Automobile Purchase Deals

[Hybrid Ambassador]

Iam very interested to know if when one walks in to an Auto dealership/car yard there in Argentina, can one expect to negotiate for the best deal as if in more competitive market place such as in the US, Europe or Japan.? Or you falks doomed to pay what the Dealer wants?

This is how things works in the states, bargain for your next purchase, cash or financed:


Negotiating can be one of the most intimidating things about buying a new car. How do you do it? What do you say? Where do you start? Fortunately, we've got you covered with a few negotiating tips that will help you get the best price.
Don't Talk Payment

This is one of the most important parts of negotiating a car's price, and also one of the most overlooked. It's important not to negotiate based on a car's monthly payment but on the purchase price instead. The reason for this is that it can be hard to figure out the purchase price if you're negotiating based on payment. And that means you might end up overspending for the car if you negotiate based on payment alone.
Here's what we mean: Say you're looking at a $30,000 car and you want to get your payments under $300 per month. If you tell that to the dealers, they may need to stretch your loan term out to 72 months or more -- but they can probably get your payment under $300 per month. In doing so, however, they may have charged you $31,000 or $32,000 for the car. You'll never know, because you were focused on the payment rather than the purchase price.
Don't Be Afraid to Walk Away

It's important that you don't settle on a car that you can't live without. That puts you in a bad position, because then you're at the mercy of the dealership's pricing. Instead, be ready to walk out at any time. That gives you the upper hand -- because a salesperson can't walk away like you can. He or she needs to sell the car, while you could always find another one. While you don't want to become combative and threaten to walk out of a dealership, remember: You don't need to buy this car.
Ask the Salesperson for His Price

The last time I bought a car from a dealership, I paid $1,000 less than I was expecting to. The reason: When the salesperson asked me for my offer, I asked him for his. Speaking first in any negotiation is a bad idea, because your number might be higher than the other party's best offer.
That was the case in my transaction. The salesperson's offer was the same as my ideal price. Knowing this, I realized he had some negotiating room in the price of the car. So I asked him if he could come off another $1,000. He did, and I paid less than I expected -- all because he gave his number first.
In case you're confused on how to do this, you might want to ask the salesperson for his "best price." If he or she insists that number is the sticker price and asks for your best price, just remember our advice above. You can always walk away.
Make a Counter-Offer

If the salesperson's "best price" happens to match yours, our suggestion is simple: Make a counter-offer anyway. The dealer might have more negotiating room in the car's price than you realize, which means you might be able to get the car for a better deal than you think. As a result, we strongly suggest making a counter-offer when the salesperson comes back with a price. And we suggest that the offer be considerably different than the salesperson's.
For instance, if a car is advertised at $31,000 and the salesperson offers $30,500, we wouldn't suggest counter-offering with $30,000. Instead, try $28,500. That gives you a lot of room in between to make a good deal.
Don't Sweat the Small Stuff

Once you've heard the dealer's best price and you've made a good counter-offer, we advise that you don't sweat the small stuff. It may be infuriating, but don't walk away from a good deal over a small amount like $300 or $400. With the average car loan term well over 60 months, these numbers equate to $5 or $6 per month -- not enough to lose a deal over. On the other hand, a $1,000 difference is certainly enough to walk away from when buying a new car -- a point you should make clear to your salesperson.

 

[wongjoh]

RIght now is a difficult time to buy a new car since there is no stock for a lot of models (blamed on the lack of import dollars) even with super low general sales volumes.

Having said that (and with my recent experience buying a car), the strategy that seems to give me results I can live with:

1. Identify clearly the vehicle you want (year, model, addons, and possibly colors) and the financing you want (non-cash purchases have a bunch of different additional fees tacked on). Very important as you need to compare apples with apples. Important to get a breakdown of costs as there are many, beyond the purchase price (e.g., there is flete, prenda, patentamiento and others) and distinguish between what's dealership-imposed (ie., what is negotiable) vs government taxes (what's not). If financing, remember that they also add life insurance, car insurance (you have no choice), and that they run a weird (to me at least) interest payment model ("french" model) which may impact your payoff assumptions.
2. Start calling dealerships and/or research online (I use MercadoLibre) to get a sense for the general opening price and nail one that will give you a clear purchase price, go visit it and get a quote in writing with the breakdown of costs
3. Then keep calling other dealerships and ask if they can beat your current best price by $5K. If they ask you to come into their offices, only do so once if they agree verbally to the price reduction. Then get the new quote in writing
4. Rinse, lather and repeat -- playing the different dealerships against one another. They know this game, but use your judgment not to piss them off or they will stop playing. The objective here is to get to the real prices.
5. After 2 or 3 rounds, you get a sense for the floor. Then just ask for that, and whoever gives it to you, then just get the deal done.
6. Timing plays a big factor here: near end of month, you can get the best deals (as they do commissions on a monthly basis)

