5 ms·

The best way to buy cars is option out exactly what you want and get the invoice price. Personally I've used carsdirect. Now with invoice price in mind, send e

by bnejad 12y ago

The best way to buy cars is option out exactly what you want and get the invoice price. Personally I've used carsdirect. Now with invoice price in mind, send emails to all dealers in your area. Simply explain you want X car @ X price and that you are emailing many dealers and will move forward with the dealer that has the best deal. Its important that you compare cars across dealers by the difference from invoice price as small options will change the price of the car slightly. As you get quotes, you can forward those to other dealers if they have the specific color you want, etc. Once you lock in a price, take care of financing through your local credit union. Show up to dealer, decline all warranties/addons, sign the papers making sure price is the same you agree, and off you go. Just did this about a month ago and it worked out great. Remember to calculate exactly how much DMV fees will be(usually around 2-3 hundred dollars) which will likely be on top of the price you negotiated unless you specify otherwise. Don't tell them you have a trade in until you show up at the dealer to buy. Then you can negotiate the trade in value without them trying to move numbers around with the car price. I like this approach because there is zero advantage to negotiating the car price in person. Via email you can take your time to research and also field many more offers and quotes than you would ever be able to if you visited each dealer physically.

AtmaScout 12y ago
As someone who is likely to need a car soon, thanks so much for posting this. I've heard others state that the trade in needs to be separate.
- marincounty 12y ago
  Don't even bother to trade it in. Just sell it private party. I have always been shocked to see what dealerships offer for a trade-in. It's money. I have given cars to relatives, or friends rather than accept their low ball offers.
- ScottBurson 12y ago
  The recommendation I've heard is not just to keep the trade-in separate, but to take it to at least three dealers and take the highest quote. (I haven't tried this myself.)
15155 12y ago
Or just use Costco Auto, and get invoice, sub a hundred or a few hundred (depending on mfg).
- bnejad 12y ago
  I don't have any experience with Costco Auto but knowing Costco it's probably a good program.
mayukh 12y ago
Also once you've narrowed the list of dealers. Make sure that the dealer actually has the car in question. Ask for the vin number. I've had the unfortunate experience of them trying a bait and switch once.
iolothebard 12y ago
You're missing a huge part. Get an insurance quote for what it will run you every 6 months. You can also get a tag, title and tax quote as well. Also 200-300 for DMV is for a $2000 car in CA or a $6000 car in OK. $200-300 sounds extraordinarily low based on my purchases in both the midwest (MO, TX, OK) and west coast (CA 10%+).
- bnejad 12y ago
  I paid $273(or close, don't have paperwork on me) for a 30k car. 2015 Subaru WRX. Oregon. Yes, insurance is important.
- dntrkv 12y ago
  When you buy from a dealership, you pay the taxes to them. If you are buying a used car from another person, you pay the taxes at the DMV. The $200-300 is just registration + any fees.
  - iolothebard 12y ago
    Depends on the state. In CA yes you do. In OK/TX/MO I never paid the dealer.
mikeash 12y ago
The best way to buy a car is from Tesla. Configure your car exactly as you want it online. See the exact price you will pay. When you're ready, click the button and put down a deposit using a credit card on their web site. When the car is delivered, pay the balance with an ACH transfer. Drive it home. You certainly can do well with traditional dealers if you're prepared. It's just crazy that you even have to worry about it.
- killface 12y ago
  I genuinely prefer the no-haggle car sales process. It's ridiculous that some people pay hundreds or thousands more than others for these cars.
- bnejad 12y ago
  Most people can't afford a Tesla... so thats a moot point.
  - mikeash 12y ago
    I disagree. It's an existence proof that there is a better way, and demonstrates that dealers are blocking our ability to access that better way. Not long ago, one could have argued that the dealership model was the best you could do. Now it's impossible to argue that, since the best car-buying experience out there doesn't involve dealers.
    - bnejad 12y ago
      Thanks for the downvote I guess? I said it was a moot point because you said just go buy a Tesla! Which most people can't afford or want to spend on a car. I'm not in love with the dealership model but its not a choice for 99% of buyers.
      - Natsu 12y ago
        I have no idea who downvoted you, but just for the record, on HN, it's not possible to downvote any post that is a reply to you.
r00fus 12y ago
What you're describing is (or used to be) called fax-blast car buying [1], and the best move once you've firmed your decision on exactly what you want is to contact the fleet sales managers with either a quote request, or an offer to buy - repeating the offer process until you stabilize on a overall discounted price. In my case, I worked with 3 dealerships (one where I test drove the vehicle and 2 other fleet managers. I ended up going with the original dealer because I had more rapport, he was flexible on pricing and agreed to complete the paperwork and hand over the keys at our house (we had newborns) - I had no idea this was even possible, and was a nice completion to the purchase experience. [1] http://www.edmunds.com/car-buying/blast-fax-car-buying.html http://www.edmunds.com/car-buying/blast-fax-car-buying.html
- bnejad 12y ago
  Sounds about right! And very cool about them coming to your house - nice of the dealer to do that.
- faster 12y ago
  My sister bought a car last summer. She started with a fax-blast site, then scheduled a test drive with the dealer with the best price. The night before, she called a fleet broker one of her friends suggested. He sent a price that was about $120 less than the dealer's, and promised to deliver the car to her door with a full tank of gas. The dealer refused to skip the 2 hours of paperwork ("It's required by the state" he said) and said the fleet broker was a scam. She left, called the fleet broker on the way home, and had her car the next day. The paperwork took 5 minutes, standing at her front door. I have always wanted to take a cashier's check to a dealership and tell them "that car, this check, keys in my hand in 15 minutes or I leave." But I think I'll skip that show, entertaining as it might be, and use a fleet broker.
killface 12y ago
This may have worked where you live, but all the dealerships here are refusing to play that game. They'll all give you a form letter "come in and talk with us" message. Apparently cost-plus isn't that appealing to them, and they'd rather lose the sale and wait for a higher-margin purchaser.
- bnejad 12y ago
  Some tried that, I told them I was busy and didn't have the time to visit dealers. I never indicated I was desperate to get a car RIGHT NOW. Play it cool and all the power is in your hands imo.
chaostheory 12y ago
> The best way to buy cars is option out exactly what you want and get the invoice price. The problem is that you can't get exactly what car you want (all the options, color, etc...). Why? Because you're only limited to what dealers have in stock. You can't even wait a few months for what you. It's just not an option for most cars aside from Tesla.
- digikata 12y ago
  I've found that dealers will trade cars with other dealers to the get what is wanted, but they'll try push back on the buyer to avoid having to do that. If it's out of stock in the region - then you have a harder situation...
  - chaostheory 12y ago
    It's still not exactly what people want in terms of exact options and color: no less and no more. There are people willing to wait.
ams6110 12y ago
Really the best thing to do is buy a used car from a private seller. You'll save the bulk of the depreciation which happens in the first couple of years. A contemporary used car that's two or three years or even 5 years old is still going to be very reliable and have a lot of life left. Insurance and probably registration will be much cheaper as well. I own three cars, the newest is is a 2004 and they are all extremely dependable.

