better yet, take over somebody's lease.

You can get a great deal these days from people who have a couple of years left on their lease and want out for whatever reason. Go to a reputable company who does it (in Canada you can even go through some dealers, like Nissan) and you might get very, very lucky. And that way you have the car short term as well.

 

[Angela Harlem]

Buy a used car - something that is 3-5 years old. It is a far better investment than buying/leasing a new car.

This is excellent advice. Do cars in America lose like 30% of value as soon as it leaves the yard, and then 10-20% per year after that? I cant remember exactly how depreciation works (here) but it's shamefully high. New cars are a dreadful loss of money, but leasing is getting slowly more popular here like in the US. Coincidentally, I'm picking up our first ever brand new car tomorrow and I'm nearly sick with excitement. We looked very long and hard at second hand but there was always a major factor we didn't want to budge on making it a 'no'. Plus, the car we're getting is a brand new model (usually a bad idea) but it comes with an engine which has won lots of awards for Mitsubishi...Which ours isn't, but they share parts, obviously.
Why am I writing all this? I dont kow either. I dont have much to help with.

With your finance being knocked back, dont be too disheartened. Be careful with the next application though, as all enquiries make a mark on your credit rating, approved or not. Does the US have ex-government cars or other places where you can get a really well serviced vehicle at base market prices? They usually have loan facilities and will work more in your favour as well. Plus their interest rates can be as much as 3.0-4.0% lower than banks and credit unions. Loans through the dealer can be more in your favour as for many customers it is the difference betwen a sale or no sale and obviously they want to move the car asap.

 

[clarityat3am]

Ok, so given that this is turning into a "worst case scenario" kind of thing, what should I absolutely make sure to find out if I finance through the dealer? I'm 90% sure I'm going to get a used car now too.

 

[Angela Harlem]

In my limited experience, I've found that good things to know are who the finance company are reps of - such as it might be XYZ Finance, but will be a subsidiary of ABC Bank. Ask them countless questions and get a detailed list of fees from start up or application fees, monthly account fees, early payout fees, transfer fees (if you choose to take the loan to another lender in the future), ask if there are fees for extra payments, find out if there are penalties or a facility to halt payments due to exceptional circumstances (like you (touch wood) going into hospital and being unable to meet repayments for 2 months), loan insurance - compare rates. see if your car insurer can get you insurance so the loan itself is protected. When you have got all this, compare it to a few and see what the total costs plus the monthly repayments will be. Draw up a chart and see if what you are getting is good for you. If going with this company can save you a few grand that's awesome, but if it might end up adding a good few thousand to the life of the loan then you might want to give it a bit more thought.

One thing to note, we have a service called REVS here which is a database of all registered cars and with the VIN and chassis number is able to let you know if there is money owing on used cars. It is extremely beneficial when buying second hand and can save you in many ways. You dont want a car that has an outstanding debt which you weren't told about.

I'd also take a bloke with you when you purchase. Doesn't matter if he cant tell the boot from the bonnet. The dealer wont know that.
Good luck!!

 

[Carek1230]

Another option might be to consider leasing a car rather than buying. I know leasing isn't for everyone, but it's an option nonetheless. Check with your insurance agent as well. I've been with State Farm for years and they offer auto financing, so if you've got a good upstanding repoire with your insurance company, that might be another option to look into. My credit sucks, but when I bought my 2001 Ford Escape I not only got a great deal, but I got what I wanted for my trade in, I got what I wanted in a monthly loan payment and it was through a first time buyer's program for Ford customers. Maybe the dealer offers something similar. I'd also consider waiting until Memorial weekend which is usually a good weekend for sales.

It's sometimes stressful, so much to take in, consider and decide about.....but I've purchased 2 cars on my own both good experiences, so if I can do it, successfully, so can you! Good luck Nicole!