Join Date: Jun 2011
Location: Colorado Springs
Here are some hints for buying the new car:
- Order a Consumer Reports price report for any car you are considering. It will list what the dealer paid for the car and every option. And pay no attention to any stealership pinhead who says something like, "Well, I don't know where they get those prices." The fact is, the Consumer Reports prices are correct and dealers hate that.
- You can often get a better deal on a car that just hit the lot than on a car that's been sitting around for a year. The 2012 car from last year has been costing the dealer money in interest and upkeep. He has to recover that cost. The 2013 car that just came off the truck may not have cost him anything. Even if he sells it to you for exactly what he paid for it, he makes money from a "holdback". That's a payment Ford gives the dealer when they sell a new car.
- Dealers make crazy profits from add-ons. Paint protection, "Ivisi-Bra" and fabric protection cost them almost nothing. But they have a huge markup for a huge profit. They also get a nice kickback for selling a loan. So don't let them twist your arm to finance through a particular bank if you don't want to. I'm not sure what those extended warranties actually cost. But I know they can sell them for half of the retail price and still make money. I know this because Mrs. Klutch likes to get an extended warranty (even though I don't) and dealers have cut the price by half to get me to buy it. And they sure aren't going to do this if they're not still making money. Personally, I don't bother with gap insurance either. If you negotiate a good price for the car and don't buy add-ons, you don't really need gap insurance. It's just another money maker for the dealer.
* If you do decide to buy an extended warranty, make sure it's from the manufacturer and not some third party warranty company. Many a person has bought an extended warranty only to find out later the company went out of business which makes it worthless.
- If you're a member of a credit union or Costco, you can use their buying service. You go to their web site, pick the car you want and wait for the dealer to contact you. Then you go buy the car at a very reasonable, fixed price. No haggling. No kidding. But still be careful about those add-ons! And if the dealer decides at the last minute he's not going to honor the buying service price, walk away. They do this at the last minute to make you feel like you're commited. You're not. Just walk away, then report your experience to whichever buying service you're using.
- Before you go to the dealership, check the Ford web pages for any manufacturer incentives like rebates and 0% financing. Look for the section where you add your zip code. Often there are incentives for certain areas of the country.
- If you have good credit and the dealer says you don't qualify for the 0% financing, go to another dealer. It's very likely they're just trying to sell you a loan from somewhere else so they can get a nice kickback.
My name is Klutch and I'm the consumer from Hell.
Last edited by Klutch; 11-25-2012 at 06:45 PM.