by bnejad 12y ago

AtmaScout 12y ago

As someone who is likely to need a car soon, thanks so much for posting this. I've heard others state that the trade in needs to be separate.

marincounty 12y ago
Don't even bother to trade it in. Just sell it private party. I have always been shocked to see what dealerships offer for a trade-in. It's money. I have given cars to relatives, or friends rather than accept their low ball offers.
ScottBurson 12y ago
The recommendation I've heard is not just to keep the trade-in separate, but to take it to at least three dealers and take the highest quote. (I haven't tried this myself.)

15155 12y ago

Or just use Costco Auto, and get invoice, sub a hundred or a few hundred (depending on mfg).

bnejad 12y ago
I don't have any experience with Costco Auto but knowing Costco it's probably a good program.

mayukh 12y ago

Also once you've narrowed the list of dealers. Make sure that the dealer actually has the car in question. Ask for the vin number. I've had the unfortunate experience of them trying a bait and switch once.

iolothebard 12y ago

You're missing a huge part. Get an insurance quote for what it will run you every 6 months. You can also get a tag, title and tax quote as well. Also 200-300 for DMV is for a $2000 car in CA or a $6000 car in OK. $200-300 sounds extraordinarily low based on my purchases in both the midwest (MO, TX, OK) and west coast (CA 10%+).

bnejad 12y ago
I paid $273(or close, don't have paperwork on me) for a 30k car. 2015 Subaru WRX. Oregon. Yes, insurance is important.
dntrkv 12y ago
When you buy from a dealership, you pay the taxes to them. If you are buying a used car from another person, you pay the taxes at the DMV. The $200-300 is just registration + any fees.
- iolothebard 12y ago
  Depends on the state. In CA yes you do. In OK/TX/MO I never paid the dealer.

