First Time Buying — Car Need Tips And Advice?
So this saturday I am going to a dealership named World Car Kia to purchase a 2005 Kia Rio. I wanted a 06 Rio because its so different compared to older Rios but I spoke to my auto insurance agency and I was able to knock off 200+ $ off my quote so thats great. So my question to everyone is how do i approach the dealership about doing this whole ordeal? I was preapproved for 5500 from my bank and I have 2500 saved up. The car is said to be 7900-8500 from a salesperson over the phone, riiiighhht. Since I have the loan approved is it good to go to the dealer and say I want this Rio and I am offerering you 7000 cash? To bad i am going to the dealer on a saturday when my bank is closed so I will leave without the vehicle until monday when I get my auto insurance and my bank can recieve the buyers order. What do you think I should tell them so that I get a lower price rather than paying the full 8000 I have to spend. I would love to buy a car in “cash” so to speak with 7000. Is it do-able?
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February 16th, 2010 at 7:48 am
Is it new or used? If it’s used…..
$7000 is a very fair price and you should have no problem doing that.
I am a commercial manager for a large dealership in NC. My advice, start around $6000 because they will try to bump you.
They will also try to talk you into letting them pull your credit . They will do this and try to give you this line. “Our banks are very competitve with other banks rates, in most cases we can beat what your bank offers because we work with x amount.” “You wouldn’t mind to see how much money I could save you? Would You?” All while they are nodding their head yes, to try to get you to go ahead with that.
There are 2 reasons they will try this. (1) So they can make money and hold back a point or two on the rate. For instance, they might offer you 8.25% when the bank said 7.25%. That way they make 1% of $7000 on the back end. (2) So they can sell you a car on Saturday. They do not want you to leave! 80% of people that leave never return. So they will do anything they can do to get you to stay.
Black Book value on this car (depending on miles and equipment ) is……
w/ power package
(X-tra Clean-8175) (Clean-7685) (Avg.-6925) (Rough-5725)
If it does not have:
Power Pack -$175
Factory A/C -$1050
Auto Trans -$550
Keep an eye on the mileage. If it has more than 30K it reduces rough book value even more.
Wagons are worth approx $500 more
I fully believe they took this vehicle in on trade or at an auction for rough book. So $7000 is fair.
Remember not to let them have control! If you have control you will get it for $7000 or lower and get some free stuff thrown in as well. If you get a really good deal, TAKE IT! Don’t be stupid and leave. Ask them if you can take it home with you. In most states this won’t be a problem, but they may want you to sign a promissory note that says you agree to pay x amount of dollars for the car on Monday when your bank opens.
Don’t be tense! This should be a fun day for you. If you get a Salesman that is pushy or doesn’t know his product, just ask for someone else.
Have Fun and Enjoy YOUR New Ride!!!
February 16th, 2010 at 12:16 pm
Just for starters, I’ve priced the Kia Rio from $10,7000 to $12,700, so it looks like the price is going to go up from their quote once you get in the showroom.
The dealership wants to sell you a car loan. They’re more likely to deal if you finance with them than they are if you pay cash (which doesn’t make them any money). The fact that you’re planning on buying last year’s car might possibly help, as they’re probably trying to clear them out anyway. Good luck! I’d rather set my feet on fire than go car shopping!