Dominique's Guide to Purchasing an Automobile...Volume Twenty.
Okay, I've actually been thinking about doing this for a while now, between my parents being ridiculous and it seems like lots of people are going to either be buying a car soon or in the future or whatever.
Presenting...The Dominique Brooks Guide to Car Buying and Pancake Making*
The individual parts will be placed behind cuts.
What do I mean by need versus want? Well it's very simple.
Most people do not actually need a car with heated seats, Xenon headlights, power seats, GPS, rear-entertainment systems, et cetera. So when you start the process of looking for a car, think about your needs.
Do you drive a lot, or have a long commute? Fuel efficiency is a good idea. A car that doesn't take only premium gas is an even better idea. So if your commute is forty miles one way and unless you have a lot of disposable income an Acura or an Infiniti is probably not the car for you.
New or used? Well...it depends. If you're keeping the car for as long as it lasts, then new is a pretty good option. You'll get the most for your money. If you're the type who wants a new car every few years or so, then used would be better. The reason simply being, cars depreciate between $3000-$15000 by buying them new and driving them off the lot. Why would you do that to yourself, especially if you're financing? You will be stuck with a ton of negative equity when you go to trade out of it, which will make it hard for you to get a loan. If you insist on having the latest and greates every few years and your credit is fine, then you are a great candidate for a lease as you keep it for two-three years, turn it in, and get something else. It's a good way to also drive a lot of different manufacturers. (Be careful though, some companies aren't doing them anymore because of the economy.)
Can you drive a stick shift? If the answer is yes, then getting one depending on the type of driving you do will save you between $1000-$2000 on the price of your next vehicle. If not, obviously you know you need to keep to cars that have automatic transmissions only. (Also to interject here...it's a slight myth that a stick shift automatically equals better gas mileage on every car ever. It all depends on the car, and nowadays even four-wheel drive only will cost you two miles per gallon. Some cars even actually do better in terms of gas mileage with an automatic transmission. So don't use that as an excuse for buying a car with a straight drive when you don't totally want one.)
Do you go on long trips and use your cruise control often? If so, a base model of pretty much any manufacturer is out of the question.
Do you need a lot of space? Then a compact car is probably not a good idea. And if you don't need a huge amount of space...then don't buy a Denali.
Are you worried about things like side-impact airbags, side support beams, crumple zones, and high rollover ratings? Well, as as head's up...that stuff's only standard on certain manufacturers. Do research on the manufacturer's website. I can vouch that Honda and Volkswagen both have had all of those standard since 2005 and 2002 respectively in every trim level of every model, Acura and Audi as well. BMW I think is also since 2005, but I could be wrong and I'm not 100% about Porsche. Toyota has since 2007. Chrysler, it's still not standard at least as of 2007 when my PT Cruiser was made, only on the Touring or high level models. Again, go to the manufactuers websites and do the research.
Features are important too. If you know for a fact you will be miserable without a sunroof, then you have to understand you're going to pay for that privelege. If you can't stand cloth seats, it's the same thing. The only option I think is ridiculous and over-priced is a GPS system...unless the car is a really good deal, go to Best Buy, buy a fucking Tom Tom, and save yourself like $1800. The end. (Do be advised that you cannot have an aftermarket GPS installed by the manufacter as the cars are built around them. RES and Satellite radio, yes. GPS no.)
Okay this is the part most people hate to think about. What can you reasonably afford in a vehicle.
Think about if you're paying cash or financing. (Interjection: it is a myth that you get a better deal if you pay cash than if you finance. That was true in, like, the 1980s. It is not true now. At all.)
If you are paying cash...how much do you have at your disposal? If your answer is less than $5000 and you're not trading anything in, odds are that you won't be able to get a car from a dealership (I mean a real dealership, not a dirt lot.) Cars in that range are hard for dealerships to sell, because of the age and mileage. So craigslist and private sellers would be the way to go, unless you're using that as a downpayment.
