Buying a New Car

[Chuckanut]

Here’s an interesting thought from the Car Dealership Guy:

The smartest people I know are either:

A) Staying away from vehicles with extremely high days’ supply

or B) Buying those vehicles very conservatively to leave room for error.

Remember:

All of the unplanned price cuts by automakers over the past 12 months introduced an entirely new vector of risk to the car business.

And now, with new car supply piling up, we should expect many more price cuts to come.

Bottom line:

The next 12-24 months will be a rollercoaster for certain makes and models.

Lately, I’ve been toying with the idea of purchasing a new vehicle that has some high degree of driving assistance. It might even be an EV. Several times a year I make a multi-night long drive to visit my family out of state. Having a car that would provide a less tiresome driving experience and added safety features would be a nice thing. I don’t need two cars so I would sell my 2019 to one of the kids for quite a bit under today’s market price. That’s what Dads do from time to time. BTD!

It seems that for some makes and models, the time to buy is now. Especially for an EV.

Please: No EV vs ICE debates. Just tips on car buying strategies. What you found that works and what doesn’t work so good.

 

[PaunchyPirate]

I think the dynamics are almost entirely driven by the supply/demand situation of each particular model. There are deals to be had if it's in supply. Not so much for cars that they can't build enough of. I just bought a new 2024 Hybrid Lincoln Nautilus a few weeks ago. It was a new version of the car, so it was in quite high demand. Not much room for creative pricing. However, there are a lot of 2023s still on the lot with very significant sale pricing. Supply and Demand.

 

[Midpack]

I’ve had very good results from starting with internet sales, far quicker to get to their best price than walking in a subjecting yourself to all the old car dealer tactics. And I’ve been able to start with the internet price and reduce further from there more often than not

OTOH at least one prominent EV brand doesn’t deal, you buy online at the published price period, although there are often substantial discounts buying from inventory.

 

[TheWizard]

I've factory ordered my past two vehicles, most recently my '24 Ford Mustang convertible.
You can configure all the options and packages online, then print it out and shop three dealers in person. Then take lowest price.

I ordered the Mustang last July and took delivery in November...

 

[Another Reader]

The gas powered Camry is being discontinued after the 2024 model year. Only hybrid models will be available. One of the local dealers is part of the Costco buying program. Between that and the dealer discount, you can buy a Camry for several thousand dollars off msrp.

 

[Sunset]

OP - Alternatively you could fly and rent a vehicle, works well for short stays of a about a week.
Saves driving for days.

 

[pb4uski]

I've factory ordered my past two vehicles, most recently my '24 Ford Mustang convertible.
You can configure all the options and packages online, then print it out and shop three dealers in person. Then take lowest price.

I ordered the Mustang last July and took delivery in November...

+1 We have ordered for our last three vehicles. We get the colors, trim level and options that we value and don't pay for those trim levels or options that we don't value. I find that most vehicles on dealer lots are trim levels or include options that I could give a hoot about am able to avoid those wastes of money by ordering. I build it on the manufacturer's website and then get quotes from area dealers.

 

[Out of Steam]

OP - Alternatively you could fly and rent a vehicle, works well for short stays of a about a week.
Saves driving for days.

One of the things I like about being retired is that I usually have the time to drive instead of fly on domestic trips.

 

[Zathras]

The internet shopping is a good idea.
The more information you have before you walk into a dealer the batter.

Another possibility is a Tesla Model Y. Tesla is apparently drastically cutting prices on Model Ys. If that form factor works for you that may be a good option.
https://techcrunch.com/2024/04/05/tesla-slashes-model-y-inventory-prices-cut/

 

[Out of Steam]

Returning to the original subject, I believe that we're in a transitional time in the car market, similar to the mid-to-late 1970s, where buying a vehicle to meet needs, rather than wants, is a good plan.

For gasoline-powered vehicles, depreciation is unpredictable, especially for luxury models, and for electric vehicles, features and designs that prove practical in the long run will probably be quite different that what's available right now.

Also, after four years of pandemic-related shortages, the adage of buying a late-model used car and saving close to half isn't working. I spent several months looking at 2020-ish Subaru Outbacks, and was never satisfied with the prices. In the end, I bought a new Mazda CX-5.

 

[pb4uski]

The gas powered Camry is being discontinued after the 2024 model year. Only hybrid models will be available. One of the local dealers is part of the Costco buying program. Between that and the dealer discount, you can buy a Camry for several thousand dollars off msrp.

