Buying New Car . . .

MarylandVW · 02-06-02, 11:26

Yes, I know that this is not a detailing thread, but I need some info fast. I have been looking at a 2002 Audi A4. I have never bought a "new" car before.

How negotiable are dealerships on price. When they say that is the bottom line, do they mean it? If they offer me a pathetic amount of money for my current car, should I take it, or try to sell it on my own?

If the price of the car payment is too high, how can I negotiate it? Should I look at a bunch of different dealerships, or should I stick to the ones that are local?

Any input that you have is always appreciated. Thanks.

Best regards.

Alan B · 02-06-02, 11:31

... before driving a 325i. I drove both before choosing the Bimmer. The 2002 model rocks!!!

BradE · 02-06-02, 11:37

Quote:

If they offer me a pathetic amount of money for my current car, should I take it, or try to sell it on my own?

I dont think if is the right word. They WILL try and screw you on the price of your trade. Dealers are only going to pay BlackBook wholesale. They could care less what shape it's in. I would try and sell it on your own.

As far as buying a new car, everything is negotiable. Don't let them try and push you into something, remember you are the one with the money so if they offer you a deal you don't like, or act like they don't want to be bothered with you.....walk out. I have left dealers just because I don't like their attiude. Some act like you should be thankful they are willing to sell you a car. Give me a break.

The main thing to do when buying a new car......do your homework. Find out the invoice price, dealer holdbacks etc. www.edmunds.com has lots of info that will be of help. The more you know the less likely are to get screwed by the dealer.

Cybercowboy · 02-06-02, 11:42

1) Find out exactly what the dealer invoice cost is for your car. You can go to any number of websites to calculate the invoice price based on vehicle make and options. Without this piece of information you are truly at the mercy of the dealerships.

Here is one link...

2) Consider ordering your vehicle exactly how you want it versus buying one off the lot. This will allow you to control what happens to the car (hopefully!) and plus you get it exactly like you wanted.

3) You need to get at least 3 quotes on your vehicle to get an idea of what kind of deals are available to you. It will be more convenient for you to use a local dealer, usually. But you don't have to get your quotes only from local dealers. If your local dealer is higher than somewhere else, see if they will match it and if they get pretty close and are cool about it, buy it from them. Otherwise, buy it from the place you feel is giving you the best deal.

4) Do not be afraid to insist on a certain price. You know (from step 1) pretty much exactly what the car is costing them. If they can order the car in and make a quick $1000, they will probably do it. Walk away and mean it if they won't deal. There are lots of places to buy cars at now days. Just tell them "This place has made me this deal. Will you match it?" It's that simple. It helps to have the other quote in hand and just show it to them. Why not?

5) If you find a car on their lot that is just what you want, make darn sure it has very low miles (like under 20) and has no finish problems. You know what to look for now in that department. Never buy a car with more than 20 miles on it as a new car - they need to knock some off because they have been driving it and will most likely not tell you why (or lie).

Dave N · 02-06-02, 11:44

I found the following website to be very helpful when I bought my truck:

http://www.carprice.com

Three of the most helpful sections were

1. "Car/Truck Prices" - this had invoice prices/codes that exactly matched the codes on the sticker (moreso than Edmunds).
2. "Target Pricing" - this tells you how much over invoice price you should expect to pay, and still get a good deal. You should always bargain for "over invoice" pricing.
3. "Car negotiation"

I ended up selling my old car myself, because the dealer was only offering be half of what I sold it for. I've heard that other people have had better results.

Cybercowboy · 02-06-02, 11:50

Leave it out of any and all negotiations. Don't even mention your old car. If they ask, tell them it's not part of the deal.

After you have decided to buy your new car, mention that you have decided to sell your old car and are curious what they would offer you. If you like what you hear (low probability) then sell it to them. Otherwise, sell it yourself. Then, if you want, put the money from that sale and chunk it down on your loan (assuming you have one) if the interest rate on your loan is higher than what you can make off the money staying in a money-market type account. If not, keep the money in the investment account. Simple.

