lansbury

http://www.intlauto.com do VWs. As I said before call them and get a price. Then check the US dealers, to confirm the savings.

Steerpike

I paid cash (well, a check - but for full price) for a car costing about 30k about 3 years ago.

I did tons of research up front to establish what I thought was the right price. I then contacted three nearby dealers who offered 'internet pricing' and got quotes. I worked with the guys who gave me the best quote. Once the final price was agreed, I asked them for the absolute, final total - including tax, blah, blah, and told them of my intention to pay that amount. I told them I wasn't going to come in without that number, and that once I come in, that's what I'm going to pay, or I will leave promptly. They understood where I was coming from I drove in, signed the paperwork, and was out of there within about 45 minutes.

Now, in my favor was that this was an Acura. Acura are on the extreme end of 'everything included in the price'. the only option on my car was navigation; you either get it or you don't ... so the price was very easy to research and predict. I also looked at BMWs, and they are at the other extreme. You can, quite literally, get upgraded steering wheels, driving wheels, tires, entertainment systems, wood dash elements, gear shift fobs, etc ... so establishing a 'competitive' price is much more difficult (no two people in the universe buy exactly the same configuration of vehicle). Even Toyota tend to offer multiple packages.

Also in my favor was the fact I bought a pretty 'straight forward' vehicle - popular, but not in unusually high demand. I also bought at the end of the model year - new models were arriving and they were keen to get rid of old inventory.

In the end, I paid by personal check, which surprised me (that they would take it!) but I guess they knew how to find me.

One piece of advice may be ... don't go wandering into the dealership browsing around; once a sales person latches onto you, he/she will likely 'claim you' and make it harder for you to work with the internet-only pricing guys, who rely on the fact there is no local in-store sales person to pay a commission to.

lyonsden1193

Have gotten our last 3 cars with cash deals. Yes it is still a good way to go BUT you have to be very firm and walk as soon as they mess with you. Last time we did this 2010 for a new Hyundai. Entered Dealership and told salesman the price we were preared to pay. Told him that if we were going to be messed around with the usual ' I have to talk to my manager' or the thing in Memphis is where they try and get you to sign a blank best offer page (DUH!!!)....we would walk...as you can guess they tried it on (as they do) and we started walking. (my wife can be a great actor) they then realise that you are serious and their greed at ALL that money takes over.. then you go in for the kill. I have been told I was busting his B!!!!S but the answer to that is ... you won't sell me the car if you aren't making a profit .. therefore tell me to go away and I will .. no hard feelings... that always seems to shut them down.
Motto is: Be Firm!! don't let them steamroller you with Fuzzy Maths and BE PREPARED TO WALK!!

hobbes79

I bought a new Mazda 5 cash. I called several dealers in the area and basically would go with "I've been offered $XXXX by this guy, what can you do?". Ended up paying about $4K less than MSRP for a car sitting in the lot.

As for the prior model, I bought a 2007 car in 2008. It definitely helped bring down the price a little.

One dealer clearly didn't like my calling tactic, and said he'd offer me a price but that it was only valid during that call and I needed to do a $500 desposit with my credit card over the phone to make it stand As he patronizingly put it, "well, you can keep calling around and we'll always shave off a few more bucks".

Funny, but when it's MY bucks I rather like this game! Put down the phone and happily took my business elsewhere. The dealer we went with just took my word I'd buy the car, I showed up with a bankers check and took the car away for the exact price agreed. Was in and out in about 30-mins with a brand new car.

Tarkak9

Look into and sort out your insurance first and foremost. No point buying a car only to find you can't get insurance or its too much than you prefer to pay.

I've always paid cash for my vehicle but never buy 'new' because of the immediate depreciation once you sign papers etc and the fact that I do ALOT of mileage and so the value plummets even faster for me. It is true that dealerships may be interested in a finance deal because of the fees, yield spread and interest of the life of the loan etc.... but Johnny Cash is still King. Besides, they'll very quickly sell the loan to get a lump sum and then the risk becomes someone else's problem. Never go with a dealership's financing.

Do the homework and pay attention to any rebates... potential negotiation item.

the last time I bought a car, I was in the chair for only 15 minutes... spent more time test driving the car than buying the damn thing. The times when I have had the best success are:

1. Deal with the top salesperson (they may be more inclined to go for and secure the month's bonus and take the car count than to make a few $ on the deal). Don't use the first person who greets you etc or standing smoking a cigarette by the front door; they're on 'floor duty' per se. Go straight to the receptionists and ask who is the top person. Generally, I have gone in with the disclosure, I am giving you first shot at my business and subsequently my money. If you are not interested, tell me now otherwise I am going to find someone who wants my business.
2. Go at the end of the month & preferably at the end of the quarter.. even the end of the fiscal year. (the stealership is needing to make quotas).
3. Go prepared; be the educated consumer ... have your predetermined price & offer in hand and propose it to them and don't budge; reiterate your initial offer when they come back to you after 'talking to my sales manager' and again if need be! Always have a few extras thrown in which you can live w/o and use as negotiation items as it looks as though you are caving in and settling with them.
4. Obviously start low.."if you don't ask, you don't get" - its easier to revise your price and offer if need be.
5. Most of all, be prepared to get up and walk away. You can always reapproach them just like they can reapproach you.
6. Never pay "Dealer handling" (I've never done so) or any other paperwork 'costs'... just another way of squeezing money out of a buyer. IMO a car purchase should be $x for the item plus applicable sales tax and nothing extra.

