Trading in/negotiating for a new car

jason_t · #1 09-12-2005, 10:10 PM

I'm buying a new 2006 Honda Civic possibly as early as tomorrow morning. I'll be trading in a 2004 Honda Civic that is in excellent condition and paying the difference in cash. I know absolutely nothing about how to negotiate to maximize the value on my trade-in and minimize the price of the new car.

I haven't even learned the art of negotiation through experience. When I bought my current car I walked into the dealership, pointed at a car, said I wanted it, looked at the sticker price of $16360, offered $14500, he countered with $14800 and I accepted. I know that car negotiations are not supposed to be this easy and I don't know why it was for me; the only thing I can think is that I bought it on the evening of April 15, 2004 and maybe the dealerships don't get much traffic that day.

I don't expect to get much below MSRP here being that the car was just released last Friday. But I have been told that dealers have something called a "holdback" and that can be used to get a lower price on the car. What is that, how do I find how much it is and how do you bring that up with the dealer?

I'm looking for any other tips/suggestions/etc. that you might have.

Thanks.

Al P · #2 09-12-2005, 10:14 PM

http://www.carbuyingtips.com/

If you are going to be paying cash for the car and do not need financing, find out about what rebates are available if you finance through the dealer. As long as there are no early repayment penalties on the loan, finance the car to get the rebate and then pay the car a few days later.

That will also improve your credit score.

Patrick del Poker Grande · #3 09-13-2005, 12:08 AM

I'll second the www.carbuyingtips.com. It's an awesome website with everything you'll need to know, including how to find out how much the car really costs the dealer and how much you should be paying. It has spreadsheets and other tools to help. I used the info and tools there to buy two new cars in the last couple years and I was able to stick it to 'em about as well as you could expect to be able to. The key is knowing what the car costs them and showing them that you know what it costs and that they can't come over the top of you with some BS like they can with the average schmoe.

They still may be able to bend you over on this particular car, being that it's just coming out and Civics are popular enough that they're bound to sell any that they get on the lot, so the pressure's not really on them to sell. You can come back with the fact that the new body style is womanly and that no other man will buy it. See if you can get anywhere with that.

Eurotrash · #4 09-13-2005, 12:29 AM

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You can come back with the fact that the new body style is womanly and that no other man will buy it. See if you can get anywhere with that.

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i'm not sure if this is quite the help he was looking for, heh

Patrick del Poker Grande · #5 09-13-2005, 12:35 AM

[ QUOTE ]
[ QUOTE ]
You can come back with the fact that the new body style is womanly and that no other man will buy it. See if you can get anywhere with that.

[/ QUOTE ]

i'm not sure if this is quite the help he was looking for, heh

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You've got to push even the smallest edges.

jason_t · #6 09-13-2005, 01:13 AM

Thanks for the post Patrick. That link looks helpful.

[ QUOTE ]
You can come back with the fact that the new body style is womanly and that no other man will buy it. See if you can get anywhere with that.

[/ QUOTE ]

This car is womanly?

Patrick del Poker Grande · #7 09-13-2005, 01:25 AM

[ QUOTE ]
Thanks for the post Patrick. That link looks helpful.

[ QUOTE ]
You can come back with the fact that the new body style is womanly and that no other man will buy it. See if you can get anywhere with that.

[/ QUOTE ]

This car is womanly?

[/ QUOTE ]
That's actually much better than the coupe that was posted in a thread a day or two ago. It needs bigger rims, though. Not anything gaudy, just an inch or two bigger. I actually like the current/old body style, but alas you can't stop progress, can you?

Good luck with the dealer. Stick it to those assholes.

jason_t · #8 09-13-2005, 01:29 AM

Oh the new coupe is terrible, I agree. The EX trim, which I intend to get, will come with bigger rims among some other great features. The 2004 body style is lovely, but they've done so much work on adding more power to the engine without sacrificing the economy of the Civic and the interior is larger and more luxorious than any previous Civic. I saw a 2006 test model a couple of weeks ago here in Hollywood and the car really is a beauty.

STLantny · #9 09-12-2005, 10:14 PM

1. Dont trade the car in, sell it privately, the time you take to sell it will be worth the cash.

Other than that, know what you should be paying for the car, and really low ball it. When I went to buy a car, teh salesman asked what I did for a living, and I told him I play poker, he was really interested, and I actually helped him get signed up and deposited online, he gave me a HUGE deal, but I backed out at the last minute, becasue I want to find something else, I think.

jason_t · #10 09-12-2005, 10:21 PM

[ QUOTE ]
1. Dont trade the car in, sell it privately, the time you take to sell it will be worth the cash.

[/ QUOTE ]

The Kelley Blue Book trade-in value for my car is $12100 and the private-party value is $13700. I'm not sure if $1600 is worth the effort and time that selling it privately would require.

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Other than that, know what you should be paying for the car, and really low ball it.

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How do you find what you "should" be paying for a car?