If you are financing...well. There are many things you need to take into account, especially right now. I've been doing this for almost two years and I can say these things with certainty:
1) If you have a really good payment history and high credit score (top tier for Honda is 710), you probably won't need money down. You'll be able to get the lowest interest rates and longest terms possible. Money down would still be a good idea because right now the banks are acting weird.
2) If your payment history is average and your credit score is in the 600s like me, you're realistically looking at 10-20% of what you're paying for the car down. This is not to say that your credit sucks and you're terrible, it's because the banks have really tightened up now. (I actually put down about 40% on Emma, because she is old and I knew with me not having perfect credit I needed a good amount down for a bank to consider me not a risk.)
3) If your payment history is not good or your credit score is below 600, or you have not established any credit prior, you are looking at needing a minimum of 20% down and a strong cosigner. Period. Also if your credit sucks, do not bitch about the interest rate for two reasons. 1) It's called refinancing, look it up after you've successfully paid on it for eighteen months. 2) You should be happy you got a loan period. No, seriously, and no disrespect meant. Just be happy you can buy the damn thing.
The rule of thumb for financing an automobile: $10,000 = $200/month, give or take the interest. For money down, every $1000 = $20/month off of your payment. (An interest point? Will save you like, $5.)
So if you can realistically afford a $300/month payment and you're looking at something priced $22,000...unless you're doing the longest term for a loan EVER or you're putting down like $8000, Houston we have a problem. (Well, or you're looking at a new Lincoln Navigator. They actually do have $10,000 of mark up in them, unlike...well, anything I've got at my disposal. Which is probably why they're in trouble right now and Honda's not.) Be realistic about what you can pay for what you are looking at.
New cars traditionally are less marked up than new cars, but right now in order to stay in business we're probably at or below invoice to get you in the door, dude. Used cars are marked up a bit, but that is because typically we have to do things to them in the shop in order to put them out. Things such as making it pass a safety inspection, oil changes, new tires. There's a reason why Retail value is always higher than Private Party or Trade In. With Trade In, we have to be able to sell it after we buy it from you. If we give you retail for your trade, guess what your car will do on our lot? Sit there for over 400 days and eventually be shipped to auction.
Other things to consider...If you have an 800 credit score and money down, you still may not get a top level interest rate if you're looking at something older than a 2006 model or something with high miles. The older/more used a vehicle is, the bigger the risk for the bank doing the loan. It's not you, it's them. So don't balk if you get a 2003 with an 8.75% interest rate...actually, for a six year old vehicle that's not bad.
Also think about your maintenance cost before you get stuck on a particular thing. Domestic cars/Hondas/Toyotas/Mazdas/Hyundais/Kias are always way less expensive to maintain.
The most expensive?
Land Rovers, Volvos, and Saabs. (Which, if any of you ever buy a Saab I can never speak to you again because they are Swedish pieces of SHIT which is a shame because we all know how I feel about IKEA.) There are certain cars that have a reputation of being in the shop constantly: Audis past 45,000 miles, Cadillacs, Land Rovers, Jaguars ever since Ford bought them (go figure), Saabs, and any Volkswagen made between 2000-2005. So don't get something that will break down on you constantly, because you'll have to make payments and pay repair bills at the same time unless you get an extended service contract aka a warranty, and no they're not rip offs. I'll get more into them later.
Also, an oil change on a BMW is $115. To be fair, you only need one every twelve months or 15,000 miles. But stop and think...if that's an oil change, how much are tires going to be? Or a break job? Or electrical system failures?
I'm very lucky that I get everything at cost through my job for Emma, but you don't. All of the luxury lines are like that...true a fair share of them do maitainence packages where they cover that for a while...but that's for a while. What happens when the mileage runs out? Think of this before you buy. We see a lot of people who buy an A4 and a year later try to get out of it because they didn't realize how expensive the maintenance would be. (To which we're always like "Duh" but you can't actually say that to strangers, unfortunately.)