Edit: If you decide to sell the car yourself, then find that it's taking too much time and/or energy - don't worry. You can always sell it to a used car dealership. You may take a bit of a hit but probably you will come out with about what the dealership offered you before.

Lowejackson · 02-06-02, 11:54

Watch out for an old but very effective way of getting you to agree to a lower trade-in price for your old car.

Firstly the sales man will give you a trade in price, then he will need to seek agreement from the sales manager who will not agree to the price agreed but will only accept a lower price (ranging from a few hundred $ to thousands $). The salesman will come back to you blaming the sales manager (thus keeping his friendly relationship with you) and tell you the new price for a guaranteed deal. Most of the time this works and your trade in price can drop quickly.

The method I have described is actually much more subtle, but you get the idea

Steven
Alfa 164

RH · 02-06-02, 11:59

Check to see how "busy" the dealership service departments are, as well as their policies. Many offer "free" loaners. Does the "free" loaner require an advance appointment? If so, call the service department and make up a problem like "I got a noisy heater fan under warranty, when can I come in?". If they tell you 5 weeks, well, you have to decide if you can wait for that kind of service. Call around, various dealerships have better response times and/or more bays. Just thought I'd give you more to think about. There's a lot more to satisfaction than just price.

DETAILKING · 02-06-02, 12:07

If you don't need the AWD, PLEASE test drive the 325i......

Anyhow, CyberCowboy is right on.

Do your homework, and start at the invoice price when negotiating, and work up from there. Tell him you can go somewhere else and get it for x% over invoice but you don't like the dealer because you were not treated fairly, and see if he can match it.....and that money talks. Also hit some audi web forums and see what the street price is by asking other members. When I bought my BMW, it was 5% over invoice but the first 2 dealers I went to didn't budge more than 500 off sticker. The varience depends on how many cars they sell, their margins and costs, and how many they have on the lot or on order. Some BMW dealerships were charging sticker because their whole ordered fleet was sold for the next 3 months on 3 series. They didn't care if you went somewhere else because they had nothing to sell! Go to a few dealers and don't be afraid to walk out even if they offer you a WEEKEND DEAL that can never be matched again,etc,etc,etc. Their mentality is that if you walk out, you will never come back.

Also consider service as I got a GREAT deal, but was treated like crap by my dealer during the whole ordering, waiting, and delivery process. Also their service sucks and if I go somewhere else I don't get a loaner!

Lastly, leave your trade out of it. Better off selling it yourself, but if you do trade it in, leave it out of the deal, and then make the deal pending on a fair price for your trade.

Good luck.....what are you looking at? 1.8T or 3.0?

Cybercowboy · 02-06-02, 12:09

Keep that in mind. Bad service will ruin your month!

I priced a nice Audi A4 4dr Sdn 3.0L Quattro AWD Man with $4553 in options (stuff I would get without going crazy!) and the invoice / MSRP came out to $34,296 / $37,830. So, I would shoot for $35,000 or lower.

Since I don't have a clue what the demand for these cars are, you may be able to go all the way down to 34,300 or you may find that the best you can find is $38,000. But in the current economy I would say the former is more likely than the latter.

Guess My Name · 02-06-02, 12:13

Trade ins will lower your TAX since the tax is based on sell price minus trade in. THis could be important.

Research the value of your trade in..try Kelley blue book I think it is kbb.com or something.

Notes are based on amount financed and interest rates and length of loan.

Shop shop shop do not rush buy into anything.

Intermezzo · 02-06-02, 12:17

I totally agree with Dave and Showroom....

Under NO circumstances should you be paying anything over the True Market Value listed at Edmunds.com or the Target Price listed at carprice.com. You might even be able to do better if there is a dealer holdback and you play your cards right.

All the other advice about what to do with your trade-in sound excellent.