babygrass

I'm going to be buying a car soon, but I've never bought one and i don't know that much about cars... so I don't want to be ripped off.

I'm thinking about either an Insight or a Civic Hatchback (the SiR)

I'm probably going to buy used, but I would be open to a new car if the price/financing is right.

I have some questions that I'm hoping some people will be able to answer:



1. Is it possible to buy a car at the price the dealerships get them for? Like through a car broker or something?

2. If I buy a car through a broker, would I still have the financing option?

3. What good dealerships would you recommend in the Vancouver/Lower Mainland area?

4. What other things should I keep in mind when buying a car?

99GT

A lot of small car dealers buy cars at auction. It is possible to tell them what you are looking for, and have them find it at an auction. Then you usually have to pay something like $500 over what they paid. Done this way, they are very up-front with you, and will take time to find a car you will like. Go to several smaller used car dealers. Ask if they can find a car at auction for you. A place that can do this will be able to look at the inventory for the coming auction online, and tell you if what you want is available before you leave. This is the best way to purchase a used car, in my mind, without actually having to check it out yourself. Note: Hondas usually sell so well they never show up at auction. Some popular cars will be rare, but lease returns are common.

A few friends swear by AutoShopper and other magazines where the owner lists a photo and the car. These people are willing to spend some money to sell their car. You need to drive the car, check the oil, tires, interior, paint, etc., to see if it is in good enough shape to buy, but my friends who have bought this way have all said they have never been burned. My friends who sold this way got more money than a dealer would give them, but the buyer still got the car for about $500 less than a dealer could sell it.

Dealers are good places to buy a car beacause a good dealer will stand behind their cars, repairing brakes if they fail right after purchase, for example, but keep in mind that if the dealer sucks but the car is nice, walk away. You can find the same car at a dealer willing to work with you if you are willing to wait, and shop around. The worst thing people do is buy a car for terrible terms simply because they liked that car, at that dealer.

babygrass

Thanks for the info!

I think I'm leaning towards an insight, and I want to buy used, but I'm looking at buysell.com and the prices that they're offering for 2000 used ones are only a one or two thousand less than a brand new 2002 model.

What do you think? New or used.

P.S. I'm going to finance it.

99GT

I would buy used, since you retain more value. If something happens, you can sell the car. With a new car, it usually depreciates faster than you can pay off the loan. Then, if you have financial hardship, the car is worth less than you owe, so it is impossible to get out of debt.

I used www.cars.com to determine whether an offering price was reasonable. Consider that the dealer is looking to make about 12-15%. On as $12K selling price, you can usually get the car for $11000 or less, and still leave the dealer with at least $300 in profit. Considering that with Hondas, the time at the dealer is less than two weeks, that is decent money, multiplied by 5-10 cars a day. There aren't alot of used Insights for sale right now. I am guessing that alot of them are leased (if Honda leases vehicles, I don't know), and 2-3 years after a vehicle is released, there are a large number for sale. You may want to look at a different Honda, an Insight is as much an exotic as a Lamborghini, in its own way. You will pay much more than you have to if you want to buy one in an under-supplied market.

babygrass

I don't understand.. Why would a used car retain more value over a new car? They're still the same car aren't they?

ntphan

[QUOTE]Originally posted by babygrass
[B]I don't understand.. Why would a used car retain more value over a new car?

babygrass

So even if the price difference is only about one or two grand from a new car, you would suggest buying a used?

What are the best ways to haggle the price down?

99GT

When you drive a car off the lot, it loses much of its value. People will pay much more for a car with 5 miles on it versus a car with 20K, even though, long-term, they will probably last just as long. The best bargain in cars is those cars just off lease. They are well-maintained, kept stock, and used by people who needed commute transport.

Used cars, say 2 years old, are broke in, but don't yet require any kind of replacements. The shocks are still good, the brakes should be fine, the clutch is probably good for another 20K, the weather seals are either good or fixed, the engine has no problems. In general, the car has been shook down, and any problems have been fixed, but there is no wear and tear yet.

99GT

The best way to get a lower price is to lay out cash for the amount you want to pay. Lay down 12 hundred dollar blls for a cheaper car. If the guy was asking 1500, and you show him 1200, he will usually take the money in front of him. For more expensive cars, arrange financing through a bank, not the dealer, unless they give you a better rate. If through a bank, just tell them the bank won't approve a loan for more than X amount. Allow the salesman some room to make a counter-offer. Consider the 12% the dealer is wanting to make. The asking price is probably 120% of private sale value. The normal thing is to make a counter-offer to the salesman that the salesman can accept. If they hassle you or insist on a higher price, leave, and consider the price they gave you. You can always go back for that price. If they try to raise it when you return, tell them you will buy the car for what you want to spend, or not at all. Remember during all this, you want the dealer to fix the brakes if they need it, or warrantee the tires they put on it. This is not an adversarial relationship. They need to make a living, and you ARE going to give them your money, so if you don't like them, go someplace else.

babygrass

Thank you for all your help! i didn't realize that you could finance through a bank instead of a dealer.

I really don't know much about cars that's why I'm so scared of being ripped off.