Okay so you've picked a car, and know what you can afford/the price of it if it's know. You know what you can put down, and you have a realistic idea of your credit. It's time to go to the dealership and buy!
Now, I know none of you will pay sticker for a car. (I made a mistake of doing it once, and I won't ever do it again.) When you go to negotiate, be reasonable. I cannot stress this enough.
What I mean by be reasonable...say you are looking at a 2009 Honda Accord Coupe V6 EX-L with XM pre-installed. This car lists at just shy of $32,000, plus your sales tax, title and tag fees, and documentation fees. (So for sake of argument you live and are buying the car in NC, your sales tax is three percent of the price, $74.00 for the tag, and $398.00 for the doc fee at my store.)
Why on earth would you offer me $25,000 including fees to buy the car?
No seriously.
Why would you do that? Unless you're high or just ridiculous, why?
Let me be frank and I am going to take the mystery out of everything: invoice on an Accord is $3500 less than what we list it. I can't even get it for $7000 off and I work here, I get $500 above invoice. So I can get it for about $29,000 plus everything. Seriously, you can't buy a car for less than what it costs.
You just can't.
You know why? WE ARE A BUSINESS. WE HAVE TO MAKE MONEY TO DO THINGS LIKE PAY OUR BILLS AND SO I CAN MAKE RENT.
If you want to offer me $30,000 for it, I will fight for it with my manager. If you offer me $27,000 for it, I will submit it, remind you we don't carry that mark up, and thank you for coming out. You will not be leaving with a car. It's not going to happen. (The exception of course being specials under invoice...I think we have one right now on Accords, ironically.)
Be realistic also about your trade. You have to understand, if we're going to give you the best (read: lowest) price on ours, you gotta realize we'll be doing the same for you on yours, it's only fair. Scratches affect resale, accidents do too, odometer problems, things being broken, check engine lights, worn tires, broken windshields, high mileage, old age. All of that stuff affects our ability to sell it. Don't come in and wave a KBB sheet at me with a rating of excellent when your clear coat is peeling. For one thing, KBB is a loose guide. For another...no, your car is not excellent. My 2007 was not excellent when I bought it, you know why? It was missing a key. Things like this add up to stuff that costs us money to sell it. And the sad thing is, not every car holds its value the same. You will get a lot more for a gently used Honda than a gently used Nissan. Likewise, be prepared to spend a lot more on a gently used Honda than a gently used Nissan. Be. Realistic.
Buying used is the same scenario. Average mark up on my lot is about the same as the new Accord...$3000-3500 if the car has just hit the lot, $2000 if it's been here a bit, $1000 if it's an old age unit, nothing or below cost if we've had it past one hundred days. Don't offer me half of what a car is priced at, because you won't be buying the car. We can't do that and stay in business. We just can't. And again, KBB is a loose guide. It doesn't take into account a certified used over a normal one, or work we do to the car. I don't set the prices, so there's really nothing I can do except take your offer to my boss and negotiate.
Everyone wants nice things. No one wants crap. But if you need a car, you have to be understanding of how this industry works. We fight against our bad rap all the time and if we can do the price you want, we will absolutely. Be fair and flexible and we will be flexible with you.
More like a list of dos and don'ts.
Do eat before you go, especially if it's on a Saturday. The whole process can take between two and four hours. We have vending machines, coffee, and water, but not a four course chef's tasting menu.
Do have your downpayment in certified funds if possible. It's a lot simpler for everyone as you're not waiting for a check to clear and we're not worrying about if your check's going to bounce. Some dealerships will let you put a small amount on a debit or credit card, but because of things like right to refuse purchases you can't buy a car on say an AMEX black these days. (My store will do up to $2500 max.)
Do not insult our intelligence. By that I mean, don't tell me things like "Well if the car's two years old then it's worth half of what it was new." No. Let me say that again, no. That's not your call. Or mine. Or the management's. It's not anyone's except the Mannheim report. Period.
