Comments on: Reader Submission: Fritz Buys a New Car http://www.getrichslowly.org/blog/2006/10/17/reader-story-fritz-buys-a-new-car/ Personal finance that makes cents. Common sense advice on topics from high interest savings accounts, frugality, cd rates, money market accounts, mortgage rates, how to get out of debt, money management and more. Sun, 21 Mar 2010 22:05:22 +0000 http://wordpress.org/?v=2.7.1 hourly 1 By: DA http://www.getrichslowly.org/blog/2006/10/17/reader-story-fritz-buys-a-new-car/#comment-163704 DA Sat, 17 Jan 2009 17:54:36 +0000 http://www.getrichslowly.org/blog/2006/10/17/reader-story-fritz-buys-a-new-car/#comment-163704 Not all carsales people are bad you know. I sleep at night perfectly well. The public need to WAKE UP. We make no money in new cars. It's not like that anymore. If it weren't for the used cars the lights would go off and we'd all go home. I think people are entitled to a deal but some people just don't know where to get off. The public are rude and only get away with it as us 'sales people's' hands are tied because we can't tell you to stick your offer up your rear because you'd whine about it. So next time you complain about your trade in price... just remember. You bought the car in the first place. NOT US! Stop complaining and get off your self-rituous high horses!!! Not all carsales people are bad you know. I sleep at night perfectly well. The public need to WAKE UP. We make no money in new cars. It’s not like that anymore. If it weren’t for the used cars the lights would go off and we’d all go home. I think people are entitled to a deal but some people just don’t know where to get off. The public are rude and only get away with it as us ’sales people’s’ hands are tied because we can’t tell you to stick your offer up your rear because you’d whine about it. So next time you complain about your trade in price… just remember. You bought the car in the first place. NOT US! Stop complaining and get off your self-rituous high horses!!!

]]> By: Car Salesman http://www.getrichslowly.org/blog/2006/10/17/reader-story-fritz-buys-a-new-car/#comment-132286 Car Salesman Wed, 14 May 2008 16:38:15 +0000 http://www.getrichslowly.org/blog/2006/10/17/reader-story-fritz-buys-a-new-car/#comment-132286 I am in fact a new and used car salesperson. I dont seem to have to lie,and cheat my customers to sell a car. People have this notion that we are non-profits. Profit is not in fact a dirty word, we are in buisness to make money. No one questions all of these companies who are making over 100% margin on the products you buy everyday, but when we try to make 3-5% then we are bad people, and how can we sleep at night. I focus on making my customers happy and if they are they will come back, the more they come back the more I sell. They will send me more customers and I sell more, By the way most car salespeople only make 30-35 thousand a year. We are not rich people, and we are doing what we can to make it just like everyone else. I am in fact a new and used car salesperson. I dont seem to have to lie,and cheat my customers to sell a car. People have this notion that we are non-profits. Profit is not in fact a dirty word, we are in buisness to make money. No one questions all of these companies who are making over 100% margin on the products you buy everyday, but when we try to make 3-5% then we are bad people, and how can we sleep at night. I focus on making my customers happy and if they are they will come back, the more they come back the more I sell. They will send me more customers and I sell more, By the way most car salespeople only make 30-35 thousand a year. We are not rich people, and we are doing what we can to make it just like everyone else.

]]> By: How to Drive a Great End-of-Summer New Car Deal ? Get Rich Slowly http://www.getrichslowly.org/blog/2006/10/17/reader-story-fritz-buys-a-new-car/#comment-96698 How to Drive a Great End-of-Summer New Car Deal ? Get Rich Slowly Fri, 31 Aug 2007 18:16:54 +0000 http://www.getrichslowly.org/blog/2006/10/17/reader-story-fritz-buys-a-new-car/#comment-96698 [...] Fritz buys a new car [...] [...] Fritz buys a new car [...]

]]> By: Bill http://www.getrichslowly.org/blog/2006/10/17/reader-story-fritz-buys-a-new-car/#comment-83466 Bill Tue, 10 Apr 2007 02:32:22 +0000 http://www.getrichslowly.org/blog/2006/10/17/reader-story-fritz-buys-a-new-car/#comment-83466 You should never trade in When you do the dealer can play games both ways: inflate the price of the new car but make you feel better by upping the value of your trade-in, and vice-versa. Sell your old car yourself. You should never trade in

When you do the dealer can play games both ways: inflate the price of the new car but make you feel better by upping the value of your trade-in, and vice-versa.

Sell your old car yourself.

