new car buying advice?

[Sorgy]

Looking at picking up a new Toyota Corrolla. Here are my questions.

1)Are there any tax saving tips by buying outside of the metro area?

2)What is a good price on a new car nowdays? at invoice or above/below?

We have a 2009 and it is a no frills car with a great track record. Need to save a few bucks with kids in college

Thanks

Steve

[delcecchi]

Ask for the fleet guy. That tends to avoid the negotiation dance.

Haven't bought one in a while so that's all I know.

[jmd1]

I bought my last two vehicles via email from the dodge fleet guys. I told them what i wanted, they sent a few emails back and forth. we hammered out all the details, and until i was ready to go in and do the paperwork it didn't take long. Go in find what you want, look at the price and move forward. Also check out for specials from local insurance companies or if you work for a large company see if they have a fleet program. My dealer shared that farmers insurance was giving a 500 dollar credit if i were a member, so for 40 bucks i joined. also check out sams and costco for what deals they may have going. Good luck nothing like a new car smell, but dealing with the car thing stinks overall.

[Valv]

On new cars, price is not the factor anymore. They will sell it at great prices. Where they make money is percent of interest on loans and extended warranties.

It is BIG money right now. Many dealers won't even bother with the price wars. They will make more money adding 1 or 2 points to the loan.

Then they will sell you the extended warranty or better coverage warranty, and include a gap insurance.

Be VERY careful when you finally get into the office and sign the papers, and don't be afraid of leaving and let them keep the vehicle.

[Dave S]

IMO there are times where the extended warranties and GAP insurance are worth the investment.

Both come into play when you put on a lot of miles commuting. On average, 2 of the vehicles in my driveway are driven up to 35K miles/year. With the depreciation, that extended warranty comes in handy if something were to go wrong. Also if you end up "under water" with the vehicle and it's totaled, your regular insurance only pays for the value of the vehicle where GAP covers the rest.

Situations vary so depending on driving habits, they can be a good investment.

[Valv]

Oh, I agree the GAP insurance is a good investment, especially if you buy the vehicle with $0 down and have long payments.

[Jeremy airjer W]

I have gone through the Internet guys on the last three Toyotas. Two of them from maplewood and the latest from inver grove. Buy the time I signed the papers on the last tundra I was thousands under sticker!

I never get the extended warranties but then again I have a pretty good idea of what I'll be fixing in the future and a couple grand can buy a lot of parts when they are needed.

I always get the gap insurance.

[SkunkedAgain]

When I bought my last new vehicle (a Ranger), they pulled the whole bit about not qualifying for their best rate. I said that was fine and continued since I got a great deal. However, I verified that there was no penalty for pre-payment of the loan. A few months later I had my credit union beat the Ford loan and I had it all paid off in 3 years.

[ted4887]

On new cars, price is not the factor anymore. They will sell it at great prices. Where they make money is percent of interest on loans and extended warranties.

It is BIG money right now. Many dealers won't even bother with the price wars. They will make more money adding 1 or 2 points to the loan.

Then they will sell you the extended warranty or better coverage warranty, and include a gap insurance.

Be VERY careful when you finally get into the office and sign the papers, and don't be afraid of leaving and let them keep the vehicle.

That's about the best advice I would be able to offer as well.

I sold for 4 years at a Cadillac/Buick/GMC dealership and it was never about the price. Any large dealership is willing to take a hit on the sale price of the vehicle. They'll make it back 10-fold with service, warrant work and the financing.

Depending on what Toyota's incentives are for the month, you should be able to negotiate a price for right around invoice. A lot of times, dealerships will have "Dealer Cash", which is a hidden rebate the dealer can put towards the sale of a vehicle to up their profit without the buyer knowing. So find the number you feel comfortable paying, and stick to it as best you can. If you feel like they're playing with you a little bit, just walk away from the table.

[Dave S]

I once questioned a dealer about the 2.5% hold-back that GM was giving dealers and was practically thrown out of the building.

I thought there was a point where the domestic brands quit doing this within the last decade. Did they start again?

[TR21HP]

Every car maker has a dealer holdback ranging from 2.5-3% and is untouchable. Agree with going with the internet salesman, I've done this with all my vehicles since they have had it inplace and it eliminates all of the hassle. I've never bought the extended warranty and usually take advantage of the best financing available.

[Sorgy]

Thanks guy's