Buying a Car for the First Time...

[Azkarin2]

Looking for tips and thoughts on an upcoming purchase.

I need a new car and was looking at buying a Pre-Owned Ford Explorer. I've driven it before and it was a nice ride. I need an SUV because I'm 6'4, tailgate and drive people around a ton, and don't mind the mileage/gas prices. Anybody have any experience with this car and would like to share?

Also, I'm actually buying this car myself so am looking for tips for dealing with the crappy used car dealers. I've watched my dad deal in the past but I know everybody has different strategies. My game plan currently is to deal with them as little as possible. I'll do my research using Kelly Blue Book, Edmunds, and what their price is and I was going to decide on the price that I want to pay. Tell them that and if they say 'yes' then awesome. If not then leave my number and let them know they can reach me if they are willing to work with me. Any other tips/advice?

Finally, I have some family financial support ($15,000) towards the purchase and am looking to spend up to $23-$25,000. As for the remaining $8,000-$10,000 that I'll have to front, should I just take the full loan or put down an additional $4,000 so I'd only have a $4,000 to $6,000 loan? Also, one dealership I called up wouldn't tell me what the usual total for tax, tag, and title are without coming in to discuss variables. Anybody have a reasonable estimation of what I can expect to pay on top of the $20,000ish list price? Thanks for the help!

*** I went to one dealership after I saw an ad on their site for a car I really liked. They said that they'd have it ready for me to test drive when I got there. When I arrived, they guy I talked to 'didn't know' another guy had sold it the day before but (lucky me!) they had a very similar one available but slightly more expensive due to additional amenities I could care less for (TV in back). Why must they perpetuate the sleazy stereotype!

[TheShadyMan]

Being an outright dick usually worked for me, they don't want to deal with you, but they want the sale so bad that'll they'll help you without too much pushing. Educating yourself beforehand is a good start though.

[Azkarin2]

I've used KBB to get the price of the car. Is that the price I should shoot for? Or aim below and have that price as my max? What tools besides KBB, Edmunds, and autotrader should I consider?

[MrW]

Used car dealerships will try to rip you a new one. If they know you're a first time buyer they will put a ton of pressure on you. Your best bet is to shop around. Try a Ford Dealership with a certified one. It'll be more expensive but you'll know exactly how the car is supposed to drive and can go to other dealerships to see if the car runs properly. If they don't have what you want, they WILL bring out some random car that they "think" you'll like. Don't fall for their bullshit tactics. If you have a specific price you want to pay or target monthly payment don't budge. They don't give a fuck what you can afford they just care about the bank cutting them the check. Best bet is to go with someone else who has experience. They're less likely to screw you they know you can't be intimidated.

Few Random tips:

1) Search for what you want online and get a Carfax report on it BEFORE you go.
2) Know what the MSRP is for the make and model of your car (ie Kelleybluebook.com)
3) Never settle on a car or specific type. Be patient, what you want WILL pop up.
4) If you're on a tight budget DO NOT OVEREXTEND yourself.
5) Put down as much as you can. If you don't have a co-signer your interest rate might be in the 7-9% range (depending on your credit/new credit etc) Lower monthly payment and less interest over time.
6) Check for certified Explorer's first. The warranties they give you are pretty kosher. Private Dealerships don't give you many warranties and if they do they aren't as extensive as their certified counterparts.


I can't really think right now so I'm sure I'm missing a ton of shit but this should be a decent start. Good luck!

[Dimmauk]

I would put alot of money on the down payment. If you can pay cash the dealers usually lower the price. Look for something with low mileage and nice interior. Get the extended warranty too. If you are looking to buy a SUV for 20k, then look at the 2005-2007 models. You could also maybe get a brand new car for 20k.

After you get the car, the LS will Pimp Yo Ride!! I'll cut out a hole in the ceiling so you can see better.

[Azkarin2]

Thanks so far. I'm only looking at Certified Pre-Owned Cars. I don't mind paying a premium for the 6 year/ 100,000 mile warranty. To me the premium is worth the peace of mind. Selection is smaller but I can wait and am going to spend this Saturday test driving cars all over Atlanta at different dealerships. The CarFax reports is the vehicle history correct? Do they normally charge for each report you want to pull up?

[Elesirdur]

As MrW mentioned, don't be afraid to spend a little money on CARFAX reports or using whatever state/provincial instruments that are at your disposal to check VIN numbers against accident records.

If you find a vehicle that you like you should have it checked by an independent mechanic (ie. one who does not work for the dealership/lot you're buying from) to give the vehicle a going over to see if the lot "missed" something. I wouldn't use this as a bargaining tool to reduce the price of the car, but as a way to ensure that you know what you're buying with hopefully a better picture of what the car's faults are.

[Saithorx]

Not sure how it works there, I'm a Canadian but, usually the seller of the car should have one. If they don't provide it, you get the report for something like 20-30 bucks during the vehicle transfer at your ministry of transportation.

[MrW]

Usually the first few are free. Actually, at Ford, it can only be certified if it hasn't been in an accident i believe (true for most dealerships). They'll usually give you a free Carfax on it too. If you have to pay for a Carfax, just buy the month subscription. It's not more than a few bucks anyway.
The turnover on certified cars is pretty high. They get new cars in on a daily basis. So network with some of the nicer/more legit salesmen there and they'll give you a call when what you want comes in. Also, they're itching to sell cars so you'll probably get a decent deal on one. Now is the time to buy (well a week ago was probably best. They close their books on Jan. 2 to meet a yearly quota).

