IF you want the best price and you don't like to haggle for a new car, this guide is for you.  If you want to save even more, I'll let you in on some 'secrets' based on my experience as an auto dealer.

I have purchased many cars, trucks and vans on the internet for personal and business use.  Have no fear!!  It's the best way to buy a car IMO.  After many purchases, I have put together this guide so you can avoid the few problems I encountered along the way.

This is a step by step method that anyone can use to get the best deal for yourself, the features you want, and test drive the car without any of the hassles usually associated with buying a car from a dealer.

But first, did you ever notice that when you step onto a new car lot, it seems like you are shopping on another planet?   It sure does to me!  There's a reason for that.  The new car salespeople are instructed to make it their sworn duty not to let you leave their lot without buying a car.  If the first salesperson you talk to can't sell you, they send the second member of the 'hit squad' after you.  All in all, there are usually 3-4 people assigned to a sales group, a.k.a. the 'hit squad'.....and they will do their best to wear you down and get you into a new car.  Dealerships today use the 'team' approach to increase their chances of selling you a car.  They have really got it down to a science.

I know that because I used to be part owner of a dealership.

Since 1987 I have purchased sight unseen a new 1987 Corvette, a 1988 Ford Bronco 4X4, 1988 Ford Aerostar Van, 1989 Lincoln Mark VI, 1992 Ford XLT Passenger Van, 1995 Nissan Maxima, 1997 Mazda B series Pick up truck, 1999 Mazda B series Pick up truck.  I was able to do that because I read all the car magazines, and I test drive them before I buy.  Then I would drive around to different dealers and get the deal I wanted in person.

Since the internet, I've bought a 2000 Chevy Silverado truck, 2002 Ford Econoline Cargo Van, 2003 GMC Yukon, 2003 Chevy Tahoe, 2006 Toyota Hybrid Highlander and a 2007 Chevy Tahoe.  All of these internet purchases have been exceptional deals, and required no haggle. 

When I bought my Tahoe in May of 2007, I never even went to the dealership.  They drove it 120 miles to my house!  Does that tell you how much they will do to get your business?  The Tahoe sticker was $43,414.38.....I paid $38,406.  There were no incentives or rebates from the factory at that time. 

All of the cars I've purchased whether on the internet or prior to the internet were brand new, all were purchased at 10-22% off sticker price.  I got the options I wanted and the color I wanted. 

I will always buy on the internet, I believe this is the best way to buy almost any NEW car. 

I cannot say the same for used cars.  I have had 2 bad experiences buying Mercedes certified used cars online, but that's because some cars are just inherently bad.  Both Mercedes had severe electrical problems which could not be repaired by the mfg.

Some new cars will NOT sell for a discount. That's because they are typically in high demand at the time you are looking.  Even then, I'd still buy it on the internet. 

Here's why:  I purchased the 2006 Toyota Highlander Hybrid Limited.  I went out and test drove the regular AND the hybrid model.  I liked the hybrid better.  I offered 13% off sticker if they would sell it to me right then and there, because of the prior research I had done online. 

They said no way, they can't keep them on the lot.  They also said they were selling them for more than sticker 'all across the country'. 

Hmmmmm........

So, I went on line, found the Highlander Hybrid, entered my information, and it went out to 3 dealers (including the one we had visited), and we got $4200 off the sticker of $38,743

Here's what you need to know to do this. 

First KNOW your credit score before you go car shopping.    I get mine from MyFico.com and pay about $40 for it.  Believe me, it will pay for itself on your next car purchase.  You should purchase all three reports:  Experian, TransUnion and Equifax....which will give you everything including the FICO score, all for about $40.

Then, (I use Car's Direct.com) I do some research......I find out the vehicle ratings, specs, prices and all the other information I can.  Also Edmunds.com is a good place for research.  I don't have any association with Cars Direct or Edmunds, and I don't know how they earn their money, so I'm not trying to steer you their way......

Test drive:  You want to drive before you buy.....so I go to some dealerships and test drive as many different cars/trucks that I'm interested in. I DO NOT BUY at this point, even if offered the 'deal of a lifetime'.  Trust me, it isn't nearly as good as the deal you will get using the internet buying system. 

