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Teach me how to barter

Discussion in 'Off-Topic' started by zodiac66, Apr 18, 2005.

  1. zodiac66

    zodiac66 IncGamers Member

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    Teach me how to barter

    I know I asked this once before, but I need to learn to barter for a new car.

    My credit score is over 750. I am NEVER late on my payments. I have around $700.00 in liquid cash at the end of the month if I don't splurge. I have worked really hard over the past year to pay off some debts, mainly credit cards and medical bills.

    I want to make sure I get a decent interest rate on an auto loan. I also want to know if there are loans available that do not have a penalty if you pay off early. I want to have my car paid off in less than 2 years.

    What do dealer prep charges consist of? Almost $600.00 seems to be a bit steep for that. If the car I am going to buy has lets say, more that 500 miles on it, should I ask for a discount? I would consider that used.

    I don't trust the car salesmen to give me an honest answer. The other new cars I bought, I just went in, put down my downpayment and drove away. I don't want to do this now.

    Any help would be appreciated!
     
  2. Steve_Kow

    Steve_Kow Banned

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    Best bartering technique is the walkout. You've got to be prepared to get up and leave--most car salesmen work on commision, they don't want to lose your sale.

    I used the walkout the other day in a Chinese restaurant, I showed up around 4:00 and asked for something off the lunch menu (which they stop serving at 3:00), they said "No" and offered me something off the dinner menu (more expensive and a larger serving size--more than I needed), I told them "no thankyou" and started to walk out. Before I got to the door they agreed to make me what I asked for.
     
  3. MixedVariety

    MixedVariety Banned

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    I have no idea how to dicker for a new car. My understanding is that these days, you can't get very far doing that. Last time I tried, I only got about 500 bucks off and that wasn't worth it.

    I have learned my lesson over the years. No more brand-new cars for me. I still go to a dealer, but the value you will get for a used car that's only one or two years old far exceeds that of a new one. I bought a two-year old Ford Focus for about a third of the price of a brand-new one, with only 30,000 miles on it; all the kinks were worked out of it and the dealer gave it a warranty equivalent to that of a new one. Also, when I inspected the car, and told them the tires were worn, windshield wipers needed replacing, a few scratches needed to be buffed out and the clutch adjusted, they replaced/repaired the stuff at no extra charge. I basically drove out of there with a used car in as-new condition.

    Also, most banks and other lending institutions won't charge a penalty on early payments, though you need to check of course. Oh...and one thing a dealer sometimes will dicker on is the interest rate of loans they're offering. If you can bring in quotes from other lending places, they will deal sometimes.
     
  4. zodiac66

    zodiac66 IncGamers Member

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    HMM..I am looking for a Toyota and they keep their price. The lot does have a 5 speed, 2002 Corolla for a tad under 12 grand.

    That is one of my problems buying used. I refuse to drive an automatic.

    What kind of interest rate did you get?
     
  5. MixedVariety

    MixedVariety Banned

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    I honestly don't remember, it was a couple of years ago. Perhaps later when I'm home I will check. I'm thinking it was 5.25%, maybe, for 3 years.
     
  6. {KOW}Spazed

    {KOW}Spazed Banned

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    If you know someone that works at Ford/Chevy/etc you can get a huge discount if they let you use their discount number. They only get to use it every so often, so if its an acquaintance it probably won't work, but if its family or something.


    Anywho, from what I've heard haggling with dealers doesn't really go too far these days.
     
  7. Pherdnut

    Pherdnut IncGamers Member

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    If it's not a used car, this one's easy. Call every dealership within a hundred miles and write down their asking price. Take the lowest one and ask around again. Keep going until they everybody starts to say, "well you better take that offer because there is no way I would give you that." If you have to drive a hundred miles, it's worth a couple grand or more.

    Edit: You can actually haggle long-distance phone plans too. Seriously. Try it. Back when everyone was at 10 cents a minute my girlfriend made a few calls and got 5 cents.
     
  8. Tao_of_Xero

    Tao_of_Xero IncGamers Member

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    If we're talking about a new car, most dealerships (smarts ones anyway) sell for just a very little over the sticker price and selling for any less isn't really possible. Some fee's that cannot be avoided are things most dealerships are legally bound (in my state) to provide and see to such as tags,title,license and our old friend sales tax. Other fees such as dealer prep can and often should be removed when negotiating. Try asking your salesperson what "dealer prep" is exactly. Most dealerships, 'dealer prep' means the guy that brought it there on the car hauler had to stop long enough to take the car off the trailer, then the dealership stuck its logo on the body and tossed in some floormats somewhere, maybe cleaned the windows and removed the protective coverings,etc.

    If it's a used car then it's a different ballgame. Depending on what the dealer paid for it, what NADA (or consumer reports if you're so inclined) say a model of that year and make are worth, and most importantly how long it's beem sitting on the lot. After that's been determined, nitpick! find every little insignificant detail that's wrong with the car and complain about it until you get the salesperson to meet you somewhere around what you have to spend, ask to have it inspected by your own mechanic,ask about the cars history, does it come with a maintenance record,etc. If none of the above tips work do as Steve_kow suggested and walk away. One last note, shopping online might be helpful too as their are a number of online used car wholesale type outfits that will probably be able to get you what you're looking for. Good luck!
     
  9. Lord_Shinnok

    Lord_Shinnok IncGamers Member

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    offer him a gord for his fake beard, might need some haggling to get the price right.


