1st time buying new -- advice please
11-10-2013, 09:33 AM
#11
Senior Member
Take the Ford financing for maximum rebates, then refinance to a credit union before your first payment. Ignore the "wait 3-6 months" before you refinance bit that they will spew.
And as previously stated, think twice about accessories unless you negotiate them in. I got a bed cover, bed mat and cheap remote starter. The bed cover you should try to get for sure as it is the most expensive and probably takes longest to install. Everything else can be purchased at a much cheaper price on Amazon. (mat, mud flaps, wheel well liners, floor mats, etc.) Whatever you get, make sure it in the paper work.
And as previously stated, think twice about accessories unless you negotiate them in. I got a bed cover, bed mat and cheap remote starter. The bed cover you should try to get for sure as it is the most expensive and probably takes longest to install. Everything else can be purchased at a much cheaper price on Amazon. (mat, mud flaps, wheel well liners, floor mats, etc.) Whatever you get, make sure it in the paper work.
Last edited by SteveLord; 11-10-2013 at 09:36 AM.
11-10-2013, 09:50 AM
#12
Cycle For Fun and Health
Ive only purchased two new cars from dealers but Heres my advice:
1. Research! Know what the going price for the vehicle (in your area)is before you step foot in dealership. I got help from all kinds of websites and "what did you pay for your _____?" Threads. Use that info to determine your bottom line and don't budge.
2. Internet sales. I dealt with the internet sales "manager" (they are all "managers" now) the second time and it was great. Got offers from dealerships online through email for the truck i wanted. Picked the ones that were in my ballpark and went to see in person.
This helps you avoid the savage, roving sales persons on the lot. Set up appointment and Just tell them your here to see _____ with internet sales.
3. Have your finances in order and be pre-approved through a good bank/credit union. You can still go with ford financing if that nets you a better deal.
Ignore the following questions: "what do you want your payment to be?" Or "what will you be trading in?" Trades can be negotiated after the sale prices is set. Better yet, sell by owner and make more on your trade.
4. Be realistic. You want a good deal but the salesman has to make money too. Be ready to politely decline and walk away from a deal your not comfortable with. If your close they will stall and go "talk with manager" ect...and come back with a counter offer. Don't budge if your offer is fair. They will concede if they wanna make a sell. If not, Thank them and Walk away: they may very well contact you in the following days to make a deal.
I've always bought on the very last days of the month and had good luck.
5. Be weary of the finance man. Lookout for any crazy extras..."pinstripping" "nitrogen in the tires", "undercoating", or extremely high "document fees", ect...
6. Depends on dealer but I would pass on the accessories guy. I wanted tint and a bedliner and their prices were crazy high. I Didnt even bother trying to negotiate with them. You can probably do better with the vendors here and reputable local shops...ymmv
7. I didnt have Xplan... Again do your research, be firm but realistic and you can probly do the same or better.
On my truck I feel I did pretty decent. Got about 12k off sticker. Afterwards I felt I could have done slightly better (maybe another $500 to $1K) BUT...i was happy with my deal and thats what matters; no regrets. Afterwards You will always read and hear about someone else getting a better deal. Such is life.
8. Enjoy your new truck!
1. Research! Know what the going price for the vehicle (in your area)is before you step foot in dealership. I got help from all kinds of websites and "what did you pay for your _____?" Threads. Use that info to determine your bottom line and don't budge.
2. Internet sales. I dealt with the internet sales "manager" (they are all "managers" now) the second time and it was great. Got offers from dealerships online through email for the truck i wanted. Picked the ones that were in my ballpark and went to see in person.
This helps you avoid the savage, roving sales persons on the lot. Set up appointment and Just tell them your here to see _____ with internet sales.
3. Have your finances in order and be pre-approved through a good bank/credit union. You can still go with ford financing if that nets you a better deal.
Ignore the following questions: "what do you want your payment to be?" Or "what will you be trading in?" Trades can be negotiated after the sale prices is set. Better yet, sell by owner and make more on your trade.
4. Be realistic. You want a good deal but the salesman has to make money too. Be ready to politely decline and walk away from a deal your not comfortable with. If your close they will stall and go "talk with manager" ect...and come back with a counter offer. Don't budge if your offer is fair. They will concede if they wanna make a sell. If not, Thank them and Walk away: they may very well contact you in the following days to make a deal.
I've always bought on the very last days of the month and had good luck.
5. Be weary of the finance man. Lookout for any crazy extras..."pinstripping" "nitrogen in the tires", "undercoating", or extremely high "document fees", ect...
