I could use some CP advice re: buying a new car

[GoinAllTheWay]

Wading into VERY unknown territory here. I've been wanting to purchase a truck for some time now and I think I'm at the point that I really want to pull the trigger.

I've only dealt with a dealership once in my life and that was on a used vehicle. No idea if I got a reasonable deal then or not but since I'm looking at buying new, I'd love to hear some advice/tips on those that have done it successfully here.

I hoping now is the perfect time. New year, Economy not doing great. I have almost perfect credit and no debt outside my mortgage.

I've been looking at used for some time but seems like people that buy trucks roll off the lot and proceed to start doing laps around the planet. Mileage is incredibly high on so many of the used trucks, even the newer ones.

Any tips/info/suggestions you guys have would be GREATLY appreciated.

Thanks in advance. Vehicle in question is an F150 BTW.

[Canehdianman]

Unhaggle is a good starting point once you know exactly what you want.

Here's what i did. Find out what dealer cost less incentives is, then add in 3%.

Email every dealer in southern Alberta (or whatever you want). Clearly state what you want, and what you'll pay (cost+3%).

Ask them to email back with their offer.

Then take the ones you get back and email them again asking for their best offer.

Easy and fairly quick. Requires no time dicking around in a dealership having smoke blown up your ass.

[DownhillGoat]

NM. Misread the OP.

[Looch City]

Damn I didn't even know emailing dealers was a thing, good info!

[GoinAllTheWay]

Ya, most of the Ford websites I've been to now include a "request a quote" tab.

[darklord700]

I've used unhaggle once and got invoice+500 for a van. You'll save a few Gs using unhaggle anyway. There's also a guy I knew from RFD who kind of work like unhaggle, he'll set you up with specific dealership in Calgary for a pre-negotiated deal (below MSRP anyway). PM me and I can send you his email.

[millhouse11]

I used carcostcanada.com when I bought my f150. Vegreville Ford was the best dealer to deal with for me. Non of the Calgary dealers could come close.

[Bring_Back_Shantz]

I'm certainly no expert on this, but make sure you're clear about what you're paying vs what the dealership is getting.

Make it clear that what you are negotiating is the all in price (including tax, transfers, undercoating, blah blah blah).

If you're financing it, make sure you stick to that price. Don't let them go through the whole "What do you want your payment to be" rigmarole, where they dick around with your total price, trade in, financing etc.

Get all of these things in stone first before you start talking about monthly payments.

What will you give me for my trade in?
What financing is available?
What is the price of this truck?

Those are the questions that determine your monthly payment, not the other way around.
And if you're not getting a straight answer from the guy you're dealing with, either ask to speak with someone else, or tell them you're going to go to another dealership where they'll treat you with respect and answer questions directly. You don't have to be a dick about this, but be clear and firm with your expectations.

[GoinAllTheWay]

/\/\/\

Spot on BBS, totally agree. Fitting the payments into your monthly budget is important but far more so is what the overall cost of the vehicle is. I work as an insurance broker and it blows my mind how often I ask "what was the purchase price of your new vehicle" and 90% of people aren't really sure. How can you not know what the purchase price is??

[Canehdianman]

When I'm asked what I want my monthly payments to be, I just say $0

[Stealth22]

Originally Posted by GoinAllTheWay

/\/\/\

Spot on BBS, totally agree. Fitting the payments into your monthly budget is important but far more so is what the overall cost of the vehicle is. I work as an insurance broker and it blows my mind how often I ask "what was the purchase price of your new vehicle" and 90% of people aren't really sure. How can you not know what the purchase price is??

Does that seriously happen?

My car is 4.5 years old, and I still remember the exact price I paid for it to the last dollar.

[Amethyst]

Originally Posted by Stealth22

Does that seriously happen?

My car is 4.5 years old, and I still remember the exact price I paid for it to the last dollar.