]]> By: mark williams http://www.getrichslowly.org/blog/2006/10/17/reader-story-fritz-buys-a-new-car/#comment-80202 mark williams Wed, 28 Feb 2007 21:35:08 +0000 http://www.getrichslowly.org/blog/2006/10/17/reader-story-fritz-buys-a-new-car/#comment-80202 Breaking News!!! Car Dealerships are in business to MAKE MONEY. Nobody goes to work for free. Your job as a consumer is to get the best deal and the salesman's job is to make the most money...as long as this is done honestly there is no problem. You talk about ripping people off, what about selling a $750 Neon for $3700.00 Breaking News!!! Car Dealerships are in business to MAKE MONEY. Nobody goes to work for free. Your job as a consumer is to get the best deal and the salesman’s job is to make the most money…as long as this is done honestly there is no problem. You talk about ripping people off, what about selling a $750 Neon for $3700.00

]]> By: Fred http://www.getrichslowly.org/blog/2006/10/17/reader-story-fritz-buys-a-new-car/#comment-12421 Fred Tue, 31 Oct 2006 19:52:38 +0000 http://www.getrichslowly.org/blog/2006/10/17/reader-story-fritz-buys-a-new-car/#comment-12421 I got a loan from my credit union. I have had an account for over 20 years. They wanted to give me the same rate they would give to anybody that just walked in. I asked why a 20 year member couldn't get a better rate. They dropped the rate a half point. I pointed out that my credit rating was in the upper fourth. They said it didn't matter. It did. I told them I could get a rate of 4.25 as opposed to their 6.75 offer and that if they wanted my business they would have to give me an incentive. The agent kept saying she could do no better, so I said no deal and got up to go. At that point her supervisor came over and agreed to match the 4.25 rate. Be persistant, don't believe them when they say they never negotiate. I got a loan from my credit union. I have had an account for over 20 years. They wanted to give me the same rate they would give to anybody that just walked in. I asked why a 20 year member couldn’t get a better rate. They dropped the rate a half point. I pointed out that my credit rating was in the upper fourth. They said it didn’t matter. It did. I told them I could get a rate of 4.25 as opposed to their 6.75 offer and that if they wanted my business they would have to give me an incentive. The agent kept saying she could do no better, so I said no deal and got up to go. At that point her supervisor came over and agreed to match the 4.25 rate. Be persistant, don’t believe them when they say they never negotiate.

]]> By: The angry commentor http://www.getrichslowly.org/blog/2006/10/17/reader-story-fritz-buys-a-new-car/#comment-11692 The angry commentor Wed, 25 Oct 2006 18:09:51 +0000 http://www.getrichslowly.org/blog/2006/10/17/reader-story-fritz-buys-a-new-car/#comment-11692 You are all stupid. Why would you buy a new car anyway? 1) I need something reliable . Nope a 3 year old car is the same car with 30% of the value dropped out. In other words you can get the same car for less and the money you save would more then pay for any repairs. 2) I need a bigger car because we are goingt to have a baby? My mom and dad never needed a SUV and there was me and my brother and we went camping every summer. You will never get the better of a car salesman. You think you got away with something because you negotiated an extra $500 off? Please you over estimate yourself. Buy used, dont finance, pay cash. You are all stupid. Why would you buy a new car anyway? 1) I need something reliable . Nope a 3 year old car is the same car with 30% of the value dropped out. In other words you can get the same car for less and the money you save would more then pay for any repairs. 2) I need a bigger car because we are goingt to have a baby? My mom and dad never needed a SUV and there was me and my brother and we went camping every summer. You will never get the better of a car salesman. You think you got away with something because you negotiated an extra $500 off? Please you over estimate yourself.
Buy used, dont finance, pay cash.

]]> By: Undertrader http://www.getrichslowly.org/blog/2006/10/17/reader-story-fritz-buys-a-new-car/#comment-11688 Undertrader Wed, 25 Oct 2006 17:45:26 +0000 http://www.getrichslowly.org/blog/2006/10/17/reader-story-fritz-buys-a-new-car/#comment-11688 While that's nice that you got the price down and got a decent amount on the trade-in of your car, you still placed yourself in debt and took a huge loan for a car you didn't need. You could have sold your car for $6000 and bought a perfectly good, couple year old Honda Civic for cash and not have $13,000 in debt (17,479 roughly if it's a 5 year loan). So, add in the $6500 you didn't get in cash for your car and you paid $23,979 (roughly) for a Honda Civic which is just sad and not really something to brag about. Invest in peace... While that’s nice that you got the price down and got a decent amount on the trade-in of your car, you still placed yourself in debt and took a huge loan for a car you didn’t need. You could have sold your car for $6000 and bought a perfectly good, couple year old Honda Civic for cash and not have $13,000 in debt (17,479 roughly if it’s a 5 year loan). So, add in the $6500 you didn’t get in cash for your car and you paid $23,979 (roughly) for a Honda Civic which is just sad and not really something to brag about.

