Wanting to replace a 200,000 mile clunker, I came across two good websites on how to buy a car for the best price, Fighting Chance and CarBuyingTips.com. I had the chance to put the tips to work this past week. I didn’t use everything they offered, but enough that I think I got a good deal.
CarBuyingTips.com is just loaded with information on buying a car. Spend a few hours reading through the site and you’ll be a more informed carbuyer. Fighting Chance is a pay site that will provide you with information and market data to help you determine the best price for a particular car make and model. They’ll also make themselves available by phone for any coaching you want or questions you have. I didn’t use the pay portion of Fighting Chance, but their website is still has some information you can use to gain an advantage in negotiations.
Tips from these websites, coupled with my wife’s negotiating skills perfected through years of bargain shopping and my willingness, nay, eagerness, to just walk out when the salesperson started playing games, got us a Honda Pilot 2WD LX for $1700 below the invoice price. And not that sticker price means anything anymore these days, but it’s about $4000 off the sticker price.
The most important tip I used was to buy at the end of the month, when the dealership wants to meet their quotas. If they meet a certain quota, they get a kickback from the manufacturer (not sure if “kickback” is the right term but you get the drift). Knowing this and sensing that they were just trying to hold out for that last two hundred dollars, we left the dealership, asking them to call us back if they want to sell to us at the price we gave them. We were in no great hurry or need (another advantage for us). They called us back 2 days later. After the deal concluded, the salesperson admitted that they were trying to meet a quota before January and having a car sold was more important than the price it sold at, even at a loss. If they meet their quota, I’m sure the kickback they receive will more than make up for the loss (if any, I’m not so sure) on the vehicle they sold us.
During that 2 days waiting for them to call us back, I also did the so-called “Fax Attack”, where I faxed several other dealers in the area, seeing if they would beat the price we wanted for the car we wanted. This wasn’t very successful. Only one dealer responded, with a higher price. So either I didn’t do it quite right, or we got lucky in that we happened to visit the one dealer that really needed the sale.
- Thanks for reading
- Car Buying Tips
- Automatic Millionaire, Implemented!
- Get your financial house in order before quitting your dayjob
- Carla Blazek, free from 9 to 5
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March 26th, 2007 at 5:55 pm
Hey Eric,
Interesting, read through alot of your articles. Agree with much of what you say. I’d like to escape the 9-5 grind but at the same time I’m aggressively trying to climb the ladder. Paradoxical.
I’ve never understood why the automobile market isn’t as standardized. I heard that toyota scion dealerships are structured so the price is WYSIWYG.
Congrats on your new car.
October 25th, 2007 at 8:19 pm
Another approach is to buy a car, used, from a fleet
dealership. I got one that was only 2 years old,
in good shape, with warrantee..saved about $10k
over buying new.
I’ll share a few more tips in a minute, but first: Loved finding your website. It’s good to know there are fellow souls, fellow travellers on the same road.
I know the grass is always greener on the other side, but I offer this truly as a way to offer what you might find helpful: the main thing to become free is to learn to live and enjoy a rich life, on as low a budget as possible. With that, I will have succeeded in a total of 13 years of fulltime work (in about 3 years) total savings equal to 25 years’ worth…and my salary is probably 50% or 66% of yours given your field (you show me yours, I’ll show you mine), which means you can do it in even fewer years than I do, and as a fellow traveller, I’m rooting for you to succeed in just that..I’m happy for you having a higher salary, just would be sorry to not see you take full advantage of that to get to the finish line faster. Budget: you show us yours, I’ll share mine. Ok, I’ll share anyway: I live on about 18k per year. Moving to more rural or cheaper housing would lower that…But if I lived on 25k to 30k per year my “Freedom day” would be that many more years further away, towards
the horizon…Ok, off my soap box, hope this might be worthwhile to chew on for you or some readers
Other tips: got this info from a friend
http://zennioptical.com/cart/home.php
for much more affordable glasses. Now, I said, wait, what about quality…so far many months after purchase and they say it’s still good, nothing broke..and they love the look (they spent several months online looking before chosing their style)..only downside is needing a friend to measure how far apart your eyes are to nearest millimeter or two but friend says the fit on their face is very good too. I’ll see if they are still happy in 6 months and if so, I’ll consider this a good option for when eye coverage is gone after I leave fulltime work with benefits world.
Biggest expense though is general health insurance..I’ve all but decided in my case I’m going for high-deductible plan…those are about $100 per month, and you get the negotiated rates for doctors visits and bloodwork when you do pay out of pocket, so seems like a good deal versus spending many thousands for personal insurance.
Also good website with tons of links is
http://www.gallagherpress.com/pierce/index.htm
Hope above is useful and look forward to tips from you and others.