Monday, January 26, 2009

Our car buying strategy

1. Never give them a number/price. We would never give the car salesperson a number. He then would say "But I need a number to work with, what is your price range". We would tell them "It is lower than that number. YOU are the carsalesman, you want to sell us this car, you have to come up with numbers and we will tell you when it is a good number. Give us your best deal on this car and we will tell you if we will take it."

2. We would act like we didn't care. They asked us, what color do you like best, we would answer them "We don't care, about the color, we want to best deal". Emotionally attached to a car = sucker!

3. We would give our salesperson exactly 30 minutes to give us his best deal. The first weekend we spend 2 hours per cardealer. This 30 minute rule solved that problem. After 30 minutes we would say, we have to go, time is up. They would come up with a better deal, the closer we got to the exit. The even stopped us when we were in our car.

4. Tell them you want to buy a car today or tomorrow and that you are visiting them first. But that you want to compare their offer with the future offers from other dealerships.

5. We would never discuss/negotiate the monthly car payment. First question when you want to buy a car " what carpayment would you like per month". Our answer would be something like this: "we won't negotiate on the monthly carpayment, we negotiate on the total price".

Most important thing to remember when buying a car:
Car dealers (can) make a profit on 3 things:
1. selling you the car
2. financing of the car
3. trade-in of your old car
Most of the money is made on item number 2 and 3. If you know this in advance, it can help you negotiate a better deal.

We were happy to get a car loan, this will boost our credit score. We are paying 6.7% without any extra costs for taking the loan.

We drove a lot of cars and negotiated a lot of prices (lol), we paid about 3k less than the 2nd best deal we got on the same vehicle.

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