Don't be rude either. We're here to help you, even if you assume I'm ripping you off every moment. We're not here to not sell cars, we're here to sell things. We want you to go home happy just like you want. We're people too.
Do keep our contact information if we help you one day and then later you come back. Ask for us by name. Call ahead and set an appointment. This is a commission based industry, so it really stinks if we spend hours driving cars with you for you to come back with no warning on our days off and buy from someone else. Appointments are a great idea anyways, it makes sure you get to see what you want immediately...we'll even have the keys ready for you!
Do buy a warranty if you are buying a car that is expensive to maintain or a used car with higher mileage. Literally, for ten dollars extra a month you get the peace of mind to pay either nothing or $100 of major repairs on your car. (Trust me, I paid $1200/mo to keep a Chevy running. Which is...three times what I pay for two cars currently. Ridiculous.) And better yet, if you never use it? You may get some of the cost of the warranty mailed back to you in a check! Also, if you are financing the total amount of the car with nothing down or you have put negative equity into the new loan...buy GAP insurance. What this does is in the even you get in a wreck and total the car...well insurance will only give you the KBB value of your car. What if you owe $13,000 and they give you $10,000? Well that's where the GAP comes in and pays the loan off for you, so you can focus on getting a new vehicle. So yes, buy GAP insurance unless you're financing way below the car's value. (You definitely get that $695 back when the loan's done and you never totaled the car.)
Do have some flexibility on colors and interiors. We try to keep things in stock, but some colors are way more popular than others. The orange Fit, for example, is by far the most popular one of those. Meanwhile, in the Accord it's white followed by gray. The Civic is black. The Odyssey is that light blue color that has a weird name that I can't remember. You get the point. If they don't have the black on black, black with beige is just as good...actually better if you live in NC and it's summertime!
Don't be afraid to ask questions! We're here to answer them. If we don't know, we'll totally double-check for you. If the sales person gives you attitude about it...don't be afraid to speak to a manager and ask for a different person. Ask about rates, special pricing, lease specials, how to use your navigation, what warranty is left, what gas mileage, et cetera. You can call in advance and ask too. (It's also better for us so we don't go in and give wrong information.)
Do take a test drive. No really. It sounds lame, but you can't really know if you can live with something until you drive it. And drive it like it's yours, don't granny it. (Within reason. Hey, I don't get the ticket if we get stopped by a police officer...YOU do.) Every car is different, every seat is different. Drive the car first, then talk numbers. If you're lukewarm on the car, no price we can give you will be enough.
Do read everything you sign. I realize it's a lot, but still read it. Understand the buyer's order will go over if you have a right of recision (in other words, can you take the car back if it sucks). In North Carolina, you do not have a right of recision. My general manager gives you three days to come back and exchange the car for a different one if you're unsatisfied because he is nice and understands customer service. We don't even have to offer that. If you drive off with the car, 90% of the time it is your problem from there. Know all of this before you leave.
Do inspect the car thoroughly on the lot if it is pre-owned. If it is a certified car, you probably don't really need to as the standards for certifying cars are really strict, but any that aren't definitely look under the hood, check for anything leaking under it, and so forth. Also, you can take the car to your mechanic to have a pre-purchase inspection done before taking the car home for good. You will most likely have to A) agree on figures and B) put a deposit on the car but you do have that option.
Do not leave a deposit if it is not refundable. This should be obvious.
Do pay your bills on time. For one thing, you'll save yourself interest. For another thing, that will affect several things; your ability to refinance if you are unhappy with your rate and your ability to qualify for better things in the future. It may even prevent you from getting a loan at all.
Do not go to look at a used car after dark or in the rain. You won't be able to really see the condition of the paint on the vehicle, such as scratches, touch ups, et cetera.
I'm sure there are many things I've forgotten, so if there are any questions don't hesitate to ask. And just even let me know if it was worth reading. ^_^;; (Also I'm not trying to make everyone drink the Honda and VW Kool-Aid, they're just the lines I know the best.)
