Hello,

I am in the process of purchasing a new car. I've chosen my make, model, and options, and how much I am willing to pay for it. I have put in an application for the loan amount to my credit union. Once it's approved, I plan to use the fax method to get quotes on an in-stock vehicle from local dealerships and will pick the best quote (I specify in the fax that I want the quote to show the total price including all taxes, registration, and any other fees).

What I'm confused on is, then what? Does the credit union send a check to the dealership I specify? Do they send me a letter to show the dealership? Does the dealership call them?

I guess I'm worried about exactly what the process is when I go to get the vehicle. I don't want to get preapproval, get to the dealership and then have to spend 4 hours while they play headgames trying to get me into a vehicle I don't want or tacking on undisclosed fees/options/whatevers.

What should I look out for? I plan to bring a photocopy of my driver's license (to prevent them from taking the original to "get it photocopied" and then not coming back while a colleague pressures me) and my insurance information. Any other tactics I need to head off?

I just want to have the quote, walk in, and walk out with the vehicle within 30 minutes. Is this reasonable?

As you can probably guess, I've had very negative experiences with dealerships in the past -- I've gone skydiving with less trepidation than I get walking onto a car lot.

Thanks in advance,

I would take this approach.

Call in an make an appointment for the sale with one of the reps. Explain what your plan is and what exactly you want from the sale and if at any point you feel that it's not going exactly as you want it to go you'll walk. When they get off topic or start to pressure you, or it takes longer then you want just get up and leave, and head to a different dealership until you find someone willing to do it the way you want, then give them your business.

Fax?

Why not email? Email all the dealers within 50 miles and then play their counter offers off each other. Much easier than fax.

BTW, you've got to tell us what kind of car you getting.

Ian

...

In my experience, "Internet sales managers" at most dealerships are really just run-of-the-mill sales personnel, authorized to make a deal at some set standard price. I've seen want ads in the local papers offering jobs to Internet sales managers requiring no prior experience in sales or in the auto industry. What does that tell you?

What you really want to do is get the to someone at the dealership who has real authority to cut a deal near or sometimes even below dealer invoice price. That means a fleet manager (who makes his money off numbers of cars sold, not commission on individual cars) or a real sales manager (as opposed to just a salesman with the word "manager" on his business card). I generally find that faxing, though less convenient, is more effective in getting a low price than e-mail. The key is to find out who that person is and to find his individual fax number. Going through the general dealership fax number is just going to get you a run-of-the-mill salesman, no matter who it's addressed to.

Thank you everyone for all your help. Yes, I read the fighting chance blog entry. Actually, all of the "car" entries on GRS! - That's where I got the idea for faxing, although I've actually ended up doing more of it via email.

What I've done so far is choose the vehicle (Hyundai Accent GS 2 door hatchback, auto transmission, Option 2 package (only way you can get air conditioning). I checked edmunds.com for what I could approximately expect to pay. I calculated what the local tax and registration would be, the rebate from Hyundai ($1000), and tossed in another $130 for dealership fees and used that to figure out how much I'd be willing to pay based on edmunds price.

My credit union approved me for a 5% loan and I started emailing for quotes last night.

Once I have the various offers, I'll compare them, try to negotiate lower (via email). With the lowest price, I'll have the dealer fax the credit union in order to get the cashier's check from them (mailed to me, not wired to the dealership, so I'll have it in my hands until I walk out with the vehicle) and have the dealership fax me a copy of the final contract.

I'll make an appointment to meet them on purchase day. When I come in, I'll check the vehicle, test drive it, compare the VIN to what they had previously provided, sign the contract, and hand over the check.

How does that sound?

It's a sound methodology. There's one thing I would have done differently: I would have waited until closer to the end of the month (this month would have been really good, since it also marks the end of the quarter). The closer to a deadline, the more desperate they get.

Did you put the MSRP and Dealer Invoice numbers (including options) in your e-mail. It helps that they know you understand the playing field. Also, I hope you didn't put the dealer fee on the e-mail; it just gives them a chance to justify that cost without having to cut it in order to compete.