6. Depends on dealer but I would pass on the accessories guy. I wanted tint and a bedliner and their prices were crazy high. I Didnt even bother trying to negotiate with them. You can probably do better with the vendors here and reputable local shops...ymmv
7. I didnt have Xplan... Again do your research, be firm but realistic and you can probly do the same or better.
On my truck I feel I did pretty decent. Got about 12k off sticker. Afterwards I felt I could have done slightly better (maybe another $500 to $1K) BUT...i was happy with my deal and thats what matters; no regrets. Afterwards You will always read and hear about someone else getting a better deal. Such is life.
8. Enjoy your new truck!
I would add only that you are not required to deal with the first salesman that meets you. Some of these guys I just walk away from so as to get some fresh air and clear my mind.
The ones that are full of questions for you are not the ones to be dealing with. You are the customer. You need someone knowledgeable that can answer your questions and help guide you through the process.
If you get a talker, just excuse yourself and either leave or find another employee that can be helpful. Most dealerships have both types of personalities. Just a matter of getting to meet the right one.
I found the vehicle I wanted. Went to the dealer closest to me and got a talker that could not make a decision. When I ask about discounts and such, his response was that he would have to ask the manager. These sales people that have to go back and forth to the manager are useless. Some do it just to make the buyer nervous. This is not a mandatory part of the purchasing process.
I went down the road to the next dealer and met with a person that was helpful and could answer my questions. When WE (he was helpful in this process) had my options selected, he was able to give me a bottom line price. The price he quoted was in line with what my research had indicated. No haggling and no BS. I was a happy customer.
Financing: Ford Credit has some good offers. Currently they have .9% for 36 months. You probably can't beat that offer. When I bought they had 0.0% which was great. Your credit score will influence what your interest rate will be. Check with your bank and Credit Union before going shopping.
Last edited by joe mcmillan; 11-10-2013 at 10:04 AM.
11-10-2013, 10:30 AM
#13
One other thing. Get anything you want added to the truck that didn't come on it from the factory on a signed form with the salesman and shown on the paperwork. Dealers will screw you over this one.
Learned this lesson on my first auto deal out of college at 22. Suddenly the salesman who agreed to everything earlier will have no idea what you are taking about after the paperwork has gone through. Do not trust them. Not all are honest.
Learned this lesson on my first auto deal out of college at 22. Suddenly the salesman who agreed to everything earlier will have no idea what you are taking about after the paperwork has gone through. Do not trust them. Not all are honest.
11-10-2013, 01:05 PM
#14
Lots of good advice. Being first time you can also use a buying service like True Car or similar service. Like x plan this gives you a solid number before going in. I have purchased 8 new vehicles now and it is always a cat and mouse game, and on the internet someone always got a better deal, so as long as you are happy with it you are good.
As you get more experienced with dealer buying you can use different techniques. Bought a focus about a year ago, researched the price I was willing to pay. Went in to drive it then said you have 30 minutes to get to the price I brought with me. At 28 minutes they got within $100. Kind of a d&@k move on my part but I didn't want to waste a lot of time buying a Focus. But the F-150 I just bought took me a couple days to get them to the price I was willing to pay. As said before, just be ready to walk. Lots if trucks out there. Good luck!
As you get more experienced with dealer buying you can use different techniques. Bought a focus about a year ago, researched the price I was willing to pay. Went in to drive it then said you have 30 minutes to get to the price I brought with me. At 28 minutes they got within $100. Kind of a d&@k move on my part but I didn't want to waste a lot of time buying a Focus. But the F-150 I just bought took me a couple days to get them to the price I was willing to pay. As said before, just be ready to walk. Lots if trucks out there. Good luck!
11-10-2013, 01:41 PM
#15
The trade-in part is the only thing I have some disagreement with if I would even call it that. As neither is right or wrong.
When they ask up front about a trade and you say No or not decided then after making the deal bring in the trade at the end, most dealers aren't dumb on this concept.
My brother owned a very successful dealer lot. I've asked about this before and if they gave you a great deal on the new where it wasn't much profit then they aren't going to give you top dollar on your trade that they are taking a risk and leaving their cash tied up. If they give you more for your trade then they come more down on the new.
I am always up front on this but know where I want to be on both ends because I did my research. I deal on the difference and it still comes out to the same. Dealers will play some games but I would just tell them, I don't care if you give me $5k for my 3yr truck but then you need to come off the sticker $28k (if your research shows your trade should be $32k) and then we will start from there for the other $8-11k. Some people get hung up that a dealer didn't give them enough on their trade and take it personal. Don't, just treat it as a business transaction.
