Selling and Buying cars (1 Viewer)

[trever]

What is your approach when it comes to buying and selling your car? Why do you do it that way?

I buy new and drive it all the way to the bitter, rusty end, but a recent, massive repair bill has me doubting my philosophy.

 

[Anthony Martino]

I purchase a vehicle that's a few years old so someone else has eaten the majority of depreciation. I do my research so I know the relative value of the vehicle I want to purchase, and I always start by offering on the low end of what I would receive if I traded in that vehicle and negotiate up from there.

Likewise when I have a trade-in I start at the high end of what the dealer will probably sell it for and work down from there. To give you an example:

NEGOTIATING PRICE OF CAR

Blue Book Value: $15,000
Trade-In Value: $12,000
Dealer Asking: $14,700
My Starting Bid: $12,000

NEGOTIATING VALUE OF MY TRADE-IN:

Trade-In Value: $8,000
If Purchasing From Dealer: $11,000
Dealer Offer: $7,200
My First Counter: $10,500


Then when the dealer makes an adjustment (usually in $500 increments) I counter, but my adjustment is always less than theirs (i.e. I'll adjust mine by $300).

Just rough examples, but hope that helps! Also, once you've mentioned a number, SHUT UP, don't give another number, let them make their move before you mention any other number. The salesperson may act incredulous, they may get all huffy and puffy in an attempt to throw you off your game, it's all part of the dance. Just stay calm and focused, you don't have to explain the numbers you give, just give them and let them counter and so forth.

 

[gpc]

I buy either new or used depending on what is available. I bought my Malibu new because the used market was high at the time. I choose cars based on cost and gas mileage and will drive them until a repair is more than my trade in value.

 

[jbutler]

I used to be in the buy a 2 year old car and drive it into the ground camp. But my wife is not and rather than listen to her complain about repair bills and nag me to just sell and buy a new car I just do it her way and avoid the "discussions" with each repair bill.

As for the buying strategy, it depends on what I have going on in my life at the time I need/want to buy a new car. If I have time to shop around and negotiate the purchase for half a day I usually will. If I don't I'll usually just mail it in on the negotiation and pay a little more to avoid the time of dealing with it. My last car I had time to dick around so I researched and waited for a good price and spent basically a day to drive out, negotiate, and process the purchase. My stepdaughter just got a new car and we ended up just going through a Carmax type place where the price is low-ish but nonnegotiable. Prob could have gotten it very slightly cheaper if we had looked for a long time elsewhere and haggled for hours but I honestly don't have the time for it right now.

I guess the underlying theme for my strategy is to avoid whatever PITA can be avoided even if it means paying a little more. That probably applies in most situations for me even apart from buying cars though.

 

[slisk250]

I haven't bought a new car since my last Toyota Tacoma (2000). Times have changed but I did the research to get the stock number of the exact model I wanted. Then I started sending emails to every fleet manager in town for a price. They were all only a few hundred dollars apart and way less than what research showed was the price being paid by people negotiating on the lot. I rolled in and when straight to his office, dropped a driver's license, took it for a spin be myself. Came in and signed the papers. Ninety minutes out the door.

Considering my location and the fact I will do this again in July, I'll contact fleet managers again and even make a deposit so when I get off the plane, I'll go to the dealer the next day and my ride will be there. I'm curious if anyone here has used an AMEX to buy a car? In place of a cash sale, I want to put it all on the card which will give me about 35,000 Starwood points. That's enough for a week at a nice Westin Resort. Then I just pay the bill the next month as the cash is there now for this purchase. Are there any additional charges for using a card?

 

[pltrgyst]

I.... I'm curious if anyone here has used an AMEX to buy a car? In place of a cash sale, I want to put it all on the card which will give me about 35,000 Starwood points. That's enough for a week at a nice Westin Resort. Then I just pay the bill the next month as the cash is there now for this purchase. Are there any additional charges for using a card?

