Buying a new car

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Mar 14, 2017
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Gray, Georgia
So we spent the last week looking for a new(er) car for my wife. Finally found one and it was a dealer demo but considered new. I have said I probably would never buy a brand new car again but in this case we got too big of a discount off the regular price, and it had all the crap my wife wants, Plus it makes me feel better if she has a new car that has a good warranty on it.
So we did the deal. That was the easy part.
When we went to talk to the finance person, she showed me this big screen full of all these nifty things that's covered by this extended service plan that I absolutely had to get because the electronics in this new car are ridiculously expensive Plus I need gap insurance because you know my insurance probably sucks. So she shows me these numbers, and this is the price of the car with the warranty included.
I said, what's the regular payment?
She said what do you mean?
I said what's the regular payment of the car with no warranty including.
Then she finally told me that number. I figured it out and I said so basically this extended warranty you're trying to sell me is going to cost me $12,000. 😐
I said what is it if I just buy it outright? She handed it hold around and said 5,500.
She looked absolutely shocked when I told her that I had no interest in buying any type of warranty whatsoever. Then she said well if we go down to my cost I can sell it to you for $3,400.
I said well, that's much cheaper but I still don't want it.
She said well what are you going to do if you're driving down the road and your touch screen get scratched or cracked or breaks? I said I guess I'll go to somebody and get him to fix it. She said well that's going to cost you an awful lot of money. I said that's okay I'll have the $12,000 that I didn't pay you in the bank.
😄
 
When I would buy a new car, I would BEG the salesman NOT TO SEND ME TO THE FINANCE PERSON. I told him/her that I was paying CASH and bringing a check for EXACTLY the price of the car including tax. Of course, they FORCE you to go to the Finance person who tries to scare you into extended warranty etc etc. "What if your car breaks down?" is the question. I always say, this is a TOYOTA, they DON'T BREAK DOWN. Then I ask him/her, "do you want this check, or should I just take it and go home?". They take it and my Toyota's have never broken down (and have NEVER seen the inside of a dealership once I drive it off the lot....not even for the free 2 year oil changes and tire rotations.....). :)
J.
 
I bought my Volvo V70 used and the salesman talked me out of the warranty. Seriously. It had a clean CarFax, had been dealer serviced, and all of the records were up to date.

Six months in the heater blower motor quit. That repair would have covered the warranty and then some.
 
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@peachhead
I love your answer, that you will have $12,00 you didn't pay the finance lady! Great comeback.

We bought a new truck this summer. Same thing, they tried to sell us all the extra coverage.

The woman asked us the same question, what will you do if it breaks.

My wife looked her dead in the eyes and said, "I guess we will just go buy a new truck."

The sales woman looked at us and smiled but didn't say anything after that.

We declined anything extra.
 
When I buy a new truck, I pay cash. I pay the "out the door" price quoted by the salesman. When they add stuff to it I tell them we agreed to x dollars and that's what I'm paying, if your word is no good, I'll go elsewhere.

Insurance companies play the odds. If the odds aren't in their favor, they don't play. They are just like casinos. I get the mandatory liability insurance and that's all.

Sometimes people will tell me of an insured loss they had and that they were so glad they were insured. I tell them some people win at the casinos and are glad they gambled, but the odds are still against you.

When I take possession of the truck, I proceed to drive it hundreds of thousands of miles. Bankers and insurance companies and car dealers hate people like me.
 
I agree with about everything being said. However, I had one time that a finance person tried to help me out. I had a Ford Edge that we had bought new and had about 36,000 miles on it. I had people tell me that you don't want to keep a vehicle too long because it loses too much value. So, I decided to trade it in on a new Chevrolet Equinox, and I was going to be paying around $6000 difference, but the Equinox was a smaller and lower priced vehicle than the Edge. So, deal is made with the salesman and they sent me in to the Finance person. She looked at the paperwork and looked me in the eye and said, "can I ask you why you are making this trade"? She was honestly trying to tell me that this was a foolish trade on my part. I wound up doing the trade, but at least she tried to tell me. I give her credit for that.
 
