Tips for buying a car
I had made up my mind to buy a particular car (make/model) with no bells and whistles. I checked the Edmunds website and they have what is called a “Price Promise” of dealers who agree to sell the car (make/model) you are interested in at the price listed on the “Price Promise”. So, I contacted two new car dealers and told them I have an Edmunds “Price Promise” from their dealer. Will you sell it to me for exactly the price listed in Edmunds “Promised Price”? I also asked dealers to give me the full price breakdown.
Dealer #1
This dealer started circling me and didn’t answer my questions. He started asking me questions like are you paying cash or are you financing? I’m like, dude, I’m asking for a price breakdown and you’re talking about payment. So I called Edmunds and complained that the dealer was not giving me answers to the pricing information he had requested. The Edmunds representative was very friendly and helpful. He said that he would speak directly to the dealership and escalate the issue with them. He did and the dealership manager called me and he wanted to work with me. I thanked the Edmunds representative for the help. However, I did not continue with this dealer due to bad initial experience. Due to the inconvenience I experienced, Edmunds gave me a $100.00 Amazon gift card.
Dealer #2
I asked the same question. Here is Edmunds “Price Promise”. Can you give me the full price breakdown of the car? This dealer gave me the full price breakdown in an email, I have listed each line item they provided that totaled up to “Full Cash Price”.
-
MSRP
-
discount
-
Sale price
-
Total After Sales Financed
-
Documentation tax
-
State and Local Taxes
-
Full license and fees
-
full cash price
Here are the key takeaways:
Decide exactly what make and model of car you want.
To avoid misunderstandings, get a written email from the dealership that has the full price breakdown.
Review the details thoroughly and see if there is room to negotiate.
Dealers have a tendency to abuse you on “Doc Fees”. Here is a link where you can get an idea of how much it really costs in each state and how much dealerships charge on average. Some states regulate and set a limit and some do not.
Sometimes car dealers will say that the destination fee was not included in Edmunds’ “Price Promise.” If they want to charge you the destination fee, it should be listed in the price breakdown you receive via email. If it’s not listed, great, don’t ask about it. They probably already included it in the total price.
Please do not visit the dealership until you receive an email with the pricing breakdown and have reviewed the information.
You have the advantage when you are negotiating via email. By the time you walk into the dealership, the dealer has the upper hand. Now you have taken time off work or the weekend to visit the dealership. They know you don’t have time. Therefore, it is better to trade when you have the upper hand. The dealership’s goal is to get you to the dealership. If they can bring you in then they have your business.
Edmunds Price Promise is a great way to save money when buying a car. I saved $1200 using the Edmunds Price Promise.
If the dealer does not live up to the Edmunds “Price Promise”, Edmunds representatives are available to assist you. Take advantage of his experience.
Turn down all the aftermarket offers: the $700 spot test on the car interior, the extended warranty, etc. I don’t understand any of these things. The only thing I would recommend is GAP Insurance if you are financing your car purchase.
Remember, the deal is void if the dealer changes the price once you show up at the dealer.
The second dealer I contacted was honest, direct and helpful. There was no nonsense. Guess who got my business, I’ll state the obvious, it was dealer #2. Once I did my homework, it was a breeze to stop by the dealership, get the paperwork done, pick up the car, and go. I was happy and the dealer was happy.