Help on upcoming car purchase

[Ramnares P.E.]

My wife and I are thinking about trading in our current car, a 2012 Lexus CT 200h, and purchasing a new one.

The primary reasons for getting the new car are:

1. With mini-Ram here it's not as comfortable in a smaller car. Quite often when we go out we pick up my parents, or hers, so it becomes at least 5 people. As you can imagine, in the current car, that's a tight fit. Also we do mini road trips a couple times a year (drive to NH, VT, OH) and it's a pain in the a$$ for everyone in a tiny car. We're looking for a non-minivan capable of seating 7.

2. My wife's military and often has to lug quite a bit of gear around. Again, with this in mind, we need more compartment space available.

We're currently thinking of either the 2016 Ford Explorer Limited or the 2016 Highlander. My preference is for the Ford. My wife's preference is the Highlander.

Have you had experience with either of these before? Which you would recommend and why? Any tips for getting the best deal from the dealership? Also, thinking about getting the all-weather mats from the dealer. Should I get it or just order the weathertech ones instead?

 

[P-E]

I see. What you need is a pinzgauer. I hear you can pick one up on the cheap.

 

[Ramnares P.E.]

If options 1 and 2 fall through I'll keep that in mind P-E.

 

[P-E]

Given your choices I'd pick the highlander based on the name alone. "There can be only one"

 

[Dexman PE PMP]

For negotiating a car purchase, you must negotiate all aspects of the purchase (purchase price, down payment, trade in, term, and interest rate) instead of only just the monthly payment. All too often the sales associate will only work on the monthly payment which can end up adversely affecting your total out of pocket expense and severely put you in the red for any potential "exit strategy" down the road if you need to get rid of it sooner than expected later. Know what your monthly limits are and negotiate the components individually to get there. Do not be afraid to walk away from a deal, even if you've been there for several hours. It's a game of attrition and they are counting on you to give up and just accept what they present.

Start with the down payment and trade in value. Know what you have available and what your car is worth. Do not budge from these numbers.

Then negotiate the purchase price of the car. Know what the MSRP is and what the dealer bought it for. It is not out of the question to have the dealership write off costs for options you don't want. You are compromising on accepting a car that is not outfitted the way you want, you should not have to pay for it.

Know your credit score and what that means to the bank. If the dealership does not offer you a good interest rate, look for other banks. Talk to your bank about pre-qualifying. Look at opening a dummy checking account with a credit union as they tend to offer the best rates to members.

Check the math on your monthly payments versus duration of the loan. Monthly payment may be only $50 difference between a 4yr and a 6yr loan, but the total out of pocket can be significantly higher if you take the term out too long.

Last but not least, test drive the car you intend to purchase. Do not accept a test drive of one and purchase a different one even if they are "similarly equipped". It's amazing how much just a few options will effect the feel of a car.

 

[YMZ PE]

While minivans have an image problem, they really are the best option for transporting more than 4 people around. The third row in an SUV will always be tiny and a pain to get to to buckle in the little ones, and the storage is limited.

I gave in and got a Sienna a few months ago and it's been wonderful. It drives like a sedan, the kids love it and I constantly get compliments from coworkers that though their wives would never allow them to purchase a minivan, they love how it's so much roomier and utilitarian than their SUVs. YMMV since I prefer function over flashiness, and I own my identity as a soccer MILF.

 

[Ramnares P.E.]

Thanks Dex. I won't be financing it through the dealer, it'll be through USAA. I'll see what the dealer offers but I seriously doubt they can beat what I have.

I've driven the 2015 Ford Explorer Limited and liked it. I'll be doing a test drive of the 2016 this weekend. I haven't driven the Highlander but will if we end up going that way.

YMZ, I have no problems with getting a minivan. It's actually my wife who's against it. I'm more interested in cost/function over appearances but haven't been able to argue her out of it.

 

[Dexman PE PMP]

To expand on the "game of attrition" aspect, beat them at their own game. End of the week/month tends to put more pressure on the sales team to meet quotas or goals, or the salesman may be trying to play "catchup" just for his own personal paycheck.

At the micro level, go into the dealership later in the afternoon (after 4-5pm). This can lead to a long work day for the salesman & management as most who work the closing shift have already been there a few hours. They hope to leave when the dealership closes (typically 8-9pm), but if you push it even 30 min past that they can get very forgiving because they just want to go home.

Their big push will be the emotional side. They want you to love the car. If you fall in love with it, you start to get very forgiving on your end. It's why I was ok with a 9% interest rate when I purchased my Camaro (which I later re-fi'ed to under 5%)

(BTW, I used to work in a car dealership. I've learned their tricks.)

 

[Ramnares P.E.]

USAA is giving me under 3% which I doubt I'd get anywhere else.

Awesome advice on the timing though. I'll definitely have to keep it in mind. Unfortunately we'd like to get this done this weekend since we have an upcoming brake change on our current car. I was hoping to trade it in before I have to shell out $600 - 700 on getting the brakes done.

 

[engineergurl]

USAA is giving me under 3% which I doubt I'd get anywhere else.

Awesome advice on the timing though. I'll definitely have to keep it in mind. Unfortunately we'd like to get this done this weekend since we have an upcoming brake change on our current car. I was hoping to trade it in before I have to shell out $600 - 700 on getting the brakes done.

we got our Mazda at 0% for 36 months, which was better than what USAA offered... just saying, dealerships love military members.

 

[Ramnares P.E.]

Whoa, I'll have to ask about that. If you don't mind, what was the rate after 36 months?

 

[engineergurl]

Whoa, I'll have to ask about that. If you don't mind, what was the rate after 36 months?

I don't know, we paid it off in 34 or 35 months... but I do think you had to pay back interest if it wasn't paid off by then...

 

[Ramnares P.E.]

Ahh drat. No way we're paying off a Ford in that time. I'll let you guys know what happens!

 

[Lumber Jim]

I agree with everything Dex said except for writing off options that you don't want. All I could think of was going into a Chevy dealership and throwing a fit that they don't have EcoBoost engines and demanding a price reduction because of it.

 

[Dexman PE PMP]

I'm talking more like a sun roof or "upgraded" wheels with the argument in price. I doubt you can really argue much when you want a yellow car and end up buying red.

 

[csb]

 

[Ship Wreck PE]

Don't forget to be prepared for a high pressure salesman trying to sell you gap insurance, extended warranty, and life time oil changes. If you want it, fine, but don't let them talk you into a hundred bucks more a month on something you don't need.

 

[mudpuppy]

Don't forget to be prepared for a high pressure salesman trying to sell you gap insurance, extended warranty, and life time oil changes. If you want it, fine, but don't let them talk you into a hundred bucks more a month on something you don't need.

This is often the "business manager" and this is where they really make their money. When I refused all that crap the guy called me stupid... I almost walked away because of that, but didn't really want to give up the 0% for 6 years financing I was getting, and they were the only dealer within hundreds of miles that had the car I wanted.

 

[Ramnares P.E.]

0% for 6 years?! How'd you manage that?

 

[mudpuppy]

It was a one week deal GM offered in 2006 when they were heading toward bankruptcy.