Tales From the Car-Buying Trenches

Interested in a new car? Maybe. But you're probably less interested in the confusion, scams, and aggressive sales tactics so many car dealerships dish out. The Home & Family Finance Resource Center got to wondering: What's it really like to buy a car these days?

So we gave our trusty writer $100,000 and told him to round up some new wheels for himself--and take a few notes.

Not. Actually, we rounded up--not the usual suspects--but a panel of people who had recently bought new cars. They told us about the good, the bad, and the ugly in their searches for the perfect car--and the perfect deal. This article also includes feedback that readers contributed in the past few months to this Web site's "What's Your Story?" feature.

The theme that emerged from our discussion, oddly, is that there's no theme. Buyers, cars, and salespeople are all over the map. Still, there are some basic requirements for a confident, economical decision. You have to understand: What's out there; What you can afford; How hard to push; and When to hold, and when to fold (and find a more reasonable dealer).

The recent buyers told us that the buying experience ranged from fabulous to filthy.

Rena told us it was "Absolutely fantastic, I didn't have the experience of it being a lot of work; it was a joy. The stars must have been right for me that day."

Sheryl from Oklahoma told us by e-mail that she had "a good experience." With a pre-approved loan from her

credit union, she knew how much she could spend. She also found the value of her trade-in, invoice prices on new vehicles, and the reputations of the various dealers. With "two children in tow and a notebook," she found a car at the second dealer, and got a "bottom line deal on the spot." After some comparison shopping, she bought the car, then asked the sales manager why he'd been so quick to offer a good price. The notebook, he said, proved she'd done her homework and was ready to buy.

Having a preapproved credit union loan helped Cynthia, of Texas, in a couple of ways. "The pre-approval makes it so much easier because you don't have to worry about financing with other companies, and you can't beat the interest rates," she wrote. "When you go to the dealership, they treat you like royalty because they know they will make money if they can offer you a good deal."

Jim, however, loathed the process. "I'm not skilled at buying; I'm not comfortable lying. They started the game of going back to the manager, and even changed their offer on the trade-in. We got up to leave, but they retreated. Next time, I'd be inclined to buy over the Internet."

Ann was pleased with the amount of information she found on the Internet, but the sales experience made her feel like she "had to take a shower when I got home."

Michele thought she "lucked out because there are some people who want to sell you the car, and some who don't. We got the girl who was selling three cars a day. But three guys were just drinking coffee."

Angela ran into a "dufus maximus" who lectured her about her duty to buy an American car. "He talked about labor practices, how poorly people were paid overseas, how such and such a car has a better reputation because it's not made by [supposedly unskilled laborers]."

Edith didn't have much of a sales experience in the traditional sense. She dealt over the Internet with the car-finding service Autobytel, which found a dealer that offered her any car on the lot for $100 over invoice. "I didn't want to go in and haggle with the dealer," Edith says, and indeed the only negotiation concerned color--the salesman tried but failed to convince her to drive muddy brown. The Internet, Edith told us, allowed her to avoid "the horror stories I'd read about. The guy at the dealership was great, he went through the details, but there was no selling involved."

Perhaps the oddest negotiating tactic is reality. Renee says she spent a year pondering her auto needs, then explained to the dealer, "I'm a single parent, and every penny, and every hour of my time is precious. As far as dickering goes, I don't fear it--I love it, I always succeed because I don't have to play games, I'm flat-out honest. I'll lay out my budget, and they say 'We're gonna give you this car.' I'm always willing to walk out, and I eat a big meal before I go. If you get serious, it'll be three or four hours. You don't want to be in a low-blood sugar state, and you don't want to eat their snack food, either."

Honesty--best policy?

Can you be honest and still get a great bargain? Rena and Edith both felt they could tell the truth. But many folks said that since dealers bend the truth, it's fair to respond in kind. Ann, for example, told the salesman "a number I was willing to spend, then kept my mouth shut." When she got the hated "in-and-out-of-the-room" routine (the salesman bounced in and out while conspiring with the sales manager), she just said, "Thanks, I have an appointment across town."

That ruse worked, but she found the overall experience "God-awful. The minute we agreed on the price, I felt so tired. They make you feel stupid, that's what you resent the most."

Beth, who saved $3,000 to $4,000 during six hours of haggling, says it's important to be realistic. "I don't think you can expect negotiating to be pleasant. You may end up saving a lot of money, but you're not supposed to assume it will be enjoyable."

Angela felt likewise. "I've bought so many new cars, and it's always slimy, some part will be icky." But Edith found that she liked the dealer she located through the online service. "They had a new-purchaser evening, they went through what you need for service, spent a lot of time answering individual questions."

So there you have it. You give a writer $100,000 mad money, and he comes back to tell you that car-buying is all things to all people. Although that sounds disheartening, it's good news. If you get the monkey business at one place, chances are a dealer down the road is ready to sell.

And you're always ahead of the game with a preapproved credit union loan.

Published July 1, 2002