Whether in the US or Argentina, for a car/house/job offer/equipment/whatever, the best way to get the best deal is to generate a bid war. Unless you know Jedi mind-tricks, this is the best way to get to the real prices and maximize your value. It's also totally legit and acceptable (unless you go back on your word or drag out too long). With this, I shaved 8% off MSRP

But again, right now is tough to buy a new car since there is no much stock available and so your prices will also not be as good. If you can, wait until things get better (and if you *think* things will get better), then you will get better prices.

Now, used cars is a different ball game. Each vehicle is "unique" and also, given the current lack of 0kms, there is a higher demand for used. Even moderately-priced used cars sell quickly and I have been surprised 3 times myself by this (i.e., I thought that few people would have the cash to pay for used cars whole, but I was wrong). Speed is key, but still preparation can help a long way (get a mechanic)

 

[RodalfoWalsh]

Iam very interested to know if when one walks in to an Auto dealership/car yard there in Argentina, can one expect to negotiate for the best deal as if in more competitive market place such as in the US, Europe or Japan.? Or you falks doomed to pay what the Dealer wants?

This is how things works in the states, bargain for your next purchase, cash or financed:


Negotiating can be one of the most intimidating things about buying a new car. How do you do it? What do you say? Where do you start? Fortunately, we've got you covered with a few negotiating tips that will help you get the best price.
Don't Talk Payment

This is one of the most important parts of negotiating a car's price, and also one of the most overlooked. It's important not to negotiate based on a car's monthly payment but on the purchase price instead. The reason for this is that it can be hard to figure out the purchase price if you're negotiating based on payment. And that means you might end up overspending for the car if you negotiate based on payment alone.
Here's what we mean: Say you're looking at a $30,000 car and you want to get your payments under $300 per month. If you tell that to the dealers, they may need to stretch your loan term out to 72 months or more -- but they can probably get your payment under $300 per month. In doing so, however, they may have charged you $31,000 or $32,000 for the car. You'll never know, because you were focused on the payment rather than the purchase price.
Don't Be Afraid to Walk Away

It's important that you don't settle on a car that you can't live without. That puts you in a bad position, because then you're at the mercy of the dealership's pricing. Instead, be ready to walk out at any time. That gives you the upper hand -- because a salesperson can't walk away like you can. He or she needs to sell the car, while you could always find another one. While you don't want to become combative and threaten to walk out of a dealership, remember: You don't need to buy this car.
Ask the Salesperson for His Price

The last time I bought a car from a dealership, I paid $1,000 less than I was expecting to. The reason: When the salesperson asked me for my offer, I asked him for his. Speaking first in any negotiation is a bad idea, because your number might be higher than the other party's best offer.
That was the case in my transaction. The salesperson's offer was the same as my ideal price. Knowing this, I realized he had some negotiating room in the price of the car. So I asked him if he could come off another $1,000. He did, and I paid less than I expected -- all because he gave his number first.
In case you're confused on how to do this, you might want to ask the salesperson for his "best price." If he or she insists that number is the sticker price and asks for your best price, just remember our advice above. You can always walk away.
Make a Counter-Offer

If the salesperson's "best price" happens to match yours, our suggestion is simple: Make a counter-offer anyway. The dealer might have more negotiating room in the car's price than you realize, which means you might be able to get the car for a better deal than you think. As a result, we strongly suggest making a counter-offer when the salesperson comes back with a price. And we suggest that the offer be considerably different than the salesperson's.
For instance, if a car is advertised at $31,000 and the salesperson offers $30,500, we wouldn't suggest counter-offering with $30,000. Instead, try $28,500. That gives you a lot of room in between to make a good deal.
Don't Sweat the Small Stuff

Once you've heard the dealer's best price and you've made a good counter-offer, we advise that you don't sweat the small stuff. It may be infuriating, but don't walk away from a good deal over a small amount like $300 or $400. With the average car loan term well over 60 months, these numbers equate to $5 or $6 per month -- not enough to lose a deal over. On the other hand, a $1,000 difference is certainly enough to walk away from when buying a new car -- a point you should make clear to your salesperson.

