check
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I LOVE shopping for a vehicle, especially an F150 pickup truck! Dealers all compete in the papers, and you just play one off against the other. Works every time. 
I hate vehicle shopping!
- Thread starter Jstpssng
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tractchores
Veteran Member
Interesting listen about working at a car dealer. It's well done by "this american life" and gives you some insight into the 'monthly' dynamic in the business too: 513: 129 Cars
Dealers actually make very little money on a new car sale. Most of the dealership's money is from parts and service. On a new car they want to try to get as much as possible, hence all the stuff in the finance office (loan, warranties, etc). All that stuff is big profit. Often you can get a slightly better price if you finance VS cash, so one thing you can do is actually take the loan on the vehicle and then just pay it off immediately. Kind of a PIA, but doable at minimal cost to yourself if the difference in the two prices is enough.
Dealers actually make very little money on a new car sale. Most of the dealership's money is from parts and service. On a new car they want to try to get as much as possible, hence all the stuff in the finance office (loan, warranties, etc). All that stuff is big profit. Often you can get a slightly better price if you finance VS cash, so one thing you can do is actually take the loan on the vehicle and then just pay it off immediately. Kind of a PIA, but doable at minimal cost to yourself if the difference in the two prices is enough.
bspeedy
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I strongly urge those of you who are cash buyers to to purchase a slightly used car through a private owner. Much better deals to be had that way in all price ranges. Car dealerships are all about giving you the run around and maximizing their profit. When buying from a private party, it is the buyer who holds the power. The buyer has the $$$$$$. Creates a much better business relationship. Plus, what better way to check out a used car than with information from the guy who owns it?
To the OP - forget the stealership - go to a private party and make a fair deal for both of you without the hassle.
To the OP - forget the stealership - go to a private party and make a fair deal for both of you without the hassle.
OKnewguy
Platinum Member
I generally agree with this, but there are certain instances where it does not make sense. In 2010, my wife and I where shopping for Accords. We could buy 2-3 year old vehicles with about 20 to 30 thousand miles for only $2000-$3000 less. We have always bought used, but this was not worth it. We bought a new accord and did not have to put up door dings, and questionable maintenance. Plus alot of the used cars needed tires, so you figure $600 to $700 for a set and the difference was even less.
To me this only applies to a select few models thou, most loss value so fast it is much better to buy used.
Accords, Civics, some toyotas, and maybe the Jeep Wranglers. I swear the Wranglers hold their value better then any domestic!
Food for thought, Dave
mark02tj
Platinum Member
I bought an '02 Wrangler in 2007 for $12,500. I think the sticker on it new was somewhere around $17k. About a month after I bought the Jeep I saw an '02 Range Rover on a dealer's lot (in FL) for $12,500. I figure that it stickered new for somewhere around $35k. About a year ago I saw an '02 Range Rover on a dealer lot (in OH) for $3200. I could still get about $7,000+ for my Wrangler.
Anyway, back to topic... It's very true that the dealerships make a ton of money from their "F&I Department" (Finance and Insurance). I agree with someone else's advice to act like you're going to finance the car and then just pay off the loan. But, beware of the terms. When SWMBO and I bought her used Durango 4 years ago, the first loan they "offered" her certainly wasn't the best - FOR US - that they could do. I was looking over the paperwork and asked about a pre-payment penalty. The F&I gal got this "oh, crap!" look on her face and said there was a prepayment penalty. It also turns out that this loan had the interest calculated based on "the rule of 78's" which essentially pre-loads all of the interest expense in the first part of the loan. HORRIBLE for the consumer!! I was about to walk and they offered to finance through a credit union - simple interest 3 points lower than the first loan and no prepayment penalty. I agree- I HATE dealerships.
There is one exception to this - we have a Subaru dealership in our area where my parents have bought since 1978. The original owner's son still runs the dealership. They are the "anti-dealership dealership". NO pressure whatsoever, helpful on financing, GREAT service department, etc. Their Google ratings are 4.7 stars out of 5 stars. I think that's pretty unheard of for a car dealership.
check
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Doesn't work for me. A new F150 pickup is a steal compared to a used one, and if you take care of it the contractors will be lining up at the door when it comes time to sell. I still can't believe you can get a nicely equipped new F150 Supercrew XLT with the XTR option for around $30K in Toronto (roughly $23k U.S.), so why risk buying used when used pickup trucks often come with huge abuse?
buckeyefarmer
Epic Contributor
My last honda was internet pricing via email. When I went to the dealer it was a done deal.
Redneck in training
Elite Member
My wife is tough negotiator. We used to own a Subaru Outback with high miles and falling apart in a range of 100 bucks for some part or repair every month. Fortunately to have good reason to get rid of it my wife (unintentionally) rear ended a pickup truck demolishing the front. I hammered it a little bit, put the headlamps back in etc. to make it usable. Few weeks later she saw an add in the paper for a car dealer offering 2000 USD for any car that would make it to the dealership. She looked at the dealer web site and found a used car that would work for her. She drove in and parked the Sub at the edge of the lot. Walked in, found the car she wanted on the lot, checked the radio sound and how cold was the AC (he he) negotiated the price and showed the Sub to the sales lady to get the discount. Then she pulled a credit card to pay for it. They didn't want to do it saying nobody uses a credit card to buy a car. She said you expect me to have 9000 in my purse. Do you want to sell the car or not? Well she got a dealer show car with all the bells and whistles with less than 10K miles, about a year old for about half price. She bought Kia Spectra 5 Automatic, cruise control, alloy wheels, ABS and Moon roof as add on options. The Sub was just about worthless at that point.
We still have the car. It has over 120K miles. Has only one problem: The valve on carbon canister is sticking triggering "check engine" light once a while.
We still have the car. It has over 120K miles. Has only one problem: The valve on carbon canister is sticking triggering "check engine" light once a while.