If you've already got financing locked-up, why not just buy a used car, and save all that depreciation?

This is a website about being smart with money, isn't it?

The financing was specified for a new vehicle; they have different rates and amounts for used. There are a couple of schools of thought about buying new vs used. In my case, I keep my cars for 10+ years. I want to make sure it's been treated properly, serviced correctly, etc to make sure it lasts as long as possible. When you're buying used, no matter how much you try to find out about it, you can never be 100% certain of its history. I understand that a lot of people disagree with this, but in my case, I choose to purchase new.



I did debate that, but didn't want to wait until the 29th and then have paperwork hassles delay the purchase enough to exceed the deadline for the rebate (the 31st). My credit union is a little tiny thing that's closed on weekends, so I need to make sure to allow enough time.

No, didn't do that. Good idea.

I just put "please provide total price, itemized, including taxes, vehicle registration fees and any other costs".

Oddly, I just got in one quote that includes almost $700 in dealer fees ("Doc fees" @ $399 and "Lex Gard" for $297), but is still below the edmunds invoice (not target market) price. I'm intrigued but also wary that upon arrival I'll find they "forgot" to add the destination fee (which isn't listed) or something like that and "have" to up the price.

Then you're choosing to overpay.

My wife and I bought brand new our first time, too. We had the same plan as you: drive it into the ground.

Well, it got driven into the ground, alright. It was totaled when a teenage girl on her cell phone rear-ended my wife and shoved her under a school bus (photos here) before we'd even finished paying for it.

After that, we realized that even the best-laid plans can be ruined by events beyond our control. We looked at what we'd paid for that car ($40,000 for a Jetta!) and what the insurance company thought it was worth ($13,000).

It turns out that cars with 15k - 30k miles on them are still practically new, but much, much less expensive. You can tell yourself "you can never be 100% sure" if it makes you feel better about throwing your money away, but the truth is, it would take a heckuvalot of maintenance problems to equal the amount you'd save by letting someone else eat the depreciation. Do you really care if your 1-year old, used car costs you $1,000 in repairs that first year, if you bought it for $5,000 less than the brand-new model?

Keep in mind that a $5,000 price difference isn't really accurate. You'd have to add tax on that, so you're saving the extra taxes, too. Then, you have to factor in the extra interest you'd pay by financing a larger amount, too. Finally, keep in mind that you're doing all this with after-tax dollars. How many extra hours would you have to work to earn the difference in price between that new car and a 1-year old car?

I think you should ask yourself - is it really likely that a 1-year old car will cost more to repair than you'd save over buying new, or are you just trying to rationalize buying something new and shiny?

If you really want to buy a new car because you think you deserve it, or you just really really want it, that's fine, it's your money. I'm just saying, at least be honest with yourself (and your spouse?) about your reasons. The reason you gave here doesn't hold any water, when you sit down and do the math.

This is a forum about eliminating debt and getting rich, not how to get the best deal on an overpriced, superficial status symbol.

Thank you. I apologize for wasting everyone's time. I appreciate those who were willing to give advice to me. Please disregard this thread.

I wonder what status the cheapest Hyundai symbolizes.

Among new cars, I think you picked the cheapest. I punched your options into Edmunds and got a TMV of $12,704. I think that's a pretty frugal car.

Congrats!

This forum is about alot more than that to me. I don't really care for the tone being set here. This seems to me an honest question asked in earnest, where she has a valid reason for doing what it is she's doing. It's one thing to question that reason; it's quite another to attack her over it. Not cool, and a disservice to this community.

Zulu

ok - you may not have liked kombat's tone (and I don't know how someone can pick up the subtlties of tone on a posting), but the premise is really good - he/she is asking the op if choosing to buy a new car is really the best decision. Its a valid question - and it should make her think. I bought a new car myself 9 months ago - and am thinking what a mistake it was. Not that i don't like it, but that it is really not the best financial move.