Did you just copy and paste that? Why?

 

[ElQueso]

People who are looking to buy a new or used car and have the cash are often looking for a way to put their money in "wheels and rubber" (as opposed to "brick and mortar") because they don't have enough to buy a decent apartment or want to diversify their investments.

Which is one of the reasons used cars hold their value so much.

I was talking to an ex-pat friend two nights ago at a dinner, about new car he bought about 6 months ago. He ended up with a 3-door Gol (don't remember the exact model). He's a pretty sharp tack, but couldn't get a great deal. He got about a 5-6% discount. He paid cash.

BTW - he was telling me that his car has increased in value almost $7K pesos since he drove it off the lot. Used cars lose value very slowly, at least in peso valuation.

I looked briefly at Fords a couple of years ago, just seeing about the possibility of replacing my 16-year-old 5-door Megane (great car!). I didn't have the cash for a new car and knew going in that I really didn't have much possibility of getting something, but I was curious. Turns out that the best way to go is to pay cash.

It's difficult to get financing, probably impossible for most ex-pats. And financing is expensive. Forget about financing.

You can play the strange lay-away-like program that everyone who doesn't have the cash uses (unless they are getting loans from their bank, but many expats don't have that kind of resource) - but that's an uncertain game.

You agree to a price and a term of payment. But you won't get your car until you've made 12 payments. Unless you win a lottery - you can make a "bid" to get your car early by making the highest payment out of the fellow customers in the program that pay that month (I don't remember if it's among customers with like cars, or all customers) and get your car that month.

The above is alright, I suppose. You could look at the first payment as being a big down-payment to make sure you get your car (or most likely, anyway) right away.

But the real kicker here is that you have no idea what the price of the car is going to be until you make the very last payment. The longer you make payments, the more uncertain is your final price.

I looked at a small 5-door Ford (don't remember model) that was about $110K if I remember correctly at the time. While talking about how everything worked, I began to see the big problem and I asked the salesman if the price was fixed or if it was adjusted for inflation. Of course, the price is adjusted for inflation. You didn't know how much the car was going to sell for until you made the final payment. Which means that your payments go up every month.

So I asked the salesman how much the same car was worth last year - trying to find out how fast the prices were rising. If I remember correctly, it was somewhere around $90K - I remember the increase was at least near 20%.

Of course, given that one of the reasons financing is hard to get (aside from the number of probable "aprovechadores" that screw up things for honest people) is the uncertainty of the economy, inflation, etc. The company ends up getting full value for the car without charging interest and people can walk away with a car in most cases (those that try). But full burden is on the customer here, not hardly shared.

Pay cash if you're going to buy a car. Don't count on a great deal - cars are investments here.

 

[ElQueso]

Did you just copy and paste that? Why?

I couldn't help but chuckle a little: Did you just quote that whole text and make me have to pass by it just to jab the Ambassador? Why?

 

[Ceviche]

I agree :- cars are investment here.

Know someone in BA who regularly does this. Buys cars. drives them for 6 months to a year and then sells them for 15-30% higher price.

 

[nlaruccia]

Cars can definitely be an investment here. I sold my Fiat that I had for sale on the forum. Because of inflation, I only lost $300 US.

 

[Hybrid Ambassador]

RIght now is a difficult time to buy a new car since there is no stock for a lot of models (blamed on the lack of import dollars) even with super low general sales volumes.

Having said that (and with my recent experience buying a car), the strategy that seems to give me results I can live with:

1. Identify clearly the vehicle you want (year, model, addons, and possibly colors) and the financing you want (non-cash purchases have a bunch of different additional fees tacked on). Very important as you need to compare apples with apples. Important to get a breakdown of costs as there are many, beyond the purchase price (e.g., there is flete, prenda, patentamiento and others) and distinguish between what's dealership-imposed (ie., what is negotiable) vs government taxes (what's not). If financing, remember that they also add life insurance, car insurance (you have no choice), and that they run a weird (to me at least) interest payment model ("french" model) which may impact your payoff assumptions.
   
2. Start calling dealerships and/or research online (I use MercadoLibre) to get a sense for the general opening price and nail one that will give you a clear purchase price, go visit it and get a quote in writing with the breakdown of costs
   
3. Then keep calling other dealerships and ask if they can beat your current best price by $5K. If they ask you to come into their offices, only do so once if they agree verbally to the price reduction. Then get the new quote in writing
   
4. Rinse, lather and repeat -- playing the different dealerships against one another. They know this game, but use your judgment not to piss them off or they will stop playing. The objective here is to get to the real prices.
   