Invest in peace…

]]> By: ***Dave Does the Blog http://www.getrichslowly.org/blog/2006/10/17/reader-story-fritz-buys-a-new-car/#comment-11029 ***Dave Does the Blog Thu, 19 Oct 2006 15:07:24 +0000 http://www.getrichslowly.org/blog/2006/10/17/reader-story-fritz-buys-a-new-car/#comment-11029 <strong>Dicker and Dicker...</strong> This sort of thing is why I hate buying cars. On the way to shop B, I called shop A and said that we had an offer from another place...... Dicker and Dicker…

This sort of thing is why I hate buying cars. On the way to shop B, I called shop A and said that we had an offer from another place……

]]> By: Myron http://www.getrichslowly.org/blog/2006/10/17/reader-story-fritz-buys-a-new-car/#comment-11023 Myron Thu, 19 Oct 2006 14:02:58 +0000 http://www.getrichslowly.org/blog/2006/10/17/reader-story-fritz-buys-a-new-car/#comment-11023 JW, I've never read anything to suggest the tax credit applies for every year you own the car. My understanding is that the credit can only be taken in the year you bought the car. JW,

I’ve never read anything to suggest the tax credit applies for every year you own the car. My understanding is that the credit can only be taken in the year you bought the car.

]]> By: Michael http://www.getrichslowly.org/blog/2006/10/17/reader-story-fritz-buys-a-new-car/#comment-11002 Michael Thu, 19 Oct 2006 07:40:46 +0000 http://www.getrichslowly.org/blog/2006/10/17/reader-story-fritz-buys-a-new-car/#comment-11002 I don't know if this is common, but when buying my first car I went to the dealership all ready to bargain the salesman down from the 7500 listed price. He totally threw me off by telling me he'd sell it for 6500. I still asked for another 250 less (and got it, after he "went to see his boss"), but I'm sure now he would have gone lower. I'd been so surprised by the 6500 offer that I'd pretty much accepted there and then, so I lost any bargaining power I might have had. I don’t know if this is common, but when buying my first car I went to the dealership all ready to bargain the salesman down from the 7500 listed price. He totally threw me off by telling me he’d sell it for 6500. I still asked for another 250 less (and got it, after he “went to see his boss”), but I’m sure now he would have gone lower. I’d been so surprised by the 6500 offer that I’d pretty much accepted there and then, so I lost any bargaining power I might have had.

]]> By: NLG http://www.getrichslowly.org/blog/2006/10/17/reader-story-fritz-buys-a-new-car/#comment-10880 NLG Wed, 18 Oct 2006 12:34:39 +0000 http://www.getrichslowly.org/blog/2006/10/17/reader-story-fritz-buys-a-new-car/#comment-10880 The thing I found amazing about my first experience buying a car from a dealer was how the sales rep could sit across from you and blatently tell lies, and provide misinformation. How the hell do they sleep at night? I had a similar experience buying a new bed last night. The stories that come out of those guys... he actually had the gall to say "uhh.. I sound like a salesman" not once, but twice. Buddy, that might be because you ARE a salesman. /[end rant] The thing I found amazing about my first experience buying a car from a dealer was how the sales rep could sit across from you and blatently tell lies, and provide misinformation. How the hell do they sleep at night?

I had a similar experience buying a new bed last night. The stories that come out of those guys… he actually had the gall to say “uhh.. I sound like a salesman” not once, but twice. Buddy, that might be because you ARE a salesman.

/[end rant]

]]> By: JW http://www.getrichslowly.org/blog/2006/10/17/reader-story-fritz-buys-a-new-car/#comment-10855 JW Wed, 18 Oct 2006 03:20:46 +0000 http://www.getrichslowly.org/blog/2006/10/17/reader-story-fritz-buys-a-new-car/#comment-10855 Nice job, I did the exact same thing in May, for a 2006 Honda Civic EX Hybrid. I got the awesome tax credit that came with it as well which was, $2400 tax credit for as long as we own the vehicle. So, my taxes will be based on (my salary - $2400) A nice edition, and the car will return $12,500 over 5 years. The program ended June 30th (as all gov't funded programs do) I was lucky enough to get in while the tax credit was available, and I have to say 510 Miles to a tank of gas is AWESOME. Nice job, I did the exact same thing in May, for a 2006 Honda Civic EX Hybrid. I got the awesome tax credit that came with it as well which was, $2400 tax credit for as long as we own the vehicle. So, my taxes will be based on (my salary - $2400) A nice edition, and the car will return $12,500 over 5 years. The program ended June 30th (as all gov’t funded programs do) I was lucky enough to get in while the tax credit was available, and I have to say 510 Miles to a tank of gas is AWESOME.

