Auto Loans

[wmarat]

I am about to buy new car. The only negotiation technique I know is to say thank you for your time and walk away (it's actually worked once).

I am going to buy Toyota RAV4 and trade in my Toyota Corolla, the difference should not be more then 10k, approved for penfed autoloan (15k). Fico's in my sig.

How should I approach to this task.

Any input is highly appreciated.

[1111mel]

Assuming you are purchasing new:

Once you test drive the vehicle and decide it is the one you want to buy ask to see their invoice for that particular vehicle (make sure the VIN's match). Right now because of the supposed recession you should be able to purchase it for their invoice (they get kickbacks from the manufacturer to make up that "loss" they show you on paper)

You should have no problem qualifying for their incentive APR rates. If you need to go longer terms (over 48 months) you shouldn't go any higher than 5.9%

Stick to your guns that you know these things for FACT and they will give in.

Assuming it is used:

Don't go by Kelly Blue Book value use something like NADA to find out Wholesale values to give you an idea of what they would pay the person trading it in and start negotiations somewhere in the middle of KBB and Wholesale....

APR's used should be 1% to 2% higher.

I bought new in January and after 4.5 hours I got everything I wanted. Research is key when negotiating.

Good Luck!

[masdeocho]

When you're ready to buy, go on the last Monday of the month.  The sales people are eager to make their quotas for the month, and Monday is the slowest sales day for them.

[MidnightVoice]

---

1111mel wrote:

You should have no problem qualifying for their incentive APR rates. If you need to go longer terms (over 48 months) you shouldn't go any higher than 5.9%

---

Should be able to get 4.9% for 60 months at the moment. or [possibly lower (with Toyota, they pulled EQ on me)

[RevMen]

---

1111mel wrote:
Assuming you are purchasing new:

Once you test drive the vehicle and decide it is the one you want to buy ask to see their invoice for that particular vehicle (make sure the VIN's match). Right now because of the supposed recession you should be able to purchase it for their invoice (they get kickbacks from the manufacturer to make up that "loss" they show you on paper)

---

Not always, even during slow times. You're gonna have a much harder time getting invoice on a Toyota or a Honda than on a Chevy. Toyotas and Hondas always sell well. And they don't get kick backs on every single vehicle... only vehicles that cause them to reach certain milestones. You would probably do better offering $500 over invoice, which is sort of the defacto standard for new car sales since everyone knows invoice prices these days. Is it so unreasonable of them to want to make a profit?

I wouldn't recommend asking to see their invoice. That might really piss them off and it will also make you look belligerent and unreasonable. Besides, you can look at the invoice price online at edmunds.

http://www.edmunds.com/

I don't think Toyotas have a lot of possible options so it shouldn't be too hard to pick out a couple of vehicles that you might want and know what the dealer invoice is.

Also keep in mind that if you have a trade the stingier you get on the new vehicle price the stingier they're gonna get on the trade-in value. If you get a great deal on their car, like invoice price, why shouldn't they get a great deal on yours? They're gonna make money one way or another, that's what they're in business to do. Your best chance of getting a very good deal is by being reasonable.

[marty56]

I'm gonna take Luca Brasi with me on my next car purchase.

Seriously,  its best to take another person with you who can watch your back and get you to get up and leave when it looks like the deal will go south.

My sister is an lawyer and very good at bending the will of even the most stuborn car sales persons.  I going to buy my Subaru in Dallas and she will be my wingman. 

[ChuckG]

Never ever ever buy from a floor sales person. Always always always only deal directly with the fleet or internet sale managers.

Like the people before me said, do the research, find out what that car is going for (I like to use edmunds, it breaks the invoice down and gives average sales prices for people in your area), and make them an offer.

A reasonable price is 2-300 over invoice for a lower end car, and 5-800 over invoice for a higher end car, but of course they can be had for less than invoice if the car isn't selling well or if there are manufacturer rebats.

[1111mel]

A dealers Invoice on average is about $2k less than MSRP for a car in the $20-$30k price range (or at least my experience with both Mitsubishi and Nissan)

If you start your inquiry by using the Internet Sales Manager that is usually a good place to start because they cut the price faster than just any person you walk up to on the floor.....

Always ask to see the Invoice on the car you want, but already know what it should look like by doing research.  If a salesperson doesn't want to show you the Invoice then you don't want to deal with them.  It doesn't insult them to ask.

[wmarat]

Thanks guys. I am prepered to use carsdirect.com prices, they are lower than edmunds. I am taking with me my wife, she doesnot speek English so salesperson cannot speek to her directly.

[vesper]

When dealing with the internet sales manager, is it best to negotiate through email?