When they ask up front about a trade and you say No or not decided then after making the deal bring in the trade at the end, most dealers aren't dumb on this concept.
My brother owned a very successful dealer lot. I've asked about this before and if they gave you a great deal on the new where it wasn't much profit then they aren't going to give you top dollar on your trade that they are taking a risk and leaving their cash tied up. If they give you more for your trade then they come more down on the new.
I am always up front on this but know where I want to be on both ends because I did my research. I deal on the difference and it still comes out to the same. Dealers will play some games but I would just tell them, I don't care if you give me $5k for my 3yr truck but then you need to come off the sticker $28k (if your research shows your trade should be $32k) and then we will start from there for the other $8-11k. Some people get hung up that a dealer didn't give them enough on their trade and take it personal. Don't, just treat it as a business transaction.
11-10-2013, 01:49 PM
#16
Cycle For Fun and Health
I just prefer not to trade-in. Have only made 2 purchases in the last 10 years but each time the truck I didn't trade sold easily for a reasonable price.
Reduces the confusion and hagging during the purchase.
RDFTS made some very good points for those that will trade-in their old vehicle.
Reduces the confusion and hagging during the purchase.
RDFTS made some very good points for those that will trade-in their old vehicle.
11-10-2013, 02:07 PM
#17
The trade-in part is the only thing I have some disagreement with if I would even call it that. As neither is right or wrong.
When they ask up front about a trade and you say No or not decided then after making the deal bring in the trade at the end, most dealers aren't dumb on this concept.
My brother owned a very successful dealer lot. I've asked about this before and if they gave you a great deal on the new where it wasn't much profit then they aren't going to give you top dollar on your trade that they are taking a risk and leaving their cash tied up. If they give you more for your trade then they come more down on the new.
I am always up front on this but know where I want to be on both ends because I did my research. I deal on the difference and it still comes out to the same. Dealers will play some games but I would just tell them, I don't care if you give me $5k for my 3yr truck but then you need to come off the sticker $28k (if your research shows your trade should be $32k) and then we will start from there for the other $8-11k. Some people get hung up that a dealer didn't give them enough on their trade and take it personal. Don't, just treat it as a business transaction.
When they ask up front about a trade and you say No or not decided then after making the deal bring in the trade at the end, most dealers aren't dumb on this concept.
My brother owned a very successful dealer lot. I've asked about this before and if they gave you a great deal on the new where it wasn't much profit then they aren't going to give you top dollar on your trade that they are taking a risk and leaving their cash tied up. If they give you more for your trade then they come more down on the new.
I am always up front on this but know where I want to be on both ends because I did my research. I deal on the difference and it still comes out to the same. Dealers will play some games but I would just tell them, I don't care if you give me $5k for my 3yr truck but then you need to come off the sticker $28k (if your research shows your trade should be $32k) and then we will start from there for the other $8-11k. Some people get hung up that a dealer didn't give them enough on their trade and take it personal. Don't, just treat it as a business transaction.
11-10-2013, 02:36 PM
#18
Yeah, I am stuck on trading because I write my truck off as a business expense over 3yrs to offset paying taxes by increasing my expenses. If I sell my now business asset that I wrote off then I have to report the sale as income. Granted I can take that money and get another truck but would have to pay taxes eventually at the year end for the sale. Its better for me to trade because I can start deducting the difference again for another 3yrs. For the loss on the trade and tax situation, its a wash.
My last deal, I was asking more for my trade than any dealer would offer on the entire transaction and knew because three dealers only moved by less than $100. I then found a buyer for my truck which was more than the trade, of course.
Went back to the dealer and told them I already had a buyer so they had no risk and immediate sale. The deal was they were not going to mark up the sale on the buyer and sell it at the same price as what they are giving me. The whole transaction went without hassle, I bought the new truck at the price we agreed and traded it the price my buyer was paying. I stuck around as it took them about an hour to do the deal for buyer and they sold it to him as agreed. Guess call it creative bargaining. :-)
My last deal, I was asking more for my trade than any dealer would offer on the entire transaction and knew because three dealers only moved by less than $100. I then found a buyer for my truck which was more than the trade, of course.
Went back to the dealer and told them I already had a buyer so they had no risk and immediate sale. The deal was they were not going to mark up the sale on the buyer and sell it at the same price as what they are giving me. The whole transaction went without hassle, I bought the new truck at the price we agreed and traded it the price my buyer was paying. I stuck around as it took them about an hour to do the deal for buyer and they sold it to him as agreed. Guess call it creative bargaining. :-)
11-10-2013, 03:23 PM
#19
Five-0 Ret.