Hybrids only is fine by me. I love our hybrid truck... 42.8 mpg around town and 35 highway... good pickup and very comfortable road car. No range anxiety. IMO until the EV charging infrastructure is built out to a point where you can recharge in 10-15 min it will be hard to own an EV IF you do long trips.

 

[Tetto]

I bought a new Subaru a few months back. It’s a premium trim Crosstrek and has lots of bells and whistles I’d never intentionally order, but I got them. The things I like most now are the adaptive cruise, start/stop and lane keeper electric steering. It will keep the car between the lines easily, as long as you occasionally put your hand(s) on the wheel. I just give it a little force feedback to keep it from alarming. Also front and rear collision avoidance and automatic brakes are fantastic. Although the thing blasted the brakes on one time, nothing close to me and scared the bejesus out of me, still very useful!

 

[Mr. Tightwad]

I buy online at Tesla.com.

No haggling. No waiting around the dealership with them trying to squeeze every penny out of you. No paint protection add-ons suggested to up the price.

 

[Car-Guy]

Here’s an interesting thought from the Car Dealership Guy:

Lately, I’ve been toying with the idea of purchasing a new vehicle that has some high degree of driving assistance. It might even be an EV. Several times a year I make a multi-night long drive to visit my family out of state. Having a car that would provide a less tiresome driving experience and added safety features would be a nice thing

Please: No EV vs ICE debates. Just tips on car buying strategies. What you found works and what doesn’t work so good

The last 4 or 5 vehicles I've bought, have been bought from traditional dealerships but all negotiations have been done on-line and/or over the phone. (Incluing my trade) I browse the dealerships inventory on line, select a couple that I'm interested in from a couple of different dealerships and start the negotiating process. Several emails, a few phone calls, sending pics of my my trade and I can usually find and wrap up the best deals in a few days. Then I'm off to the dealership (usually a couple of hundred miles away) and test drive the new vehicle that I'm buying and sign the prepared paperwork and I'm done. The last one I bought (January), they even brought the vehicle and paper work to me.

The last one I bought has a lot of "driver assistance" features. Lane departure detection/resistance (very cool), adaptive cruise control, emergency braking, auto dimming headlights, blind spot warning, hill assist, voice controlled nav and radio, panoramic cameras (front/side/rear and from above) and proximity alerts, to name a few.

 

[Out of Steam]

I buy online at Tesla.com.

No haggling. No waiting around the dealership with them trying to squeeze every penny out of you. No paint protection add-ons suggested to up the price.

This may be a bigger advantage for Tesla than the cars they sell being electric, which may have just been a route to bypassing the dealer cartel.

 

[Mr. Tightwad]

This may be a bigger advantage for Tesla than the cars they sell being electric, which may have just been a route to bypassing the dealer cartel.

Buying and trading in has become a pleasurable experience.

I'm never going back to car dealerships.

 

[joesxm3]

Since the battery life seems to be ok, you might consider looking for a used Tesla Model 3 or Y with 30 or 40 thousand miles but that has FSD included with the car.

I have seen some posts on X showing such a car in the low $20s. Good way to get $12,000 FSD for free.

Of course after credits the price of a new Y is not bad either. Base model in the low $30s I think.

 

[aaronc879]

Since the battery life seems to be ok, you might consider looking for a used Tesla Model 3 or Y with 30 or 40 thousand miles but that has FSD included with the car.

I have seen some posts on X showing such a car in the low $20s. Good way to get $12,000 FSD for free.

Of course after credits the price of a new Y is not bad either. Base model in the low $30s I think.

$37,490 base model with no add-ons and not counting tax, title, ect. Only way it would be low 30's is if your state has a big tax credit and you got no add-ons at all.

 

[Jeb-NY]

I listen to a car guru radio show most days. The guy owns two car dealership but doesn't push his brands, but gives good advice. Two think he repeats a couple of times a week don't buy on monthly payment because a good salesman love to work from that point to make sure you spend that much or more. If you want an EV or Hybrid don't buy, lease. The technology is changing to fast let the leasing company take the chance and he sells both.

 

[Mr. Tightwad]

$37,490 base model with no add-ons and not counting tax, title, ect. Only way it would be low 30's is if your state has a big tax credit and you got no add-ons at all.

