You’ve read my car sale saga but that was only one half of the transaction. I replaced the car I sold, and like the sale, I did it on the internet as well.
It started with research. As I soon figured out, there’s no shortage of information on the internet. I found recommendations, reviews, photos, warnings, and other practical advice. I also stumbled onto Carsdirect.com where I could see about models, options, prices, etc. After months of indecision I finally found something that hit my categories more than any other.
I did a test drive at the Honda place that sold me my Civic in 1986. I was very impressed with the car and the sales guy sensed it. I went back to his desk whereupon I faced all the Jedi mind tricks and other stupid games that I was warned of. The deal he offered started out sounding great but red flags popped up quickly. Eventually, I figured out that he was trying to sell me a car on the lot – one without the features/color I wanted – while letting me think I was getting my dream car. If I didn’t ask the right questions (repeatedly, until he actually answered them – which he didn’t, his boss did) I may not have realized what was going on until I was officially committed.
I put the pen down and walked out pissed off. (they called three weeks later asking what I was going to pick up the car and I told ‘em off. Idiots.)
Anyway, a few days later I had a much different experience on line. I went to Carsdirect.com, filled in a form, clicked “submit” and an hour later I got an email from them further explaining the process and what to expect. Turns out that what I wanted (option combo) was as rare as a ski parka in Aruba. They did find one – at the factory and I could get it in 6-8 weeks if I wanted. They found another without the SAB on a truck headed for Union, NJ. Unfortunately, in the processes of getting the administrative matters squared, it got claimed. Another was located in Nanuet, NY. I said yes.
Then came the matter of how to pay for it. I intended to pay in full up front and use my Schwab account debit card to do so. With credit and debit cards, often $1000 max is allowed. Only wire or bank check would do.
BUT, Carsdirect offered a $300 discount for their financing and the loan agreement would not have a prepayment penalty. Yup, a no-brainer. I qualified for the lowest rate too. I told them “yes” and promptly got the green light to get my car. I friend took me to the dealership, I signed some papers, they gave me the keys, and I was done. All the DMV stuff got taken care of and they overnighted me the plates when they arrived a week later. Could not have been easier.
Three and a half weeks later the loan remittance info came. Three weeks after THAT, a couple of CD’s matured and I paid off the loan. The title doc should arrive soon.
So here are my conclusions/observations on the car buying process.
1. Before you do anything, go to www.carbuyingtips.com and read the entire thing. It will save you thousands.
2. Buying used is a better financial decision. It’s less of an advantage if you buy Honda or Toyota since they hold their value very well. Also, many previous owners tend to put pine tar in the gas tank and sea brine in the radiator. Of so it would seem from friends’ experiences. If you finance, the extra interest on the loan narrows the gap further. If you live in Hoboken and don’t have an off-street spot, think real hard before buying new or prepare for the heartache of the first ding or smashed bumper.
3. If you’re buying new, do your homework and show up at the dealer with a printout from Carsdirect, but don’t show them quite yet. Instead, see what they offer you first. In the off chance there’s a dealer incentive that Carsdirect didn’t know about, you may get a lower price. If they give you a price higher than the CDDC price, whip out the printout and ask them to match. They probably will. If not, someone else will so walk.
4. Don’t buy the window etching. It’s a high priced scam. For $20-30 you can buy the box and do it yourself. It’s worth something – but not $300. The first Honda place I went to pushed it on me and it took three increasingly assertive no’s to get them to back off.
5. Pay cash unless there’s a strong incentive not to. If you can’t afford to pay cash, you can’t afford the car. Yes, I know, your marginally employed neighbor just bought a Yukon. Your neighbor is an idiot.
6. Don’t buy a car that costs more than 25% of your annual income unless you have no other realistic choice. If you feel you “need to” I suggest you reevaluate your priorities.
7. A dealer will do anything possible to sell a car on the lot already.
8. A dealer, given the chance at a quick sale even if it meant possible burning a long term customer relationship, will do so in a heartbeat.
9. Carsdirect may not be the absolute rock bottom price you can get but will likely get you exactly the car you want with minimum hassle.
10. If the dealership has the car you want on the lot (find their website – they often list inventory), you’ll be in a strong position to deal.
11. Hoboken is a dumb place to have a car. But it sure is nice to get out of Dodge when you want.
