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It's interesting that you mentioned your prices in monthly payments, rather than the pre-financed total. What precisely were you negotiating? This article has
by mrkurt 17y ago
It's interesting that you mentioned your prices in monthly payments, rather than the pre-financed total. What precisely were you negotiating?
This article has a fascinating discussion of the "4 square sheet" that dealers use to fudge negotiations. Two of the squares are price and financing (included in your monthly amount), and the others are trade in and warranty. People generally get a better deal if they're negotiating solely on price:
http://www.edmunds.com/advice/buying/articles/42962/article.html http://www.edmunds.com/advice/buying/articles/42962/article....
- dolinsky 17y agoThank you for that link. One of the most informative reads of my life, and timely too. My lease runs out in a few months, and now I feel sorry for any dealership that I walk into.
- krschultz 17y agoI was negotiating the total price of the car. I guess the missing bit of information is the term (both prices were the same) and the amount down (both were $0). That wouldn't always be the case if the dealer is trying to pull a fast one on you by giving you a lower monthly payment but a higher total payment. I made sure to match apples to apples. I assume most people reading this website would realize the possible bait and switch. On the 4 variables. I can see their point but I never get into that stuff. My experience has been that you can usually sell the car yourself for more than trade in value, and these days with craigslist and ebay its not very difficult. I've sold 2 cars this year and you know bad the economy is. I also don't really finance. I guess I will have to in the future but so far I've been able to buy all my cars cash. I buy most coming off a lease 2-3 years old. And I definitely never buy an extended warranty or dealer warranty. The dealer I bought that car from is gone now and its only 4 years later, the manufacturer's standard warranty is all that matters.
- mrkurt 17y agoExtended warranties are fantastic if you get them from the manufacturer. I would recommend looking into those if you're ever shopping for a used car that's at or near the end of standard warranty. Extended warranties that aren't backed by the manufacture aren't worth the money. The dealership going out of business isn't really relevant, though, as those warranties are "owned" and serviced by a third party warranty company.
- ryanwaggoner 17y agoI was negotiating the total price of the car. I guess the missing bit of information is the term (both prices were the same) and the amount down (both were $0)....I also don't really finance. Huh? If you don't finance and both of the cars were the same price, how does the difference in term mean anything?
- krschultz 17y agoSorry, what I meant to say was that the term was constant across both, and the monthly payment varied. So you can compare the monthly payments as a proportional representation of the total price. Where as the other commenter implied I got hoodwinked when the dealer lowered my monthly payment by lengthening the term.
- mrkurt 17y agoOh, I wasn't trying to imply that. I was just curious how you'd negotiated. People often "lose" when they're negotiating a monthly price versus walking into a dealership having already shopped for financing, and then negotiating a cash purchase price. That said, if you pay cash for cars, I really don't understand the monthly prices in all of your posts. It just adds confusion.
- ZeroGravitas 17y agoYou should sumbit that link on its own. An insightful look into a dying business model, built on complete disrespect for the customer, and being replaced by internet based businesses that provide better service and lower prices.