Most dealers will sell at invoice minus rebates plus ad fees (which we all pay), plus doc fees (which vary from dealer to dealer), and lastly plus tax, tag, and title. www.kbb.com will get you close to the invoice price if you put the particulars in for the trucks you are looking at. www.ford.com under shopping tools click rebates/incentives to get the rebates/incentives available in you area. A little homework will take you a long way.
As far as trading vs private selling is the difference in the taxes paid. For ex. In North Carolina taxes are 3% of the trucks agreed upon selling price before any fees. So if my dealer gives me $10,000 on trade that saves me $300 in taxes. To even out I would need to sell my truck privately for $10,300. So, sometimes it's easier just to trade. Check how the taxes work in your state. Good luck.
As far as trading vs private selling is the difference in the taxes paid. For ex. In North Carolina taxes are 3% of the trucks agreed upon selling price before any fees. So if my dealer gives me $10,000 on trade that saves me $300 in taxes. To even out I would need to sell my truck privately for $10,300. So, sometimes it's easier just to trade. Check how the taxes work in your state. Good luck.
11-10-2013, 05:35 PM
#20
1. Use Truecar to get a pretty good idea what you should pay.
2. Figure out exactly what rebates/incentives the factory is offering and that you are eligible for.
3. Always negotiate as a cash purchase with no trade in, even if you plan on leasing or financing or do plan on trading in. Once you figure out the absolute best cash price, it's much easier to figure out who offers the best financing and/or leasing terms and get a real, non-inflated buy bid on your trade in.
3. *NEVER* negotiate with a floor salesman. They have no authority and will almost always waste your time with back and forth games.
4. Once you know exactly what you want, talk with either the fleet manager (even if you are not a fleet customer), Internet manager, or 'real' sales manager (many floor salepeople will just lie and say they are a sales manager) to negotiate price. Phone usually works great for first contact. If a person with actual pricing authority won't work with you directly and tries to hand you off to a salesdroid without negotiating price, just move on to another dealership.
Example: I just priced out on Truecar a possible replacement for my 2011 FX4, a 2014 FX4 Supercrew/Ecoboost/luxury package/sunroof and a few other options...
MSRP: $50,355
Invoice: $46,260
Truecar Target: $42,110
Factory incentives/rebates in the above include $2,250 customer cash,
My guess is I could do even better, a loyalty/brochure $500 rebate, another $1,000 rebate if I use Ford financing (even for a minimum amount), and maybe even another $200-$500 discount from the dealer making my target price about $40,200, about $10K under sticker.
Looks like their might be another $2,000 extra trade in credit, but typically dealers want to offer $3,000-$4,000 under market for a trade in, so I almost never trade in directly to the dealer.
2. Figure out exactly what rebates/incentives the factory is offering and that you are eligible for.
3. Always negotiate as a cash purchase with no trade in, even if you plan on leasing or financing or do plan on trading in. Once you figure out the absolute best cash price, it's much easier to figure out who offers the best financing and/or leasing terms and get a real, non-inflated buy bid on your trade in.
3. *NEVER* negotiate with a floor salesman. They have no authority and will almost always waste your time with back and forth games.
4. Once you know exactly what you want, talk with either the fleet manager (even if you are not a fleet customer), Internet manager, or 'real' sales manager (many floor salepeople will just lie and say they are a sales manager) to negotiate price. Phone usually works great for first contact. If a person with actual pricing authority won't work with you directly and tries to hand you off to a salesdroid without negotiating price, just move on to another dealership.
Example: I just priced out on Truecar a possible replacement for my 2011 FX4, a 2014 FX4 Supercrew/Ecoboost/luxury package/sunroof and a few other options...
MSRP: $50,355
Invoice: $46,260
Truecar Target: $42,110
Factory incentives/rebates in the above include $2,250 customer cash,
My guess is I could do even better, a loyalty/brochure $500 rebate, another $1,000 rebate if I use Ford financing (even for a minimum amount), and maybe even another $200-$500 discount from the dealer making my target price about $40,200, about $10K under sticker.
Looks like their might be another $2,000 extra trade in credit, but typically dealers want to offer $3,000-$4,000 under market for a trade in, so I almost never trade in directly to the dealer.
Last edited by pfbz; 11-10-2013 at 05:53 PM.