Looking to buy a car? Do it NOW
The car market has collapsed. Dealers have bulging inventory of new and used cars that had been priced out of reach. But it's now the end of the year, and they have passed the stage of eager, are now desperate, and will soon be in panic mode to sell. Wholesale prices on used cars have already started to drop at a rate that equates to almost $1000 a week for many models.
Now is the time to buy, but not to trade-in.
I bought one yesterday that was discounted over $5,000 and I got another $500 off that. As pure coincidence, my elder daughter just had a car totaled (for a VERY minor accident), and I'm selling her my old Highlander for the amount of her insurance check.) Win/win/win.
Don't wait. This panic sale will end after Jan 1 when the year-end incentives go away.
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Having worked at a Car Stealership for a Couple months, (Nissan) worst job I have ever had, I can agree with the End of Year purchases. Even End of Month, they are stressing about meeting/making Quota.
Go in playing hardball. Make SURE, they know you will walk out. (They are not the only game in town.) When they try and start trading you off, going back and forth to the "Sales Manager," give them a hard ball low figure. Make it VERY clear, they can either accept it, or you will leave. Pay extra close attention to what they are doing with Finance interest rates, or length of loan. (If you don't need 72 months, don't take it. etc) if going that route. A LOT of money is made/made up, there. Absolutely REFUSE to pay "Document fees, Processing Fees," etc. ($200-500) Why am I paying you to handle my purchase?
I had to quit. I did not feel comfortable with all the shady aspects going on behind the scenes in order to screw the Customer. I did not feel comfortable going home feeling like a thief. (And I told them so, when I left.)
End of Year and End of Month together, equals A Win/Win scenario for the consumer.
Good Heads Up @Rocky Raab. đź‘Ť
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I just bought a new car in September, waited until the end of the month, they always want to clear inventory before the end of the month. I didn’t get a good a deal as you though. Didn’t trade in so was able to make better deal, haven’t bought a car for over 12 years.
Anymore cars are more of a computer on wheels, almost to the point of being to distracting to drive. Just uncanny on some of the features they have now, radar imagining, hands off driving and even lane centering.
I liked it better when we tried to see how much horse power we could get out of a gallon of gas, rather than how many miles we could get out of a gallon of gas.
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We are looking to buy a 1997 Dodge 1500 4X4 same as our old one.... Low miles taken care of ect. Last year I think it would have been double and someone would have paid it.... Taking to the shop on Friday to have it looked over.
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My wife has a 2020 Toyota Highlander Platinum Hybrid. Fabulous road trip car. She bought it new. I had a 2008 Highlander, which I also loved. Yesterday, I matched hers with a 2020 Highlander Platinum 6-cyl. Every bell and whistle known to man. It came off a lease with high miles but is in perfect shape. I just need to add a tow hitch for my boat.
As coincidence, but adding to my reason for buying now is the deal with my daughter. My SIL dented the front bumper slightly but the insurance company surprisingly totaled it and wrote her a decent check that somehow matched the trade-in value of my 2008 Highlander. She gets an impeccable car with great maintenance essentially for free. I get to apply her insurance check to my purchase. Voila!
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Very nice Rocky. A Win/Win. đź‘Ť
(Also) Please be aware, at Stealerships, most of the money is made on Trade Ins. The markup is much higher. They will buy at Wholesale and Sell at marked up Retail.
Very little money is made off New vehicles, unless you buy a Service Agreement/ Finance. Etc.
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Yeah, you should have seen the look on the Finance guy's face when I refused the Extended Warranty, and then again when I slid him a down payment check for half the total. That after he'd already wiped several fees off the list. With no trade-in to boot. I know he still made something or he would have cancelled, but it wasn't much.
They're genuinely desperate for cash flow right now.
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@waltermoe I agree about the computers on wheels. I grew up in the days of relatively simple car repairs and dad even owned a auto parts store. Nowadays you need a computer to talk to your cars computers to even get an idea of what is causing the problem. The vehicles today do seem to be a lot more reliable, but the tradeoff is they are a lot more complicated. I do get a kick out of the do not take your eyes off the road warning that comes up on the screen. Of course you have to take your eyes off the road to read it and hit the button to make go away!
My last new vehicle purchase was a 2019 Acadia that has 300+ hp and on the highway gets around 30mpg. I don't recall any 300hp vehicle getting even half that when I was a kid so they have made a ton of progress on the mileage front. Bob
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Most crooked business (by far) I have ever been associated with. (Why I quit.) It was interesting and an eye opener to get a look, behind the scenes. I have used it to my advantage, over the years.
I also bought a book, something akin to "The Secrets to Buying a Car," when I started working there. A recommended read.
Go in hard and be ready to get up and walk out, is my advice. Pay attention to the paperwork, at the end. People get screwed there.
Great Post Rocky. đź‘Ť
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@BobJudy I will say that the cars today are fast, but not quick like the old muscle cars. My brother has been with Nissan for over 40 years now as a service manager, so I have gotten help when it comes to checking are cars with a computer. 95% of the time when the service engine light comes on it has to do with and emission problem. The last problem I had was an evaporation recapturing valve in the gas tank, a little black tape over the service engine light seem to fix the problem. Lol
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I don't think I'll ever buy a new vehicle again, not at this rate. Only new vehicle I've ever gotten was a 2010 Patriot with very few options. 4x4, AC, CVT, and the 17" wheels. Now that's been totaled out but is getting the most-needed repairs done at a local body shop while my '98 Suburban is getting a fuel pump issue fixed and I'm stuck with a loaner, specifically a 2016 Silverado 1500 Z71. And I'm not sure if they got the suspension and muffler designs from Bentley or Rolls-Royce, but it's QUIET and silky smooth, not a proper truck chassis. Too many computers, plus it automatically locks the doors when I start driving, and I don't know how to turn that off. Plus what happened to only needing to operate the door handle once to open it? Now I need to pull the handle twice to get out. Once to unlock it, and again to open it. They're spending too much money in an effort to make "idiot-proof" cars, but idiots will always find ways to be idiots I'm sure.
