Ok. Im going to share my advice for how to get an awesome deal on a car.
For the last three cars I have bought, I started with a lease. I have gotten the best deal buying this way. Heres what you do..
One thing most people I have met dont seem to know is that you can negotiate the actual price of a car for the lease terms just the same as buying the car. In most cases the lease price is based off MSRP. This is good for the dealer because when the car is sold they get the full amount of money they can get.
The other part of the lease is the money factor. Its kind of like the interest rate for the lease. You do NOT need to lease from the manufacturer. Some times, especially with new models, its cheaper to lease from a local bank. Good dealers will find you the best money factor if pushed to do so. (You will NEED a good credit score to go with a bank, especially now)
To get started negotiating this is what you do.
Get a quote from three dealers so you have a starting point. You need to know the lease payment, down payment, and invoice/MSRP price of the car, as well as the residual value. To add up your total cost of the car use this formula:
Downpayment + total monthly payments + any disposition fees + residual = total cost of car. Compare your total with the MSRP of the car for new models, and to the invoice price of old models. You will see that the total cost is usually a 1-4K above MSRP.
At this point you can see how much room you have to negotiate. The easiest place to start is with the selling price of the car. You will be able to get down to at least the invoice price of the car at a competitive dealership. Everything you take off this part of the deal comes off at the end.
The last step I do is tell the salesman I'm going to sleep on it and see how I feel about the purchase the next day. This is usually good for about $20/month on the payment (really). Over 36 months, that comes out to $720.
One very important thing you NEED to do is be polite. If you are being a knob or unrealistic you will be treated as such. This is pretty much what I do and its worked out for me VERY well.
The end goal is to have the total cost be equal or less than the MSRP of the car. I have been able to get an 06 altima sedan and now an 08 altima V6 coupe at a total cost equal to MSRP and an 08 toyota corolla S at a total cost equal to the invoice. In other words its like having an interest free loan on a car that would typically have a 6% interest rate.
Edmunds has great forums if anyone wants to know some of the technical factor of residuals and money factor. Good write up though, if you negotiate purchase price in a lease, you can do very well. Thats how I paid 279 per month with 17k miles allowed per year with 1k down for a crossfire four years ago. Just for comparison, my girlfriend paid zero down for a base corolla and pays 229 a month, she did this before we met. I have always done well on negotiating for cars, except for the ms3, because the 08 came out the week or so i bought it.
Are you on dope? Unless you get 0% financing, you're going to be paying interest on your lease, and since you're stuck with regular rates when it's time to refinance the residual, you're paying finance rates twice. If you want to rent your car, go ahead; lease it. Leasing allows you to get into a vehicle that would otherwise be out of your budget, but in the long run, you end up paying more. There's no magical formula that makes it cheaper. I'll take a sub 4% interest on a purchase anyday over a lease.
Be polite? I'll be polite if they're polite. If they want my business, they will deal. If not, the next dealer down the strip will. I'm the fricking customer; I'm not going to kiss anyones ass to get the vehicle I want. I negotiate on my terms, and I've always gotten a damned good deal. I've also walked out of a lot of places.
"This car is 100% sh*ts and giggles." ...and is missed on an hourly basis.
"Speed has never killed anyone. Suddenly becoming stationary... that's what gets you." Jeremy Clarkson
Last edited by toasteroven : 05-18-2008 at 01:09 PM.
Are you on dope? Unless you get 0% financing, you're going to be paying interest on your lease, and since you're stuck with regular rates when it's time to refinance the residual, you're paying finance rates twice. If you want to rent your car, go ahead; lease it. Leasing allows you to get into a vehicle that would otherwise be out of your budget, but in the long run, you end up paying more. There's no magical formula that makes it cheaper. I'll take a sub 4% interest on a purchase anyday over a lease.
Be polite? I'll be polite if they're polite. If they want my business, they will deal. If not, the next dealer down the strip will. I'm the fricking customer; I'm not going to kiss anyones ass to get the vehicle I want. I negotiate on my terms, and I've always gotten a damned good deal. I've also walked out of a lot of places.
You must have missed the whole point. The "formula" isnt used to get a deal, it is used to see how much extra you are paying for the car than if you were to just buy it with cash. If at the end of the lease all payments equal the invoice price of the car, then you did in effect have a 0% interest loan on the car for the time you have had it, as well as a good deal. On a brand new model car it is hard to expect to get down to invoice, that is why I suggest to at least get down to the MSRP before being satisfied. And ass-kissing and being polite are two different things.
It really comes down to personal preference whether to buy or lease, but the nice thing with this method is you know exactly what the car is going to cost you to use and you still have the option to keep it, or buy it out and sell it. Also, if you get a good enough deal on your lease and DO end up buying it on a loan at the end of the lease, you will still end up paying much less in interest that if you financed the whole amount to begin with assuming a 60month term.
