Car Buying Tips (United States)

[Watchful Sentinel]

Hello, everyone. If you’ve lived in the U.S. and have bought cars from dealerships, you know it's a very stressful mind game. If you don't play your cards right, you could get taken advantage of and end up spending thousands more than you need to. In the U.S., two people can buy the same model car on the same day, and the price difference between the two purchases can be thousands of dollars. 

 

I have a lot of experience buying new and used cars. I've bought from both private sellers and dealerships, and can offer advice on both. I was taken advantage of when I was younger, and I wish someone had shared their wisdom with me and explained how to buy a car. I don't want any of my brothers and sisters taken advantage of, so I decided to start this thread so we can share car-buying tips and help each other out. 

 

I will also be posting videos from former finance managers with decades of experience, as well as from car salespeople offering tips on the car-buying process. Some of the tips may or may not be applicable in other countries. Enjoy.

[Watchful Sentinel]

Tip #1

 

The best thing you can do before buying a car is pray. Ask Jehovah to help you find a reliable car for a good price. Ask him to help you find one that is not only suitable for your daily needs but also for the ministry, if you’ll be using it for that purpose. If you’re buying a new car, pray that you will be able to get one for a good or reasonable price. Also pray that the process be as stress free as possible.

 

Never underestimate the power of prayer when buying a car. I've seen Jehovah’s hand so many times when I’ve bought cars. There was one time I even prayed to get a car for a certain price before I went to the dealership and got it for that exact dollar amount. 

[Tortuga]

Have you used CarMax?

[Watchful Sentinel]

Tip #2 

 

Never get emotionally attached or let your emotions take over when buying a car. Car buying can be an emotional experience, especially if you’re buying a car you really love or is “your dream car.” But never show salespeople you love the car. Keep a “poker face.” Car salespeople are trained to get you to test drive the car as soon as possible. They know all too well the powerful effect of “the desire of the eyes.” They want you to see the car, smell it, drive it, and fall in love with it. They know once you’ve fallen in love with it, your logic goes out the window, and they know you are more likely to be manipulated and overpay for it.

 

Never tell a car salesperson you love a car, and certainly never tell them it's your “dream car.” That's one of the worst things you could ever say. Sometimes, if they can't read you, they will ask you questions after the test drive like, “Are you excited?!” Never give them the answer they are looking for. Instead say something like, ‘I like it, but the out the door price will determine if I buy it or not,’ if that hasn't already been determined.

[Watchful Sentinel]

10 minutes ago, Tortuga said:

Have you used CarMax?

Only to get my car's value to show a dealer for trade-in leverage. I only buy new cars. I've given up on used cars years ago because I've had many of them and they all turned out to be lemons. Plus, I’m so particular about maintenance that I don't like to buy used cars because most people don't maintain them as good as I do.

[Watchful Sentinel]

 

[Watchful Sentinel]

 

[Watchful Sentinel]

 

Edited 22 hours ago by Watchful Sentinel

[Watchful Sentinel]

 

[Watchful Sentinel]

Tip #3

They say cash is king, but when it comes to buying new cars, it isn't, or at least the dealers don't see it that way. They hate cash buyers because they make little profit on car sales compared to financing (Now, I'm all for being debt-free and actually owning your car, not the bank or the manufacturer). Because of this, NEVER tell the dealership you’re paying cash. Because when you do, the price of the car just shot up because now they know they can't make money off of financing, and you’re less likely to purchase things like bumper-to-bumper warranties, wheel-and-tire packages, etc., so they will try to make as much money off the car's price.

 

Car salespeople will ask how you’re paying for the car to try to figure out how to structure their deal. In the past, I thought I was being smart by telling the salesman that I didn't want to disclose how I was paying for the car until we agreed to an OTD price. But all that ever did was drive up the car's price because they suspected I was going to pay cash, and ended up wasting my time. To make things easier and simpler, now I just tell them I'm financing. That way, I get the best deal, I can pay the car off a week or two later once the payment option is set up, and only pay a few dollars in interest, and the slimy dealership doesn't get a kickback. To pay as little interest as possible, I put down as much as I can, except the minimum allowed to finance, and then pay the car off a week later. I also put as much down as the dealer will allow with a cashback credit card, without charging a fee (usually about $3,000 or $3,500), and pay it back before the due date. That way I can earn cash back, so I basically pay myself back for the little interest I will pay, plus some. I'm not encouraging anyone to get a credit card, and please don't spend money on one you can't pay back before the due date. But if you already have a cashback credit card and use it responsibly, you can use it to your advantage. If you decide to go this route, be sure to ask whether there's a prepayment penalty for paying off the car early. If there is, don't finance it if you want to pay it off early.

