Tell me about Car Price Bargaining. (DON'T PAY STICKER PRICES!)

I've known for about three years about what I should do to cut down the price of a car. I haven't ever purchased a car from a dealership though, so I can't really explain it that much. However I do know that there are lots of people out there that don't realize you can cut down the price of a car significantly. The last car my family purchased we purchased for eight thousand dollars less than the sticker price.

There are key terms to know.
For example, Hold Back Price.
Which means the dealer gets paid a specific amount from someone other than you no matter what. You don't have to feel bad for bargaining down to a price near what they themselves paid for the car.

You should also know that it costs them money everyday they keep a car on the lot. When they say "what can I do to put you in a car today" they mean it.



So for those of you who are pros, come clue the rest of us in.

For that matter, any tips on buying used cars would be useful as well. I'm currently saving up for a used SUV myself, and have only a moderate idea of what all I should look at when checking out a vehicle to buy.

Research, research and research!

I'm not sure how applicable to you guys over there this is, but there's a great site for valuations: http://www.parkers.co.uk/ they tell you what a car is worth for private and dealership. Having a good idea of what the car is worth initially will help out, also things like a warranty extension, service, full tank of fuel should be things you ask for :)

One other thing I forgot to mention, because I know only a little bit about this subject, is that the salespersons can play with the numbers to give you what you want. They can do things like give you a higher trade in value for your car, etc, to give you a better deal without actually lowering the price.

I don't know anything about buying a used car. The only car I ever bought was used and I bought it for $500. It was an old chevy blazer, but its gas consumption was low and it ran ok enough to get around the small town I was living in at the time.

I actually have a Word doc saved on my PC concerning things to check when buying a used car. I went through a spot of terrible luck a few years ago with losing cars and have had to buy several. My dad wrote the list at the bottom - he's been diagnosed with mild OCD, so needless to say, it's quite thorough. :D

The main tip I have about negotiating is to be firm. It's been my experience that car salesmen really feel that they can take advantage of younger people, and they tend to be unusually unyielding in a sort of self fulfilling prophecy. Don't be afraid to just walk away if they aren't willing to work with you.

Often what they will try to do is get you inside in a hurry to talk prices. The ostensible reason is that you're "just talking" and aren't obligated to buy the car - but they know that just by getting you to that stage, you are more likely to buy. Don't go inside to talk prices until you've gone through at least most of the following checklist, as well as obtained a CarFax report on the vehicle.

(Keep in mind that this entire post applies to used vehicles.)

Used Car Checklist



1)check if the engine is cold or already warmed up
a. put your hand on the hood and see if it’s warm
2)make sure the vehicle starts okay

• start when the engine is cold and hot

3)check the warning lights after the vehicle is started
4)check for smoke out the exhaust after starting the vehicle

• black and/or blue smoke – burning oil
• excessive white smoke – burning water

5)check the idle speed of the engine

• should be approximately 700 – 800 rpm’s
• also check with the A/C running

6)check the engine temperature after the engine has warmed up
7)get/verify VIN number of the vehicle

Checks from inside the vehicle:
1)check the air conditioning
a. preferably when it’s hot outside
2)check the heater
3)check the steering wheel tilt
4)check the power locks on all the doors
5)check the stereo

• turn it up and make sure no speakers are cracked

6)make sure all the windows go up and down okay
7)make sure the power seats work
8)make sure all the seatbelts work
9)make sure the center console opens/shuts okay
10)make sure all the gauges work on the dash
11)make sure the turn signal indicators on the dash work
12)check the condition of the upholstery on the seats
13)check to see if there’s floor mats
14)check the inside lamps (lights)
15)make sure the glove box opens and shuts okay
16)check the condition of the dash, console and ledge by rear window
a. check for cracks
17)make sure there’s an owner’s manual with the vehicle

• might be in the glove box

18)mileage on the odometer, mileage should reflect year of the vehicle

• 15,000 miles per year
• check wear on brake pedal

19)check for rust on metal hardware under the dash

Checks from outside the vehicle:
1)make sure the hood and trunk open and close okay
2)make sure all the doors open and close okay
3)check for chipped and/or cracked glass on all the windows
4)make sure there’s a spare tire, jack and lug wrench with the vehicle

• might be in trunk

5)check all the fluids

• oil – should be light brown in color (not black)
• transmission fluid – should be reddish/purple in color (not dark brown),

this needs to be checked while the vehicle is running

• radiator – should be green in color with no sludge
• power steering – should be purple in color (not black)
• brake fluid

6)check for rust on the oil dipstick
7)check for water in the oil
8)check the condition of the universal belt
9)how clean is the engine
10)check the outside lights

• front/rear lights including the brights
• front/rear turn signals
• rear brake lights
• rear reverse lights

11)check the exterior for dents, scratches and/or chips
12)check the paint job

• fading
• bubbling
• color mismatch anywhere

13)make sure the vehicle has all 4 hub caps
14)make sure the vehicle sits level
15)check suspension by pushing down on all the corners of the vehicle using all your weight
a.should bounce back up in place quickly one time
16)check the tire tread
17)check for even tire wear
18)check for paint over spray on windows/doors/under hood/tires
19)check for brake fluid on the tires
20)check the voltage across battery

• should be approximately 13.6 volts while the engine is running
• should be no more than 14.8 volts
• also check with the A/C running

21)verify the VIN# is the same on the vehicle everywhere
a. doors, hood and/or trunk

Checks from under the vehicle:
1)check if the boots are leaking
2)check the suspension

• grab the tie rods and shake

3)check for suspicious welding on the frame

Checks while driving the vehicle:
1)accelerate slowly and quickly and make sure transmission shifts
smoothly in both instances
2)listen for odd noises and rattles

• especially when going over rough roads and/or bumps

3)while on the highway let go of steering wheel and make sure the vehicle tracks straight

• possible alignment problem

4)is there a shimmy in the steering wheel

• possible problem with the tires

5)is there a shimmy in the steering wheel when braking

• possible problem with the brakes

6)when braking is there a grinding noise or high pitched squeaking

• indicates a possible problem with the brakes
• ask when the last time the brake pads were replaced

7)how noisy is it inside the vehicle
8)test the cruise control
9)let go of the steering wheel while braking hard, does the vehicle track straight

• indicates a possible problem with the brakes

10)drive the vehicle in reverse
11)check for fluid leaks after driving the vehicle

NOTES:
1) Beware if the vehicle is already warmed up when you get there
2)Check for fluid leaks/stains wherever the vehicle is usually parked

• rust stains indicate a leak in the radiator