You must have missed the whole point. The "formula" isnt used to get a deal, it is used to see how much extra you are paying for the car than if you were to just buy it with cash. If at the end of the lease all payments equal the invoice price of the car, then you did in effect have a 0% interest loan on the car for the time you have had it, as well as a good deal. On a brand new model car it is hard to expect to get down to invoice, that is why I suggest to at least get down to the MSRP before being satisfied. And ass-kissing and being polite are two different things.
It really comes down to personal preference whether to buy or lease, but the nice thing with this method is you know exactly what the car is going to cost you to use and you still have the option to keep it, or buy it out and sell it. Also, if you get a good enough deal on your lease and DO end up buying it on a loan at the end of the lease, you will still end up paying much less in interest that if you financed the whole amount to begin with assuming a 60month term.
I must be on dope then. I'm just used to being a hardass with dealers because so many of them are dumb, stupid, and expect sucker customers to take it up the ass and sign on the dotted, without fully understanding what they're getting into.
Last edited by toasteroven : 05-19-2008 at 12:42 AM.
I have no problem with smart people... it's the dumb people that think that they're soooo smart that piss me off. I sell cars... When I was a green pea if I felt that someone is going to be a hard customer I would do what they wanted and as they said... yes, I was and am very polite; I'm a sales professional. Do you know what that got me? Jack offs, strokes, and tire kickers,... kind of like the OP. "I'm going to sleep on it and see how I feel about the purchase the next day." ehh... just like anything else in life... if you do it long enough you learn a thing or two! it's a dirty game and like anything else you can't win them all. I'm almost POSITIVE that the OP or someone close to him got POUNDED on a car and now makes it a point not to let it happen again. GOOD FOR YOU! MOST people that buy cars are really looking for a fair price and a SALESPERSON! I pride myself in being that person! I may not always sell the most cars BUT I'm ALWAYS on top when it comes to gross! sorry for rambling on...
One of the most important things that the OP left out of this is the trade in. If you have one, DO NOT MENTION IT TO THE SALES PERSON UNTIL AFTER THE DEAL HAS BEEN WORKED OUT! kind of like a "oh, btw, I want to trade my car in also!"
A good salesperson will either sniff it out... or KICK YOU OUT! happy shopping! wow, sorry so long!
Best way to buy a car is to remember the dealer's job.. TO MAKE MONEY OFF OF YOU. Go in there knowing the price you're willing to pay for the car you want and what options you want the car to have. If you don't want to pay more, ignore the upsells... IE: Extended warranties,Roadside assistance,smoker's package.. etc. Look for the car you're looking for on the lot that already has the options you want, and negotiate on that car. Don't pick out a stripped version and then start the barganing. They will only jack up the price on you. Stick to your guns, how much you pay depends on it. If you don't like the deal, or feel uncomfortable .. LEAVE! Get the hell out of there. Find a dealer that will sell you what you want at the price you want. They make money no matter what, how much depends how much you're willing to pay. Don't feel bad for the dealer! I hate when i hear about people getting screwed over. Don't forget to READ THE DAMN CONTRACT BEFORE YOU SIGN ANYTHING. Look for warranty deductibles, extra fees etc.
You basically should be saying
I want this car, with these options, and this warranty at this price. Take it or leave it.
If they are talking "payments" with you.. you're on the wrong track. ALWAYS talk bottom line price of the car first, that's the cost of the AFTER all the add ons, warranties, etc.
having 5+yrs new/used car dealership experience....from the sales dept to service...i have to say ive read this whole thread in its entirety and cannot stop laughing. Alot of good points and advice but in the end if any of you have seen the movie "Suckers" thats fairly close to how it actually is. Best quote in the movie: "WE ARE Whores!...we fuck and we suck the shit out of them!"
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"I want this car, with these options, and this warranty at this price. Take it or leave it." with that tude... be prepared to get kicked out of a few places! depending on the mood that I'm in.. if it sounds reasonable (if I can make some money), I'd try and do it. problem is... if I come right back and say "ok, deal, you get what you want!" the customer thinks it was too easy!!! now, they want something else,.... or they still "want to think about it!" fuck that! I don't get paid to be nice or entertain anyone... I get paid to sell cars and make tons of money!
there's lots of good and funny info on here... but we are whores!
Definitely some more good advice in here that i forgot to add. To the car saleman that said screw the people that sleep on it.. sure some of them are tirekickers but some are also serious. I came back the next day and bought the car. If you would have blown me off you would have lost the sale.
Sleeping on it = checking out the other cars you are interested in before you make a purchase. lol
All I can say is this is pretty much the way I buy a car and each time it works out great for me. Obviously the dealer is going to make some money because that is why they are there. Im not exactly sure where they are making money on my last purchase though, unless the bank gives them a commission on on the lease?