Sidebar:  When I was younger, I used to think that the ads on TV and newspaper about 'special sales' were only good at that time.  NOT SO.  Dealers pay a lot of money each month for insurance and financing every car on their lot, and they are always on sale.   I remember an ad which said "March is Truck Month" at so and so Ford......I can promise you that any month is 'Truck month' at any dealer.

Then, once you have decided on what you want, select that car with the options you want, and Cars Direct will show you the price that dealers in your area will sell it for.  They also show the invoice, and the sticker price. Fill in your information, and send the request on it's way.  You will have several car dealers competing for your business.  Usually, you will even get a better deal than the Car's Direct price for some reason.  That has been my experience. 

Sidebar:  If you are not ready to buy a car, but you want to test what I'm saying, do this:  select a car you'd like, fill in the information, and send it on it's way.  You will get phone calls and emails from a few dealers.  Have them email you their price.  Let them think you are interested in buying in the next week or two.  Once you get their price, let them know that "things have changed", and you are not able to buy a car at this time.  

This will show you how the whole 'system' works and what the price offers are, and make you feel more at ease before you actually buy online.  NO need to even take a test drive, no need to get your credit score when you are testing this out.  If you feel uncomfortable doing this, then do this:  go to CarsDirect.com.  Select the car you want, enter your zip code, and it will show you the internet price that local or nearby dealers are willing to sell it to you for NOW.

When you ARE ready to buy, you will be working with the 'internet sales manager' who is usually the 'Fleet Manager'.  Some of the larger dealerships have a 'dedicated' internet sales manager.  Either way, he or she will work with you via email and/or over the phone.  You won't be subject to the hassles of working with a typical car salesperson.  They are nice folks. 

If you have a 'special' dealer whom you really want to buy from, but they don't have the car and/or price that you have been offered elsewhere, they will locate the car and get it for you within a few days....unless it's some really unusual combination of options which are not readily available.

Have the dealer you choose (OR ALL OF THEM) email OR fax the 'sticker' to you with the firm price quote.  Look over the numbers closely to make sure they include the options you want.  If you are going to finance it through the dealer, ask UP FRONT what the financing costs would be IF you financed it through their dealership.  Let them know your FICO score.  Your score is no secret, they will pull a report before they even give you a quote.  But YOU need to know it so they know YOU know!  DO NOT GIVE YOUR SSN# TO ANYONE ON THE PHONE, OR ONLINE.  (That's why it's important to have your FICO score.) 

Then, make an appointment to pick up your new vehicle.  But watch out for the costly BACK END.....I'll let you know about that in a moment.

Let's recap at this point:

1. Test drive as many cars you want to, from as many dealerships before you buy.  I was glad I test drove both versions (Hybrid and normal) of the Toyota Highlander. 

2. Research your vehicle online.  Edmunds.com and Cars Direct.com are two that I use. 

3. GET your FICO score.  You must know your FICO score so you can get the best price and financing.  You may wonder how you can get the best price....good question.  Knowing you have a good FICO score AND you are ready to do business makes the transaction quick for the dealer, and they won't have to work as hard.  That has been my experience.  I've done it both ways and as a former dealer, I would sell for less on a cash deal or a simple financing deal.  BTW, if you have less than perfect credit, don't worry, the online price still applies....you'll just pay more for financing or more down payment.

4.  Submit your request for quote online at Cars Direct or any other online car purchasing service.

5.  Sit back and wait for the 'no-haggle' price.  THERE IS NO OBLIGATION TO BUY.   You are just asking for a price, and they are giving you one. 

6.  Go to the dealership, pick up your new car.  Take it for a spin before you finalize the deal.

It's a good idea to get financing arranged through the dealer or your bank BEFORE you go to the dealership.  Dealers make a percent or so on financing, and you DON'T want to arrange financing while you are on their turf!!  I can promise you, they want to sell you a car MORE than you want to buy one! 

Many dealerships offer better financing than my own bank, because of the volume they do...even if it is the same bank YOU use!!  Some car sites tell you that dealer financing is more costly.  Well, check it out for yourself!!  Don't take anyone's word for it but the dealer and your bank!  I"ve used dealer financing frequently.....but only when I got the quote via email BEFORE the purchase.

At the dealership, there are 3 ways they make a profit...(at least 3 ways!)  I want you to know what they are so you can be 'on guard'.

1-The sale of the car, 2-the financing and the 3-'back-end'.  I don't begrudge anyone from making a profit, but there are some things (as a former mechanic I know this to be true) you just don't need to pay for.

