Any tips on buying a new car (online)?

[Lusitan]

I'm looking to pick up a Honda or Toyota minivan in the near future, been thinking I'd skip the whole haggle-with-the-dealer thing (both because I'm pressed for time and because I dislike it) and just go with carsdirect.com or some other online car-buying service.

Any advice, or experience good or bad with any of those places?

 

[73ss454]

First of all don't use a buying service. That will just add to the cost as you have to pay another person. Pick out the car you want and concentrate on buying that car. I'd deal with the internet manager at the dealers and use a few of them. Once you agree to buy the car and have it in writing you can go pick up the car. There is no need to buy anything else. The only item I'd tell you to consider is the warranty if it is from the manufacturer of the car you choose. Don't buy any other type of warranty.

You can take the car and shop for the warranty on the internet. Many dealers sell them at reduced prices there and you can buy one and not have to pay any tax on it if it's from and out of state dealer.

Good Luck!

 

[tsturbo]

Email several dealers in your area and have them email you back with their best no haggle price, lowest dealer wins your business. Simple as that.

 

[heyduke]

okay bought our last camry online... saw it on a web site and did my research (edmunds is a good site) and when I determined what was a fair price I made a cash offer... dealer said when do you want to test drive it? I said I don't need too it is a camry....

long story short my offer was good for 24 hours! Dealer called (it was an audi dealer that got the toyota on a trade in) and said deal... I said okay but only if you deliver it to me

I live 100 miles away and they said okay of I wire the money in... checked out the company with BBB and the internet... wired the money... they drove two cars up to deliver mine... we signed the papers on the hood of the car and we owned a camry... still have it three years later...

good luck!

 

[REWahoo]

...we signed the papers on the hood of the car and we owned a camry... still have it three years later...

But now you've gotta sell it because it makes a lousy toad...

 

[Gone4Good]

Email several dealers in your area and have them email you back with their best no haggle price, lowest dealer wins your business. Simple as that.

Did this when we we're buying our RV. I was surprised how similar the quotes came back and how much higher they were than what I ultimately paid (and what I thought was fair). Somehow all the dealers seemed to know what the right "no haggle" price was for an initial quote, but then most reconsidered when they were told they weren't getting the deal.

 

[kaneohe]

Once you've decided exactly what car and options you want (as mentioned earlier, Edmunds.com is good site), go to the manufacturer's website.
You generally can e-mail your request for quotations to a number of dealers in your area from that site. Takes a few minutes to compose your letter in the beginning but then you can copy and paste to generate the letters for all the rest so it goes pretty fast. You could probably generate RFQs for 15-20 dealers in 30 min or so. You probably will get your first responses in an hr or two and the majority of the rest in a couple days. No fuss or haggle. Request a quote for an out-the-door price and ask them to itemize the quote so you know where the costs come from. You could ask for quotes for dealers within an hrs. drive if you're willing to go that far.......sometimes you can use those quotes to get a dealer who is closer to come down a bit.

You can use the Edmunds true market price feature to get a good idea of what to expect from the quotes.

If you visit a local dealer to test drive the car, you might want to ask for the internet sales guys there. I got in some trouble once because I just used a regular salesman for that and then they didn't know how to divide the commission between the regular salesperson and the internet dept.

Definitely more fun doing it this way isolated at home than in a salesman's office.

 

[keegs]

Even if you're confident in the quality of the manufacturing, If' you haven't already done so, I'd take each for a test drive. There may be something about the vehicles that will persuade you to buy one or the other.

I recently heard something on "Car Talk" about used cars coming off lease that I hadn't considered and it was that these cars sometimes don't get the care they need e.g. they don't have their oil changed. If you're buying used be careful.

 

[heyduke]

But now you've gotta sell it because it makes a lousy toad...

lol,
true but it is a camry so not too worried about selling it

 

[RunningBum]

Another way to do it, besides the "all at once" approach, is to contact one dealer that you know has a good rep for prices and ask for their best "no haggle" price. Then go to other dealers, and tell them you have that price in hand from a local dealer, and ask what can they offer to make it worth your while to go to them.

Be specific about all of the options, and the color if that's important to you, and that they offer the turn-key price. Then when you choose one, make sure the car is exactly what you asked for, doesn't have excessive miles, etc. Tell them before you come that you're bringing a check for the agreed amount and you will walk if there are extra charges tacked on.

 

[utrecht]

I agree with most of these responses. I just wanted to add that your target should be about $1200 below Edmunds' "true market value" price. The true market value price is the average price of all of that type of vehicle sold in your area, but you can beat it if you try. In the past 4 years, Ive bought an Accord and a Maxima both around $1100-$1200 below the TMV.