I take a little different approach when actually buying instead of leasing. I focus more on the price of the car rather than the payment I want. Yes, I have bought WAY too many cars in the 9 years I have been driving.
this thread is funny. it really is funny how much information . disinformation is out there. people really don't have a clue.
oh yeah, surprising your dealer with a trade will NEVER get you a better deal. if you really want to be in the best position, sell your own car first. you will generally get $2000 - 4000 more than you would get for it on trade.
its more funny that people get themselves buried in vehicles by putting no money down and financing for 72 and 84 months time after time and get mad at ME for being $14,000 upside down.
people think a car dealer makes so much money on a car sale. ever stop and think how much the BANK makes? they structure loans so they collect the majority of your interest in the first 2 years so when you want to trade it in 3 years, you really have not paid much for the car yet. you have just paid the bank money to let you drive THEIR car.
this leads me to why leasing is better than buying, especially in today's car industry. most people like to drive a new car every 3 years. technology and safety is advancing at about the same rate. your 3 year old car will no longer be the newest and greatest thing.
if you don't want to lease, but want to beat the curve, finance no longer than 48 mos and put 20% down and do not finance your taxes. if you can't afford the payment without 60 or 72 months, then buy a cheaper car.
feel free to ask any questions as i am in car sales management and really would like to stop having to tell people they are $10,000 upside down...
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Last edited by SRTpusher : 05-20-2008 at 08:59 PM.
this thread is funny. it really is funny how much information . disinformation is out there. people really don't have a clue.
oh yeah, surprising your dealer with a trade will NEVER get you a better deal. if you really want to be in the best position, sell your own car first. you will generally get $2000 - 4000 more than you would get for it on trade.
its more funny that people get themselves buried in vehicles by putting no money down and financing for 72 and 84 months time after time and get mad at ME for being $14,000 upside down.
people think a car dealer makes so much money on a car sale. ever stop and think how much the BANK makes? they structure loans so they collect the majority of your interest in the first 2 years so when you want to trade it in 3 years, you really have not paid much for the car yet. you have just paid the bank money to let you drive THEIR car.
this leads me to why leasing is better than buying, especially in today's car industry. most people like to drive a new car every 3 years. technology and safety is advancing at about the same rate. your 3 year old car will no longer be the newest and greatest thing.
if you don't want to lease, but want to beat the curve, finance no longer than 48 mos and put 20% down and do not finance your taxes. if you can't afford the payment without 60 or 72 months, then buy a cheaper car.
feel free to ask any questions as i am in car sales management and really would like to stop having to tell people they are $10,000 upside down...
THANK YOU!....i was laughing too hard to try and educate the misinformed. Ever seen the movie suckers?
these guy also neglected to realize the dealer makes money off the service contracts, dealer added accessories, the infamous "Dealer Prep fee" and the Documentation fee
i could go on and on....i buy cash....that way i dont have to aggrivate myself with the hassles of being robbed by lenders. On the flip side Credit Unions are generally the best to finance with
this thread is funny. it really is funny how much information . disinformation is out there. people really don't have a clue.
oh yeah, surprising your dealer with a trade will NEVER get you a better deal. if you really want to be in the best position, sell your own car first. you will generally get $2000 - 4000 more than you would get for it on trade.
its more funny that people get themselves buried in vehicles by putting no money down and financing for 72 and 84 months time after time and get mad at ME for being $14,000 upside down.
people think a car dealer makes so much money on a car sale. ever stop and think how much the BANK makes? they structure loans so they collect the majority of your interest in the first 2 years so when you want to trade it in 3 years, you really have not paid much for the car yet. you have just paid the bank money to let you drive THEIR car.
this leads me to why leasing is better than buying, especially in today's car industry. most people like to drive a new car every 3 years. technology and safety is advancing at about the same rate. your 3 year old car will no longer be the newest and greatest thing.
if you don't want to lease, but want to beat the curve, finance no longer than 48 mos and put 20% down and do not finance your taxes. if you can't afford the payment without 60 or 72 months, then buy a cheaper car.
feel free to ask any questions as i am in car sales management and really would like to stop having to tell people they are $10,000 upside down...
Awesome info.. this is why I try to lease now. lol
Ideally I would just pay cash but i would have a lot harder time dropping $20K that I actually have, as stupid as that sounds.
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HOW TO: Get a GREAT deal on a car.
(really). Over 36 months, that comes out to $720. 
-65k miles, for $12k
I'm just used to being a hardass with dealers because so many of them are dumb, stupid, and expect sucker customers to take it up the ass and sign on the dotted, without fully understanding what they're getting into.
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