*Disclaimer: There is no guide for pancakes.
Presenting...The Dominique Brooks Guide to Car Buying and Pancake Making*
The individual parts will be placed behind cuts.
What do I mean by need versus want? Well it's very simple.
Most people do not actually need a car with heated seats, Xenon headlights, power seats, GPS, rear-entertainment systems, et cetera. So when you start the process of looking for a car, think about your needs.
Do you drive a lot, or have a long commute? Fuel efficiency is a good idea. A car that doesn't take only premium gas is an even better idea. So if your commute is forty miles one way and unless you have a lot of disposable income an Acura or an Infiniti is probably not the car for you.
New or used? Well...it depends. If you're keeping the car for as long as it lasts, then new is a pretty good option. You'll get the most for your money. If you're the type who wants a new car every few years or so, then used would be better. The reason simply being, cars depreciate between $3000-$15000 by buying them new and driving them off the lot. Why would you do that to yourself, especially if you're financing? You will be stuck with a ton of negative equity when you go to trade out of it, which will make it hard for you to get a loan. If you insist on having the latest and greates every few years and your credit is fine, then you are a great candidate for a lease as you keep it for two-three years, turn it in, and get something else. It's a good way to also drive a lot of different manufacturers. (Be careful though, some companies aren't doing them anymore because of the economy.)
Can you drive a stick shift? If the answer is yes, then getting one depending on the type of driving you do will save you between $1000-$2000 on the price of your next vehicle. If not, obviously you know you need to keep to cars that have automatic transmissions only. (Also to interject here...it's a slight myth that a stick shift automatically equals better gas mileage on every car ever. It all depends on the car, and nowadays even four-wheel drive only will cost you two miles per gallon. Some cars even actually do better in terms of gas mileage with an automatic transmission. So don't use that as an excuse for buying a car with a straight drive when you don't totally want one.)
Do you go on long trips and use your cruise control often? If so, a base model of pretty much any manufacturer is out of the question.
Do you need a lot of space? Then a compact car is probably not a good idea. And if you don't need a huge amount of space...then don't buy a Denali.
Are you worried about things like side-impact airbags, side support beams, crumple zones, and high rollover ratings? Well, as as head's up...that stuff's only standard on certain manufacturers. Do research on the manufacturer's website. I can vouch that Honda and Volkswagen both have had all of those standard since 2005 and 2002 respectively in every trim level of every model, Acura and Audi as well. BMW I think is also since 2005, but I could be wrong and I'm not 100% about Porsche. Toyota has since 2007. Chrysler, it's still not standard at least as of 2007 when my PT Cruiser was made, only on the Touring or high level models. Again, go to the manufactuers websites and do the research.
Features are important too. If you know for a fact you will be miserable without a sunroof, then you have to understand you're going to pay for that privelege. If you can't stand cloth seats, it's the same thing. The only option I think is ridiculous and over-priced is a GPS system...unless the car is a really good deal, go to Best Buy, buy a fucking Tom Tom, and save yourself like $1800. The end. (Do be advised that you cannot have an aftermarket GPS installed by the manufacter as the cars are built around them. RES and Satellite radio, yes. GPS no.)
Okay this is the part most people hate to think about. What can you reasonably afford in a vehicle.
Think about if you're paying cash or financing. (Interjection: it is a myth that you get a better deal if you pay cash than if you finance. That was true in, like, the 1980s. It is not true now. At all.)
If you are paying cash...how much do you have at your disposal? If your answer is less than $5000 and you're not trading anything in, odds are that you won't be able to get a car from a dealership (I mean a real dealership, not a dirt lot.) Cars in that range are hard for dealerships to sell, because of the age and mileage. So craigslist and private sellers would be the way to go, unless you're using that as a downpayment.
