I'd like to make one comment on the statement made previously that you will always end up doing better by selling a car outright. When you consider just the price of the car alone, that is most likely true. HOWEVER, most of us sell a car in order to buy another car and we pay sales tax when we buy cars. I think the rules change slightly in this scenario. Ok, so let's consider this scenario first:

1. You sell a car outright, let's say a $16.5K car and then you buy another for $17K. When you register that new car, you pay sales tax of the entire amount of the car you just purchased. In MA, that's 5% which is $850. Sucks but you don't have a choice about it. So, that new car cost you $17,850 after taxes.

2. You go into a dealer, trade the car in for $15K (1.5 gran less then if you sold it) and buy the same new car from the dealer for $17K. Because it's considered a single transaction, you pay tax on the difference between the cars, difference being $2000. So, 5% of that is $100. So, the new car cost you $17,100 after taxes.

As you can see, in scenario 2, you actually pay less money for the same car. Also, selling the car yourself is a PITA. It takes time and effort and some extra money to sell it.

Once you think about the numbers, you will realize that scenario 2 plays itself out like this if the value of the car you're looking to sell is close to what you're looking to buy. The further apart those numbers grow, the less favorable scenario 2 becomes to you since the difference in tax money shirks.

Just something else to consider. understand the full picture and consider all options. Sometimes going to the dealer is not really that bad as long as you know how it favors you.

 

You have given sound advise so far.

With regards to the buying service....it all depends on what you are buying. Buying services on luxury cars (costco, UBS etc) still don't get you as much off as if you were just haggling yourself. Plus there are plenty of Luxury vehicles that still make $1000's over invoice because of supply vs demand. Not all car manufacturers are in a bad situation like GM, Ford etc etc..

 

If a dealership is not giving finance incentives ie low rates or even 0% then the next best source is a credit union.

Leases can be good through some manufacturers depending on residuals and money factors.

 

Well, that might be the wy is in MA, but I guarantee you that is NOT true in most states.

And in fact, on USED car transactions, almost all states actually determine the tax from a price lists/database, and not the actual transaction amount.

Everybody lied about how much they paid, so the states got smart.

bill

 

Here in Cali . . you pay tax on the purchase price . . . a big down payment, or a trade in, does not affect the purchase price. I will affect the amount financed, but you pay tax on everything you buy.

Example . . ; buy a cell phone for $0 with a 1 year contract, you still have to pay the FULL tax amount on it.

But I like the way you think. Looking at the scenario from different angles will save you money

 

Works this way in Tennessee as well.

To finish up your math; in scenario 2 your net is $750 less when compared to scenario 1. In addition, the higher state taxes paid in scenario 1 allow for a higher deduction in Federal taxes.

Trading-in will cost more, but it is obviously close enough for many people so that the difference is not worth the effort to sell privately.

 

Yeah, it's not a no brainer deal. You have to do the numbers and figure out what makes sense and weigh in the risks. Selling a car outright carries higher risks, in my mind, but you potentially may get a better payout in the end. Is a couple hundred bucks worth the aggrivation and the time it takes to sell it? Well, only the seller can anwser that.

To follwo up on what bailey_bill said, yes, you are correct. You can't but a used $50K car for $1 and pay 5c of tax in MA either. The state will charge you tax based on what the perceived value of that car is, not what you paid. I should have been more clear on that in my description. This is also how excise tax is imposed in MA as well. But, even in that case, if you consider scenario #2 where you bought the car for $17K and the state said it's worth $18K. You end up paying $50 extra in tax which still yields a $700 difference. Looks like not all states operate this way so every buyer/seller has to do their homework and understand their local tax rules before diving in.

Lots of good info in this thread. Keep up the good work guys

 

ive never had an experience with carmax before. my question is: is it possible to haggle at carmax since they advertise "easy, no haggle pricing"? might sound like a stupid question but i gotta know for sure =D =P

 

at carmax the price you see is the price you get

 

Yep. They are really cool about buying cars though. They make you an offer and hold it for 1 week or 100 miles. Even if you do not buy anything there

 

Thats just a great marketing ploy. Gives people a false sense of security that they are getting a great deal when in reality you are paying KBB retail in most cases which isn't always the correct market value for the vehicle.

 

If you are good at haggling Carmax might not be the place for you but if you are not (or hate it) then its a good place to go.

At least around where I am at, a lot of places want to get a premium price out of used 350Zs and there is a crappy selection of used ones. Least at carmax you have a nationwide inventory to look at.

Carmax is not a great price but its a fair price IMHO.

 

ACHEW!!!!!!
bump

 

Never ever give them a trade in? Please explain. I have no buyers for my car.

 

I'm looking at buying a 2007 Z later this year, probably in Sept/Oct. I dont want to pay $100 over cost.

I went to the dealership last week just to look at them with my girl, and started talking with the salemen. We got into prices, and he said they dont go under what it says on the sticker, cause they dont have trouble selling the Z, and they sell more then the s2k, and this car and that car combinded, blah blah, ect

I was looking at the enthuasist trim, which the MSRP is 29.6. It was marked down like 600-700 off there MSRP price, which included the destination charge, and the added options. It was 29,995. He said they wouldnt go under that. I checked the invoice on edmunds with those exact options and the destination charge, and it came out to about 28300. So its about 1700 over invoice, and hes telling me he cant go under that??? Is it ture they dont go anywhere near cost when a car sells as much as the Z does?

Also he told me they cant remove any of those options that are on there that I dont want, to lower the price. Is this ture? There was some 445 dollars worth of options, and I would only want about 60 dollars worth.(floor mats)

Whats the best way to walk onto the lot and get a price closest to invoice as possible? What steps should I follow? About the financing, I dont mention to them anything about me already being pre approved for financing already do I? I'm just supposed to wait and see what rate they offer me, and then compare?

 

The best way is to NOT "walk onto the lot".

1) Search dealer inventrories online. Almost all dealerships have inventory on line.

2) Email the internet sales manager and make an offer.

I've been buying new cars this way for years. I will not go to a dealership until I'm ready to go pick up the car.

I bought my '06 Z this way about a year ago. I paid $300 below invoice. And I didn't even go pick it up, they delivered it to my house.

bill

 

Use the trade in as a tool. Let them lowball you, then pull it at the last minute. If they think they are getting your car at a discount, they will discount the new car.
Trade you car in ONLY if you have to. It is one of the easiest ways to get screwed. Be careful

 

Edmunds has stopped more people from buying cars than ANY other site. everything they say is just a little off the mark.
options . . .the dealer can say they are there for good and can not be removed.
And get your own financing first!!!!! IF the dealer can beat what you got yourself . . .them let them have the financing part.
To get a good deal . . . tell them $500 over invoice and not a penny more. You can get a better deal, but ANY dealer will do it for 500 over. So once you find the EXACT model you want . . . make the offer

 

Okay, now I gotcha! But I plan on going in, giving my offer and hoping they realize what Z's have been selling for to those 'in the know' vs Joe Schmuckatelli off the street.

I went to another dealer and they thought I was on crack saying $28k OTD for a leftover '06 ENTH. But I told them from the first minute I intended on trading in and they only wanted to give me $2000 for it (KBB Fair for $3400 dealer trade in).

So I won't say shiz if they ask me about a trade in the beginning but they still might lowball me on it so they can make up on the loss of selling me a leftover '06 so low. Right?

 

what kind of degree do you need to be a finance person at a dealership?