Let me tell you about the "BACK END".  That is where they will try to stick you in the heart with a dagger!

When you have completed your 'deal', you will go to the 'business office' at the dealership. In that office, you will be filling out all the paperwork and signing the loan documents if you are financing.  Your deal (at this point) is over and done with, and you got your great internet price!  But, you can't breathe easy just yet. 

You have to run the gauntlet known as the 'back-end'. 

The most important purpose of the finance or business office is to sell you additional things, such as free oil changes for life, special paint coatings, extended warranties, lifetime tire protection, security systems and so forth.  Every year, some new gimmick is added to the list.  It is extremely profitable to the dealership.  They will make it sound like it's a very important and serious thing to purchase these add on's.  They will make you feel dumb, stupid and ashamed.  At least they will try. 

My advice based on past ownership of a dealership:  JUST SAY NO to EVERYTHING!  Believe me, you don't need any of the things they want to sell you at the price they want.  They will even go down to 1/2 price on certain add on's when you say NO.....even at 1/2 price, they are making good money on something you don't need at that price.  Then, they will tell you horror stories of people who didn't buy the 'back end' products.  I simply say no 1 time.  Then I sit and listen politely.  After the sales pitch, I say nothing, because when he first asked me if I wanted the extended 'whatever' I already answered him.  NO was my first, last and only answer.  If he tells me the horror stories, I say nothing.  I might look at my watch and tell him I have an appointment I need to get to and would he expedite the paperwork for me.

Here's a quick example that my son thought was a good deal, even though I advised him to 'Just Say No':  Oil changes for life.  He paid $400, which was just about $10 a month over the course of his 5 year loan.  The problem is that at a dealership, you will sit and wait a long time to get the oil changed....at least an hour.  Oh, and you might bring a friend, and you may just wander around the lot while waiting and see a beautiful car that you may want in the future.  Or, as in the case of my son, he moved to Japan 2 years after he bought his car.  It only had 18,000 miles on it.  Pretty expensive oil changes, wouldn't you say??!!

When I have time, I will cover many items they offer and why you don't need them.  Just trust me until then.  Your car is great as it is fresh from the factory with a warranty!  They are selling you on fear and offering you peace of mind at a very high price, if you fall for the back end items.

BTW, if you do choose to buy anything in the 'business office' the worst case is that you will be out a few hundred dollars, and as those of us in the business know, it will ONLY add a few dollars a month to your payment.  By the way....that is just one BIG secret.  Dealers will "work you over" till you give in (!) to adding a few dollars a month to your payment.  They will make you feel stupid for not buying their 'important' add on's.

If you want those add on's, fine.  But don't allow yourself to be 'shamed' into them.  It's a stressful situation, signing all the papers and financing a vehicle.  You are at a huge disadvantage in the 'business office'.  They will make you feel like a fool to embarrass you into buying at least one of their add on's.  It is the 'finance/business' manager's duty to sell at least ONE add on per car.  They will eventually be fired if they don't keep a quota that the dealer expects, based on industry stats.

I think I have got you completely prepared for the back end.  I just wanted you to know about it BEFORE you complete your purchase at the dealership.  And remember this:  you can always go back to the dealer after the sale, and they will gladly sell you one of the 'back end' items at the price they quoted you...or less... if you really want it.  Let them know you can afford it at 1/2 the price, and see what happens.  They will look anguished, but eventually, after they talk about the benefits and so forth, hold your ground, and you will get what you want.

Best regards, and please email me if you have questions about the add on's you are interested in, or ones that you've purchased in the past that you actually found to be of value.  I'll share that info with others here on Ebay.

One last common question which I am always asked:  What is the best time of the month to buy and why?  The best time is the last day or two before the end of the month.  And, it's not about meeting a sales quota......Here's the real reason:  Insurance companies ask for an inventory report and calculate the dealer's next month's premium on the final day of the month.  So, if you buy a day or two before the end of the month, they know they can save anywhere from a hundred to several hundred on insurance and bank financing of the car you want to buy.  So, they will offer an even better price to get the car sold.....and of course they hope to make up for it on the BACK END!!

If this was helpful, would YOU please click the YES button? I hope you have a GREAT CAR BUYING EXPERIENCE!- Larry