I literally have a phobia when it comes to purchasing a new vehicle. What’s the best way to negotiate with the dealer? If the car has an MSRP of $ 27,000, what’s a good starting point to negotiate at? Do I have to buy it at that price? The salesperson always seems to focus on the monthly payment amount, and when I try to negotiate a lower overall vehicle price it doesn’t happen. When I do purchase a car I always leave the dealership feeling like I was cheated – and I have always gotten bad deals in the past. I have read articles online but still don’t understand how the whole process should go. They always come out with that piece of paper divided into four sections and they start from a 20% down payment, although I tell them I can’t afford 20% down. They will go from $ 10,000 down to $ 8,000 and so on and they eventually write down the amount I told them in the beginning. Who actually gets the down payment – the dealership or the finance company? The amount I put down has never seemed to matter in relation to the monthly payment. How can I be certain I’m not being cheated before I sign the paperwork? I know it’s not a good idea to buy extended warranties and I have never done that, but I always leave with an outrageous car payment and lengthy term.
For example, I pay $ 573 for the SUV I currently have. I put $ 1,000 down and the term is for 84 months. I still have two years left to pay for the vehicle and it’s worth about half of what I owe. I did trade in a vehicle when I got this one and there was still a balance owed on that one, and I’m sure I didn’t get what that vehicle was worth because I didn’t negotiate anything. So I am obviously upside down in this vehicle as well. Is there ANY WAY (other than putting down the amount of the negative equity) to get out of this situation and get a new vehicle at the same time? Someone told me I could lease a car and that would eat up the negative equity. Once the lease term was up I could walk away from the car and start from scratch. Is that true? I refuse to make the same mistakes I’ve made in the past. I hate the entire car buying process of having to speak to the salesman’s boss (I guess he’s the Finance Manager).
My credit is improving but it’s still not up to par. Back when I got this car it was in the mid to upper 500’s. Now it’s in the low 600’s. I pay all my open and active accounts on time (credit cards, mortgage, vehicle) but I think I have too much credit now which is hurting me. The interest on my current vehicle is 17% – I know, I was crazy to get tied up with this deal but I really didn’t have a choice at the time. Is it even possible to negotiate a car deal when you have bad credit? They always make me feel like they are doing me a favor when I get a car. My husband is a co-signer on this loan as he has slightly better credit than I do, but there was really no point in him co-signing in my opinion. I am not in a position to secure a loan before going to the dealership (for obvious reasons), so I am always stuck at the dealership while they try to send my loan through umpteen banks for approval. The last time we tried to get a new car was in 2008, and they literally sent us through 15-20 banks. One approved us but wouldn’t allow us to carry the negative balance onto the new loan, so the salesman suggested we just let that car “go back” to get the new one.
Any suggestions? Rude comments will be ignored.