]]> By: Ian http://www.getrichslowly.org/blog/2006/10/17/reader-story-fritz-buys-a-new-car/#comment-10851 Ian Wed, 18 Oct 2006 02:01:54 +0000 http://www.getrichslowly.org/blog/2006/10/17/reader-story-fritz-buys-a-new-car/#comment-10851 I hope that the poster had already negotiated on the base price of the car first and had equal deals at both places. The total amount you pay is what is important, not just what they give you for your current car. It's also worth selling used cars yourself in many cases. When we got a new car for my wife, they valued her 1995 Dodge Neon at $750 after we had fought down on the price of the new car. We said no thanks, bought the car for the agreed price, and sold the Neon the next weekend for $3700 in cash to the first person that responded to the ad. I hope that the poster had already negotiated on the base price of the car first and had equal deals at both places. The total amount you pay is what is important, not just what they give you for your current car.

It’s also worth selling used cars yourself in many cases. When we got a new car for my wife, they valued her 1995 Dodge Neon at $750 after we had fought down on the price of the new car. We said no thanks, bought the car for the agreed price, and sold the Neon the next weekend for $3700 in cash to the first person that responded to the ad.

]]> By: Matt Haughey http://www.getrichslowly.org/blog/2006/10/17/reader-story-fritz-buys-a-new-car/#comment-10840 Matt Haughey Tue, 17 Oct 2006 23:52:11 +0000 http://www.getrichslowly.org/blog/2006/10/17/reader-story-fritz-buys-a-new-car/#comment-10840 You know, I've been meaning to write a story of how I purchased my last two cars. Basically, I got to do all the things described in this post, but I did it over email/phone instead of in person. The short version is this: find a web forum dedicated to the car/brand you are buying and look for a "Test driving and buying" section. In there you will find people from all over the country talking about the best possible prices they've found and current incentives. I took that info to three nearby dealers (over email, using edmunds.com for the "request a price" thing) and when a local one matched a best price offer, I took it. I did end up talking to dealers on the phone, but I never set foot on a dealership floor until I was buying one. Another benefit of the armchair shopping method I used: I completed the sale of my new truck and trade in less than 90 minutes from start to finish, since we worked everything out over email/phone. I've never had a better experience and looking back, it was like an Adam Smith's dream come true to have thousands of shoppers from all over the country sharing information online like that. I knew what the dealer invoice price was, what the dealership was actually paying below invoice, and what my best offer could be. You know, I’ve been meaning to write a story of how I purchased my last two cars. Basically, I got to do all the things described in this post, but I did it over email/phone instead of in person.

The short version is this: find a web forum dedicated to the car/brand you are buying and look for a “Test driving and buying” section. In there you will find people from all over the country talking about the best possible prices they’ve found and current incentives. I took that info to three nearby dealers (over email, using edmunds.com for the “request a price” thing) and when a local one matched a best price offer, I took it. I did end up talking to dealers on the phone, but I never set foot on a dealership floor until I was buying one.

Another benefit of the armchair shopping method I used: I completed the sale of my new truck and trade in less than 90 minutes from start to finish, since we worked everything out over email/phone.

I’ve never had a better experience and looking back, it was like an Adam Smith’s dream come true to have thousands of shoppers from all over the country sharing information online like that. I knew what the dealer invoice price was, what the dealership was actually paying below invoice, and what my best offer could be.

]]> By: Ron http://www.getrichslowly.org/blog/2006/10/17/reader-story-fritz-buys-a-new-car/#comment-10819 Ron Tue, 17 Oct 2006 20:04:34 +0000 http://www.getrichslowly.org/blog/2006/10/17/reader-story-fritz-buys-a-new-car/#comment-10819 Good stuff. I spent some time as a car salesman after being laid off from a previous job - I can vouch that there is almost always a significant amount of room for negotiation. Good stuff. I spent some time as a car salesman after being laid off from a previous job - I can vouch that there is almost always a significant amount of room for negotiation.

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