Buying a Car - Discount to Expect?

[abc123]

This is my first time buying a car (my wife and I have always driven hand me downs from our parents), and I'd appreciate some advice. I've pretty much narrowed it down to getting a certified pre-owned volvo (probably a S40 or S60 - less than 30k miles), as I like the styling and the price is well within our budget.

My main question is what type of % discount off of the advertised price I should bargain for. If its listed between $18-20K, what is a reasonable offer? There are several dealers in the area, with maybe a half dozen different cars that I'd be perfectly happy with (I'm not picky when it comes to details), so I can probably use this as a negotiating point, but I'm curious to know what kind of discounts anyone who has purchased recently received (especially given the ****** economy), as well as any other tips you may have for a first time buyer. Thanks!

 

[JoeWoah]

Hard negotiation in these hard times. In other words, tell them what you want to pay and stick to it. Be prepared to walk and make it look like you don't give a **** about the car, even if you really like it. Remember, that car is a dime a dozen.

No one is buying used cars, let alone new cars, so go for a deep discount. With a new car it would be easier to determine how much you should gun for, with used cars it really depends on lots of variables. Try for $5K off and make sure you have the money to make the deal before you walk in.

It's nice to walk into a place a say $xx,xxx and I'll take it now.

 

[sho'nuff]

+1

any american car dealership who refuses your offer (within reason) is foolish to not take it up these days. the ball is in your court. unless you have certain limits in your credit status

 

[Lucky7]

5k is the general rule of thumb in markup on used vehicles. Just like everyone has stated prior, car stealerships are hurting right now BIGTIME! Unless you are paying cash, why not get something new and take advantage of very low financing rates on NEW? #2 Why are you dead set on a Volvo? I hope you have deep pockets for upkeep.

 

[sho'nuff]

get a Smart Car

 

[abc123]

So say the price listed is $19K, would a good starting offer be 14K? 15K? Over 25% off the listed price sounds almost absurdly low, but I have zero experience with cars. Obviously I expect to negotiate a bit and want to start as low as possible, but I also want to have a idea of what the type of discount others have bargained for to give me an idea of what I can push for. Given my lack of knowledge here, I want to be informed, as honestly, I'd probably pay the listed amount if I didn't know any better...

Aslo, our credit is excellent - we won't have any issues. Seems like a great time to be buying, if one is in the position to do so.

 

[sho'nuff]

you would have most leverage if you go up front with 100% cash. they will do almost anything now if you had that.

 

[abc123]

Originally Posted by Lucky7

5k is the general rule of thumb in markup on used vehicles. Just like everyone has stated prior, car stealerships are hurting right now BIGTIME! Unless you are paying cash, why not get something new and take advantage of very low financing rates on NEW? #2 Why are you dead set on a Volvo? I hope you have deep pockets for upkeep.

Thanks (to all) for the advice.

I'm going with something used to avoid the big depreciation hit new cars take. Aslo, I live in a city and tend to bump into/scrape things - it would just be too depressing to do that to a brand new car

As far as Volvos, my family has always had great experiences with them, and I find they suit my taste better than anything else I've looked at in the same price range. Anything else you would suggest that is similar?

 

[dave]

There is no rule of thumb for dealer markup on a used car. it's silly to assume that a dealer would add the same markup to a 10k car as he would to a 30k car. it can be percentage based but that doesn't even hold water most of the time. they price them as they buy them based on what the market will bear.

the fact of the matter is you do have the upper hand at this point. the way I would (and do handle it) is I figure out what type of payment I am willing to make per month and I take that to the dealer along with a list of requirements in a car that I would like. ball's in his court. if he wants to make it happen he can. if not you walk. simple as that.

remember, car dealers are not out there to lose money and a salesman has to eat just like you do so don't demand the world because you won't get it. no matter what. and if you go into this venture with the "stealership" mentality, they will see you coming and you WILL get screwed and rightfully so.

 

[dragon8]

If the price is advertised say in a paper they have to stick with that price. Its some sort of law in CA.

 

[JoeWoah]

Originally Posted by abc123

So say the price listed is $19K, would a good starting offer be 14K? 15K? Over 25% off the listed price sounds almost absurdly low, but I have zero experience with cars.

It's a used car, there is no way to tell from here if the $19K they're charging is commensurate with that car's condition, year, mileage, options, etc... Off hand I will say no. What do you care if you low ball them? What's the worse that can happen? A counter-offer?

Stop caring about the car or what they think. If you're not prepared to walk away if you don't get what you want, can't wait more than a week to work out the deal (time is power), worried about what they'll think of you or not willing to resort to hard tactics; hike up your skirt and let someone else negotiate for you. Like your father.

Also, used car financing at a dealership sucks! They never have any good deals for that. Your best bet is to get financing ahead of going to the dealership and shopping around for the best rate you can find first. Then, when you walk into the dealership, you'll have the cash ready and can offer them actual cash.

You could actually get a better deal on a new car then a used car right now though. They can give you more off the sticker, better financing options (even 0%), better service in the future, etc... Some places even have BOGO sales! Volvo has **** for resale, so I can't say it's a bad option for you and you can use that to your advantage if you're dead set on one.

Value is bang for the buck, not cheap.

 

[x26]

Originally Posted by JoeWoah

It's a used car, there is no way to tell from here if the $19K they're charging is commensurate with that car's condition, year, mileage, options, etc... Off hand I will say no. What do you care if you low ball them? What's the worse that can happen? A counter-offer?

Stop caring about the car or what they think. If you're not prepared to walk away if you don't get what you want, can't wait more than a week to work out the deal (time is power), worried about what they'll think of you or not willing to resort to hard tactics; hike up your skirt and let someone else negotiate for you. Like your father.

Also, used car financing at a dealership sucks! They never have any good deals for that. Your best bet is to get financing ahead of going to the dealership and shopping around for the best rate you can find first. Then, when you walk into the dealership, you'll have the cash ready and can offer them actual cash.

You could actually get a better deal on a new car then a used car right now though. They can give you more off the sticker, better financing options (even 0%), better service in the future, etc... Some places even have BOGO sales! Volvo has **** for resale, so I can't say it's a bad option for you and you can use that to your advantage if you're dead set on one.

Value is bang for the buck, not cheap.

Some good Points Joe...

--esp about used car financing.

And as an aside: Why are you so set on a Used Car??
For me I can live with the $10,000. Hit to NOT have to own someone elses Stuff. Also in my experience I can get ALOT better deal on a NEW auto.

 

[Flambeur]

Originally Posted by sho'nuff

you would have most leverage if you go up front with 100% cash. they will do almost anything now if you had that.

please tell me why the **** they would do that if they make more money when they get you financed?????

 

[overdog]

www.carbuyingtips.com

I suggest you read this site from cover to cover. The layout is crap, but the information in there saved me a couple grand at least.

 

[TowleY]

Why dont you go with like a nissan sentra or altima. You can get an altima brand new for like 18.