Advice On Buying A Used Car

[tryrrthg]

I am in the market for a used car. This will be my second car out of college. I leased a car 4 years ago and the lease is up soon. Since it's a royal piece of sh!t I figured I'd buy a used car to (just like in audio) get more for my money. I've been looking at certified pre-owned cars to get some kind of warranty.

My main concern is how do I know how much to ask off the price without getting laughed at? They have a sticker price but I sure as hell am not going to pay that! How much do you think I should offer off the price? The cars are in the $18,000-$24,000 range.

Any info or tips would be greatly appreciated!

Thanks!

[Early B.]

Is there a CarMax in your area? I've purchased my last two cars from them and they are wonderful. In fact, I ordered one of them on-line and they shipped it to me from a different state for free. First, there's no haggling. Second, they repair everything, put on new tires, paint it, and literally bring it back to as new as possible.

The most important thing about buying a car -- new or used -- is to be able to walk away from a car you really like. In other words, don't get emotional about the purchase. Otherwise, the salesmen will eat you alive. I suggest you first decide what you want, then do the research on-line such as www.edmunds.com to find out what you should pay. Alternatively, you can pick up a bluebook from your local bookstore.

In the meantime, get your own financing or pay cash if you're a rich SOB. Do not pay more than the blue book price and never haggle. Since you've done your research, tell the salesman what you're willing to pay. When he counter offers, decrease your original offer by $100, then tell him under no circumstances will you negotiate. Once he starts with his BS, then walk away. If they don't stop you, keep walking and go to another dealer.

I haven't tried it, but you can consider buying a car from an individual. You may be able to negotiate a better deal and get around paying taxes (7% in my area). Just gotta have the vehicle checked out by a mechanic you can trust and who will give you an estimate of repairs needed. Add that amount to the total price of the car and get those repairs done if you buy the car.

One more thing -- I would suggest you buy a used car that you pay off long before it reaches 100,000 miles. In other words, don't buy a used car with 60,000 miles with a 3-year note and you drive 20,000 miles per year. You do not want to be making payments on an old car that has over 100,000 miles on it.

Good luck. Show us some pics of what you get.

[goingganzo]

go to kbb.com they have blue book values on cars and if the price is way below the blue book it might be a lemon.

[danger boy]

With a car in the price range you are looking at.. i would think you could have them knock off a few grand and still be ok.

I do not enjoy buying cars from dealers.. but there are good buys out there. A few months ago i found a 2000 Plymouth Neon with only 22,000 miles on it. I was able to get them to only knock off $700 from the price.. but I felt that i still got a good deal.

I made sure I asked for everything I wanted before I signed anything. I usually ask for some small things they're willing to throw in for them to get me to sign on the dotted line.

Ask for a full tank of gas.. it may seem like a silly thing.. but most dealers will fill up the gas tank to get you to sign. With gas prices still pretty high.. this will save you a few bucks right off the top.

It's also a good idea to take a friend with you as well. I did, and made the whole process much easier. It's someone who can look at the deal objectively without any interest in the deal.

good luck.

[steveinaz]

Here's the quick, simplified low-down:

Look at wholesale bluebook and retail bluebook values and taking the cars condition into account, try to find a middle-ground. It boils down to what you are willing to pay. Don't get excited and don't be afraid to walk if they don't want to negotiate. This is prime used-car buying season, as the 2005's are rolling out in Sept/Oct and dealers need to clear some used vehicles off their lots--use this to your advantage, and always line up 2 or 3 different vehicles from different dealers, its a great bargaining tool.

DO NOT TALK MONTHLY PAYMENTS!!!!!!!! Talk "out-the-door" price. IT's way to easy for them to "hide" money when you talk monthly payments. Get your own financing. Your out the door price will include:

Price of the vehicle
Destination charges (if applicable)
Tax
Title/License

http://www.capitaloneautofinance.com

Do your homework and figure out everything ahead of time. Look at your states way of figuring title/license fees; figure your tax at a given maximum price you're willing to go, the whole 9 yards. Then talk only out the door price. Good luck!

[tryrrthg]

Thanks for all the info guys!

I've been looking at 2003 Honda Accords and 2001-2002 Saab 95 Aero's or SE's. Both are in the same price range (with the V6 accord) I think I'm going to have a hard time negotiating for the Honda because it's newer and they hold their value so well, they're going to sell no matter what. The Saab I've found is a 2001 98 Aero with 31.5k miles on it. It is certified pre-owned saab car so I get the remaining warranty from the Saab and the certified pre-owned warranty which is a 6 year 100,000 mile warranty from the car's original purchase date, so I'd have like 3 years of warranty left. Plus the car has been sitting at the dealer for almost 2 months (according to the Carfax that Saab provides for free). So I think I'd be able to deal on that one better. Blue book on that car is 23k trade in value is around 17k.

Any one ever owned a Saab? My cousin has the 95 Aero and they love it. It's a sweet car.

[fireshoes]

Like Steve said, get a car at another dealership that you can use against them. Just keep saying no. Walk on them a time or two.

[NCrewson]

Just my .02 from some one who works in the auto industry. Bluebook value is not always going to acurate for any given vehicle. In some areas vehicles sell for much higher or lower than book value because dealers usually take more into consideration what they would have to pay at an auction to buy an off lease vehicle. Thus depending on demand on a given unit the value can be thousands off book value. This can hard to discover but you can try phoning around (or better yet email) to other dealers to get a rough estimate of the trade value of the vehicle your intending to purchase. Since they know their competing with other dealers they will usually give you a fairly accurate number. Also though it does pay to check with your bank to see what interest you'll pay if you arrange your own financing you should use this as a tool in negotiating. If the dealer can get you the same or better then go through them. This will help them loosen up on the price as they usually get a fee from the bank for sending them business. And you can always go back to your original financing if need be.

[steveinaz]

Just remember, everyone has their bottom line. Dealers aren't in business to give away vehicles--so keep you expectations realistic, and know when to walk away. Look at your local market, whats in demand and whats not. As an example, Jeeps are absolutely astronomical here in southern Arizona; I can get the same vehicle, say in the midwest, probably about $3500 cheaper.

Another tip: NEVER EVER pay dealer prep. This is one of the biggest scams going in the auto industry. Dealers are already credited prep charges by the manufacturer.

[tryrrthg]

Thanks again everyone! Going to do some test driving this week. We will see how it goes.

Thanks!

[spyderman]

Honda is leasing Accords for $199. and Civics for $149.

Not a bad deal if the other numbers are good. I've always purchased outright, but at these numbers it's worth checking into.

Don't ever worry about getting laughed at. I've walked away from two cars because, after getting them as low as they'd go, I'd try for another $100 off and the dealer wouldn't budge.

The only thing I heard as I walked out the door was their lost sale.