In about a month, I’ll be a new dad. And along with the crib and the baby clothes and the diapers, I may have to buy a new car. No, I’m not running out to buy a minivan; but I may replace my Toyota Tacoma; a pick-up truck isn’t the most practical (or safe) for a newborn in a car seat. So, I’ve got babies and car buying on the brain.
Which makes me wonder: What are your best car buying tricks? From my brief stint as a car salesman, here’s what I know:
Always do your homework. The internet’s full of car pricing information, so take advantage. At the very least, get competing price quotes online from a site like Edmunds. If you’re buying used, you may also want to spend a few dollars for a used vehicle report like those from AutoCheck®.
Negotiate your price via phone or e-mail. Do your test driving first. Leave the dealership. Call back the next day and negotiate a price over the phone. The dealer will hate you, but you’ll get the best price possible.
Consider buying used. Vehicles are not an investment. It’s an emotional thrill to buy a new car, but a used car is a far better value.
Finance wisely. If you have to borrow money for a new car, get a car loan the smart way. Put money down, and shop for rates! Check auto loan rates with your local bank or credit union before applying for credit at the dealership.
Avoid Trading In. Cream-puff or clunker; you can get more for your old car on the private market. Don’t be lazy, sell it yourself.
Skip the extras. In general, dealer extras like paint coating to warranties are not worth it. Save the cash for car washes and oil changes.
What about you? Have you successfully saved money buying a new or used vehicle? What are your best car buying tricks? Let me know!
I'm David Weliver. At 26, I had NO savings and NO financial plan. I was maxed out, stressed out, and fed up. Then, I changed. I repaid $80k of debt, tripled my income, and bought a home. I'll show you how to get similar results. 
Fax – If you buying new, google “Fax attack” or “Fighting Chance”. I have bought my last two vehicles via fax (faxing 20-25 dealers). Having worked in new/used car sales also, this is the BEST way to buy a new vehicle.
Why do minivans get such a bad rap? It’s the only way to roll with kids. I guess I’m less of a man for driving one.
Ha ha, I don’t have anything against minivans per se, Chris. And if we have more than one kid I’m sure we’ll have one someday. They’re more expensive than a basic sedan, however, so my thinking is to not get one until we really need one!
My wife and I “upgraded” to a minivan last fall, while awaiting the birth of our second child. We traded in an SUV, and we always buy used. The van has been a great deal, with better gas mileage than the SUV. I have an uncle that sells cars, and that has helped us tremendously, but I realize not everyone can be so lucky. My only other comment on selling on your own as opposed to trading in, you have to judge the market you live in and decide what your time is worth. If you have an old clunker, it might be worth finding a college student that will pay more than $500 for it, but if you have a car that is only a couple of years old, the difference might not be worth your time and energy. Good luck with the baby, they are more than worth the cost and lost sleep.
I’m sure you’ve all heard the sayings, “Buyer Beware” and “If it’s too good to be true, it usually is”!
My wife and I recently purchased a 1998 Dodge Durango V8 4WD from Freedom Toyota in Hamburg. I want to state upfront that this is a very clean and well preserved vehicle inside and out and well cared for by its previous owner. Of course, with 95,000 miles, we knew it would not include a warranty (so we thought).
I saw this vehicle on a Friday; the agent and I spoke, took it for a test drive, and negotiated a promising deal; but, I wanted my wife to see the vehicle before making a final decision. My wife and I viewed the carfax on line and came back Saturday morning, took it for another test drive, and at that point decided we would definitely purchase the vehicle. However, speaking with the same agent, the price was back to the original, not the negotiated price that he and I had agreed upon on Friday; and accordingly, he and his manager were not going to budge. My wife and I then walked away. By Monday morning, Freedom called with a counter offer and we accepted. To our surprise, the counter offer (still higher than the first) then included a 3 month/3,000 mile warranty on the engine, drive-train, and transmission. See, now there is where the “too good to be true deal” comes into play. At that point, we also were offered an extended warranty for an inflated dealer cost of $1,300, which of course, we declined). Freedom adds bonuses like their Lifetime Freedom Four:
Free Lifetime PA State Inspection
Free Lifetime loaner cars
Free Lifetime Pick-up and Delivery Service
Free Lifetime Car Cleanings
not only the vehicle you purchase from Freedom, but, all your current owned vehicles. What they don’t say is that the lifetime Free Inspections does not include free emission testing. Also, should your vehicle break down in transit, the owner will be charged a towing fee which in our case would have been $147.50.
Now, I’m the kind of guy who has only purchased 4 brand new cars in my life, and most assuredly, do not like to buy from a dealership. But, I felt really OK with this when we took our new used Durango home. Well, within 18 hours, the water pump was on its last leg. (OK, it’s expected with a used vehicle such as this.) So I called Freedom who advised me to just bring it in; (we live approx. 15 minutes away). On the way there it seized up, at which time, I called Freedom and waited over an hour for a tow truck. After service evaluation, the service manager informed me that the initial cost would come to $672.80, plus tax and, my portion would be $336.40 plus sales tax. “Whoaa” wait a minute, what about the 3 month warranty on the engine; a water pump definitely should be covered!!! “Wrong” I was told, a water pump is a ‘bold on’; thus, not part of the engine. “SINCE WHEN”??? Read the list of any engine component and it will tell you that a water pump is definitely a vital part (without it, you are not going anywhere!) Well, not according to Freedom Toyota. I guess the engine has to totally blow up to be covered!
OK, so you say you should have read the 3 month/3,000 warranty carefully as to what it includes and does not include. Well, we would have, if we could obtain one from Freedom Toyota. My wife and I asked several times to see such a document and were told they did not have the document available. We repeatedly asked “why not” and the comment was the same, “they just don’t have one”! Yet, they do not disclaim the 3 month/3,000 mile warranty and both the agent and service manager have stated over and over again the warranty does indeed exist – just that they cannot come up with said document! This is where “Buyer Beware” comes into play!
Also printed on their invoice is the following: “Labor Rate determined by time and type of repairs performed”. No set hourly rate? (Without saying more, our Durango will only be seeing our local reputable mechanic from now on and we will go back to avoiding dealerships at all cost)
Now it’s up to all of you to decide!
By the way, our daughter bought a new Suzuki from a Suzuki dealership with of course full warranty, two years ago. She has had her share of confrontations with them just about every time she brings it in for normal inspection; whereby, they have tried to include additional costs for unnecessary repairs. Of course she has had reputable second opinions and is wise to these scams.
I would just add to your always do your homework to check edmunds.com and http://www.truecar.com to find out the best prices cars are actually selling for in your area.