Posted on 05/06/2021 6:05:29 PM PDT by NewJerseyJoe
Hello FReepers. Looking for any advice on negotiating the best price for a new car. (I'm getting a 2021 Honda CRV-EX, no options). I've put together an email (see following) that I will send to the local Honda dealers. Asking for any suggestions or wording to make it the most effective. Thanks in advance.
One of the ways dealers make money is through financing and the interest it produces.
That's damn' impressive. I had just over 200k on that Ford Pinto Wagon by the time it finally died. Considering it was a '73 with the motor from a '72 Mercury Capri in it, that wasn't half bad (for a Ford.)
My son recently financed a new car. The last new car I had was in 1985. My father and grandfather both owned dealerships. When the process was over for the new car, my son asked me “What just happened?” so I told him. They hooked the buyer at one rate and then delivered another and extended the period. It was still a good rate for a first-time buyer with no credit.
But a previous poster was right. It’s a terrible time to buy almost anything.
I like to "Nascar" those people ... you know, put 'em into the wall on the expressway ... they deserve it for driving like idiots.
I never prefer financing. If another Chinese bio-weapon gets released and millions of people lose their jobs again who do you think is going to buy that used, under-powered POC Honda?
My own opinion is this: if you have to finance a vehicle, either step-down and buy a vehicle you can afford to pay cash for, or wait until you have enough cash to buy the POC under-powered Honda.
Here's the bottom line: Paying interest on anything is quite literally throwing money away. You're paying for the "privilege" to borrow. Why give someone else money when you should be paying yourself?
This is why I buy two to three year old vehicles coming off personal leases. They're well maintained, low mileage and someone else has already taken the hit for the biggest chunk of depreciation on the vehicle.
I also choose a price point I'm willing to pay for a vehicle and shop in that price point to get the best vehicle I can for the money I'm willing to part with.
I'm not brand loyal and that gives me the biggest flexibility to get the best vehicle at the price I'm willing to pay.
I know that's an odd concept these days, living within (or in my case, well under) ones means.
Last month I totalled my Toyota Camry and was looking for a used car to buy. Dealer after dealer had so very little on their lots. I wasn’t even having much luck trying to find a car through a private seller. Most said it the used car market was so busy was because of tax refund checks and stimulus checks (in their opinion - they couldn’t think of another reason).
CarGuru and Autotrader were the sites I used the most, and Facebook marketplace for private sellers.
A few dealers weren’t even cleaning up the cars that were used as trades-ins - selling them “as is” in filthy dirty conditions. I couldn’t believe how nobody even TRIED to make a car presentable to sell these days - private or dealers.
None were willing to even budge on their pricing either. They didn’t care. Someone else would buy the car for the asked price in the next few days.
I finally did find a car I liked. I tried to negotiate some but they wouldn’t budge. I would have loved to have “played the game” with them and walked but at that point I had had no more energy to keep looking at car after car and this was one of the few that I even liked enough to buy. I bought it and am glad those couple of weeks are done with!
It didn’t help that I was looking for an SUV, which apparently are in high demand! I ended up with a Honda Odyssey, which I am enjoying. I’ve had either a Honda or an Acura since I started driving as a teen except for the few years I had my Camry. Always loved Hondas!
One thing I learned is that you should negotiate with what your insurance company offers you for your totalled car! They are “buying” your car and will offer the lowest price they can. Most people just accept it. I refused my offer, did lots of research on what cars like mine were going for and included that in my counter offer - which was for almost double what they offered and they called back and accepted it - which, of course, made me wonder if I should have asked for more!
They don’t negotiate much. I’m on CRV number 2 and they told me they believe their cars are fairly priced so the price is the price. I’m still driving my 2006 CRV that has never broken down since I bought it. Maybe try to negotiate on a new 2020 leftover.
Some 20 years ago a drunk hit me. Totaled my truck. Which I was trying to sell anyway at that time. My insurance company paid me more than I was asking, which I thought was fair. They also paid me for pain and suffering and other medical expenses. (I had to have surgery as a result of the crash).
Anyway, after I was done settling with my insurance company, I hired a lawyer to sue the other driver and the bar where she’d been drinking. Dram Shop laws applied. The bar knowingly serve an already drunk individual.
Anyway, my attorney told me I should not have settled with my insurance company. He could have gotten me a better settlement. But he was a straight shooter and said that even though that was the case, his fees would have been enough to actually lower the amount I did receive.
In other words. my insurance company (Allstate) treated me fairly.
Thank you for mentioning Cargurus.
Way way upthread I suggested that site. They data collect all the pricing of all the cars at dealerships. Then they rate Great, Good, Fair or Poor.
New or used, Cargurus is a great way to shop smart these days.
3 years ago I had a specific vehicle in mind to buy. I used 500 miles as my distance. I actually drove 300 miles to buy the car. It was what the Mrs. wanted, and it was the best car of the all available. We have family in that area, so the trip was also for pleasure.
I would like to know how much it costs the car company to build a car then how they markup the price.
I notice that the finance ‘guy’ is usually a pretty women with her cleavage on display....
finance ‘guy’: Paying cash are you? How about 12% over 7 years instead as she leans over to hand you the contract.
You: ah ok
There is a LOT more money in selling cars than in building cars.
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.