If you are financing...well. There are many things you need to take into account, especially right now. I've been doing this for almost two years and I can say these things with certainty:
1) If you have a really good payment history and high credit score (top tier for Honda is 710), you probably won't need money down. You'll be able to get the lowest interest rates and longest terms possible. Money down would still be a good idea because right now the banks are acting weird.
2) If your payment history is average and your credit score is in the 600s like me, you're realistically looking at 10-20% of what you're paying for the car down. This is not to say that your credit sucks and you're terrible, it's because the banks have really tightened up now. (I actually put down about 40% on Emma, because she is old and I knew with me not having perfect credit I needed a good amount down for a bank to consider me not a risk.)
3) If your payment history is not good or your credit score is below 600, or you have not established any credit prior, you are looking at needing a minimum of 20% down and a strong cosigner. Period. Also if your credit sucks, do not bitch about the interest rate for two reasons. 1) It's called refinancing, look it up after you've successfully paid on it for eighteen months. 2) You should be happy you got a loan period. No, seriously, and no disrespect meant. Just be happy you can buy the damn thing.
The rule of thumb for financing an automobile: $10,000 = $200/month, give or take the interest. For money down, every $1000 = $20/month off of your payment. (An interest point? Will save you like, $5.)
So if you can realistically afford a $300/month payment and you're looking at something priced $22,000...unless you're doing the longest term for a loan EVER or you're putting down like $8000, Houston we have a problem. (Well, or you're looking at a new Lincoln Navigator. They actually do have $10,000 of mark up in them, unlike...well, anything I've got at my disposal. Which is probably why they're in trouble right now and Honda's not.) Be realistic about what you can pay for what you are looking at.
New cars traditionally are less marked up than new cars, but right now in order to stay in business we're probably at or below invoice to get you in the door, dude. Used cars are marked up a bit, but that is because typically we have to do things to them in the shop in order to put them out. Things such as making it pass a safety inspection, oil changes, new tires. There's a reason why Retail value is always higher than Private Party or Trade In. With Trade In, we have to be able to sell it after we buy it from you. If we give you retail for your trade, guess what your car will do on our lot? Sit there for over 400 days and eventually be shipped to auction.
Other things to consider...If you have an 800 credit score and money down, you still may not get a top level interest rate if you're looking at something older than a 2006 model or something with high miles. The older/more used a vehicle is, the bigger the risk for the bank doing the loan. It's not you, it's them. So don't balk if you get a 2003 with an 8.75% interest rate...actually, for a six year old vehicle that's not bad.
Also think about your maintenance cost before you get stuck on a particular thing. Domestic cars/Hondas/Toyotas/Mazdas/Hyundais/Kias are always way less expensive to maintain.
The most expensive?
Land Rovers, Volvos, and Saabs. (Which, if any of you ever buy a Saab I can never speak to you again because they are Swedish pieces of SHIT which is a shame because we all know how I feel about IKEA.) There are certain cars that have a reputation of being in the shop constantly: Audis past 45,000 miles, Cadillacs, Land Rovers, Jaguars ever since Ford bought them (go figure), Saabs, and any Volkswagen made between 2000-2005. So don't get something that will break down on you constantly, because you'll have to make payments and pay repair bills at the same time unless you get an extended service contract aka a warranty, and no they're not rip offs. I'll get more into them later.
Also, an oil change on a BMW is $115. To be fair, you only need one every twelve months or 15,000 miles. But stop and think...if that's an oil change, how much are tires going to be? Or a break job? Or electrical system failures?
I'm very lucky that I get everything at cost through my job for Emma, but you don't. All of the luxury lines are like that...true a fair share of them do maitainence packages where they cover that for a while...but that's for a while. What happens when the mileage runs out? Think of this before you buy. We see a lot of people who buy an A4 and a year later try to get out of it because they didn't realize how expensive the maintenance would be. (To which we're always like "Duh" but you can't actually say that to strangers, unfortunately.)
Okay so you've picked a car, and know what you can afford/the price of it if it's know. You know what you can put down, and you have a realistic idea of your credit. It's time to go to the dealership and buy!