I bought my last car 3 years ago and I know approximately what I paid, but certainly don't remember the exact price. I did know at the time though!

[Dion]

Originally Posted by GoinAllTheWay

/\/\/\

Spot on BBS, totally agree. Fitting the payments into your monthly budget is important but far more so is what the overall cost of the vehicle is. I work as an insurance broker and it blows my mind how often I ask "what was the purchase price of your new vehicle" and 90% of people aren't really sure. How can you not know what the purchase price is??

That doesn't surprise me at all. From what i've heard over the years is people walk into a showroom and tell the salesperson the amount they can afford in lease payments per month/bi weekly and ask what they can get for that amount.

[DownhillGoat]

Originally Posted by Stealth22

Does that seriously happen?

Constantly.

If that surprises you ask random people what they have in their bank account. I'd be amazed if most can tell you within $500.

[Stealth22]

Originally Posted by Amethyst

I bought my last car 3 years ago and I know approximately what I paid, but certainly don't remember the exact price. I did know at the time though!

Well, mine was a pretty even amount lol, so it wasn't difficult.

[schooner]

The only thing I would add, if you are looking to finance, be sure to compare the total cost of borrowing between the banks and the dealer.

On new vehicles, most dealers can destroy the bank rates (0%, 1% financing). However, if you finance with a bank you are seen as a "cash" buyer to the dealer (ie you have the cash in hand). And it is very hard for a dealer to walk away from a cash ready buyer. So they are much more likely to haggle. They dont want to lose the sale.

They might offer you a much bigger discount that will overcome the higher rate paid on financing. It wont always be to your advantage but it is worth crunching the numbers.

Edit: Just for fun, I ran some numbers. Assuming $30,000 over 5 years.

1% - $769.80 in interest over the term
2% - $1551.60
3% - $2346.60
4% - $3153.60
5% - $3972.60

So lets say they vehicle is $30,000 and the dealer is offering 4% on financing, but they will knock it down $2000 as you have cash in hand and dont want to lose the sale, and you are borrowing at 5% from the bank, you come out ahead. (Not a perfect calculation but close)

[Fleury’sOTGoalCelebration]

Little piece of advice, after researching various dealers and coming up with your price. Pick your dealer and after negotiating they tell you that this is the absolute lowest they can go. Say ok thanks for your time and walk away. Walk towards your vehicle and sit there for 10 min. If they don't chase after you or call you back, chances are they actually gave you their lowest price they could. If your comfortable with their price, walk back in and make the deal

[Galakanokis]

It's there much haggling on price if you are getting zero percent? If I price something out for $35k online what should I expect the dealership to come in at?

[Canehdianman]

Use unhaggle website to find out dealer cost. Different dealers will be willing to take different %s over cost.

I got my f150 for about cost +3% a year ago, if that helps.

[oilyfan]

I think what are you missing is the fact that dealers make money on the financing too, in most cases they prefer a financed deal over a cash deal.

Originally Posted by schooner

The only thing I would add, if you are looking to finance, be sure to compare the total cost of borrowing between the banks and the dealer.

On new vehicles, most dealers can destroy the bank rates (0%, 1% financing). However, if you finance with a bank you are seen as a "cash" buyer to the dealer (ie you have the cash in hand). And it is very hard for a dealer to walk away from a cash ready buyer. So they are much more likely to haggle. They dont want to lose the sale.

They might offer you a much bigger discount that will overcome the higher rate paid on financing. It wont always be to your advantage but it is worth crunching the numbers.

Edit: Just for fun, I ran some numbers. Assuming $30,000 over 5 years.

1% - $769.80 in interest over the term
2% - $1551.60
3% - $2346.60
4% - $3153.60
5% - $3972.60

So lets say they vehicle is $30,000 and the dealer is offering 4% on financing, but they will knock it down $2000 as you have cash in hand and dont want to lose the sale, and you are borrowing at 5% from the bank, you come out ahead. (Not a perfect calculation but close)