When I bought my Tacoma I did the whole salesman thing, then they turn you over to the closer/finance person. Of course they want to add this that and the other. Since I didn't want what she was selling and was about to leave, she said she could probably get the sales manager to lower the price. Amazingly the price was considerably lower. Oh, it was at the start of covid and sales had dropped like a stone.

I'm pretty sure they were figuring that they would make up money with the usury interest rate they charge. She was all ready to print out the load papers when I innocently ask, "so who do I make the check out to". Never try to out sell a salesman. Even though I wasn't a "salesman" I knew how the game is played. By the way, before I retired my annual sales eclipsed those of our two salesmen.
 
I went through this with my son recently. Buying a new truck.

I explained to him in front of the finance guy. Basically it’s like a casino, everyone buys into the extended warranty but very few use it. It is set up so the house wins.

If you never buy into the extended warranty’s on everything you buy, you become the house. You may lose 1 bet but in the long run you save.
 
I just bought my son a new 2025 Jetta SE and he absolutely loves it. It was $24,600 (approximately) out the door. It is the most affordable and highly rated new vehicle I could find.
33 mpg city and 40 mpg highway.
Good warranty and it drives like a dream. 1.5 liter turbo, 8-speed automatic (not a CVT!!). The A/C is really cold! Fantastic stereo system.
All the other new cars have CVT transmissions and those are junk.
 
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When I got ready to retire I bought 2 new vehicles. After all my son was working for Toyota so I was committed, plus I got his price, I figured these would be the last vehicles I’d ever have to buy. My son took me into the finance person and told her no point in wasting your time, he’s paying cash and doesn’t want anything with it.

Quickest closing I ever had.
 
I am an employee and have to talk to the finance guy when buying a car with cash. There are a lot of papers to sign that are legally required (not just by the dealership) and it makes no sense to have two people do all of that ... so the finance guy does it.

Average price for a new transmission is $9K. I did four this week that are all completely different makes and models. $4K is well worth it for a warranty if it has good coverage. $12K is asinine.
 
I am an employee and have to talk to the finance guy when buying a car with cash. There are a lot of papers to sign that are legally required (not just by the dealership) and it makes no sense to have two people do all of that ... so the finance guy does it.

Average price for a new transmission is $9K. I did four this week that are all completely different makes and models. $4K is well worth it for a warranty if it has good coverage. $12K is asinine.
I don't think it's worth it at all, period.
Extended warranties are cash cows for the dealer and the company and everybody else except for the buyer.
I wonder how many people get suckered into buying it because it's "only a little bit more per month."
 
I haven't dealt with extended warranties since the 80's. Back then the only warranty worth buying was from the OEM. I assume that really hasn't changed, but could be wrong.


My last new car I had the deal all set and the salesman assured me the finance guy could get me a better deal. I told him the ONLY way I would change the deal was if the loan was from Ford Motor Credit.(FMCC) He guaranteed me it would be FMCC. So I went into the cubicle of death. Told him I would only deal with my credit union, which I already had, or FMCC. He slapped all kinds of numbers around and shows me his better deal. Looks really good and then I ask how did you get FMCC to drop the rate? "Oh it's not FMCC." I got up to leave. It still took another 45 minutes to get out with what I had previously arranged.
 
When ever I hear there spill on insurance I wonder how they can even sale cars. I mean if they designed it so badly that it is going to break down every few miles ... why buy the vehicle???? Bottom line is we say no, no, an no. Have a check ready when car is delivered to dealer. Done. Hasn't bit me yet. My truck had it's water pump go out. The truck is a '97. Cost me less than one car payment. No, I'll pay the cost of repair myself when and if the time comes.
 
