Auto Loans

[Analacubana]

My husband are planning on purchasing a larger vehicle as our family will soon be expanding. We are saving for a good down payment, and will have a trade in. What can I do so that I get the max amount. Also, should we negotiate the price of the new car first, or the trade-in? We've been getting internet pricing. Thanks in advance for any advice or suggestions.

[vesper]

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Analacubana wrote:

My husband are planning on purchasing a larger vehicle as our family will soon be expanding. We are saving for a good down payment, and will have a trade in. What can I do so that I get the max amount. Also, should we negotiate the price of the new car first, or the trade-in? We've been getting internet pricing. Thanks in advance for any advice or suggestions.

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The first thing I would do is see how much Carmax (if you have one around) will give you. They use "Black Book" to get their price. I would compare that price and the Kelly Blue Book or NADA quote. If Carmax comes close to what you want, I would go with Carmax. They cut you a check same day....they also give you 7 days to decide if you want to sell it to them. You can use that price as your negotiation tool with a dealership. For instance Carmax quoted me the other day $2500 for my jeep. Now, I know it is worth $4000. So I went to the Toyota dealer and bluffed. I said that Ford quoted me $3500 and Honda said they would match it. Of course, they will try to figure a way to get that money back. Don't let them know you have a trade-in. Negotiate the price first and then say something like "Hmmmm...if I decide to trade-in my vehicle, what would you give me?". But again, when it comes to the finance manager they will try to get something out of you to make up for it. Just say no.

[cat1]

Vesper is totally right!  Do not let them know you're trading in until you've negotiated your best price on the one you're buying!  Don't even take the auto you're trading in to the dealer, drive another vehicle or borrow one. 

And you're under no obligation to purchase extras from the Finance Manager.  I do like the extended warranties, but you can price shop those too.  Someone will sell you one for barely over cost, to get the sale.  They earn huge trips and stuff on just selling them, so the profit margin doesn't matter as much.  Believe me, a former F & I manager; went to Bahamas, Marco Island, Mexico, cruised twice, all for selling Ford's extended warranties, in just 4 years!

Good luck!

[1111mel]

My only experience with Carmax was them offering me $16K for my car and REFUSING to give more.

I went to a dealership and made no mention of Carmax's offer....The dealership gave me $17.5K (after originally offering me $17K).....

Blue Book appraised my Trade In value at $20.5K and NADA put it at $16K.

Do the Car Price, the Interest Rate and then the Trade In separately.

FIRST negotiate the sales price, then Interest rate, then see what they offer for the Trade In...

If you follow the above order you should let them know you have a trade in because they will give into demand #1 and #2 thinking they can snow you on #3....but if the first two are resolved and you stand firm on #3 they will give in faster. It's almost beating them at their own game.

Message Edited by 1111mel on 06-06-2008 10:39 PM