MY CAR BUYING EXPERIENCE: TIPS AND LESSONS

Rule #1 - Do your research, the Internet is a powerful tool with a wealth of resources use it!

Lesson #1 - You will get a better quoted price for a new or used vehicle through the Internet.

(all numbers used are hypothetical but relative to the truth!)

So....I started off on Yahoo! Autos comparing and looking at cars. Through Yahoo! Auto I was able to contact dealers to request quotes for vehicles that I was interested in purchasing and discuss pricing with Internet managers of dealerships via email.

While in this process I contacted my bank as they offer auto financing and a couple of others sources to get pre-approved/financed before entering the dealer. My bank gave me a rate of 5%. Another source gave me a rate of 3.5%. I also pulled my own credit report and obtained my credit score.

I took my current vehicle to the dealership for some repairs and while waiting on my car to be washed I browsed the showroom and found a car that sparked my interest.

I went back online and compared the Honda Hybrid to the Toyota Prius and leaned more toward purchasing the Honda Hybrid (what can I say I am brand loyal).

Once I decided on the Honda Hybrid I obtained a quote last week from Dealer #1. The quote was decent about $2K below the MSRP nevertheless my plan was to negotiate as I had a set figure in mind of lets say $14000 where I wanted to start the negotiating. The email also said in bold that if I had a quote lower than there's they would beat the difference by 5%.

So yesterday, that small voice told me to request quotes from other dealers. Dealer #2 quoted less than Dealer #1. Dealer #3 came in with a quote less than Dealer 2 and Dealer 1. And then here came Dealer #4 with a quote less than Dealers 1-3 and it was only $400 more than my starting price point for negotiations!

Dealer #4 quoted a price of $14, 493 for a car with a sticker price of $18, 590. Not bad in my opinion. Not only that I checked Kelly Blue Book value and the Fair Market Value for the car was $16,550. All of the dealers quoted lower than fair market value yet 1 dealer came within the range that I was willing to pay.

MY DEALERSHIP EXPERIENCE

So I went to the dealership with my folder that included my credit score, price quotes, the email I received from the Internet manager, my calculator, and all necessary documentation.

Of course the Internet Manager that I scheduled an appointment with was not there and didn't tell me she wasn't going to be there!

Of course the color that I asked the Internet Manager specifically did they have in stock she said yes, however, once I arrived to the dealership I discovered it was not at their particular location but they could get it for me!

Sigh.....let the sales game begin

Before the test drive the salesman asked to make a copy of my license. I read on a site that you do not have to give them a copy of your license and while they have your license they are running your credit report. The aha moment for me is that my SS# isn't on my license so that would be a little difficult to pull off. I also found that you should make copies of your license yourself and take it with you.

Ok so the salesman asked where I work and how long I'd been working there (of course he is trying to figure out my income, no problem). We get back to the dealership he asked do I have the quote from the Internet manager for $15, 999. I pull out the email. He goes and speaks with someone and comes back now its time to assess my trade-in. He comes back and tells me they are willing to give me $1K for my trade in (now that # is real). I tell him no thanks I will keep my car. Hell I can sell parts of my car and get more than $1K total!!!!!!!

FINANCING

He asked will I be financing through the dealership. I tell him if they can give me a better rate than the 3.5% Capitol One Auto Financing offered me than I would consider it. His eyes almost jumped out of his head, he said 3.5% that is low for Capitol One! The salesman leaves comes back and says. Your car note will be $550/month. Um....question...you came and quoted me a car note yet you didn't tell me what percentage I'd been financed at nor the terms. Nor do you have any paperwork in your hand.

Keep in mind we have not negotiated the price of the car.

NOTE: JUST BECAUSE YOU RECEIVE AN INTERNET QUOTE THAT DOESN'T MEAN YOU DON'T NEGOTIATE WHEN YOU ARRIVE TO THE DEALER.

I then ask the sales man well the email says that you beat the competitor with 5% difference if they undercut your quote. He says yes, do you have something lower. I say yes and pull out my email with a quote of $14, 493 which is $1,506 lower than what I was quoted by them plus when you add in the 5% difference it comes to $1,581 lower than the $15, 999 which comes to a new quote of $14, 418.

So the sales man sees the quote of $14, 493 and says wow this is low, how was he able to quote you a price this low. I think this is a quote for the LX and not the EX. I say no the email specifically says it is an EX quote and I also have the email on my phone! Then the sales man appears a bit agitated and says well what is your offer for the car. I say in all fairness my offer is the difference + 5%.

So, that is what happened I purchased a car on the sticker with a MSRP of $18, 590 for $14,418 which was fine by me as my starting negotiating was going to be at $14,000. Could the price have went lower OF COURSE, did I get the best deal possible, PROBABLY NOT, did I get the best deal for me that fit my budget, my purchase price, and my car note amount I am willing to pay ABSOLUTELY!


Helpful Websites:

http://beatthecarsalesman.com/school/step5-10.html

http://www.carbuyingtips.com/car4.htm

There are a host of other websites out there and tools you can use to calculate car notes based on financing and purchases out there I encourage you to use them. My experience was much better than driving around to different dealers trying to find the best rate (what I did when I bought my 1st car over 10 years ago!). My experience was haggle free and it took about 2 hours. I do have to go back and actually pick up the car and go through with the financing however I have decided to stick with Capitol One and not go through the dealer as I am choosing to be obedient to the Spirit on that!

I pray that some of this has been helpful. Feel free to comment and email with any questions you may have epiphanyessentials@yahoo.com

Be a blessing and be blessed,
Epiphany Essentials