    (i hope someone else gets that)
     
  10. Raistlin Majere

    Raistlin Majere IncGamers Member

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    Used car? one word. CARFAX.
     
  11. Spawn of God

    Spawn of God IncGamers Member

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    the best way to barter for a car is to act like u dont really want the car that u have ur eyes on, that way the dealer will lower the price and all the jazz to try to get u to buy it

    makes sense to me, dunno wat yall think
     
  12. myleftfoot

    myleftfoot IncGamers Member

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    WON'T 'AGGLE?!?!?!?!?
     
  13. Stevinator

    Stevinator IncGamers Member

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    If you're looking loans, and oyu have such great credit, you might consider getting a second mortgage or a HELOC. ask your local banker about the details, but the basics are you can get a rate at prime, or possibly below, and the interest is tax deductible. most likely, if you bank is like the one I at, you could prolly get any annual fees waived for having a high yield checking account (they're usually better than the savings accouns anyway, and you might earn more interst anyway), or if you throw a fuss. Make sure they don't charge you any closing costs, and that you have the option to lock the rate in after the intial teaser rate expires. These loans rarely have prepay penalties, and have some slop room for negotiating.

    failing that, ask about discounts on the auto loan if the payment is deducted straight from your account. usually they'll want to get you into some kind of account with their bank for that, and they'll also want to attach some kind of overdraft protection to the account to ensure you have no payment fees. go ahead and take it. they're giving you all that stuff for free because they want your business. Banks will be really nice to you if they get three or four types of products out of you all at once. Float the idea of possibly bringing in your investment income and you could prolly get them to wash your new car.

    Also, when you NADA your car, remember most banks can go over the loan value, mine will go to 110% of the RETAIL value (assuming high credit like yours), the highest of the three. So you really won't need a down payment, you can even snaggle yourself some cash back, if you so desire.

    as for the car itself, generally used cars are better deals, strictly from a depreciation standpoint. you can get the same competitive rates on car loans up to about two or three years old (as you can with new), and if you go with the HELOC/second mortgage/equity loan, you get the same rate no matter what. these cars are cheaper and abundant, because leases often end after 2-3 years, so dealers are willing to get rid of them. Also, used cars have a lot more room to bargain over, while new cars are super competitively priced already. Bring someone who knows more than you about cars to look them over.

    if you go to a high pressure sales type place, don't fall into their little power traps. have more people in the room than them. don't sit down when you're talking price, your chair is likely to be lower and facing the sun. Don't be afraid to play good cop bad cop...have one person nit-pick everything and the other person extoll the virtues of the car. it'll throw mr. seedy salesman off enough to talk fairly. don't pull the trigger on the first meeting. find a few cars you really like and then sleep on it. Don't try to out-sleaze the sleazy ones....just leave if you feel pressured--they do it for a living, they're prolly pretty good at it. Try to find a low pressure place that took some doof on a trade in and wants to clear the "other makes" off their lot.

    and try to go at the end of the month, or better the end of the quarter. the sales guys might be more willing to deal when that check is coming next week.

    if you go by the blue book, remember to knock about 20% off if the car is 2-4 years old. these prices are high in today's flooded market. if you look around, you may find you can do even better.
     
  14. dantose

    dantose IncGamers Member

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    Gaaahh! what happened to my post! Damn you squid!
     
  15. zodiac66

    zodiac66 IncGamers Member

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    I bought the Scion XB...please, no laughing. I love it.

    I ended up getting a years worth of free oil changes and the extended warranty at a lower interest rate if I were to not take the warranty. It must be some dealer special. My payments are the same, but I am paying 4.5 interest instead of 5.5 and have a 6 year warranty.

    I love my car. Its very roomy. My mom is on oxygen and sometimes needs to use a wheelchair if she has to walk very far. This car will fit all her oxygen stuff and wheelchair perfectly. Samara's car seat doesn't move an inch in the back seat.
     
  16. Ranger14

    Ranger14 IncGamers Member

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    Well, congratulations! If you like the vehicle, that's what counts.

    I am a little leery of buying a new manufacture brand until it has a more proven track record, especially with only a three year warranty and charging you extra for more. Yes it gets some laughs, as it is not the most aesthetically pleasing vehicle on the road, but if it meets your needs, you got good financing and a good overall deal...all the power to you!
     
  17. dantose

    dantose IncGamers Member

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    How much did you pay though? What is it going to cost you in the end?
     
  18. zodiac66

    zodiac66 IncGamers Member

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    My payments are $257 a month (I went with 72 months due to my seasonal lay-off) with no pre-payment penalty. I plan on paying it off in 2 years. I can easily double or triple the payments in the summertime, but I wanted the option to pay the lower amount Jan-March. With tax, title and interest, $18,504. That of course will be lower when I pay it off quicker.
     
  19. maladroit2000

    maladroit2000 Banned

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    The best way to barter for expensive items like cars and for loans is to shop around, on the internet and other dealers (maybe even from abroad), to find the best offer. Get a quote from the best one you can find and then ask your local dealer if he can beat it. If they can beat it they will give you a better quote as they can see you will not be bull****ted and are prepared to shop elsewhere. There is no harm in asking - you can saves thousands.

    Also ask if they can include extras for free or at cost price. They may well be willing to throw in that nice expensive metallic paint or whatever at cost pice to ensure the sale.
     
  20. dantose

    dantose IncGamers Member

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    That seems awfully high for a base price of $14,530 (invoice $13,803). what options did you get with it? Loaded I hope.
     

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