Looking for some advice since this will be the first car purchase I have had to make on my own. Plan on paying cash and have an 05 Corolla as a trade in. If trade in will bring me close to what private party value is I'll be including it. Budget is 18-22k, including the trade in, which I am hoping for 5k.

What is the best way to approach this process overall?
How much do I let the salesman know upfront?
Do you typically have better deals if they know you're paying 100% cash?

Thanks!

[This message has been edited by Theo is a Touchdown (edited 6/30/2014 8:23a).]

I like this Slickdeals post as a reference.

http://slickdeals.net/f/1941590-the-slickdeals-approach-to-negotiating-the-price-of-a-new-car-updated-july-22-2010

You may want to post what you’re looking to buy here as texags has a ton of hookups.

If you strike out on those, then this is a pretty good read - http://www.edmunds.com/car-buying/first-time-new-car-buyer-guide.html

If you come here seeking advice and don't listen, please be sure to come back later and update us how it turned out for you!

Thanks. Good call on checking in about dealer connections. Would much appreciate any contacts that could help!

Considering compact SUVs from most other than Ford/GM/Luxury makes. Probably Toyota or Subaru. Will also look at Nissan, Mazda, Honda AND Hyundai.

[This message has been edited by Theo is a Touchdown (edited 6/30/2014 9:42a).]

As far as Toyota goes, we got ours through a texags connection. I can forward info if you would like.

Is there a Lexus connection on the board? I'm not in the market for one at the moment, but just curious.

if you're in houston, try and get with larry bennett at jeff haas mazda. good no BS kind of guy.

also, negotiate things separately. first, work on the new car you want but don't mention a trade in or that you're paying cash. once you get the price you're after on the new car, then negotiate the trade in. then when they're ready to talk financing, just open up your checkbook and close the deal.

Thanks sts for the feedback. I am in Houston so I will take down the guy you mentioned if we visit Mazda.

I have a lexus connection in austin. Daryl Do Carmo at Lexus of Austin, tell him Dan Moran sent you. The most professional person you will likely ever deal with in the car biz.

Just bought a car using a variation on the slickdeals link. I liked the deal I got. Worked best keeping the negotiations separate - new car, trade, financing.

Negotiate like you're financing. The dealer makes some money on the financing -- contrary to popular belief, there is no real cash discount. It takes literally hours for car purchases to fund.

If you really insist on paying cash, do your research and find out invoice pricing as best you can. Dealers don't really make much money in car sales anymore, especially with internet pricing, and you can pretty much start at invoice. Remember, there's dealer holdback, in some cases, dealer rebates, and other things the dealer gets for selling cars, so invoice is not necessarily what they pay. If I'm negotiating pure price, I'm going to start somewhere in the 87-89% of invoice range as an initial offer. I'm staying with my offer until they move toward it at least twice. If they say they can't do the deal, fine. MOST dealerships can do most deals if any other dealer can do it, but there are exceptions. On my recent purchase, I got the dealer I bought my truck from to do less than what the first dealer said they couldn't do.

Their strategy is to wear you down and make you want to take whatever just to get out of there. It can be a beating, and you need to prepare to be there all day. Walk out a time or two to get their attention. And don't be afraid to negotiate on their turf -- payments. Know what the invoice price strategy above is in payments and negotiate that way. Then you can either go to cash or finance and pay off in a few weeks.

Great advice. Thanks!

Don't talk trade in or financing at all until you have settled on a price for the JUST the new vehicle. You're really doing three separate deals when you have a vehicle to trade in.
1 - Price of new vehicle
2 - Trade in value
3 - Financing (not applicable when paying cash)

Start your inquiries with Internet sales people. Get several quotes from multiple dealerships and have them try to compete for your business. As stated, there are several ways dealers make money off of you so don't feel bad at all about playing hardball with sales people.

Be prepared to scoff at sales person and walk out the front door when they tell you they won't go any lower on a vehicle's price.

Once you have a price you're comfortable with, ask for a written/printed statement of what you'll be paying for. Don't let a dealer slip in additional fees like "Customer Care Package" or "Marketing Fees." Example - Planet Ford will try to rip you off by charging you $200 for a Customer Care Package which is basically a car wash and oil change. A sales person told me that was a required fee and I told him to go eff off.

Good advice above... You may also want to take your car to Texas Direct Auto or a Car Max for them to make you an offer on your trade in. Those offers are usually good for a few days with a mileage limitation.

I believe that if the trade in value is similar from the dealership and other offers that you should take the deal at the dealership. It is easier and I believe that it may save you tax on the value of your trade in... not sure if the last point is still valid...

CarMax will bone you and are ONLY good if you need to make a quick sale.

Thanks again for all the tips!

What is the easiest way to get the sales rep off your back when they start playing 21 questions about price, trade-in and financing? If I am solely focused on total price initially, do I just need to ignore him and keep insisting I am only interesting in the price? I guess the answer is he will not get off my back and I have to endure his antics?

[This message has been edited by Theo is a Touchdown (edited 7/3/2014 7:07a).]

1. Post trade here for current and former used car managers to give input on value
2. Contact one of our many referrals for the OEM you are considering to avoid all the BS you are referring to.
3. Join a credit union like UFCU or RBFCU if you are not Dave Ramsey and need a loan.
4. ?????
5. Profit

Trade in will be a 2005 Corolla S.
116k miles.
Crack on windshield, otherwise good shape.
In a trade in I think I would be happy with 5k but would have a hard time going much lower.

As someone else said, each part of the deal is negotiable and should be treated separately.

Know about what you want to spend on the car, know what you want the trade in to get you and go that way.

Even if you plan to pay cash, don't be afraid to finance if they are willing to give you additional off to finance...You can always pay it off shortly afterwards and you could save additional amounts.

I'll give you a bid on the corolla
aggiepaintrain@gmail.com

I'll give you a bid on the Corolla also. Email in profile. If you are looking for a pre-owned car I can help you also.

If you are looking for new, I have connections around town (Houston).

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CarMax will bone you and are ONLY good if you need to make a quick sale.

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I had a great experience with CarMax. Their quote for my 09 VW GTI was $3000 higher than the VW dealer was going to give me on trade.

Say you will finance with them if they can tint your windows, give you better floor mats, etc...

Then send a check to pay off the amount next month.

Thanks again for everyone's input

quote:

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Say you will finance with them if they can tint your windows, give you better floor mats, etc...

Then send a check to pay off the amount next month.

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That's actually a really bad thing to do to a dealer. Many times there are cash incentives if you finance with them and if you pay it off under 90 days the dealer and the sales rep take a financial hit.

If you had a decent enough experience, wait until the 4th payment to pay it off.