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BTW, never pay cash for a car. Dealers expect to make a lot of their profit from added interest when you finance, so they'll jack up the price on cash deals. Here's what you do:
Agree to finance the car using their loan. Make a decent down payment. Sign and drive. Then, when you get your first loan statement, pay that off in full. (The exception being if there's a pre-payment penalty, but few institutions have those.)
You've just done the equivalent of a cash deal, and the dealer gets none of the interest you didn't pay. (The lending institution might even charge them a payback!)
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@KenK/84Bravo , I like your term, "Stealership." There was one on the hwy, just before you got to our PD. We received so many complaints that we had forms on the desk preprinted with their info. Their term was that they "Scalded" another customer. When they screwed one of their own salesmen, he brought us a file box of evidence on what they had been doing. With the help of the County Prosecutor we got the State (who had been reluctant in the past) involved. They were fined and made to pay restitution to customers. 6 months later they closed down.
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I'm going to set "pat", my vehicles are fairly new, paid for and in great shape but if anyone can find me a new truck with those old style side-vent windows I'm game, I miss'em terribly.
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@Rocky Raab When I bought my car I inquired as to what the interest rates were for a car loan to give them the impression that I would be financing. After we had settled on the price and we started to do the paper work, I told them that I would be paying cash and they wouldn’t need to arrange financing for me and I wasn’t interested in an extended warranty.
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Since I keep vehicles for a long time, I went for the lifetime warranty on my 2012 Jeep. It started at $1500 but dropped quickly to $999 when I whispered to my wife that I would have taken it for $1000. I've used it once so far, for a water pump. It was amazing what the Stealership over charged them for parts. I mentioned $60 for a $40 fan belt & the service manager snickered.
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Maybe the time to buy but not the time to finance thanks to Joe Biden keeping his campaign promise to elevate interest rates.
Cash is the way to go.
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Read my post about not paying cash, chief.
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Work all the details/price out, BEFORE discussing how you plan to pay. If pressed before that, tell them I am trying to 1st and foremost confirm/lock in the price. THEN and only Then, Will I decide/discuss how I plan on paying.
YOU are in charge. NOT them. Do not let them take the lead.
Do Not be afraid to get up and walk out. They will either chase you down in the parking lot, or call you later that day or the next (basically) begging you to come back in. Your position is even better at that point, because they already know you will get up and walk. Use that in your favor. You are in charge, not them.
Make sure they know, you are aware of that. Don't play their Stupid games. Get up and walk out.
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Rocky Raab: 29980404484251/comments/29980435682459
Read my post about not paying cash, chief.
I did Rocky, and with due respect would much rather buy as used car from a private seller than a used car dealer.
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Ay 9 to 12% interest not likely. My car and truck both have 90K. Think I can wait for Trump tp lower the interest rates.
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I love my Stealership job and am worth every penny, No shifty dealings that I'm involved in.
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On a Jeep you need a lifetime warranty! I have found that out.
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We bought Wifey a new Lexus last year. The dealership did not try any tricks. It was a pretty simple deal I made mostly via the internet. Bought me a new F150 this fall. My Nephew is employed by Ford so I was an “A” plan buyer, no price haggling no dealer document fees whatsoever. Also, I received a discount from Ford for being a new college graduate, a discount for buying a hybrid and Ford was also offering a 1.9% interest rate on 36 month loans. I borrowed every penny even enough for the taxes and license. No way I was going to turn down money that cheap
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I would add, RV's are likewise. Prices last summer were ridiculous. But now the lots are full and the market is glutted. And they have next years models arriving. I got a new one cheaper than the used ones. Only down side is it will be a couple of months before I can really take it out. And used all of the tricks Rockey discribed.
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It still boggles my mind that I paid more for this car than I paid for my first house, and almost as much as for my second house.
Also, that I could now have written a check for either house instead of needing a 20-year mortgage. Boy, how times do change.
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Seen on news yesterday that cars are getting like cells phones, the vehicle owns the person instead of the person owning the vehicle.
For example Ford has a subscription if you want cruse control you pay $75 month for a sub.
Before long I'm thinking if you want the following to be available for use even though it's already on the vec you will have to buy a subscription for their use, such as heat, AC, headlights, windshield wipers, windshield washer and sign a contract and pay a penalty if you want to (need to) bail out before the contract ends. (and a cell phone plan to activate your subs such by Wi-Fi)
Kinda in the same category as Biden economics plans
News says all the car makers are going to such and they use the sub money for re-search.
Yea, sure, kinda like a non-profit.
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That subscription nonsense got its "test drive" with Sirius radio. Folks were willing to pay monthly for something they already paid to own. So the auto folks said to themselves, "Hey, if the morons fell for that, why not make other stuff subscription, too?"
My guess is that when we get a new goobermint in 2024, that stuff will be stopped.
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Only new vehicle I ever bought was a new Nissan Frontier in 1999.It cost $14000. out the door.Still drive it almost every day.It has 520,000 miles and the only major problem was transmission failed at 400,000 miles.I replaced it with a $300. junkyard transmission.
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Don't wait. This panic sale will end after Jan 1 when the year-end incentives go away.
I looked, but Ferrari doesn't seem to have the kind of deals you're talking about.
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Ferrari and the other European super car companies have a different sales philosophy. They make only a handful of cars, charge utterly outrageous prices on them, and patiently wait until somebody with a wallet as big as his ego comes along.
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