I have yet to find a dealer in VA or FL that will take a credit card for a car purchase. I hope others have had better luck...

 

[k9dr]

One time when I purchased a BMW the dealer allowed a max of $7000 to be paid on a credit card.

 

[David O]

I buy ford and get employee pricing. I wait for the the best rebates which is applied to the employee pricing. I purchased two new cars last year and have positive equity in both.

On credit cards most dealers will not take them because the percent they have to pay to the processors.

 

[BiGGyT]

I would assume that since they are losing 3% or so for credit card fees, they don't want to lose that much.

I really cannot see me buying a new car, the instant depreciation leads to car depression.

I am the worst at selling cars, 2 have been stolen, 2 have been sold for scrap value, and I donated 2, so when it was time to sell my latest one, took it to CarMax, left with $1200. I bought the same car from that same CarMax 10 years earlier for $20k. I do drive them to death, but I shovel money into them until the repairs are more than the value, then it is time to find a new one. I dropped probably $2500 this year on that car for 10 months of driving it after saying it was time for a new one (it was a 2000 model). I hope some kid gets a really good used car, as I had just fixed it again before selling it.

As far as buying, my brother's buddy works for a dealer and goes to auto auctions 2x a week, so I told him what I was looking for and when I got home from a Vegas trip in Sept, my new (used) car was sitting in my driveway. I liked this method for ease, but I feel like I missed the joy of saying "I'll take that one". But hey, I got a 2011 with only 30k, so not complaining too much.

Except for the pin stripe. But I can live with it for the next 10 years (hopefully).

BiGGyT

 

[Anthony Martino]

I don't get the love for CarMax. Hey folks, there's no hassle negotiations, just come in and we'll sell you a car for as much as possible and buy back yours for as little as possible, it couldn't be easier!

 

[derekdd23]

I do a search of anything on the current coast I am on for the best deals. Then negotiate if I can on the phone.

My last car I flew to NYC got an Uber an hour away on Long Island to pick up a car I negotiated over the phone. It was certified used so I felt comfortable that it would be ok. Ended up getting the car for about 4000 less than anywhere else I could find. I have a friend at Jet Blue so my ticket was $16 and the Uber driver gave me a coupon so that only cost $60. I was home the same day after a 5 hour drive.

The car before that I was living in Vegas and the dealerships were a bit too shady and wouldnt offer me the dealer incentive eventhought they said they were. I showed them the math and they said I was doing it wrong because their computer had a different number. I dont make math mistakes for such simple math, especially when I show the work.. So I called a dealership in scottsville AZ and they dealt over the phone. I got the the full $3000 incentive and got the car for $1500 less than the vegas dealership. They also gave me 0% interest. So I drove the 3 hours, took the wife out on a nice night on the town and stayed in a great hotel.

 

[Ben]

Holy crap, you guys have CCs with $30k limits? I didn't think that was even possible for an individual.

Buying a new car with a decent manufacturer rebate offered is usually a better deal than buying the same car (or anything comparable) slightly used - the rebate covers your instant depreciation (plus a little bit, in many cases.) If you MUST HAVE a certain vehicle and can't wait until some manufacturer incentives roll around on it, then yes, the 2-year-old car is the way to go.

Carmax is a decent deal - their prices are about 2% more than the cheapest, bottom-line price that you'll have to haggle with someone for hours to get (maybe slightly more in high COL areas like SoCal) and you really don't have to worry about it. I can't really speak to their "buy" prices as I've never tried to sell them anything with any value - I did once sell them an old junker with a LOT of issues for $500 and considered that a generous offer.

 

[brains613]

Except for the pin stripe. But I can live with it for the next 10 years (hopefully).

BiGGyT

Used this to remove one after it had started peeling. Worked great once I got the hang of it. Took about 40 minutes to do both sides of the car.

 

[jbutler]

I don't get the love for CarMax. Hey folks, there's no hassle negotiations, just come in and we'll sell you a car for as much as possible and buy back yours for as little as possible, it couldn't be easier!