When I bought my 2019 Silverado new I did the "haggling" thing...but once we came to an agreement on the truck I said that's all I want and I'm paying cash. No financing needed. That started a huge issue and three different people came to me and tried to get me to finance the truck. Then the threats came..."well if you don't finance we have to take this and that discount off". Whatever they were nothing but decorative discounts to make it look good. Then the Manager and some other uptight suit came out....BEGGING me to at least finance for a minimum of 6 months. I was getting bored, tired and worst of all hungry. I agreed to give a down payment and finance the rest for six months. They pleaded with me to not pay off the truck early. I paid one payment the following month...the balance in full. They don't make anything unless you finance. Of course....3yrs and 108,000 mile later the engine blew...

Been truck shopping the last few weeks....when they come out with that fast paced walk and anxious smile I tell them they may as well turn around as I'm only waiting for my car to be serviced. When I'm seriously looking I let them come up, but ask their name and tell them if I want to talk I will come get them.
 
Bought my son a new Honda Civic Hybrid a couple weeks ago. Before going to the dealer I watched several YouTube videos by a father son team on buying cars. The father was formerly a car dealer manager so knows the whole car buying program.

If you’re buying a car and paying in full DO NOT LET SALESMAN know that. When he asks you about how you’re going to pay tell him we’ll need to see what they’re offering. Work your deal with the salesman, he’ll go back and forth to the “manager” playing “the game”. At some point the manager might come out too. Then they’ll talk extended warranty, floor mats, ceramic coating, etc. At some point they’ll want to do a credit check to determine your interest rate and monthly payment and number of years. Let them believe you’re financing. Keep in mind that the $1000 ceramic coating will or usually can drop in price by 50%.
Once all the numbers are added up, look everything over and make a guess how much they might come down ($500, $1000, $2000 etc). That’s probably the hardest part, guessing how much they’ll settle for so you don’t have to do the back and forth negotiating. When they showed me the bottom line I subtracted another $1000 off their total and said “I can go this much”. Finance knucklehead looked at it, put his hand out for a handshake and said congratulations you just bought a car. Then he wanted my sons info for the credit check. I said “I’ll just pay in full with a personal check”. Disappointed look appeared on his face. They make $700 to $1000 for writing loans, they were assuming I was getting a loan. That’s how the YT video said to work the dealer. I’m happy with the deal I got. Could I have done better, who knows, never will know. After buying a car DO NOT LOOK IN NEWSPAPER or any other car related advertisement, you bought your car and it’s done and over. At the time you made your deal that is now the past, enjoy your car and move on.
 
So we spent the last week looking for a new(er) car for my wife. Finally found one and it was a dealer demo but considered new. I have said I probably would never buy a brand new car again but in this case we got too big of a discount off the regular price, and it had all the crap my wife wants, Plus it makes me feel better if she has a new car that has a good warranty on it.
So we did the deal. That was the easy part.
When we went to talk to the finance person, she showed me this big screen full of all these nifty things that's covered by this extended service plan that I absolutely had to get because the electronics in this new car are ridiculously expensive Plus I need gap insurance because you know my insurance probably sucks. So she shows me these numbers, and this is the price of the car with the warranty included.
I said, what's the regular payment?
She said what do you mean?
I said what's the regular payment of the car with no warranty including.
Then she finally told me that number. I figured it out and I said so basically this extended warranty you're trying to sell me is going to cost me $12,000. 😐
I said what is it if I just buy it outright? She handed it hold around and said 5,500.
She looked absolutely shocked when I told her that I had no interest in buying any type of warranty whatsoever. Then she said well if we go down to my cost I can sell it to you for $3,400.
I said well, that's much cheaper but I still don't want it.
She said well what are you going to do if you're driving down the road and your touch screen get scratched or cracked or breaks? I said I guess I'll go to somebody and get him to fix it. She said well that's going to cost you an awful lot of money. I said that's okay I'll have the $12,000 that I didn't pay you in the bank.
😄
Good response
 
The last new car I bought offered 0.9% financing from the manufacturer. I had planned on paying cash, but I know that on average I can earn far more than 0.9% so I financed half the cost of the car. I was glad that I had to sit down with the finance gal when buying the car, which is how I found out about the financing deal. Similarly, when I bought my CanAm Spyder I was offered 1.0% financing. I traded in my 6 year old Goldwing and used their financing for the remaining $10,000 and kept my cash where it could earn something for me. In both cases the finance person tried to push the extended warranties but I made it very clear that I was not at all interested in buying the warranty. FWIW, those extended warranties usually seem to cover out to 100,000 miles, and I cannot recall any of my cars having any real problems until well past that mileage (such as the recent problems with my Dodge Durango at 190,000 miles). Those extended warranties would have been a total waste of money for me.
 