mikeash 12y ago

The best way to buy a car is from Tesla. Configure your car exactly as you want it online. See the exact price you will pay. When you're ready, click the button and put down a deposit using a credit card on their web site. When the car is delivered, pay the balance with an ACH transfer. Drive it home. You certainly can do well with traditional dealers if you're prepared. It's just crazy that you even have to worry about it.

killface 12y ago
I genuinely prefer the no-haggle car sales process. It's ridiculous that some people pay hundreds or thousands more than others for these cars.
bnejad 12y ago
Most people can't afford a Tesla... so thats a moot point.
- mikeash 12y ago
  I disagree. It's an existence proof that there is a better way, and demonstrates that dealers are blocking our ability to access that better way. Not long ago, one could have argued that the dealership model was the best you could do. Now it's impossible to argue that, since the best car-buying experience out there doesn't involve dealers.
  - bnejad 12y ago
    Thanks for the downvote I guess? I said it was a moot point because you said just go buy a Tesla! Which most people can't afford or want to spend on a car. I'm not in love with the dealership model but its not a choice for 99% of buyers.
    - Natsu 12y ago
      I have no idea who downvoted you, but just for the record, on HN, it's not possible to downvote any post that is a reply to you.

r00fus 12y ago

What you're describing is (or used to be) called fax-blast car buying [1], and the best move once you've firmed your decision on exactly what you want is to contact the fleet sales managers with either a quote request, or an offer to buy - repeating the offer process until you stabilize on a overall discounted price. In my case, I worked with 3 dealerships (one where I test drove the vehicle and 2 other fleet managers. I ended up going with the original dealer because I had more rapport, he was flexible on pricing and agreed to complete the paperwork and hand over the keys at our house (we had newborns) - I had no idea this was even possible, and was a nice completion to the purchase experience. [1] http://www.edmunds.com/car-buying/blast-fax-car-buying.html http://www.edmunds.com/car-buying/blast-fax-car-buying.html

bnejad 12y ago
Sounds about right! And very cool about them coming to your house - nice of the dealer to do that.
faster 12y ago
My sister bought a car last summer. She started with a fax-blast site, then scheduled a test drive with the dealer with the best price. The night before, she called a fleet broker one of her friends suggested. He sent a price that was about $120 less than the dealer's, and promised to deliver the car to her door with a full tank of gas. The dealer refused to skip the 2 hours of paperwork ("It's required by the state" he said) and said the fleet broker was a scam. She left, called the fleet broker on the way home, and had her car the next day. The paperwork took 5 minutes, standing at her front door. I have always wanted to take a cashier's check to a dealership and tell them "that car, this check, keys in my hand in 15 minutes or I leave." But I think I'll skip that show, entertaining as it might be, and use a fleet broker.

killface 12y ago

This may have worked where you live, but all the dealerships here are refusing to play that game. They'll all give you a form letter "come in and talk with us" message. Apparently cost-plus isn't that appealing to them, and they'd rather lose the sale and wait for a higher-margin purchaser.

bnejad 12y ago
Some tried that, I told them I was busy and didn't have the time to visit dealers. I never indicated I was desperate to get a car RIGHT NOW. Play it cool and all the power is in your hands imo.

chaostheory 12y ago

> The best way to buy cars is option out exactly what you want and get the invoice price. The problem is that you can't get exactly what car you want (all the options, color, etc...). Why? Because you're only limited to what dealers have in stock. You can't even wait a few months for what you. It's just not an option for most cars aside from Tesla.

digikata 12y ago
I've found that dealers will trade cars with other dealers to the get what is wanted, but they'll try push back on the buyer to avoid having to do that. If it's out of stock in the region - then you have a harder situation...
- chaostheory 12y ago
  It's still not exactly what people want in terms of exact options and color: no less and no more. There are people willing to wait.

ams6110 12y ago

Really the best thing to do is buy a used car from a private seller. You'll save the bulk of the depreciation which happens in the first couple of years. A contemporary used car that's two or three years or even 5 years old is still going to be very reliable and have a lot of life left. Insurance and probably registration will be much cheaper as well. I own three cars, the newest is is a 2004 and they are all extremely dependable.