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 4 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 3 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 1 hour ago by Watchful Sentinel