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My new car buying experience thus far.
wonderwhoits
Member Posts: 128
So for the first time ever at 26, I am buying a brand new car right from the factory... in Japan. I am retiring a still-running, sluggish but stubbornly, 1994 Saturn SL2 with 211,000+ miles, most of which are mine. I would have liked to buy another American car, but I don't think any of the models GM and Ford offer are particularly attractive. (Speaking within my budget, and both specs/aesthetics wise)
The car I'm getting is the 2009 Honda Fit sport model/manual. While I'm not too crazy about hatchbacks I was initially drawn to this car because of it's specs and extensive standard equipment list. The car is a real fuel sipper and common reports of actual mileage averages are around 37mpg city/highway combined. As high as mid 40's reported on some highway trips. So Ford and GM ain't got nothing on that. I have also grown to appreciate the design and uniqueness of the car as time has gone since I first looked at getting one of these things.
So after a test drive I decide I'm gonna get one. Not so fast though because the dealer only has the automatic I just drove. If you want one it has to be ordered because the U.S. supply is limited and blah blah blah. So I say fine, I'll order a car. (which requires a $400 deposit)
I say that I dont want the car before the end of December/beginning of January and the dealer says that's fine- it should take that long anyway for the car to get here. It's coming on the 28th. 
I needed the time to get the largest down payment I could muster together, about 5500- to keep the payments low.
They say if I don't get it now they can hold my deposit until they can order another that may arrive around march. My 400 dollars is now in deposit limbo where I'd have to speak with a manager to see about getting it back. 
I say that the price has some room above the MSRP and could come down several hundred. Dealer says they can throw in some floor mats. Woot.
They said they could get me 6% financing. Now it's 7.75% because of limited credit history so no 6% unless I get a co-signer. 
So I really don't like any of the models Ford or GM have in my price range/specs range- but I am half tempted to tell the Honda dealer I'm going over to one of them just because I know ford/GM would give me an outstanding deal right now. Even if I did lose the damn deposit I'd still be saving money.
Do you guys think if I threaten to walk I might finally get a break here? I mean I really don't like the Cobalt/Focus at all. While they are similar in fuel economy and class, they are not on par with quality, especially the Cobalt. The Focus I am pretty "meh" about- seems like everyone has a Ford Focus like it was a government stimulus car.
I really want the damn Fit but this Honda dealer is pushing my buttons.
Comments
I might try going to a credit union or something similar to get the loan. The dealership I bought from was giving me a shitty ass rate because of no previous credit history and even with a co-signer it was still crap. I went to the credit union I belong to and got a 5% rate.
Crunch the numbers. Take the added interest over the months you would finance and see if it's larger than the difference in the down payment you could save over the next 6 weeks. Should be easy to see which way you come out better.
Of course, the best option is to keep the Saturn until you can pay cash for a new car (if it's not nickel and diming you in steady maintenance).
What? You mean your salesman hasn't stolen your deposit yet?
It is not uncommon in auto sales for the salesman to either not give you a receipt for your deposit, or to get the deposit refunded to himself then tell you it is a non-refundable deposit.
I have had a salesman steal my deposit even after giving me a receipt. The dealership took a look at my receipt, and told me their records showed that it had been marked "void". they even showed it to me in their books.
Now, when ever I go to buy a car, I take two $5 bills in with me. I take up at least an hour of the salesman's time, and finish just before lunch. When he asks for a deposit I tell him I have only $10, and I need $5 to eat lunch, so he can have the other $5 as the deposit if he wants. Haven't had one yet refuse the sale because of no deposit.
If they want the sale bad enough, they won't press for a deposit. And if you don't give them a deposit, they have nothing to steal.
EDIT: We have one dealership here that it's a standing joke that the only salesmen they hire are ones fired from other dealership for stealing the customer's deposit. Deposit stealing is that prevalent at that dealership.
The key to purchasing a car is patience. The moment you appear to have all the patience in the world, is the moment they begin to deal with you.
For starters, the interest rate offered to you is WAY too high. You can and will do better then that without a co-signer. Second, you havnt met your goal for your $5500 down payment. You shouldnt be car shopping until you have this, you really shouldnt be putting money down on something you're not prepared to purchase.
Heres a suggestion, and it may get you what you want. Demand your $400 deposit to be given back to you. I wouldnt be surprised if you were offered a deal that met your needs the moment you demand this. Keep in mind this is a buyers market. These salesmen are scratching tooth and nail to make sales and they will NOT allow you to take your down payment back without making a sale. The moment you say "I need my down payment back" is the moment they realize they may lose a sale. Listen to their offer, and dont be pressured if its not what you want.
If no offer is made (which I highly doubt) you havnt lost anything. Hell, they dont even have the car you want.
There are a LOT of cars out there, and a lot of hungry salesmen who will give you what you need. Dont settle until you're sure the deal your getting is what you really want. Dont let the sales person pressure you into a decision. You're the one in control and its you who should be pressuring them into making you a reasonable offer.
