need help on auto financing and dealer negotiation

sean8499 · Oct 24, 2005

A 2004 chrysler pacifica (28k miles, awd) is listed at $20,990 at my
local chrysler dealer on Long Island (NY). This looks like a reasonable
price (and my online research confirms it is well within standard book
values), but is it true that dealers can normally be talked into
shaving a few dollars off the sticker price? I intend to trade in my
1994 Ford Explorer (eddie bauer) which has clocked in 102k miles. Is
$19k a realistic demand? How do I spin it?
Initially I have to finance 100% of this but will pay off the full
balance by March. Will they slam a bank fee? Do penalties apply for
paying off the loan early

JimmyHoffa · Oct 24, 2005

Don't even tell them you have a trade in until you negotiate a final price on the new car, if you do they'll build in some rip-off cash and then offer you what you want for the trade-in. As far as the new car, offer 18k. Move up a little but NO higher than 19k. Remember, you HAVE a car. If you don't like their price just tell them "I already HAVE a car, I don't need a new one unless the price is 19k. If you get the price you like on the new one THEN tell them you have a trade. Only move down approx $500 on what you want for the trade. Walk away if need be. They need to SELL a car more than you need to BUY a car, you are in control.

As far as financing, DO NOT use dealer financing. That's where the high intrest is. If eligible, use a credit union over ANY other financial institution.

sherman · Oct 24, 2005

Jimmy answered it well, especially the part about NOT telling them you have a trade in until AFTER.....good luck....

JimmyHoffa · Oct 24, 2005

Forgot about Sherman...

If you need financing then re-finance your house through him for the money you'll need to buy the car.

sherman · Oct 24, 2005

Jimmy Hoffa said:
Forgot about Sherman...

If you need financing then re-finance your house through him for the money you'll need to buy the car.

:lolBIG:

WizardofWins · Oct 24, 2005

sean8499 said:
A 2004 chrysler pacifica (28k miles, awd) is listed at $20,990 at my
local chrysler dealer on Long Island (NY). This looks like a reasonable
price (and my online research confirms it is well within standard book
values), but is it true that dealers can normally be talked into
shaving a few dollars off the sticker price? I intend to trade in my
1994 Ford Explorer (eddie bauer) which has clocked in 102k miles. Is
$19k a realistic demand? How do I spin it?
Initially I have to finance 100% of this but will pay off the full
balance by March. Will they slam a bank fee? Do penalties apply for
paying off the loan early

#1 Do Not Fianance through the dealership, they make between 2-3 points off almost every loan. Use your own bank or credit union

#2 All dealerships make their most money on used cars, if they are advertising at $20,999 I would think they own this for about $17,500. Times are tough for all dealerships right now, NO REASONABLE OFFER WILL BE REFUSED, with your trade I would offer somewhere around $15,000 + trade, what is the worst thing that can happen, they say no, great, they will call you everyday promising you the world.

#3 Wait until the last day of the month to buy the car. The last day is when we in the car business are doing everything we can to get the last few deals of the month closed. You will get your best deal on this day.

I would bet you can walk away with your Pacifica for around $17,000 + trade. Your trade as long as it runs and has 4x4 is worth a minimum of $1,500, maybe as much as $2,500 with all the options, leather, sunroof, etc. Make the dealership work to sell you a car. Right now they need you more than you need them, their are more dealerships than customers

I've been selling cars for some time now, if you need more advice let me know.

Dawoofdaddy · Oct 24, 2005

Very good points from Hoffa.

Dealerships make alot of money via robbery trade in deals.

BaseballGuy · Oct 24, 2005

pefbear said:
#1 Do Not Fianance through the dealership, they make between 2-3 points off almost every loan. Use your own bank or credit union

#2 All dealerships make their most money on used cars, if they are advertising at $20,999 I would think they own this for about $17,500. Times are tough for all dealerships right now, NO REASONABLE OFFER WILL BE REFUSED, with your trade I would offer somewhere around $15,000 + trade, what is the worst thing that can happen, they say no, great, they will call you everyday promising you the world.

#3 Wait until the last day of the month to buy the car. The last day is when we in the car business are doing everything we can to get the last few deals of the month closed. You will get your best deal on this day.

I would bet you can walk away with your Pacifica for around $17,000 + trade. Your trade as long as it runs and has 4x4 is worth a minimum of $1,500, maybe as much as $2,500 with all the options, leather, sunroof, etc. Make the dealership work to sell you a car. Right now they need you more than you need them, their are more dealerships than customers

I've been selling cars for some time now, if you need more advice let me know.

I think this is some superb advice. :103631605

ProPokerPlayer · Oct 24, 2005

#1...Be very careful..that cars on that lot for a reason. your buying something someone else got rid of..why????? id go as far as digging around to find the former owner then call him up and ask him... i doubt a pacifica was a former leased car but if it was...how many people drove that car like a rent a racer?? know many people u know who worry about maintenance on a car they know they weren't going to keep??? i once bought an 87 ford in 89 that still had the original oil filter on it!! not telling ya not to buy it, just have it ckd out by a top notch mech first...and if he cks it for 30 bucks he aint top notch....

#2.....NO TRADE -IN!! sell your truck yourself its the only way you'll get anywhere near what its worth...

#3..ck ur credit rating, if its over 675 ck out the financing options at yahoo auto...you'll apply to multiple companies and get offers as low as 5-7% or less...

BaseballGuy · Oct 24, 2005

Here are a few other tips from personal experience.

Do not finance. Financing is for suckers. In the end you will have paid 10 grand in interest and own a car thats worth half of what it sold for new.

Either Lease or Buy outright.

Make sure the car you are buying comes with a warranty. GET EVERYTHING IN WRITING.

sean8499 · Oct 24, 2005

pefbear said:
#1 Do Not Fianance through the dealership, they make between 2-3 points off almost every loan. Use your own bank or credit union

#2 All dealerships make their most money on used cars, if they are advertising at $20,999 I would think they own this for about $17,500. Times are tough for all dealerships right now, NO REASONABLE OFFER WILL BE REFUSED, with your trade I would offer somewhere around $15,000 + trade, what is the worst thing that can happen, they say no, great, they will call you everyday promising you the world.

#3 Wait until the last day of the month to buy the car. The last day is when we in the car business are doing everything we can to get the last few deals of the month closed. You will get your best deal on this day.

I would bet you can walk away with your Pacifica for around $17,000 + trade. Your trade as long as it runs and has 4x4 is worth a minimum of $1,500, maybe as much as $2,500 with all the options, leather, sunroof, etc. Make the dealership work to sell you a car. Right now they need you more than you need them, their are more dealerships than customers

I've been selling cars for some time now, if you need more advice let me know.