Edit: Elesirdur brings up a valid point. Its nice to get a second opinion from a mechanic you trust. Buying a car is serious business.

[Dimmauk]

You can also ask to see the 100-point inspection. Most dealerships have a Tech that does these inspections and will look for anything to replace to make the car like new. The reason they do this is the company pays for the repairs almost no questions asked and the Techs make easy money. They also have their quotes and work looked at to make sure they are just throwing parts at cars. Never buy a Used car from a mom and pop dealership that used to be a gas station before.

[Dimmauk]

I used to work for Honda, and we had a very good Pre-ownd selection of cars. Honda really is an awesome car company.

[Hellfury]

Unless I missed something, why not bring your dad? It's ok the "first time"!
You've had the chance to observe, now have him tag along as assistance?

[Quixon]

Pretty much everything has already been stated. Just make sure you really shop around.

Also, always go in with the mentality that the salesperson is NOT your friend. They are going to pressure you into buying something more expensive, or whatever they have in stock if the car you want isn't there.

Don't be afraid to walk out of the dealership if you think you are getting ripped on the price. I had the Honda Salesman literally sprint out the door to me when he didn't give me the price I wanted to see.

You're pretty much never going to get the dealerships BEST price, they can always go lower to a point... if you apply the right pressure. If you aren't comfortable with the price then take your business elsewhere. They need your business more than you need a new car. Always deal with them that way, regardless if it's true or not.

I'd also put down as much as possible. It will save you a lot of money in the long run.

[Dimmauk]

Look around the sales floor for a Leader board. Look at the top of the list, and bottom. Then ask to speak to the guy on the bottom. He will be desperate for a sale. Go for the throat!

[Quixon]

Look around the sales floor for a Leader board. Look at the top of the list, and bottom. Then ask to speak to the guy on the bottom. He will be desperate for a sale. Go for the throat!

That's fucking genius.

[Dimmauk]

That's fucking genius.

My whole family is in the car business, so I know how to be a bastard.

[0ni0n]

My whole family is in the car business, so I know how to be a bastard.

I decide to sell my 2005 accord, where should I start looking?

[Dimmauk]

I decide to sell my 2005 accord, where should I start looking?

Is it paid off? If so you can get a very nice deal. Honda's have a really good resale value.

[Feielle]

It really helps, also, to know how a dealership works.

Big-car dealerships (here in the southeast thats guys like Nalley) that sell a ton of brand-new cars have them essentially on "consignment" from the manufacturer. They may have paid a deposit, but essentially they're just pushing the car and trying to make a couple of bucks in the process. Typically the revenue off of this is little more then 2-3% of the final sale price. The way they make their money is the extended period it takes you to pay off the car and the interest that accrues in the meantime. They'll usually have a bank or lender that will approve at 6, 7%, then they'll tack on an additional 1 or .5% for themselves.

Medium-car dealerships don't own a damn thing on their lot. It's all owned by a bank somewhere, and they divert payments on the value of the car to the bank once you've signed the contract. It acts very similar to the way things operate above, but these guys are more likely to try to screw you by lying about the condition of the car, because they don't have a supplier thats going to get pissed if they sell a lemon and things go tits-up. Once you sign the contract, its yours.

Small-car dealerships (the 10-cars-on-the-lot kind) typically own everything on the lot and only make their money by flipping cars over for a ridiculous turn around. These guys go to auctions, pick up a 80-120k mile car for $1500, get a $50 detail on it and slap a $3,000 tag on the window. Most people think a $3k car is a steal, so they jump at it. It really doesn't matter if the guy has 10 Jaguars or 10 Chevettes on the lot; he's doing the same thing.

Odd as it sounds CARMAX is actually a pretty good place to buy cars. Everything there is certified, inspected, most under 40k miles, and you can browse their entire nationwide inventory. If you see something you like, they'll ship it to your local lot for free.

[Dimmauk]

It really helps, also, to know how a dealership works.

Big-car dealerships (here in the southeast thats guys like Nalley) that sell a ton of brand-new cars have them essentially on "consignment" from the manufacturer. They may have paid a deposit, but essentially they're just pushing the car and trying to make a couple of bucks in the process. Typically the revenue off of this is little more then 2-3% of the final sale price. The way they make their money is the extended period it takes you to pay off the car and the interest that accrues in the meantime. They'll usually have a bank or lender that will approve at 6, 7%, then they'll tack on an additional 1 or .5% for themselves.

Medium-car dealerships don't own a damn thing on their lot. It's all owned by a bank somewhere, and they divert payments on the value of the car to the bank once you've signed the contract. It acts very similar to the way things operate above, but these guys are more likely to try to screw you by lying about the condition of the car, because they don't have a supplier thats going to get pissed if they sell a lemon and things go tits-up. Once you sign the contract, its yours.

Small-car dealerships (the 10-cars-on-the-lot kind) typically own everything on the lot and only make their money by flipping cars over for a ridiculous turn around. These guys go to auctions, pick up a 80-120k mile car for $1500, get a $50 detail on it and slap a $3,000 tag on the window. Most people think a $3k car is a steal, so they jump at it. It really doesn't matter if the guy has 10 Jaguars or 10 Chevettes on the lot; he's doing the same thing.

Odd as it sounds CARMAX is actually a pretty good place to buy cars. Everything there is certified, inspected, most under 40k miles, and you can browse their entire nationwide inventory. If you see something you like, they'll ship it to your local lot for free.

You know your shit. Everything you wrote is fact. Not many people know this.