Aaron that's the price if you custom order it. No need to pay that much.

Tesla has lots of inventory, right now the base model is $34,340 in my area. Different areas have different prices. The $34,340 is after the Federal tax credit. Any state credit (as much as $5000 in some states) would be subtracted from the $34,340. So some people could get it for $29,340.

Click on the inventory tab to see prices in the area you live in.

I've only been buying from inventory lately to get the much lower prices. Picked up a Model Y Performance 13 days ago.

 

[NameTaken2]

Expanding to this to used, my perception is that the incentives on new Ram trucks is resulting in lots of 2021 Rams on 3yr lease being turned in to swap to the deals on new Ram trucks.
Lots are filling with the 2021 Ram model I've been shopping for a couple mos. They aren't selling, and I get regular "price drop" emails.
Appears to be a buyer's market developing as the dealers reset expectations on what they can get for the 2021 trucks.

 

[stephenson]

Unless one has extenuating circumstances like an accident or significant engine/transmission damage, the most important thing is personal discipline.

A huge component of buying a car is marketing, and the consumer is the target - reasonable, but combined with being on the dealers' turf (you wouldn't be there unless you wanted to buy), means you are across the table from the other kind of dealer - blackjack like dealer.

My recent purchase as example - decided I wanted a new VW Golf R (last year for manual transmission). The R is completely optioned, so simply a matter of picking one of the three colors. Checked local dealer inventory - didn't have color, but needed to drive a new one, so visited, test drive, discussed them finding my color choice, explained we could talk if they found one but I was not going to pay "market adjustment" addition they showed on the sticker, they promised to check other dealers. Met sales manager - left happy. Waited a few days - no call, no text, no email.

Expanded search to next closest five cities - by email - no calls. One found my color at another of their dealerships about 6 hours away, and we agreed on a price of MSRP minus $1500. I visited their dealer to ensure alignment. Next day note saying they would charge $1500-2000 to transport the car. Hmmm ... same amount as discount? No, thanks.

Took their pricing to four other dealers via email. One said MSRP plus $1395 ceramic paint coating (I asked if I would also get spray on undercoating - they didn't understand) - no thanks. One said MSRP plus $5000 because they couldn't make enough money otherwise - no thanks. One didn't respond to my emails.

One dealer responded, stayed in contact for four days as we negotiated to MSRP minus $2300. They trucked the car from another of their dealers about six hours away. Visited, gave them deposit, closed when it arrived - well done evolution.

Got text note from the local dealer's general manager two weeks later about my experience. Sent note back with chronology of failure including complete lack of communications. Nothing heard. Three days later got email from that dealership's sales person. Responded with what happened - nothing further heard.

Summary - some organizations are near criminal, some are incompetent, some are very competent - but, you are a target.

 

[zinger1457]

I think the dynamics are almost entirely driven by the supply/demand situation of each particular model. There are deals to be had if it's in supply. Not so much for cars that they can't build enough of. I just bought a new 2024 Hybrid Lincoln Nautilus a few weeks ago. It was a new version of the car, so it was in quite high demand. Not much room for creative pricing. However, there are a lot of 2023s still on the lot with very significant sale pricing. Supply and Demand.

You probably haven't had it very long but how do you like the Nautilus hybrid so far? Any surprises good or bad? That's one of the cars on my current list that I'm considering.

 

[rk911]

We bought a new Jeep Wrangler last June to replace a 20-yr old Wrangler. My turn to buy and I knew what I wanted. And in the spirit of BTD I didn't haggle much over the bottom line. EZ PZ. And I love my Wrangler.

 

[brett]

I listen to a car guru radio show most days. The guy owns two car dealership but doesn't push his brands, but gives good advice. Two think he repeats a couple of times a week don't buy on monthly payment because a good salesman love to work from that point to make sure you spend that much or more. If you want an EV or Hybrid don't buy, lease. The technology is changing to fast let the leasing company take the chance and he sells both.

That is the exact advice I recently had from a friend who has spent his life in the business.

Especially the lease part. His reasoning is the same...lots of changes and invovations coming down in the next few years, including competition, that will impact the residual of any lease or the value of your owned vehicle.

His other comment....if you lease on a regular basis do not assume that the EV lease will have the same T's and C's as your prior lease regarding lessee liabiliites at the end of the lease. Understand the lease agreement!