First Time Car Buyer > Advices?

[Eve23]

Hello Everyone,

I am new to the forum and in need of your expertise.

I've never purchased a new car from a dealer nor had any types of loan. I am trying to see if I would be able to get approved at the semi low rate.

A month ago, I pulled my credit report along with score through EQ. and this is what they gave me.

EQ: 750

TU: 747

EX: 748   (I am very aware that this is only an estimate by EQ.)

- Yesterday I pulled my EQ only and it is now 759 (After lowering my debts on my cc).

- I only have 2 revolving CC (Both my 2 cc combined gives me an average 4.x years in length on credit history).

- I pay the full statement balance every month that averages about 1.5K -2.5K highest was 7K which was also paid in full with my statement.

- I have zero negatives such as collections, late payments, or Bankrupcy.

- Inquiries - 2 in the past 2 years (Rent and Ulitility)

I never tried to get a loan so I don't know the process.

The car in question is 2013 Lexus IS 250 -

I went on Edmonds and other sites that discloses the invoice price on the vehicle. I was also informed never to pay the MSRP price (Already knew that). 

My questions are:

- How much lower can the dealer give you based on the invoice price? Just an average.

- How do you approach them to start the negotiating on invoice price?

- Does this car in questions have any special deals right now, such as rebate or cash back?

- If so, will the dealer mention it or not to keep the money for themself?   >.<

Thanks in advance!

[ds3]

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- How much lower can the dealer give you based on the invoice price? Just an average.

- How do you approach them to start the negotiating on invoice price?

- Does this car in questions have any special deals right now, such as rebate or cash back?

- If so, will the dealer mention it or not to keep the money for themself?   >.<

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1. Depends on the popularity of the car and what their profit margin is. Edmund's will show what the average person is paying in your area.

2. When you sit down to discuss the deal. When the salesman pull out the 4-Square sheet, tell him to put it away. Be firm on what you are willing to pay, and always negotiate the price of the car, not payments.

3. No clue.

4. The dealer will try every game imaginable to sell you the car and make as much as they can. Again, negotiate the price, then have them subtract any rebate off of the final agreed upon price.

If you know someone who has either worked for a dealership or has purchased multiple cars, take them with you. Never be afraid to get up and leave, even if it's just to get lunch and think about the deal without the salesman hammering you to buy it. Remember that YOU are in charge of the deal. They are trained to make it feel like they are doing you a favor by agreeing to sell you one of their cars, but in truth, they know that if you walk out the door they will never see you again.

Also, I would wait until the end of the month, when they either sell the car or make another payment on it to the manufacturer. They are typically more motivated during the last few days of the month. In case you are wondering how I know all of this stuff, I have purchased 12 new cars in my life, and my father worked for a BMW dealership...spent way too much of my time growing up watching people get screwed by salesmen.

Best of luck!

[BIFM]

This is great advice....I'd also suggest that you get financing approved from a credit union before walking into the dealership, that way when you start negotiating financing you can say "X bank is going to give me X rate....you're going to have to beat that."

Also, you'll be negotiating off the MSRP or sticker price...invoice price is what the dealer paid for the car to begin with.

[Eve23]

Thanks on your advice. 

Yes, I am going to apply outside for my loan before I go into the dealer. I'm so worried the outcome would not be to my liking or even succeed getting it approved. 

As I mentioned above, this is my first time. As a first timer, is it possible for them on approving the loan? I read some had got approved but their APR was quite high.

I've been doing lots of reading to educate myself with all the dealer tricks. I hope I can be under control while the dealer is doing so.

It be nice if there was a thread about their car shopping experience and on the price they actually paid from MSRP - Invoice - Final Price.

So it can help others like me that are new to car buying have some insight on how to make the correct approach and have an ideal quote. 

Maybe this site already have one but a new comer like me... haven't found it.

Thanks again for your advice, and if others have more to put on the table please do so.. Anything is a + to me.

[Dustink]

The dealer saying you are getting the car for invoice. Then showing you the invoice price is another dealer trick.

99% of the time a dealer is willing to sell a vehicle for under invoice and they will still make money. They get money and incentives from the manufacture for selling cars. The invoice price is not the true cost to the dealer. So, don't get hung up on it. Also, don't let it be the bottom of your negotiations.