Carmax is a decent deal - their prices are about 2% more than the cheapest, bottom-line price that you'll have to haggle with someone for hours to get (maybe slightly more in high COL areas like SoCal) and you really don't have to worry about it.

Exactly. Carmax and their ilk are for people who value their time and lack of stress more than money. For me, if the buying experience comes up at the right/wrong time in my life, that 2% is well worth getting in and out without any worries. If I bought new cars I would probably employ @slisk250's method above, but I have little to no interest in buying new.

Used this to remove one after it had started peeling. Worked great once I got the hang of it. Took about 40 minutes to do both sides of the car.

Used something similar with great results.

 

[acl1904]

About a month before I am ready to buy, I email 4-5 nearby dealerships and I ask for 3 prices - invoice, sticker, and out the door. I also tell them the exact vehicle I want, color, interior, options, etc. Some dealerships have "online only" pricing and are happy to price out a few vehicles, others do not. If I still don't feel comfortable with the given price, I then go into a dealership, but I never give them a number I want to pay, I just ask for "The best price possible" on that particular car. Regardless if the they consistently ask and hound for a number, never provide one. You'll be surprised how much they keep coming down and you already know what the invoice price is, and sticker prices are without having to look at the window sticker on the vehicle. Even if they show you invoice and you are getting the vehicle a few hundred over invoice or at invoice, there are still lots of manufacturer incentives for that dealership, to make it appealing for them.

 

[BiGGyT]

Used this to remove one after it had started peeling. Worked great once I got the hang of it. Took about 40 minutes to do both sides of the car.

Unfortunately, it was painted on at the lexus dealer, and my current dealer said trying to remove it would strip the paint, so enjoy that pinstripe.

 

[Anthony Martino]

I can't really speak to their "buy" prices as I've never tried to sell them anything with any value - I did once sell them an old junker with a LOT of issues for $500 and considered that a generous offer.

Exactly. Carmax and their ilk are for people who value their time and lack of stress more than money. For me, if the buying experience comes up at the right/wrong time in my life, that 2% is well worth getting in and out without any worries.

I brought my 2010 Camry to them back in February of this year and they offered me 9K. I took it to a local Toyota dealership and was offered $10,400. I probably could've haggled it up a bit more but chose to just take the deal.

I don't know what you guys are making per hour, but for me, saving over $1,000 for an hours worth of my time (or more when buying) is worth it for me.

 

[liftapint]

Anyone have any insight as to the best time of year to buy a car (when are the best incentives). Looking to buy a 2016 Toyota 4Runner or a Subaru Outback 3.6.

When should I be ready to go...I am terrible at making decisions, so I want to work up to it so I can be ready when it is "go" time.

 

[Anthony Martino]

Anyone have any insight as to the best time of year to buy a car (when are the best incentives). Looking to buy a 2016 Toyota 4Runner or a Subaru Outback 3.6.

When should I be ready to go...I am terrible at making decisions, so I want to work up to it so I can be ready when it is "go" time.

http://www.autotrader.com/car-tips/buying-a-new-car-whens-the-best-time-211343

 

[acl1904]

Anyone have any insight as to the best time of year to buy a car (when are the best incentives). Looking to buy a 2016 Toyota 4Runner or a Subaru Outback 3.6.

When should I be ready to go...I am terrible at making decisions, so I want to work up to it so I can be ready when it is "go" time.

The end of a month (late in the day) or next year when the 2017's come out. The end of the year is also a good time to get good deals on remaining models for that particular year given the car would be "last years" model.

 

[Hot Nuts]

I still do some research,but when I'm buying I call my buddy who is a manager at Honda and he hooks me up with a great deal at prices that would take me quite awhile to get down to. He makes a little and I don't get taken. Any other way is a PITA for me. I'm too detailed not to do a very thorough research for months. I'm a contract negotiator so I do know how to play the game.