 

[bdk]

There was a good discussion on buying a new car, on the FatWallet site a couple of weeks ago:
How to buy a new car, FWF style

 

[leyland]

In my opinion, you will always get the best price by negotiating in person. Research as much as possible, including incentives and the holdback. Beware of "paperwork" charges and any "dealer installed options" - these are pure profit items. I have typically allowed for $100 for "paperwork" and always had an "out the door" target price - this includes tax. Be prepared to go back several times and go to a couple of dealers if they are within reasonable driving range.

I'm looking to pick up a Honda or Toyota minivan in the near future, been thinking I'd skip the whole haggle-with-the-dealer thing (both because I'm pressed for time and because I dislike it) and just go with carsdirect.com or some other online car-buying service.

Any advice, or experience good or bad with any of those places?

 

[Lusitan]

Thanks for the responses -- the Fat Wallet write up is pretty good, I'm reading through it now.

Here's another basic question -- when you're buying car "in cash" ... what do you do, pick up a cashier's check once you've determined the final amount? Presumably the dealer is not going to accept a check from my Vanguard account ...

 

[leyland]

I have written personal checks several times for cars and drove them off- didn't seem to be much of an issue. They knew where I lived and I didn't get the title until several weeks later.

Thanks for the responses -- the Fat Wallet write up is pretty good, I'm reading through it now.

Here's another basic question -- when you're buying car "in cash" ... what do you do, pick up a cashier's check once you've determined the final amount? Presumably the dealer is not going to accept a check from my Vanguard account ...

 

[ERD50]

There was a good discussion on buying a new car, on the FatWallet site a couple of weeks ago:
How to buy a new car, FWF style

I agree with most of these responses. I just wanted to add that your target should be about $1200 below Edmunds' "true market value" price. The true market value price is the average price of all of that type of vehicle sold in your area, ...

I just found this "True Car" pricing - similar to TMV, but a lot more detail. It gives you the average, "good" and "great" prices for your locality, and a nice bell-shaped distribution curve. And they also have a 'history' tab, so you can see just the recent average prices (which could change due to end-of-year etc).

2011 Hyundai Santa Fe Pricing - Compare Costs and Similar Car Prices - The Car Connection

Opinions?

Thanks for the responses -- the

Fat Wallet write up is pretty good, I'm reading through it now.

Here's another basic question -- when you're buying car "in cash" ... what do you do, pick up a cashier's check once you've determined the final amount? Presumably the dealer is not going to accept a check from my Vanguard account ...

I will read through the FW also.

As far as checks, I've given dealers personal checks for the entire amount. No issue at all. I sure wouldn't do it myself, but I guess they do have enough protection, and I have to assume they know what they are doing.

-ERD50

 

[d]

Truecar.com

Truecar.com will find you a truely low price (you specify model, color etc.) and give you the name of three dealers (in exchange for your name, address etc.) you can then use the "best local price", finding dealers who will match that. i recently purchased a new car using that approach, did all the "bargaining" by e-mail. got exactly what i wanted at an incredibly low price.

 

[Lusitan]

Truecar.com will find you a truely low price (you specify model, color etc.) and give you the name of three dealers (in exchange for your name, address etc.)

Yeah, I've been wary about giving out any personal information, I mean, I don't mind address but the last thing I want is car salesmen calling me. I have noticed many sites have the gall to require phone numbers to give a price quote. Seems pretty stupid to me, but what do I know, I don't buy a new car very often.

 

[REWahoo]

Yeah, I've been wary about giving out any personal information, I mean, I don't mind address but the last thing I want is car salesmen calling me. I have noticed many sites have the gall to require phone numbers to give a price quote. Seems pretty stupid to me, but what do I know, I don't buy a new car very often.

I have real difficulty in giving out my phone number to these sites without transposing a couple of digits...

 

[Watertree]

First of all don't use a buying service. That will just add to the cost as you have to pay another person. Pick out the car you want and concentrate on buying that car. I'd deal with the internet manager at the dealers and use a few of them. Once you agree to buy the car and have it in writing you can go pick up the car. There is no need to buy anything else. The only item I'd tell you to consider is the warranty if it is from the manufacturer of the car you choose. Don't buy any other type of warranty.

You can take the car and shop for the warranty on the internet. Many dealers sell them at reduced prices there and you can buy one and not have to pay any tax on it if it's from and out of state dealer.

Good Luck!

Has anybody bought a used car online? Looking for a used car 2008 or 2009 Toyota Camryor Honda Accord. Just starting the car buying process. I dislike haggling with car salesmen. My wife would want to consider 2008 or 2009 Toyota Rav4 or Honda CRV.

