QuestionRobert,
I'm 24 and trying to help out my not very self sufficient mother, she
was recently stopped at a red light and sandwiched by some drunk,
anyway that was a 95 camry which she loved but was totaled, she
has some savings but no income really, she would ideally like to
spend 10000 give or take, but she wants another toyota and they
all seem out of her price range even used one, any haggling advice
tips.
Answer I'm assuming she would be paying 10,000 cash correct? If not it doesn't change things too much. Most new/used dealerships (the big ones) will actually offer better incentives to those who finance (purely because they make profit off of that as well) while paying cash at smaller dealerships and private parties will allow for more bargaining power because people always want money ASAP.
She wants a Toyota you say... Here's a list of the possibilities (assuming she goes for a car): Buying used= Corolla or Camry (celica's perhaps if she likes a sporty car)... Now, new for 10 large is impossible (minus KIA.. don't bother with that brand, used Toyota would be better) but if she did have the option I recommend looking at scions and the new Yaris (all toyota quality and built by toyota).. (also interest her in honda, similar quality... just to give options).
Ok... Now I have some free time so I looked up a few things to see what's out there (I use "Oodle.com" [searches local classifieds, as well as car trading websites], "cars.com", and "autotrader.com","carsdirect.com" is a good dealer searcher) and I found several 2000+ camry's with approx. 50,000-70,000 miles (and that many on a camry is nothing to fret about), for UNDER 10,000... If you search aim for about 1,000 more than you want to spend (count tax,tag,etc... in that as well). Seeing as you wrote for haggle tips, I will end the car advice there and say If you want me to look for some cars in your area around 10,000 just write me with a Zip code & I'll send you what i find, If you want other options (since she liked the camry I mostly focused on that), or any thing else dealing with the CHOICE of vehicles just write and say so...
Now for haggling: (assuming you pay cash) First rule, If possible take some one who has bought a car before with you... and I am by now means sexist however you may have more luck if that person is male IF your mother goes (your name being terry, I'm not making any guesses since it can be used many ways so I am given the advice as if speaking to your mother directly)... Second, If just browsing (and even when buying) don't DO NOT tell them how much you are willing to spend/how much you have... Avoid giving in and be adamant that you just want to see ALL the used cars (as for prices on the ones you like, it may take longer but it can save you) - If you must give a price aim below what you want to pay, usually 1000 below... Once you have found your car, (if buying from a person, ask if you can have it inspected before purchase.. If they say no, its a big hint).. Anyways, once you find the car you want, Print out the blue book. Do research on the car, ("consumerguide.com" [also a good site for looking at alternatives], google search, etc...), This way you know enough to not get taken. Tell them you are paying cash and want to deal with the "out the door" price, if the sticker/asking price is say 11000... pick a price about 1000-500 less than how much you have to spend, say you want that price out the door.. dealers will do that thing they do with asking the big bad boss, with private parties you can't say "out the door" (I will come back to private parties in a minute) so don't worry about that with them. The dealer won't take it.. of course... But argue your way up from that point AND DO NOT GO HIGHER THAN YOU INTENDED BEFORE GOING INTO THE DEALERSHIP! Set an out the door price before going, and do not go higher! (sorry but very important) if your price is reasonable and they wont take it... Say good day and walk out (usually they will stop you, or call you... No one likes to watch cash walk out the door) Remember the dealership probably paid half of what they are asking for the car, (no matter what they say), so profit is theirs either way. Don't be afraid to walk out, don't get sad if they don't call, you will find another... Back to the dealer...in your case if the sticker was 11000, i would say 10,000 out the door and go up from there (depending on blue book, maybe even 9500)... Private parties: A little different, instead of saying "out the door" inform them that you have a set amount and can't go higher, because it must cover all costs to own the car (tax, tag, etc). (hear me out, its not a bad thing you will see). Don't give the amount though... If the blue book is 10,200 and the car is listed in the local ads for 12,000.. use the blue book, or fib and say the blue book is only 9,500 on that car (lying is bad, but so is getting ripped off). That should get the price down a little, now your set money comes in... "I really like the car but if I paid 10,500 for it I couldn't afford the tax/tag/title (NOTE: if your state has no sales tax on cars.. this give you a little less of a deduction)... so offer them 'what you can afford' (but actually under what your max is) so figure offer 9,500... no sale? well maybe you can spend some of your "other savings" and go up to 9,800? sold. After reading all of that I think you see how it is... It's a game, a hard one, and one not to be taken lightly. Dealerships take people for rides daily, In the past I had a friend looking to buy a car (he sat down, did all the paper work, etc..) they priced it at 11000 out the door... as a favor I went and after everything they told me they could do 9,500 out the door... Thats a big difference. It's all about being well read on the car, and it's value... Not giving them an edge, being firm, and not being afraid to walk out. I know this was long but I really hope it helps, the websites I gave you are good ones, and one last thing before I go... If you find "the one" the car you like, search those websites for cars VERY similar (in and around your area)... see what the asking prices are... It will give you a good idea as to how much it is overpriced (if it is well under, maybe a hint something is wrong). Let me know if you need any more help/advice, and I really hope this long letter helps you/your mother.
- Rob