 

[Mr. Cheese]

I've only been driving for 13 years but I've bought and sold over 33 cars in that time. Of those 33+ only 3 were purchased at a dealership and that was only because they were new models and I couldn't get them used and was too impatient to wait a year or two.

I typically buy them off Craigslist or car enthusiast forums do a few things to them be it upgrading the turbo, exhaust, or suspension and then I sell them on Craigslist or the forums and get something different. Why I do it that way is because you can get better deals (IMO) buying private party then you can at the dealership. I do all my own work and have done complete ground up restorations on cars (1969 Dart, 1971 Charger, 1970 Cuda, 1994 Stealth RT/Twin Turbo and a few others) so having to rebuild a motor or transmission isn't something that concerns me and I'm typically able to spot any potential issues with the vehicles I'm looking at so I don't have any surprises.

I know some people aren't comfortable selling their cars themselves, negotiating, and or they don't want the hassle but after you've bought and sold a few you get good at spotting the tire kickers vs the serious buyers and it isn't so bad. You can really maximize your dollars during a purchase and also maximize profits selling a vehicle if you sell them yourself YMMV.

TLR: Craigslist and automotive enthusiast forums for buying and selling cars = more for the money for buying and selling your cars.

 

[detroitdad]

I normally purchase pick up trucks. I just can't pay the "new" price for one. I have always bought a few years old. My wife always buys new.
We both keep our vehicles on average for about 10 years.

I bought my truck 5 years ago. It was 2 years old at the time. As stated. I do a ton of research. A couple of my friends are car guys. I'll ask their opinions. Then fuck it. Roll the die.

 

[gopherblue]

I just wait until my dad gets the itch for a new car, then I swoop in and buy his for what he would've gotten on trade in. He is OCD about cars and maintaining them, to the point that his last car, a 2007 VW Passat wagon with V6 and AWD, was basically in showroom new condition after 8 years and under 70K miles.

Of course, so far, my dataset for this method is limited to a dataset of 1, since I was carless for 20 years until this summer.

But, damn, it's a nice car. I bloody love it.

 

[pltrgyst]

For my wife's last two, I bought BMWs 3-series, (manual, sports suspension and seats, etc.) through our local dealer for European delivery.That gets you 7% off your dealer negotiated price. We've picked them up at the factory in Munich, put a couple thousand miles on touring Europe, and then drop them off at one of 19 cities for shipping home. BMW pays for plates and insurance while you're in Europe. Both cars have been mechanically bulletproof. We're about to buy a third. It would have been a Z4, but they're being discontinued on January 16th, and we can't get over there in time.

I'm convinced you get a better car with European delivery -- they pay extra attention on the production line, knowing you're picking it up there. And they know that you're going to be doing 100mph on the autobahn five minutes after you leave the factory, and their rep's on the line.

For our other street cars, I generally buy new, and usually use USAA's buying service to get a price break that's good enough for me. I did that for the Mini Roadster.

For something special that's not generally available, like the Miata R-type or Club for autocrossing and the track, I'll buy used, but that's rare. I usually want the latest technology, and I avoid turbos like the plague.

 

[Mr. Cheese]

and I avoid turbos like the plague.

That's going to be harder and harder to do as more manufactures are coming out with turbocharged models of their vehicles. Not that I mind, my business rebuilds and upgrades turbos .

 

[kirchhausen]

i work in the car business, my buying habits vary depending on what I'm in the market for.

My last few cars have been 1 or 2 model years old with about 15k miles on them, and they depreciated a bunch do it was worth buying pre-owned. I tend to drive cars into the ground, my current car is an 07 model I bought in 08 and has 190k miles on it. I like having no car payment.

If you are buying new, buying an old model year after the new model year has been released will generally get you the big factory incentives, especially if the body style has changed. As far of time of the month, you cant go wrong waiting to the rnd of the month. Most dealers have quotas, and some manufacturers give the dealers a bump back per car they sell if they hit their quotas.