Now, I know none of you will pay sticker for a car. (I made a mistake of doing it once, and I won't ever do it again.) When you go to negotiate, be reasonable. I cannot stress this enough.
What I mean by be reasonable...say you are looking at a 2009 Honda Accord Coupe V6 EX-L with XM pre-installed. This car lists at just shy of $32,000, plus your sales tax, title and tag fees, and documentation fees. (So for sake of argument you live and are buying the car in NC, your sales tax is three percent of the price, $74.00 for the tag, and $398.00 for the doc fee at my store.)
Why on earth would you offer me $25,000 including fees to buy the car?
No seriously.
Why would you do that? Unless you're high or just ridiculous, why?
Let me be frank and I am going to take the mystery out of everything: invoice on an Accord is $3500 less than what we list it. I can't even get it for $7000 off and I work here, I get $500 above invoice. So I can get it for about $29,000 plus everything. Seriously, you can't buy a car for less than what it costs.
You just can't.
You know why? WE ARE A BUSINESS. WE HAVE TO MAKE MONEY TO DO THINGS LIKE PAY OUR BILLS AND SO I CAN MAKE RENT.
If you want to offer me $30,000 for it, I will fight for it with my manager. If you offer me $27,000 for it, I will submit it, remind you we don't carry that mark up, and thank you for coming out. You will not be leaving with a car. It's not going to happen. (The exception of course being specials under invoice...I think we have one right now on Accords, ironically.)
Be realistic also about your trade. You have to understand, if we're going to give you the best (read: lowest) price on ours, you gotta realize we'll be doing the same for you on yours, it's only fair. Scratches affect resale, accidents do too, odometer problems, things being broken, check engine lights, worn tires, broken windshields, high mileage, old age. All of that stuff affects our ability to sell it. Don't come in and wave a KBB sheet at me with a rating of excellent when your clear coat is peeling. For one thing, KBB is a loose guide. For another...no, your car is not excellent. My 2007 was not excellent when I bought it, you know why? It was missing a key. Things like this add up to stuff that costs us money to sell it. And the sad thing is, not every car holds its value the same. You will get a lot more for a gently used Honda than a gently used Nissan. Likewise, be prepared to spend a lot more on a gently used Honda than a gently used Nissan. Be. Realistic.
Buying used is the same scenario. Average mark up on my lot is about the same as the new Accord...$3000-3500 if the car has just hit the lot, $2000 if it's been here a bit, $1000 if it's an old age unit, nothing or below cost if we've had it past one hundred days. Don't offer me half of what a car is priced at, because you won't be buying the car. We can't do that and stay in business. We just can't. And again, KBB is a loose guide. It doesn't take into account a certified used over a normal one, or work we do to the car. I don't set the prices, so there's really nothing I can do except take your offer to my boss and negotiate.
Everyone wants nice things. No one wants crap. But if you need a car, you have to be understanding of how this industry works. We fight against our bad rap all the time and if we can do the price you want, we will absolutely. Be fair and flexible and we will be flexible with you.
More like a list of dos and don'ts.
Do eat before you go, especially if it's on a Saturday. The whole process can take between two and four hours. We have vending machines, coffee, and water, but not a four course chef's tasting menu.
Do have your downpayment in certified funds if possible. It's a lot simpler for everyone as you're not waiting for a check to clear and we're not worrying about if your check's going to bounce. Some dealerships will let you put a small amount on a debit or credit card, but because of things like right to refuse purchases you can't buy a car on say an AMEX black these days. (My store will do up to $2500 max.)
Do not insult our intelligence. By that I mean, don't tell me things like "Well if the car's two years old then it's worth half of what it was new." No. Let me say that again, no. That's not your call. Or mine. Or the management's. It's not anyone's except the Mannheim report. Period.
Don't be rude either. We're here to help you, even if you assume I'm ripping you off every moment. We're not here to not sell cars, we're here to sell things. We want you to go home happy just like you want. We're people too.
