Buying Cars without Pain

If you are interested in a particular type of car, do your research. Do your homework.

If you know specifically what kind of car you want, you can more quickly pinpoint the car you want when you go to a dealership.

For cars that are less than 5 to 10 years old, go online to Kelly Blue Book online (http://www.kbb.com/) or Edmonds (http://www.edmunds.com/) and do some basic research.  List the year, manufacturer, make, model, and options in the fields provided and then do a search on the vehicle. Click on the suggested "retail price" (the dealership's price should be close to this). Then also check on "trade-in/wholesale value" and "private sale value". Checking these other two figures will give you an idea of how much "wiggle-room" the dealership has with the vehicle. If the "wiggleroom" isn't more than $2000 to $3000, there's something wrong with the car.

You should be able to negotiate at least about $1000 off from the retail price of the car--and if you have your print-out from kbb.com or edmunds.com, you'll have the figures to back up your proposition.

This tactic usually only works if you are NOT trading in your vehicle.

If possible, take a kbb.com or edmunds.com printout of the car with options you want to purchase to your local bank or credit union. If the financial institution approves the loan beforehand and gives you a letter that confirms that the loan is approved to a certain amount, you have more power to negotiate the deal. To a dealership, if you have the cash pre-arranged, they will work harder to meet your price because they know you are a serious buyer and will walk to the neighboring dealership and spend your money there if they get flakey.

Sometimes, however, you can get something called a CUDL (pronounced "cuddle" *grin*)--which is "Credit Union Direct Lending"... This method might be a good way to get the car because you may be able to get a decent simple interest rate and you could use it to bolster your credit score a bit if it is such that it needs bolstering.

Don't shop too many dealerships or banks--if possible, focus on one type of car and one dealership.

If you shop too many dealerships--you start getting too many inquiries on your credit... which, in turn screws up your credit rating for later use (such as if you are buying a house or getting some other kind of loan).

If you assure the salesperson that you want a quick and easy deal--that you've done your homework, you have the financing/funds already arranged, that you'd like to drive out that same day within the shortest time possible and you state a reasonable price you are willing to pay for the car based on the kbb/edmunds MSRP or vehicle-retail value rating--you can be surprised how fast the salesperson will move on helping you to get the car--a fast deal is always appreciated at a dealership. If you say you will stand firm--they will either move quickly or ask you to leave. If you leave, it's their loss. And... always be prepared to leave. Tell them that you will not put up with the "walk back to the 'sales manager' for approval dance back-and-forth" game.

Tell them, this is my offer.... take it or leave it. And yes, you may have to leave.

Of course, don't propose a preposterous discount on the vehicle--it can be enough to save yourself some money, but hey, if the car has value, the salesperson does deserve to make a decent commission on the deal.

When's the best time to buy a car? At the end of the month!--within 2 to 3 days from the end of the month, particularly if it's a weekday rather than a weekend. Dealerships reward their salespeople by giving bonuses to those who exceed a certain quota per month.

Some salespeople may be having a bad month in that they haven't met the minimum number of cars needed to even keep their jobs (I know--because I've been there!).

Sometimes even the dealership is having a bad month (gas prices, economic downturn, new competition, bad advertising, and so on).

So, when you go in to the dealership with the funding arranged and your research completed and the car is ON THE LOT READY TO GO... the salesperson and sometimes the dealership will almost do backflips and give substantial discounts and other goodies just to get that last car off the lot.

If the weather has been bad for the whole last week of the month (or the two to three days preceding the last day of the month--even better). Dealerships usually have fewer folks on the lot when there's snow, rain, fog, hurricanes, excessive heat, and so on.

So, they will be more inclined to help you move a car off their lot when you come in during or after that bad weather.