*edit* just re-read and it seems you havnt given a down payment for the delivery? if thats the case, DONT give them a dime of your money for a down payment. I guess that just blows half of what I said away
"If you want a picture of the future, imagine a robot foot stomping on a human face -- forever."
Yep it is a total buyers market. When the first sales guy I went to told me I was lying about the interest rate my credit union gave me, I told him to go fuck himself, right to his face.
I went to another place and this guy bent over backwards, throwing in a few extras and driving 250 miles to get the car for me. Thats how you make a sale.
Every sort of shopping market is totally screwed right now, so use that to your advantage and say you are going to yank your deposit back and the offers should come flying. If not tell them to screw themselves and go to another place. Its their loss, literally.
Just wanted to say thanks for the advice guys- some good ideas offered up here. Appreciate it.
Any car dealership should give you a good deal. My Dad runs a Nissan store and buisness sucks right now. Imo though Id take a Nissan. Not becuase my Dad sells them but I really like the Versa very nice car same mileage.
Anyways people looking for new cars go to a Autonation store if possible. The company owns my Dads store and that shit doesnt happen at their stores They have over 300 stores nation wide and Im pretty sure the owner is the guy who either use to or currently owns the Dolphins.
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Try the new malibu, it is nice. Here in my state 4 dealerships closed and one of them was the largest Chevy dealer in the east coast. More are hurting, people are not trusting their money on a future that is not solid. These dealers should be doing everything they can to keep you.
I think if you press you may find they will give you a vehicle at the GM dealer for GMS which is basically the lowest they can go, employee discount price. Every car on a new car dealer has a invoice and the bottom line. A dealer who sells at that number makes nothing really, who hurts the most is the salesperson who spends 3hrs or more on a sale to find they only get $50 on the deal.
Who let you in the VIP section?
The word that every dealer likes to hear: Today.
I can see the reason behind wanting to get exactly the car you want from the factory. Dealers will order what you want or do dealer to dealer trades to get you what you want, but they won't cut you much of a deal like they would if you found something you like in their inventory. That's because they want to move the inventory they have and into your garage...you guessed it...TODAY.
See, I used to sell motorcycles, so this is how they think. Ordering something special and waiting to close the deal is a pretty risky proposition that carries a lot of cost and risk. They have to pay for freight and the cost of the vehicle, which means cash is going out of the dealership before the cash can come in. There's no guarantee that the customer will want it when the time comes to sign the paperwork, and about 50% or more of these transactions never materialize. The customer might have changed their mind by then, or got another car while they were waiting for this one. Then they'd be stuck with an extra car that they might or might not be able to sell in time for the next model year, and with the type of thin margins dealerships operate under, they can't afford to order more stock then they already purchased months ago.
It's not in a dealer's interest to sell you a car they don't have. Yeah, they might get something out of it in a few quarters, but their payroll and overhead is due before that time. They are like JG Wentworth: they need the cash now! If you are willing to sign a deal, put money down, and roll away today, they'll move heaven and earth to make it happen.
Yes, you gave a deposit, but they can't keep that (even if they say they can). Even if they could, the dealer down the street might even reimburse you that $400 if you are willing to take home a new car from them...you guessed it...TODAY.
If you are willing to wait for a special order, then it seems to me that you can wait to get that $5500 down payment. I say wait to get that first. If you are willing to slap down $5500 on a salesman's desk TODAY, you'd be surprised what you can get away with. No longer are you going to be in the market for bare bones budget like the Fit or the PT. You'd probably be able to upgrade to something in the $17,000 to $20,000 range for the same price as you'd pay for a special ordered $15,000 vehicle. Now we're talking G5, or Accord, or Fusion, or Miata! But that's ONLY if you have the $5500, and make it clear that you are going to buy a car that day...TODAY...whether it's from the dealership you're in or another one right down the street.
Hope this helps from someone who recently bought a Solstice financed at 0% (free money) with 5K down at well below sticker, with auto everything...but that's because I told the guy, "I'm going to buy TODAY," at which point he smiled, and said, "we can get you that car today, young man!"
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OP, you might try looking into one of the membership stores like Costco or Sam's Club, etc. They offer programs where you go to a website and specify what exactly you want to buy. I think AAA has a similar program, also.
They refer you to a dealership that they have a partnership with. You go there with a reservation number and they present the car, $500.00 over invoice. Period. No hassles, no discussions.
And because you're a member, they often are willing to offer APR's at good rates. You might find a better deal on your own, but you'll have to work at it.
And seriously, you should wait until you have the money down in hand, and buy a car from the lot. Like other people have said, you'll get a much better deal because dealers want to move current inventory rather than wait for future revenues.
Spend the time to look around. There's a dealership right now with a car you'll like. You just have to find it.
- How can you talk if you haven't got a brain?
- I don't know, but some people without brains do an awful lot of talking, don't they?