Do keep our contact information if we help you one day and then later you come back. Ask for us by name. Call ahead and set an appointment. This is a commission based industry, so it really stinks if we spend hours driving cars with you for you to come back with no warning on our days off and buy from someone else. Appointments are a great idea anyways, it makes sure you get to see what you want immediately...we'll even have the keys ready for you!
Do buy a warranty if you are buying a car that is expensive to maintain or a used car with higher mileage. Literally, for ten dollars extra a month you get the peace of mind to pay either nothing or $100 of major repairs on your car. (Trust me, I paid $1200/mo to keep a Chevy running. Which is...three times what I pay for two cars currently. Ridiculous.) And better yet, if you never use it? You may get some of the cost of the warranty mailed back to you in a check! Also, if you are financing the total amount of the car with nothing down or you have put negative equity into the new loan...buy GAP insurance. What this does is in the even you get in a wreck and total the car...well insurance will only give you the KBB value of your car. What if you owe $13,000 and they give you $10,000? Well that's where the GAP comes in and pays the loan off for you, so you can focus on getting a new vehicle. So yes, buy GAP insurance unless you're financing way below the car's value. (You definitely get that $695 back when the loan's done and you never totaled the car.)
Do have some flexibility on colors and interiors. We try to keep things in stock, but some colors are way more popular than others. The orange Fit, for example, is by far the most popular one of those. Meanwhile, in the Accord it's white followed by gray. The Civic is black. The Odyssey is that light blue color that has a weird name that I can't remember. You get the point. If they don't have the black on black, black with beige is just as good...actually better if you live in NC and it's summertime!
Don't be afraid to ask questions! We're here to answer them. If we don't know, we'll totally double-check for you. If the sales person gives you attitude about it...don't be afraid to speak to a manager and ask for a different person. Ask about rates, special pricing, lease specials, how to use your navigation, what warranty is left, what gas mileage, et cetera. You can call in advance and ask too. (It's also better for us so we don't go in and give wrong information.)
Do take a test drive. No really. It sounds lame, but you can't really know if you can live with something until you drive it. And drive it like it's yours, don't granny it. (Within reason. Hey, I don't get the ticket if we get stopped by a police officer...YOU do.) Every car is different, every seat is different. Drive the car first, then talk numbers. If you're lukewarm on the car, no price we can give you will be enough.
Do read everything you sign. I realize it's a lot, but still read it. Understand the buyer's order will go over if you have a right of recision (in other words, can you take the car back if it sucks). In North Carolina, you do not have a right of recision. My general manager gives you three days to come back and exchange the car for a different one if you're unsatisfied because he is nice and understands customer service. We don't even have to offer that. If you drive off with the car, 90% of the time it is your problem from there. Know all of this before you leave.
Do inspect the car thoroughly on the lot if it is pre-owned. If it is a certified car, you probably don't really need to as the standards for certifying cars are really strict, but any that aren't definitely look under the hood, check for anything leaking under it, and so forth. Also, you can take the car to your mechanic to have a pre-purchase inspection done before taking the car home for good. You will most likely have to A) agree on figures and B) put a deposit on the car but you do have that option.
Do not leave a deposit if it is not refundable. This should be obvious.
Do pay your bills on time. For one thing, you'll save yourself interest. For another thing, that will affect several things; your ability to refinance if you are unhappy with your rate and your ability to qualify for better things in the future. It may even prevent you from getting a loan at all.
Do not go to look at a used car after dark or in the rain. You won't be able to really see the condition of the paint on the vehicle, such as scratches, touch ups, et cetera.
I'm sure there are many things I've forgotten, so if there are any questions don't hesitate to ask. And just even let me know if it was worth reading. ^_^;; (Also I'm not trying to make everyone drink the Honda and VW Kool-Aid, they're just the lines I know the best.)
*Disclaimer: There is no guide for pancakes.