 

If you don't want to be in debt, even for a week, I get it. I don't like it either. But know, if you pay cash, you will more than likely overpay for it. But do your research on what people are paying for the car you want in your market, and negotiate a better deal. Knowing the invoice price helps, too.

Edited 22 hours ago by Watchful Sentinel

[Dustparticle]

I got my car before it got on sale. Good pricing, etc.

[Watchful Sentinel]

Tip #4 (For new car purchases)

 

It's best to do all your negotiating via email or text. Going to the dealership in person may seem beneficial because it shows that you are serious, but it really isn't. That's the old way of doing things. Been there, done that.

 

Once you walk into the dealership, you lose leverage. Many dealerships will deliberately waste time, going back and forth between the salesman and the finance manager. This is a tactic to wear you down emotionally. They know once hours have gone by, you are tired, hungry, ready to leave, and are more agreeable to sign for an inflated price, dealer add-ons, or warranties.

 

Plus, dealers know that people are naturally time-conscious. If you’ve been there for hours, it's easy to reason to oneself, ‘I've already been here for 4 hours. I can't leave with nothing. They are closed tomorrow, and I'll have to wait until next weekend to have time to shop again.’ You’ll avoid all that wasted time and frustration by contacting them electronically.

 

They may want to call you after contacting them. I personally tell them I’d rather communicate via email or text, and I'll call only once we agree on an out-the-door number. Car salespeople are highly intelligent and know how to ask the right questions to trip you up and use your answers against you. They practice closing deals every day. You may do it once every 5 to 7 years. By communicating through email, you can think carefully about your responses and avoid giving them the opportunity to trip you up or pressure you to come in. It also incentivizes them to give you a reason to come in by offering a good price.

 

Make sure you get an OTD number in writing, or even better, a buyer's order. If they are not transparent and won't give you a number, you may want to contact someone else.

 

If you haven't test-driven the model car you want yet, it may be best to do so before you start contacting dealerships. Try not to negotiate in person on the same day if you can wait. They will most likely have you there for hours, playing the time-wasting game.

 

It's okay, and actually better, to negotiate prices for used cars in person. You don't know the car's true condition until you see it in person. Dealers know that as well, so they often won't negotiate on a car until you’ve seen it in person.

Edited 20 hours ago by Watchful Sentinel

[Ishaya]

Im not sure if I can ask this here,but I've been thinking of getting into car sales.Can you share tips also on how to start up on this,if it's okay with you.

[dljbsp]

6 hours ago, Watchful Sentinel said:

They say cash is king, but when it comes to buying new cars, it isn't, or at least the dealers don't see it that way

 

One additional point worth mentioning is that there are actually two different "cash" issues that often get lumped together.

 

One is profitability. Dealerships often earn additional income when a buyer finances through them, so a financed deal can be more valuable to the dealership than a purchase made without dealer financing.

 

The other is compliance. My daughter's boyfriend is a sales manager for Toyota, and he explained that transactions involving large amounts of actual currency can create anti-money-laundering reporting requirements and additional paperwork. So when some dealership employees are less enthusiastic about a "cash deal," it isn't always just about profit.

 

It's also worth distinguishing between paying with actual cash (currency) and buying without financing. Those are not the same thing. A cashier's check, bank wire, or personal check is often referred to as a "cash purchase," even though no currency changes hands.

 

So both explanations can be correct, depending on what type of "cash" we're talking about.

[Watchful Sentinel]

4 hours ago, dljbsp said:

 

One additional point worth mentioning is that there are actually two different "cash" issues that often get lumped together.

 

One is profitability. Dealerships often earn additional income when a buyer finances through them, so a financed deal can be more valuable to the dealership than a purchase made without dealer financing.

 

The other is compliance. My daughter's boyfriend is a sales manager for Toyota, and he explained that transactions involving large amounts of actual currency can create anti-money-laundering reporting requirements and additional paperwork. So when some dealership employees are less enthusiastic about a "cash deal," it isn't always just about profit.

 

It's also worth distinguishing between paying with actual cash (currency) and buying without financing. Those are not the same thing. A cashier's check, bank wire, or personal check is often referred to as a "cash purchase," even though no currency changes hands.

 

So both explanations can be correct, depending on what type of "cash" we're talking about.

I am aware of everything you mentioned, including the different types of “cash” purchases, since I've bought cars cash different ways. The point I was making was paying in full (Whether using actual currency, cashiers check, bank wire or personal check) is frowned upon as opposed to financing by dealerships. I wasn’t concerned with getting into the specifics of various forms of cash payments.

[Qapla]

Another tip is not to mention or discuss a trade-in until the OTD price has been established. That way you will be offered what they really think your car is worth instead of them building an inflated used car price into the cost of your new car purchase.

 

Likewise, rolling over you existing loan into the new one only builds negative equity into your new car purchase.