5. After 2 or 3 rounds, you get a sense for the floor. Then just ask for that, and whoever gives it to you, then just get the deal done.
   
6. Timing plays a big factor here: near end of month, you can get the best deals (as they do commissions on a monthly basis)

Whether in the US or Argentina, for a car/house/job offer/equipment/whatever, the best way to get the best deal is to generate a bid war. Unless you know Jedi mind-tricks, this is the best way to get to the real prices and maximize your value. It's also totally legit and acceptable (unless you go back on your word or drag out too long). With this, I shaved 8% off MSRP

But again, right now is tough to buy a new car since there is no much stock available and so your prices will also not be as good. If you can, wait until things get better (and if you *think* things will get better), then you will get better prices.

Now, used cars is a different ball game. Each vehicle is "unique" and also, given the current lack of 0kms, there is a higher demand for used. Even moderately-priced used cars sell quickly and I have been surprised 3 times myself by this (i.e., I thought that few people would have the cash to pay for used cars whole, but I was wrong). Speed is key, but still preparation can help a long way (get a mechanic)

Wongjoh,8% off its vehicle's MSRP in a market place that has no new car inventory is remarkable. In elsewhere, if no supply, then very hard to get it discounted at all.! Do you guys have for example, used car value BlueBook type of vehicle's suggetable price guide ?

 

[Hybrid Ambassador]

I couldn't help but chuckle a little: Did you just quote that whole text and make me have to pass by it just to jab the Ambassador? Why?

RodolfoWalsh perhaps upset for being scolded on the Wildcat abuse blog of his. He has jabbed at this Anciano three times today!

 

[Hybrid Ambassador]

People who are looking to buy a new or used car and have the cash are often looking for a way to put their money in "wheels and rubber" (as opposed to "brick and mortar") because they don't have enough to buy a decent apartment or want to diversify their investments.

Which is one of the reasons used cars hold their value so much.

I was talking to an ex-pat friend two nights ago at a dinner, about new car he bought about 6 months ago. He ended up with a 3-door Gol (don't remember the exact model). He's a pretty sharp tack, but couldn't get a great deal. He got about a 5-6% discount. He paid cash.

BTW - he was telling me that his car has increased in value almost $7K pesos since he drove it off the lot. Used cars lose value very slowly, at least in peso valuation.

I looked briefly at Fords a couple of years ago, just seeing about the possibility of replacing my 16-year-old 5-door Megane (great car!). I didn't have the cash for a new car and knew going in that I really didn't have much possibility of getting something, but I was curious. Turns out that the best way to go is to pay cash.

It's difficult to get financing, probably impossible for most ex-pats. And financing is expensive. Forget about financing.

You can play the strange lay-away-like program that everyone who doesn't have the cash uses (unless they are getting loans from their bank, but many expats don't have that kind of resource) - but that's an uncertain game.

You agree to a price and a term of payment. But you won't get your car until you've made 12 payments. Unless you win a lottery - you can make a "bid" to get your car early by making the highest payment out of the fellow customers in the program that pay that month (I don't remember if it's among customers with like cars, or all customers) and get your car that month.

The above is alright, I suppose. You could look at the first payment as being a big down-payment to make sure you get your car (or most likely, anyway) right away.

But the real kicker here is that you have no idea what the price of the car is going to be until you make the very last payment. The longer you make payments, the more uncertain is your final price.

I looked at a small 5-door Ford (don't remember model) that was about $110K if I remember correctly at the time. While talking about how everything worked, I began to see the big problem and I asked the salesman if the price was fixed or if it was adjusted for inflation. Of course, the price is adjusted for inflation. You didn't know how much the car was going to sell for until you made the final payment. Which means that your payments go up every month.

So I asked the salesman how much the same car was worth last year - trying to find out how fast the prices were rising. If I remember correctly, it was somewhere around $90K - I remember the increase was at least near 20%.

Of course, given that one of the reasons financing is hard to get (aside from the number of probable "aprovechadores" that screw up things for honest people) is the uncertainty of the economy, inflation, etc. The company ends up getting full value for the car without charging interest and people can walk away with a car in most cases (those that try). But full burden is on the customer here, not hardly shared.

Pay cash if you're going to buy a car. Don't count on a great deal - cars are investments here.

Hmmm, putting money down in an used car is considered investment in the land ? Got it, the monthly inflation makes used car's value appretiation as one of investment opportunity in AR.!