I own a car dealership... ask me anything.

[Anonymous]

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@Anonymous wrote:

Happy Holidays.  What is my best course of action for negoitating a new car price. Haven't done this in years.  I am going in with my own financing and I have a trade in. I understand that I should not discuss trade in until after the price of the car is set, but how do I do this online if we are hunting around for the best price? I find the whole process very intimidating so want to enter this very prepared.

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First step in the process of negotiating  price is to pick a model of vehicle that you want to purchase.  Have you done this?

[Anonymous]

We have it narrowed down to a few. A good candidate is the Toyota Highlander Lmt. 

[Anonymous]

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@Anonymous wrote:

We have it narrowed down to a few. A good candidate is the Toyota Highlander Lmt. 

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Ok.  I'd start by looking at area Toyota dealerships websites. Almost all of them have their inventories on their sites so you can go thru and pick ones that match the options that you would like.  Typically each listing either has an Internet price already  listed or a link for them to contact you. Request that they only contact you via email and after the initial response tell the person that you are shopping for this vehicle and comparing prices between dealerships.  Tell them that they have one opportunity to give you their lowest price which needs to include all applicable taxes and fees and to list any rebates that they include in the pricing.  The rebate part is important because often there are multiple rebates for vehicles of which some you might not be eligible to receive.  For example there might be a rebate for college graduate or vehicle loyalty.  A lot of times dealers will include these rebates in their final prices only for you to find out you can't get them.  Make sure that they understand that if you were to go to the dealership and find out that there are additional costs added like processing fees or dealer installed options that were not disclosed upfront that you will leave immediately.

i would do this for 3 dealerships and be clear to each of them that you are comparing prices between the three.

Hope this helps.

[Anonymous]

Thank you so much I really appreciate all of that helpful information. At what point should I introduce the fact that I have a trade in. We own it outright, worth about 6500.00.  Is this after you agreed on a price and show up at the dealership?

[CreditWarrior21]

I hope I can jump in and get an answer late in the game here!

Current score: EQ 625 TU 635 AND GROWING Watching like a hawk these days.

Take home pay AFTER taxes monthly is $6500

Currently own a 2011 Nissan Juke looking to LEASE if possible. (I travel a ton for work so if I can get an attractive lease offer that works nicely for me as I won't go over mileage restrictions)

Question: With my score will I qualify for a lease? What is an auto enhanced score? Do all dealers use that?

I am open to financing as well- but would prefer to lease is possible.

What are your thoughts?

Thanks!

[Horrace36]

First, thank you for taking time to respond to all the questions.

I filed chapter 13 in April of 2013. I was granted a motion for early discharge that will become effective at some time in the first quarter of 2015. Ususal stuff - out of work then underemployed.

Been in my current position for two years making mid-six figures. Mortgage and car payments as well as two credit cards made it through the BK unscathed. FICO's are 714, 708 & 687. Current debt to income is 24% including all debt payments, taxes and home insurance. Mortgage alone is 14%. Any chance of obtaining dealership financing for a vehicle at the $35,000 level without getting crushed with high interest? Debt ratio would bump a point or two. 

Thank you

[Anonymous]

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@Anonymous wrote:

Thank you so much I really appreciate all of that helpful information. At what point should I introduce the fact that I have a trade in. We own it outright, worth about 6500.00.  Is this after you agreed on a price and show up at the dealership?

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Yup after they show you something in writing with the price details spelled out then spell them about the trade.  If you have a CarMax in your area Id suggest taking it to them and getting an offer.  Keep in mind thaat dealerships very rarely give you what you think your trade in is worth.  In all my time in the auto business I never saw once person get excited and say ..'that's more than I thought it was worth'. Almost always the opposite.  People always tend to overvalue their trade ins

[Anonymous]

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@Istherehope wrote:

I hope I can jump in and get an answer late in the game here!

Current score: EQ 625 TU 635 AND GROWING Watching like a hawk these days.

Take home pay AFTER taxes monthly is $6500

Currently own a 2011 Nissan Juke looking to LEASE if possible. (I travel a ton for work so if I can get an attractive lease offer that works nicely for me as I won't go over mileage restrictions)

Question: With my score will I qualify for a lease? What is an auto enhanced score? Do all dealers use that?

I am open to financing as well- but would prefer to lease is possible.

What are your thoughts?

Thanks!

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Without knowing more about your credit file I think you'll be able to get a lease but it might not be at the most favorable rate.A lot depends on information that you didn't include in your post.  

http://ficoforums.myfico.com/t5/Auto-Loans/Do-I-qualify-for-an-auto-loan-Info-that-is-needed/td-p/22...

An auto enhanced score is what's used by auto finance companies and adjusts your normal credit scores based on past auto vehicle loans and is pretty much used throughout the industry.  Just as mortgage companies have their own internal scores to determine your loans so does the auto finance companies

[Anonymous]

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@Horrace36 wrote:

First, thank you for taking time to respond to all the questions.

I filed chapter 13 in April of 2013. I was granted a motion for early discharge that will become effective at some time in the first quarter of 2015. Ususal stuff - out of work then underemployed.

Been in my current position for two years making mid-six figures. Mortgage and car payments as well as two credit cards made it through the BK unscathed. FICO's are 714, 708 & 687. Current debt to income is 24% including all debt payments, taxes and home insurance. Mortgage alone is 14%. Any chance of obtaining dealership financing for a vehicle at the $35,000 level without getting crushed with high interest? Debt ratio would bump a point or two. 

Thank you

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At first look I don't think you will have any problem getting dealership financing but it's helpful if you provide more information.  Here's a sticky post that shows what info is helpful

http://ficoforums.myfico.com/t5/Auto-Loans/Do-I-qualify-for-an-auto-loan-Info-that-is-needed/td-p/22...

[CreditWarrior21]

Thanks for the answer! I appreciate the help and have enjoyed reading the responses to everyones inquiries.

I've owned 2 Nissans, both purchased brand new and haven't been late on a car payment EVER. My lower credit score is due to missed CC payments and stupid mistakes. Most recent late or negative addition was over a year ago. I'm enjoying watching my score go up! ha!

One more question if you don't mind. In a previous response you mentioned Tier 1, and Tier 2 pricing. Am I still in subprime category if I finance instead of lease? What kind of interest rate do you think I should expect with a 625-635 score?

Thanks again!