My friend had owned her last car for over 10 years. It was a 2 door, 5 speed, VW Rabbit, and she had come a long way in her career before she finally decided to upgrade.
This car is a $32-$40k vehicle depending on which model you buy and of course, how well you negotiate.
Here are some questions to ask before you buy your next car:
1. How much monthly payment can you afford?
Pro tip: Every $10k financed is roughtly $250/mo
2. What are major differences between her last car and the new one?
For her, it was primarily and upgrade and something with more 'spunk.'
3. Is it the right time to buy a 2018 Mazda Miata?
I was concerned that the 2019 Mazda Miata might come out shortly after she bought the car, which has a 40hp increase, however we verified that was 6-9months out before dealers in Colorado would receive them. This meant that she wasn't going to buy a new car, and then it instantly be a year old after the new ones hit the dealer lots.
You hear a lot of people say 'buy the 2018 instead of the 2019 when they come out so you can get a good deal.' Sure, that works if you have no idea what you're doing or how to buy a car below invoice, but for those of us that make the dealer an offer instead of asking the dealer for their best offer, that doesn't apply and means that your asset becomes 'a year old' that much faster.
4. Did she know what to expect with financing?
This can be tricky. Sometimes the manufacturer offers financing through the dealership that you can take advantage up. But, the dealer also has an opportunity to make money off of you by selling you good financing instead of great financing. It also depends on your credit score. Without getting into too many of the details, at least make sure you ask the dealer if the manufacturer has any "special financing or cash back offers this month." These change monthly for many manufacturers. Make sure you ask when it expires, Lynn's was first offered a bad interest rate and I pointed out that a different dealer we talked to said they had a 0.9% interest rate. The salesman immediately said yes let me check on that, and of course they had it. And it was an offer expiring in just a few hours.
Here's my checklist on how to buy a new car $1,500 back of invoice
PS If you're buying a used car, check out my video on the strategy to get the best deal here:
If you've decided you're buying new, here is a checklist you can print (or just email yourself this link).
Disclosure: By the way, the reason I'm telling you this is because I have no service to offer but lots of people ask me about this. I make money from online marketing, not automotive consulting or whatever you would call this. If you need online marketing help, especially if you're in the real estate industry, please check out my business Handshakin, a Lead Generation business.
The new car buying checklist (for $1,500 under invoice)
1. Decide what type of car you want, and go test drive it to make sure it's the one. Do not buy the same day you test drive it despite INTENSE dealer pressure to make it work.
2. CALL DEALERS FOR PREFERRED TYPE OF CAR (year, make, and model), HIDE YOUR PACKAGES AND DETAILS, ASK THEM FOR THE PRICE OF THE DEALER FEE.
3. CALL OTHER DEALERS ASKING FOR $1,500 BELOW INVOICE TO COME IN AND BUY THE CAR TODAY. SIGN UP FOR CREDIT KARMA
4. GO INTO THE DEALERSHIP, CONFIRM THE FINAL NUMBERS, REASSURING THEM YOU ARE PREPARED TO BUY RIGHT NOW.
In Colorado, you can expect the following line items, and you should challenge and ask to remove any other line items (also outlined in this video)
-Gov fees (related to filing a loan with your car)
-Dealer Fee (aka Doc Fees, etc, and might be anywhere from ~$250-600 in Colorado)
-Sales Tax (based off of your street address, and no need to negotiate this)
6. GET THE FINAL PRICING DETAILS FROM THE DEALER AND REVIEW BEFORE YOU GO INTO FINANCE.
-CHECK FOR ACCESSORIES
-CHECK FOR YOUR TAX
-CONFIRM DEALER FEE MENTIONED EARLIER
-CONFIRM INTEREST RATE
Usually they'll have you sign or initial the offer and then that changes the mood and you prepare to go into finance to sign the legally binding contract of buying the car with or without financing from a bank.
7. Make sure the dealer gives you a 'walkthrough' of all features.
The end. Now you can thank me in the comments and let me know what car you bought. If you'd like more advice got subscribe to my blog. Or visit my website www.mattholmes.io to hire me as a speaker in your country.