If their offer(s) sound ridiculous, I have always used the line "would you buy this car with the given price & terms? No? Then why are you asking me to do just that?" If they say "yes" I've said "well, we both know you would be paying too much and not on fair and mutual terms" and concluded the conversation with "Obviously we are wasting each other's time; however, if you are interested with moving forward; I am prepared to do so with the price and terms which I have presented to you.

Their "invoice" price is the bumper to bumper price for the vehicle. The "options" eg a/c etc is already paid; its profit for them.

Steerpike

I'm currently trying to buy a Toyota Camry Hybrid. 6 months ago I got a great offer, but circumstances prevented me from buying. I recently re-opened the discussion, and got a significantly higher quote. I'm still waiting to hear back - so far, no go. Luckily, I can wait ...

The whole business of car retailing is mind boggling to me. When I bought my last car (the Acura), the sales guy took me to the 'back lot' where all the new arrivals were (to show me a color they didn't have on the 'main lot'). These were dirty, still covered in the shipping plastic, etc. There were HUNDREDS of cars. With each car costing around $30,000, it occurred to me just how much money is tied up in this game. Do the dealers (Retailers) only pay the manufacturers at the time of sale, do the manufacturers 'front' the money, etc. For every day a car doesn't sell, someone, somewhere is losing money (either real cost, or 'lost opportunity cost').

Thank goodness I don't have to work in that field!

scrubbedexpat099

They are financed by the Manufacturer to a certain point, then by the Dealer.

I used to work in the Insurance Industry, mainly remunerated on a fee basis rather than brokerage.

There is no such thing as invoice or net. The customer will never know.

C_C

Guys, thank you all SO much!! Your tips are gold!!
Like I said, it'll be interesting to see what happens in our case. I'll update you as soon as we make a purchase - hopefully within a few days of getting to the US, so it could be as early as a week today

Car insurance shouldn't be a problem as hubby is a US citizen with a valid US driver's license. So he should be able to sort out car insurance pretty quickly as soon as we get there, and we plan to buy the car using his insurance. Since I'm moving as an immigrant I won't have a US driver's license upon getting there, and presumably I won't be able to get one until at least a few weeks later. Once I do, I'll be added to the insurance plan.

Bob

How long has he been out of the US? Might affect credit history.

You can get insurance on your foreign license, but it'll just be expensive, till you've got a couple of years US driving history and credit history

lyonsden1193

First to the Hybrid buyer... Earhquake in Japan sent the price of all hybrids thru the roof round here.

Second .. When I came over I spoke with ALLState and gave them a copy of my no claims bonus ppwk from UK ... they seemed very happy with that..and gave a good price. .... dont know if they are still like that.

Tarkak9

Years ago I remember seeing a program in the UK about the US car industry and manufacturing costs, economies of scale and profit margins etc... don't know why it sticks in my mind but the segment was profiling some of the US manu'd SUVs - back when they were just starting to get popular (early 90's??) and hence, most profitable - basically they were illustrating that the average cost to build the new car is peanuts in comparison... literally something like $6-8k/ea which they sell to the dealership for 18/k who then turns to sticker it at 22k... Everything is a formula afterall!! As Boiler says... the customer will never know! Where dealerships make their money is in the used car dept and service/parts.

Steerpike

Now, if 'new cars' are such a bad idea, with their rapid depreciation, how come the money is being made in the used car arena? After the early (broke!) days of buying used cars in private party sales (Hondas with great success) I have been buying new more recently - due in part to the greater predictability of the new car pricing. Actually, first new car was justified by the desire for anti-lock breaks and air bags (early 90s).

lyonsden1193

Just spoke with one our clients who sells new and used, and he said to remember the sales staff will pretty much do anything to keep you there until you buy (as he put it ... theyll even sleep with your Dawg) .. he said that if you're after a used car and have got the nerve.. walk in with lots of those benjamins and watch their little eyes pop out of their head... he said remember that they have to make payroll just like any other business so will sell their soul for cash!!

mayhemuk

From CA DMV
"If you become a California resident, you must get a California driver license within 10 days."

It is an often discussed topic. The general advise I've seen is don't hang around. The process can take a bit of time so may as well get on it!

Check the CA DMV site for further info.
Good Luck!

C_C