Buying a brand new car can be incredibly annoying with all the haggling.
Here are some steps to follow when trying to get the best price:
1. Use the Internet to do your research on which car you want and exactly what level you want (color, features, and packages). Check out edmunds.com and many other car forums.
2. Go to the car dealership and test drive Don’t negotiate with them. Walk out and tell them you are not interested. Go to cars.com and search for the exact New Model of your car. You will know the cheapest price they are currently selling for. This is good information but the price will be dictated by the amount of demand and how you position yourself in negotiation.
4. Look up all the car dealerships around your zip code within a 500 miles radius to find the dealerships with the largest volume. You might need to build a list of 20 dealerships and
find out the person responsible for Internet or fleet sales along with their email addresses.
5. Come up with a concise email explaining exactly what you want to “BCC everyone.” If you can time it do it the end of the month or quarter when dealers are most desperate to sell.
Here is an example email:
I am very interested in purchasing the car below: 2010 Mercedes C Class, Exterior – Black Sapphire Metallic, Navigation, and Sport Package.
I can be a little flexible with the exterior color.
I’m a SERIOUS BUYER and will be paying fully in CASH. My zip code is 12345 for pricing calculations.
I need you to provide me with an out the door (tax and title fee) quote by tomorrow the latest since I’m looking to get this car by the end of the week.
I will need your phone number to contact you. For your information, I’m request pricing from many of your competitors so be sure to provide me with the lowest quote possible. Be sure the out of the door price is approved by the Manager. I’m ready to buy and I do not wish to waste anyone’s time.
Thank you for your time,
7. Once the offers start to pour in, take some time to think it over. Don’t make a fast commitment and wait for all the offers to come in. Pick some of the top offers and time to negotiate further. Give them a call and get them to lower the price some more. Some dealers will try to not get into a bidding war or require you to come into the facility.
Should I lease or buy?
Short answer: If you are an investor about to generate more than 12% a year ROI then you want more capital in your pocket to invest in more assets, therefore you should lease a car. If you are not an investor and especially if you can’t seem to accumulate any savings you should buy because it is a forced savings account. Same concept about buying or renting a home.
Pros of Leasing a Car
First off who wants to drive a crappy car?!?
Life is too short and for those of use who work hard and invest right find time more valuable than money… and time spent in a crappy car is wasted time on this earth.
Putting out the Safety Card – newer cars have rear view cameras, more airbags, and lane assistance technologies, mine even drives and parks its self… it could even prevent you from being injured or killed. I know some of you SPC Nation are cheapos and I myself was them as I rode my dangerous 50cc moped in the Seattle rain so I would not have to pay $4 per gallon in 2010.
Leasing a car, in many cases, is cheaper than buying a car on payments that extra cashflow along with a large downpayment can go to investing in cashflowing assets that grow your portfolio 20-30%.
Its simple math: Figure out what the opportunity cost would be if you used the money for a downpayment on a car instead of investing the downpayment into a downpayment on a turnkey rental or syndication.
Did I mention that you don’t have to worry about fixing anything on the car. And you can drive it like a rental!!! Cause it is.
Sure the rental property will have its issues come up but you really should not buy a property that cashflows in the first place.
Either way you are going to buy a car which is a depreciating asset. At least buy an asset that appreciated and better yet produces income too.
While it may be more financially prudent to buy an older more inexpensive car, leasing a newer car might end up costing you less in medical bills down the road.
THE PROS OF BUYING A CAR
It you want to fit in with everyone else who does not want debt and things this is the way to go as a means to justify an old car then so be it.
Look cars are not everything and it might not be your spurge but the numbers say you should rent UNLESS this is you:
You like to install a lift kit, upgrade the stereo, tint the windows, or do that strange inclined wheel thing that is the first sign of me getting old. In this case your car is “ratchet” and you are likely broke anyway.
And you can’t seem to regulate your spending.