When I would buy a new car, I would BEG the salesman NOT TO SEND ME TO THE FINANCE PERSON. I told him/her that I was paying CASH and bringing a check for EXACTLY the price of the car including tax. Of course, they FORCE you to go to the Finance person who tries to scare you into extended warranty etc etc. "What if your car breaks down?" is the question. I always say, this is a TOYOTA, they DON'T BREAK DOWN. Then I ask him/her, "do you want this check, or should I just take it and go home?". They take it and my Toyota's have never broken down (and have NEVER seen the inside of a dealership once I drive it off the lot....not even for the free 2 year oil changes and tire rotations.....). :)
J.
Excellent, I could have written this exact same post. Paid cash for my 2018 Tundra and I was "forced" to go talk to finance before the deal was sealed. Continuous head shaking (meaning "no") while I sat there patiently. The sales guy was pretty good, we worked together to settle on a good price and shook hands on it. Truck was about 3 hours away so I had to wait a couple of days for it to arrive.

Have never bought any extended warranty either, on any product and have never needed them. They are cash cows for the dealers, especially on Toyotas.

Dan
 
My wife and I have bought a lot of cars. Some we pay in cash, others finance.

The cars we’ve paid cash for, the sales people don’t really care. We haven’t run into any dealers where they insist on financing.

And when we do finance, we’ve always had the money figured out before going to the dealer. Usually at a better interest rate. Sometimes they try to match the interest rate, other times they say they can’t match the rate and move on.

Interesting so many of you have to fight the sales people. This has never been my impression of car buying.
 
I haven't run into the 'finance' push either. Just the extended warranty push push push, no no no. Last two vehicles we just paid cash for. No issues.
Thank you! I’m happy to hear this.

Car buying is supposed to be fun and exciting! Not contentious arguments.

Let me ask this:
Of those who have to argue with the sales person. Or anyone really….

Do y’all look online first? Figure out what you want, which model etc. And then go to the dealer? Or do you just show up and look at what’s available?
 
In my case the "finance" person was part of the plan. As I said, I know all of the tricks. And yes they are trying to trick the customer into spending more.

I knew if you play your part ( it is a game after all) you can usually get a lower price. Having a sealed queered by the paperwork person will really anger the salesman and more importantly management.

The fact that I brought during Covid and sales were way down, and bought at the end of the month helped. I'm also in the L.A. area with literally dozens of Toyota dealers and hundreds of dealers of all makes around sure doesn't hurt either.
 
Thank you! I'm happy to hear this.

Car buying is supposed to be fun and exciting! Not contentious arguments.

Let me ask this:
Of those who have to argue with the sales person. Or anyone really….

Do y'all look online first? Figure out what you want, which model etc. And then go to the dealer? Or do you just show up and look at what's available?
I look online and get an idea, but it really boils down to what they have on the lot. Just like me, I would rather sell you what I have instead of ordering something. I am also not into going way out of town to buy something anymore unless it is just too good of a deal to pass up.

I don't like to argue. If I feel like someone is trying to screw me too bad I will just get up and leave.
I am pretty satisfied with the deal we got on this car, they gave us almost exactly what we wanted to start with. We didn't have to think about it too much. Again, I probably could have gotten more money out of selling my wife's car but I do not have the patience for that anymore.

I think the dealers make it harder than it has to be a lot of the time. Some of them would not even talk to me much on the phone, "you need to come in." Well if I wanted to come in, I would already be there. Why don't you just give me the numbers and if I like them, I will be there shortly. The answer is: it's easier to keep you there until you buy something once you are on the lot. That is just annoying.
 

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