Comments on: How-to Buy a Car– What You Need to Know so You Don’t Get Ripped Off

By: Budgeting in the Fun Stuff

Budgeting in the Fun Stuff — Tue, 16 Mar 2010 21:00:13 +0000

You can save off of GAP from the dealers too…just know what you’re willing to pay up front.

For my Chevy Aveo, the dealership quoted me $300 total for GAP. I said they were nuts and it immediately went down to $140 (which was better than the $160 I found elsewhere). I paid my car off in 2 years instead of 5 and was refunded $80 as well (you have to go back to the dealership and file for the refund, but I thought it was worth it).

By: FinanceDad

FinanceDad — Tue, 16 Mar 2010 19:23:49 +0000

Don’t buy GAP insurance from a dealer! Buy it from a credit union or similar and save several hundred dollars!

By: Craig/FFB

Craig/FFB — Mon, 15 Mar 2010 20:51:15 +0000

I swear by Edmunds and Consumer Reports. Look up the invoices prices as well as what the car is going for in your area. Get pre-approved for a loan before hand and have an interest rate for the manager to beat. My first car the finance manager offer my something in the 6 range. I showed him my pre-approval in the 4 range. He came back with 3.6%.

Watch out for alarms!! Its the last part of the deal and where the finance manager has a last chance to make up commission/profit. Odds are you don’t need what they offer. They may very well try to scare you into getting an alarm you do not need.

By: Budgeting in the Fun Stuff

Budgeting in the Fun Stuff — Sun, 14 Mar 2010 22:34:33 +0000

Hey, I’d be happy with a $1800 car that works! Thanks for the info!

By: myfinancialobjectives

myfinancialobjectives — Sun, 14 Mar 2010 22:08:51 +0000

Well about 6 months ago I got a 1999 Ford Contour for $1100, had to put $700 into it, and works great! 47,000 miles, runs fine, was a USPS car back in the day. I know it’s nothing special, but I’m paying off DEBT!

Don’t let my purchase fool you, there are MANY cars/trucks/SUVs to choose from. You would be surprised what they have at the government auctions. Last time I was there they had some NICE mustangs, REALLY nice Caddys, all kinds of SUVs, all kinds of other cars, there is so much! the lot is huge, there are thousands of cars to choose from.

By: Budgeting in the Fun Stuff

Budgeting in the Fun Stuff — Sun, 14 Mar 2010 16:08:53 +0000

@BibleDebt
In my experience, you have two options with cash:

1) Offer exactly what you want to pay. Period. They can either take it or leave it. That’s the way I’d work it with cash.
2) Do not tell them you will be paying in cash until the deal is SOLID. They will negotiate better if they think financing is in the mix since that makes them thousands of dollars usually. Remember, these guys work on commission and they’ll get paid in the next two weeks even if you’ll be paying for the next 5 years. I have no patience and this feels a little too sneaky for me, but it has worked for quite a few people that I know.

Hope this helps!

By: BibleDebt

BibleDebt — Sun, 14 Mar 2010 02:58:46 +0000

Does offering cash for the car help in negotiating the price of a car these days? I would think if you had enough to buy the car with cash today, you would get a better deal. Although a lot of money is made by financing the car. Does anyone have any insight into what would be better?

By: Budgeting in the Fun Stuff

Budgeting in the Fun Stuff — Sat, 13 Mar 2010 16:19:06 +0000

I will check one out…that sounds neat. Can you give us an idea of how much good cars usually go for? Does it save money from buying used directly from owners (like on Craigslist)? I’ll be in the market in 2-3 years, so this sounds kind of awesome!

By: myfinancialobjectives

myfinancialobjectives — Sat, 13 Mar 2010 12:44:27 +0000

Budget, he is a friend of the family who also just happens to have his dealer’s license. I don’t know how one would go about looking for a person just to do that for them, sorry!

As far as making sure the car is not a lemon, that’s all up to the dealer, and a risk you have to be willing to take. At the auctions you are allowed to start the cars up, check everything you want, and they all have lists of whats wrong with them, if anything. My friend or I will always pick something with low miles, and cars with things that are either easy fixes, or no fixes at all!

Before the auction actually starts, there are hundreds of people just (including myself) just in the massive parking lot taking notes on which cars they like, starting them up, keeping note of which cars they will want to bid on when the time comes. It’s actually a really fun experience!

Check out a government auction, you can get PLENTY of GREAT cars from those! My current and previous cars were govy’s, as are both of my siblings!

By: Budgeting in the Fun Stuff

Budgeting in the Fun Stuff — Sat, 13 Mar 2010 06:33:12 +0000

@myfinancial,
How would someone else be able to find a person for that? How do you make sure the car isn’t a lemon? I love the idea if it works that well!!!