 

[Watchful Sentinel]

7 hours ago, Ishaya said:

Im not sure if I can ask this here,but I've been thinking of getting into car sales.Can you share tips also on how to start up on this,if it's okay with you.

Sure. I’ve never sold cars, but I was offered a sales job when I was 22 that I worked for a little while. I’ve have had several family members who sold cars, so all I can do is offer my opinion of the pros and cons of being in the retail car business based on what they told me and what I know about it. I’ll send you a personal message tomorrow when I have more time.

[Watchful Sentinel]

Speaking of trade-ins, a former finance manager on YouTube said to always fill the gas tank to full before bringing the car you’re trading in to get appraised. That sounds counterintuitive, but the finance manager will look at your gas meter, and if it's close to empty, he'll conclude you’ve already made up your mind to trade it in and offer you less for it.

Also, wash it. Don't bring it in dirty. You want them to see your car in its best possible condition and eliminate as many reasons as possible to lowball you.

[Qapla]

If you are dealing on-line, by email or text (like was mentioned earlier), how much gas a car has or how clean it is, doesn't matter. Do research first and know what your trade-in is worth before you deal with the salespeople. You can negotiate an equitable price for your trade-in if you know what it is worth and what you want for it.

Edited 10 hours ago by Qapla

[Watchful Sentinel]

7 hours ago, Qapla said:

If you are dealing online, by email, or text (as mentioned earlier), how much gas a car has or how clean it is doesn't matter. Do research first and know what your trade-in is worth before you deal with the salespeople. You can negotiate an equitable price for your trade-in if you know what it is worth and what you want for it.

I wasn't trying to contradict or one-up your comment, if that's what you were thinking. I was simply adding to or complementing it. You can email and text to inquire about a car without ever mentioning a trade-in, and bring your car in for them to appraise without ever bringing it up. That's what I did. I cleaned my car, filled up the tank and had screenshots of offers from Carmax and the Kelly Blue Book value.  

[Tia]

20 hours ago, Watchful Sentinel said:

 

I have been listening to him for years...and I like Scotty  as well...very knowledgeable 

[Watchful Sentinel]

7 minutes ago, Tia said:

I have been listening to him for years...and I like Scotty  as well...very knowledgeable 

Yes, me too. The dad is funny, and they make a good duo. Another good one is The Car Guy Chronicles With Zac. He's not humorous like they are, but he's been a finance manager for about 30 years and offers really good advice. 

 

If you’re talking about Scotty Kilmer, I like him too. His laugh and picture edits are hilarious.

[Watchful Sentinel]

Along those same lines, if anyone has a Toyota/Lexus, The Car Care Nut is the best YouTube channel to check out IMO. He worked as a master Toyota/Lexus diagnostic technician for 10 years or more and now operates an independent mechanic shop specializing in Toyota/Lexus repairs. He gives very good advice on how to take care of these cars and seems to value honesty. He also seems to do honest reviews of Toyota/Lexus vehicles.

[Qapla]

1 hour ago, Watchful Sentinel said:

That's what I did.

 

I, too, was merely commenting on what we did. Some time back, my daughter went to the dealership to see about getting a new car. At the time, she had a car that fit into the 'sporty car' category. She cleaned and vacuumed it before we went. The deal they offered, while good, was not what she expected when they allowed for her trade-in. She was about to walk out when the salesman tried one more thing. He took the manager of the dealership to see and ride in her car. When the manager saw the excellent condition her car was in, they raised their trade-in amount to a more realistic amount. She made the deal.

 

It fit what you said, cleaning the car helped in that situation.

 

Since we had gotten such a good deal, my wife wondered what kind of deal she could get. I called the same salesman, and we negotiated a deal via the phone and email. She had a car that had issues. I told the salesman what we had, and he offered a trade-in amount for well above what we could have gotten for the car if we had tried to sell it. We knew and they knew the trade-in was not worth the amount they were offering. My wife worried about the car and insisted on washing it and vacuuming it before we went to the dealer. She was afraid when they saw her car they would want to change the deal. When we got there, they had all the paperwork ready. We went straight to the salesman's desk, and he started with the paperwork she needed to sign. The price was as negotiated - nothing had changed. When we asked if they wanted to look at the trade-in he said they didn't need to - that the trade-in was going straight to the auction 'as-is'. In fact, they had already moved her tag to the new car. My wife still has that new car ... of course, it is no longer a new car, and it paid-off.

 

The difference was, they wanted to sell my daughter's car for a good profit - which they did in less than two days and got way more than they allowed her. They knew they would not get the allowed amount for my wife's car and had made a deal accordingly ... so they didn't care if the car was clean or had gas. They absorbed the 'loss' since they had made two sales to the same family and made a cumulative profit they were happy with.