Car Buying 202

Review the pickup checklist: http://www.vfaq.net/docs/pickup_checklist.html

 

Well, the ordering and deposit (if the dealer requires, they shouldn't!) is the easy part. You have probably discovered that. The real pressure is going to be the finance office where you actually close the deal with the dealership. Nearly all dealers today do not close the sale with the dealer but with a finance employee. That finance office employee will usually try to sell you a bunch of stuff you don't really need. That is especially a problem in the south and southeast, but it also varies on a dealer by dealer basis. I had never heard of the Toyogard package of trumped up overpriced coatings and unnecessary items until I got to these boards.

They are also the office where you will get offered the extended warranty. You will probably feel more pressure in that room at the dealership than you did with the dealer getting down to a price for the deal.

If you want an extended warranty, first look at the price offered here and if you want pass on the warranty at the dealer and get it through here. However, if that dealer wants to get points for selling warranties, they might budge from their price and move down to a more agreeable price that is close to the one offered through Priuschat. However, I doubt they will be able to beat the Priuschat price.

Make sure you are good at saying no when you are in that office. You also need to make sure that you stand firm on what you want and don't want.

 

Another thing about the extended warranty is that you have until 3 years (or 36K miles) to make your decision.

One other thing to learn is patiently waiting.

 

One thing I am unclear about, which I don't think was covered in 101, is the legal nature of the document used to place an order for an '06.

I understand that it is going to state the vehicle price as MSRP (unknown for '06, taking into account any add-on packages, which will be itemized). I assume any additional charges will be itemized: there seems to be some confusion about whether the delivery/prep charge is included in MSRP. It is according to Toyota, but my dealer quoted a MSRP that is actually the base price for the '05 Prius, and said that's ALL I would pay except for any '06 MSRP adjustment - I asked specifically about delivery/prep. & he firmly said it was included in the figure he quoted. I don't know if it's intended, a mistake, or flim-flam. If intended, it's a steal/deal!

Let's hope I can get him to write in "Purchaser will not pay the Toyota shipping/handlng charge or any charges in addition to MSRP [NM has no tax and I will handle registration].

Any better way to handle this?

I can't imagine ordering a car without a firm price (excepting the expectation of a MSRP increase). I don't want to sign an order with a price structure that is subject to change - "Oh, we didn't mean THAT".

I should mention this is a dealership in a small town where few Prius are sold.

So, is the dealer obliged to honor the prices in the order form? (MSRP price increase excluded)

Thanks, C.

(Sorry for backtracking, Olends.)

 

I wondered about the ordering without a set price as well... I agreed to it since I didnt have to much of a choice but I have to wonder if you had a problem I am sure it would not hold up in court. The idea that you are agreeing to a car purchase without a listed numeric price seems like it would be a violation of UCC due to the price of the purchase. I am not an lawyer but in some of my law classes I have taken similar issues were covered.

My parents signed the same thing when they ordered their Prius with a set dollar value on it and even the salesperson stated that if there were a problem and you brought a lawyer in with you he was sure the sales manager would cave and return the deposit.

Just my thoughts, I could be totaly wrong but the issue has been bothering me a bit as well.

 

Since the Prius will probably be on order for many days, you may wish to wait until you have a delivery date before securing a loan. Of course, you will want to shop around for the best rate. Also, watch the Prime Rate (if you are in the USA) to see if it is trending up or down. Try to secure a fixed interest rate at the bottom of the Prime Rate.

Most loan institutions will give you a maximum dollar amount which they will loan you. This mostly is based on your income, debt and credit rating. Anyway, try to estimate the maximum amount of money you will need to borrow to purchase the car and make sure the loan institution will loan you up to that amount.

You may not need to make a down payment at all, it depends on other factors. If you do make a down payment, you would make it to the loan institution as a "good faith" payment to help get the loan.

If you are prepared to pay part of the purchase price in cash, just borrow that much less and, skip the down payment.

You can buy insurance without the VIN. Just tell the insurance company the model and when you plan to take delivery. Verify that they will insure the vehicle for 30 to 45 days without the VIN. Most (if not all) insurance companies will do that. When you take delivery, call the insurance company and give them any specific information they request.

People have been buying new cars for a long time. The procedures are pretty well worked out.

As to the dealer experience, go to a good book store or library and find some Consumers Union (Consumer Reports) books or magizines on the how to buy a car. They have very good, unbiased information.

jrohland
Arlington, Virginia, USA

 

This statement lets me presume you have had USED cars before and therefore have insurance now. You can call your agent before buying the car and them know what you are planning and get a quote. I got the VIN from my dealer a week before I got the car and just called my agent with the info. They added the car to my policy starting on 'pick up' day without me ever going to their office.