First time buyer... things to watch out for?

[datalink7]

Hi all,

I am getting ready to purchase my first car with a special auto loan program offered to ROTC Cadets. I have had a car, but it was a family hand me down so I didn't purchase it. This will be my first buy. I am heavily considering the 05 stang (top of my list).

What kind of things should I look out for? I haven't dealt with a car dealership before. I have been reading some online tips and guides which have been helpful, but I thought I'd ask here for some advice from people who have actually bought the car, instead of a general guide.

Are there huge markups on the stang currently that can't be negotiated? Is it possible to get it below MSRP?

Also, any general tips. Thanks for any advice

 

[Lipid_Sama]

Never say I dont know, never let them pick out anything, go in knowing what you want, and what you want to pay for it. the biggest thing, and most important to learn is, "BE ABLE TO WALK AWAY", if he says youd like this better, or you would rather have that option, get up and walk out, cause hes walking you like a dog. You can find GT"s all over now, just go to another lot, say this guy over here said this, can you beat it. that simply, Dealers arnt bright, also remember that, they are like 40 years old and work at a dead end job =P

 

[OSU05stangfan]

Lipid Sama gave some good tips. I work for Carmax, so this is spoken from the point of view of what the salesman looks for and things you should avoid. If you look kind of young, make it a point for the salesman to take you seriously. Have all of the information ahead of time, prices, options, etc. Go in and tell them i will not pay a dime more than X ($500 over invoice is about right)number of dollars, if they say that's impossible, tell them you know of many customers that have received that deal and you will go elsewhere. Do not let them feed you a story of your needs being unrealistic. Again, Do Not be afraid to walk!!! Don't let them add any $$ for window etching or any other fishy charges. And Get everything in writing.

Hope this helps

Good luck

 

[datalink7]

Lipid Sama gave some good tips. I work for Carmax, so this is spoken from the point of view of what the salesman looks for and things you should avoid. If you look kind of young, make it a point for the salesman to take you seriously. Have all of the information ahead of time, prices, options, etc. Go in and tell them i will not pay a dime more than X ($500 over invoice is about right)number of dollars, if they say that's impossible, tell them you know of many customers that have received that deal and you will go elsewhere. Do not let them feed you a story of your needs being unrealistic. Again, Do Not be afraid to walk!!! Don't let them add any $$ for window etching or any other fishy charges. And Get everything in writing.

Hope this helps

Good luck

Thanks. I know not all cars salesmen are crooks, just %90 of them


But seriously, I do know honest cars salesmen (have a cousin who is one). But I have heard plenty of bad stories to know that there are enough bad ones out there that you have to look out for them.

Btw... I have been asking for quotes online, and a dealer told me he has a v6 mustang for $25,874, and that price isn't negotiable. Hmm....

And I am young... 22 (though sometimes I think that is getting pretty old), so I'll remember to bring in my research/paperwork to prove I am serious (and I am... already got approved for a loan, I just have to wait till end of next week to get everything processed, and my current car is on its last leg).

So, you think I can get a GT for $500 over invoice? Because I can get it if it is that much. Otherwise I have to go with the v6.

Thanks for the tips guys Hopefully soon I will be a member of this forum because I actually own a mustang.

 

[OSU05stangfan]

i know it's possible for you to get $500 over invoice, that's the deal i got. If you want to wait 30 days before you take delivery, you might look into joining AQHA, $500 incentive. Another tip, you might try calling dealerships in rural areas, they tend to be more willing to negotiate.

 

[datalink7]

i know it's possible for you to get $500 over invoice, that's the deal i got. If you want to wait 30 days before you take delivery, you might look into joining AQHA, $500 incentive. Another tip, you might try calling dealerships in rural areas, they tend to be more willing to negotiate.

What is AQHA?

Oh, and it isn't a problem calling those in rural areas... I pretty much live in a rural area (I go to school at Oregon State University... Corvallis,OR population is about 50,000).

 

[LCGimp]

Wow I cant believe there is someone else here that goes to OSU. Nice. Sorry for being a bit off topic. Good luck finding your new car, and have fun with it.

 

[HotS197]

Stay in control

I just ordered the 05 GT, I called a few places in the town I'm from (I'm currently in Iraq) I got my price every time. I am getting it for $100 below invoice and know I could have done better. This is by ordering one. If your buying one off the lot it may be tougher to get this price. But I have the time to wait. Also, research the options you are going to get. Know what they are and if you need them. You can do that at fordDirect.com or many other online buying guide places.
Good Luck

 

[texgt]

Hey - I bet you're goin to like the 05 alot.
Buy the car the way it comes and the options it comes with.
DON'T LET THEM ADD ANYTHING TO THE PURCHASE.
No insurance.
No extended warranty.
No rental car insurance.
No after market add ons.
Just the car - the way it is.
And remember - It is negotiable - The PRICE AND the INTEREST rate.
Have fun.

 

[FallenPhoenix]

I've found it's better to try and get the good deals from large dealers that sell on volume. The small ones won't negotiate unless they're desperate, they're also less likely to let you walk out though.

 

[brohar]

When you say dont pay a dime over $500 over invoice I'm assuming that doesnt include tax, titles, and that stuff?

I was going to try to negotiate for about $400 over invoice and then once they agree I was going to hit them with the $400 college graduate discount.

If you graduated after may 2002 you can use this discount. Its only valid till the the end of this year though.

