Car-buying advice: Don't let the dealers drive all over you

I don't know anything about cars, but I do know a lot about research and a little about bargains.

I bought my car whilst with child, and wanted a safe, dependable vehicle that would allow me to still afford diapers once baby arrived. 

Before my purchase earlier this year, I researched the beejesus out of autos, deciding what kind was best for me. I also solicited the advice of experts I trusted: former used car salespeople, mechanics and the mother father of all barterers: my dad.

Note: a friend called today, seeking my car-buying advice. That made me feel important. The truth is, I've done this only once. I'm no expert. I did save myself about $2,500 off sticker though, so with any hope, one or two of the tips I learned can help you too.


Before you buy:

* Determine what type of vehicle is best for you using sites like ConsumerReports.org. Since I live in the great white wilderness and drive daily on gravel, I wanted something with good tires and 4-wheel drive. Despite the Consumer Report ratings, I chose a Jeep Grand Cherokee after numerous owners I knew reported rave reviews. Consumer Reports says Grand Cherokees are unreliable, not as fuel efficient and not as valuable as other vehicles in it's class. My point? Despite what the experts say, pick what's best for you in your area. Mechanics here aren't familiar with foreign vehicles like Subarus and Volvos. Consumer Reports doesn't factor in the additional costs associated with driving a vehicle 100 miles to service it OR chancing an imperfect repair job.

* Determine the vehicle's worth: Kelly Blue Book (kbb.com) and NADA.com will ask what year the vehicle is and how many miles are on it. Based on that info, it will spit out an estimated value for the car. Even if you forget your last name, KNOW THIS. It's like mana in the deal-making desert.

* Research fees, closing costs, taxes and other expenses not listed on the sticker price. Some states/dealers charge $500 just for paperwork. If you're state is like this, consider crossing the border.

* Shop at the end of the month: both dealers and sales associates are more desperate the few days before payroll. More desperate = more likely to deal.

* Shop at the end of winter: this is tricky if you need a car now, but if you can stand to wait, wait until January or February. Consumers don't want to shop outside in the cold, plus, their pocketbooks still cha-cluck with emptiness from the holidays. With fewer buyers, dealers compete to make sales. Dealer competition = buyer victory.

* Shop during a PR crisis: Toyota sold several cars at bargain-basement prices after its recall this year. Use that to your advantage.

* Prepare a list of service work, parts, upgrades you want in addition to the vehicle itself. In your offer, say you are willing to pay $x with a, b, and c work done. I wanted floor mats, mud flaps and and an autostart. My dad bartered for all he wanted PLUS a year's worth of oil changes. He's good.

* If you're uncomfortable negotiating, bring someone who isn't. I'm a little weird in that bartering for me is fun. I like finding good deals, it's like overcoming a challenge. Some people save stamps? I save money. These car-buying meetings will be long, exhausting and awkward. The dealers will do all they can to confuse you into spending more money. If you are unsure of yourself, bring a back-up.


At the dealer:

* Prepare to walk: nothing expresses disinterest like leaving. A customer on the fence is a customer dealers know they'll need to entice with a better offer. Besides, cars are cars. Whatever model you chose, a million more are for sale just like them. This is your bartering power.

* Don't be afraid to hurt the salesperson's feelings because you won't. They don't have any. Not when thousands of dollars are on the line. No matter what deal you make, they and their company are making money. Your salesperson will give you a well-rehearsed song and dance, maybe even a couple back-handed insults, but car-buying is business. They wouldn't sell the car if the company wasn't making a sufficient profit. Don't let them make you feel bad.

* Insist on a third-party inspection: In some places this is common, in North Dakota, it isn't. Pay an unaffiliated mechanic you trust to inspect the vehicle and see if it needs any work or will need expensive repairs soon. Pick their brains. Ask them questions like: would you drive this car? What would you pay for it? What are some of the common costs of ownership? Do you see anything which needs fixing soon? Hint: if even all you do is require the inspection, the dealer may get nervous and do it for you. My third-party inspector was just a friend who gave it a quick look, in the dark. But the dealer didn't know that and made sure the vehicle was in tip-top shape, afraid I'd walk if it wasn't in pristine condition. In my case, the original dealer gave it another inspection and found a crack in one of the valves. They fixed it, free of charge. If you're inspector finds something wrong and you still want the vehicle, see if the original dealer will fix it for you or at least fix it for a reduced price.

* Play hard to get. And don't accept their initial offer. Whatever deal you make the day you walk into the showroom will get sweeter if you leave. Tell the dealer you need time to think about it, especially if they're meeting you in the middle. Even better: tell them you have an appointment to see similar vehicles at another dealer and high-tail it for a Heiniken. Let's say you offered $18,000 for a car with a $20,000 sticker. Maybe the dealer countered with $19,000. If you request time to think about it and leave, the dealer may call you, reducing the price. Mine did.

* Don't sign anything until you are sure. My salesperson hand-wrote my offer in pencil and wanted me to sign it. He wrote something like:

$offer
+
taxes, license and fees
=
I intend to buy.
Sign here:

That one caught me off guard. I wouldn't sign it because I didn't know what the taxes and fees would cost me and I had a price point *luckily* I would not cross. I guess I don't know what the purpose of such an informal contract is, but it isn't necessary. Just say no.

* Know your price point and stick to it. It's easy to say "no" when you know saying "yes" means spending the next five years eating beans out of cans. A good way to do this is to play with numbers on the dealer's websites. Most of them can calculate monthly payments based on the car's price, your down payment and trade-in, interest rate and other factors.

* Shop for auto loans: your dealer may offer the best rate, but double check your own bank and a few others. This is also a good way to know your price point. If your budget is $10,000, depending on interest rates, you may only have $8,000 to spend on the vehicle + tax, title and fees.

* Know the value of your trade and accept nothing less. You can do this using the kbb.com and nada.com sites listed above. If the dealer won't give you what the trade is worth, consider selling it privately. 

* Get a Carfax auto report. These reports indicate if the vehicle has had any accidents and/or some of it's service history. If the dealer won't get one for you, hit the road. The car is a lemon.

And this video is from my grade-school buddy (and first boyfriend ever, teehee!) Dan Jones. Not only is it helpful, the dude is kinda funny.