 

[travelover]

Has anybody bought a used car online? Looking for a used car 2008 or 2009 Toyota Camry or Honda Accord. Just starting the car buying process. I dislike haggling with car salesmen. My wife would want to consider 2008 or 2009 Toyota Rav4 or Honda CRV.

I'd compare new to used prices carefully. From what I've read at Bogleheads, one or two year old Honda / Toyotas have not depreciated enough to justify buying used.

 

[chinaco]

Getting prepared and hard bargaining is your best strategy.


Know the current competitive sales price of the car. Identify any rebates or sales that are occurring.

Pit the dealers against each other.

Never let on that you have a preference for a brand or model. Tell the Honda sales person you are more interested in Nissan or Toyota, and vice versa.

Walk away if you do not get your deal during negotiation. You can always go back to the same dealer later. No matter what they say... unless a rebate is expiring you can almost always get the same deal later.

 

[Free To Canoe]

This is my story of a search for a new 2007 Toyota Corolla.
I decided to take the time and do the car search correctly now that I am ERed.

1) To get a deal you need to know specifically what you want.
2) As mentioned previously, you need to know what it should cost.
I learned that you need to buy over the Internet for the best deals. Many dealers have Internet sales managers. Sometimes these are the people who manage fleet sales. You need to deal with them directly and bypass the show room altogether. The only problem is that Western PA does not have Internet sales managers that give you deals. I visited several dealers in the area and I got the impression that it would be $800-$1000 over sticker when I finished the "deal". I imagine things are much more negotiable in todays economic environment but this was my buying environment back then.
You cannot tell what the final cost at the showroom will be until you try to buy the car.

I remembered a dealership in Carlsbad that offered really good deals. Even though I did not intend to buy there, I asked for a quote over the internet just to see what is possible.
3) Once you know what you want and what you should pay for it and who the potential dealer who will work with you are, then you have to see if they have what you want on the lot or easy to get for them.

Table 1 WHAT IS A FAIR PRICE?
2007 Corola CE Std tranny, no options.

SOURCE Retail (MSRP) + del fee $660

Toyota.com $15,065
edmunds .com $15,065 Others are paying $14442
kbb. Com $15,025 Others are paying $14920

Others are paying, on average below MSRP + $660 dealer fee as table 1 shows.


Table 2 SEARCH RESULTS SUMMARY
2007 Corola CE Std tranny, no option

OFFERS
Mel Grata - Bruce* $15,655 With upgrade - pwr windows
Mel Grata - Chris* $14,843
Rorhich, Pgh $16,751
Metro, Cleveland** $14,672
Carlsbad, CA $14,553 sell for $14553 with floormats
Grossinger, Chicago $13,827
Napierville, Chicago* $14,70

* Not really a written offer, just a verbal suggestion.

**Includes $250 "doc fee", all of the Ohio dealers mentioned
it. No written offer.

Most of this work, except for Mel Grata, Hermitage, PA was done on the Internet using
Invoicedealers.com for the initial contact.

None of the local dealers had what I wanted in stock and they wanted me to buy the car unseen and for a high price before they would consider getting it. Chicago dealers had the most inventory and the best pricing. I am not sure why.

I bought a car from Grossinger Toyota. I flew one way to Chicago for $59 on Southwest, bought the car and drove home the same day. Saved at least $1200 net on what I could have got it for locally.

Free to Canoe

 

[CoolChange]

This is my story of a search for a new 2007 Toyota Corolla.

Thank you for posting your details. I am preparing to start my own search; and, your approach is pretty much what I am bracing myself to dive into. (Although, I was hoping for an easier route.)

Anyway, I am still at pre-step #1: Figure out what I want.

Thanks again.

 

[ERD50]

I learned that you need to buy over the Internet for the best deals. Many dealers have Internet sales managers. Sometimes these are the people who manage fleet sales. You need to deal with them directly and bypass the show room altogether.

I wonder why. After all, there is no sign explaining the 'rules' when I walk in. If I talk to a salesman I don't feel I owe him/her any allegiance (unless they really went out of the way for me). If the 'internet guy' is gonna give me a better price, why wouldn't I deal with him?

I know, people will say I'm screwing the salesperson out of a commission. Seriously, that is not my problem. If the sign says "Grossinger" I expect to deal with the "Grossinger" company, and not pick-choose sales staff within that organization. The company should represent themselves as one face to the customer.

Maybe it doesn't work that way. Some things just make no sense. I plan to show the guy the 'average' to 'great' prices from that TrueCar site. He can choose to sell me a car or not. I'm in no rush.

-ERD50