 

[datalink7]

When you say dont pay a dime over $500 over invoice I'm assuming that doesnt include tax, titles, and that stuff?

I was going to try to negotiate for about $400 over invoice and then once they agree I was going to hit them with the $400 college graduate discount.

If you graduated after may 2002 you can use this discount. Its only valid till the the end of this year though.

I graduate June of next year.

Thanks for the input guys

 

[cobrahandler]

All this is good advice. I've been buying cars since 1972 and the thing I've learned is to negotiate with your head..not your heart..(lust for the car).

Go on line..edmunds is a good place..and get the invoice amount for the car that you want. add in the stuff like destination, taxes, title and tags.etc. and get a final and absolute cost of the car.

Then, negotiate from that price up..not MSRP down.

Like the others have said..be willing to walk away and don't ever show any emotion. Car dealers are like everything else. There's always something better if you look for it.

If you have time, just order the exact car you want. Dealers will negotiate better on those deals since they don't have to face a car on the lot. It's a sure sale.

 

[351CJ]

the biggest thing, and most important to learn is, "BE ABLE TO WALK AWAY",

This is excellent advice.

My advice is BEFORE you go in to buy your car, figure out EXACTLY what car and options you want AND find out what invoice price is. NEVER tell the salesman you want that car, always leave yourself an escape. For example tell them the Mustang is cool, but you've pretty much decided on a different car from another manufacturer.

DO NOT buy ANY dealer add ons, paint sealant, undercoating, dealer installed options. All this junk is worthless and is just a trick to bump up the dealer's profit.

 

[351CJ]

I've found it's better to try and get the good deals from large dealers that sell on volume. The small ones won't negotiate unless they're desperate, they're also less likely to let you walk out though.

I've had exactly the opposite experience. The big dealers advertse a great price, but you can never get a great deal out of them. They have a very slick system worked out to sucker you into all kinds of extra charges and high priced worthless dealer installed options.

I have found the small Ford dealer that has been owed by the same family for the last 50+ years to be a much better and more honest place to do business with.

There is an article on Edumds.com by someone who got a couple jobs at dealers as a salesman. It is great reading and will tell you how the mega dealers try to hussle their customers.

 

[ShelbyMan]

What is AQHA?

Oh, and it isn't a problem calling those in rural areas... I pretty much live in a rural area (I go to school at Oregon State University... Corvallis,OR population is about 50,000).

AQHA
http://www.aqha.com/partners/index.html
I rec'd a quote for a net of $300 over Dealer Invoice with holdback and no X type plans. I have not ordered yet because I don't know if I am willing to put up a 1k non-refundable deposit. Money isn't the issue with the deposit, it is the "non-refundable" part.

Yes, try edmonds.com to see the dealer invoice and MSRP for your options
Here is a payment calculator for your car
http://www.machaikford.com/Default.aspx?page=finance-calculator

 

[datalink7]

Went and test drove the V6 Today (the dealer gets the GT next week).

It was a pretty nice ride. I was going 100mph and it felt real smooth. However, I think I'd like more power so we shall see how the GT feels.

I saw why the V6 was $25k. They had a $2k "dealers" markup for "limited availability" or something. The rest comes because it was fully loaded (had just about every option... which (without the $2k markup) puts it at about MSRP).

 

[RaiderSilverGT]

Have your bank or credit union pre-approve your loan so you know what interest rate you have going in. The dealer will try to beat it. If he does, great, if not, you keep your financing.

Use the calculators on the Edmonds site to figure your payment based on what you're going to put down and what you're going to fincance.

Call your insurance company. Find out what it's going to cost. You might be suprised about the GT rate. My insurance company rates the GT as a "high performance/high risk" car. I agree that it's high performance....

I disagree about not getting an extended warranty (previous post). Ford offers 3 yrs, 36,000 miles, which will fly by in a heartbeat. The extended warranty is negotiable too! (Everything is negotiable) You can also buy aftermarket warranties from your bank or credit union.

Most of all, enjoy the experience. Email dealers and call dealers with what you're looking for and what you're willing to pay. Those who want your business will respond.

 

[datalink7]

I have already been approved financing through my bank, and I think that it will be pretty much impossible for a dealer to beat (3.5%, and I don't have to start paying it (and it doesn't incure interest) untill June of next year)).

Thanks again for the replies I'll try to keep you posted on how it goes.

 

[logixrat]

Always remember you are the guy with the money; therefore, the one w/ the power. Too many times dealers think THEY have the power. They simply provide a service. And there are lots of other dealers if the one you are talking to won't bend over backwards to make you happy. I live nearby the Tulsa area and have made myself willing to travel to OKC, Ft. Smith, Dallas, etc. to get the right price. I even call around and check prices in different states before dealing with the local dealers. Then I tell them I will drive 4 hours to save X amount of dollars if they don't want my money. Usually they cave in to my desires.

I think you are wise to get pre-approved. I love to walk in and know exactly what I want. Once I find it, I tell them I will pay X amount and give them cash that day. No financing, just cash. You can almost see the dollar signs light up in there eyes. But every once in awhile you get the stubborn dealer that wants to you to use his finance company. I simply say "no thanks, and if you ask again then me and my money goes elsewhere".

And yes, drop the $400 school credit on them AFTER you negotiate to the low dollar. That should be an incentive direct from FORD vs. the dealer, so it should have no real effect on them.