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New car buying guide: the algorithm (2021)

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Re: New car buying guide: the algorithm (2021)

#111
Car buying algorithm

1. Looks up nice new car

2. Realize a fancy new car is like $2-3k per MONTH (financing, insurance, etc).

3. Decide that there are about a million better ways to spend 2,000 a month (e.g. a $200 dinner every 3rd day, personal uber chauffeur, house-cleaners, etc)

4. Get used camry.

Re: New car buying guide: the algorithm (2021)

#112
post #89

Earlier quoted context omitted.

> ...who enjoys the process of going to a car dealership and doing the awkward dance of trying not to get ripped off. This. The point is, once you are old enough and have heared enough success-stories of extroverts going full "Grand Bazaar"-Style... you are just frustrated if you know that you are going to loose against all these dark-patterns. There´s a reason why they can buy italian soccer-teams without really "pr…

Clean, sensible, introverted living is overrated. There's something deeply human in the whole 'awkward dance'. Not everyone is born a great dancer, but this doesn't mean that dancing is a stupid and pointless activity. People have been trading with one another (and often tricking or getting tricked in the process) for millennia. The 'Grand Bazaar' you evoke stands for something timeless — a promise of wealth earned w…

> tricking or getting tricked in the process

I live in a world where I do not have to trick or be tricked by other people. I surround myself with people whom I can actually trust to have my interests at heart, and I try to look out for their interests as well. This is not just the case for my friends, but has been in my communities, across multiple countries. I can happily go to the market and buy whatever at a listed price, confident that the market stall owner is pricing it at enough to make a comfortable living and no more. I can be confident that if my purchase is flawed, I can say, and be trusted with a refund easily.

This, to me, is a deeply human system. The idea that deceit and cheating are features of life just doesn't bear out for me. There are people that do that, and when I encounter them, I do whatever I can to make sure I never encounter them again. Unfortunately, the consolidation of large businesses makes it more and more common. I avoid those where I can also.

Re: New car buying guide: the algorithm (2021)

#113

Earlier quoted context omitted.

not sure how this is done in the US, but if you buy used from a dealer, I guess you still get a warranty on that?

Minimum 6 months in Europe. Buy from a brand dealership and you get usually 12 months, some even offer 24. For used cars.

Only a subset of used cars in the US have any kind of warranty. Most are sold without one.

Re: New car buying guide: the algorithm (2021)

#114
post #6

Car dealership in US are in their own league. Coming from Europe it is difficult to appreciate at first. But when you see headlines like: "Roma was purchased last month by Texas car dealership magnate Dan Friedkin, who is worth $4.1 billion." Yes, that a Texan car dealership buying the AS Roma (soccer team, Italian capital). When I came in US, I had no car, I saved money, went to dealership (Toyota) and pointed a use…

> Unfortunately I had to leave the car, so they do a final inspection and prepare some papers. I came a week later to pick up the car. I wonder how he would have felt if you had to take the car and keep the money for a week before you could pay.

This is exactly what Carvana does when you want to return something to them

Re: New car buying guide: the algorithm (2021)

#115
Maybe I’m not the typical car buyer, but usually I do a ton of research beforehand and know the exact make and model and configuration I want prior to even making contact with dealers.

Then all I do is basically pick the dealer that is able to get me what I want, or as closest to it, at best price.

Sometimes this has meant traveling to a dealership in another state. Sometimes it meant ordering from the factory.

Then again, the cars I’ve always shopped for haven’t exactly been the likes of Camrys or RAV4s, so…

Re: New car buying guide: the algorithm (2021)

#116
I plan on buying a new car soon, likely a luxury brand, perhaps Lexus. It’s been 15 years since I’ve personally purchased a car. Are there services that will handle the process on my behalf?

Very genuinely—-I ask because my patience is thin, and I am likely to hurl expletives at the salesperson, especially if I detect tactics such as those described here. If the salesperson is slimy, then my verbal response is likely to be exceptionally offensive, as I’ll calculate for the most severe expression.

Re: New car buying guide: the algorithm (2021)

#118
post #32

Bought my first new vehicle in fifteen years. Here are the steps that I took. 1. Test drove four different brands 2. Went to six banks and found out the lowest interest rate I could get. Everyone told me that it would be at a credit union but instead it was a brand new bank that apparently was hungry to get new business 3. Emailed every dealer for the brand I chose within 225 miles. 4. You want to do one thing at a t…

You must be buying a seriously expensive luxury car if they can knock a couple grand off before you set foot on the lot. I don't think a Corolla (sort of my standard for reliable A to B transportation) even has that much margin at MSRP. Different strokes and all that, but I doubt this process would work for me and most buyers.

Re: New car buying guide: the algorithm (2021)

#119

I have gotten into the habit of asking myself of any company "What is their actual business?". This is invaluable in the IT world, but a useful tool in the real world too. I know nothing about the car business in the states, but it seems to me after reading these comments and the article that the actual business of car dealerships is most probably - selling financing, and the cars are the 'vehicle' for this.

I worked in a camera store/photo lab in the mid to late 00's while in college. I learned pretty quickly that the cameras were low-margin items and the goal was mostly to attach ridiculous warranties to them, and to a lesser extent some high-margin accessories. I think I actually tried to avoid selling anything because I mostly got dinged that my warranty rate was so low (I wasn't a salesperson but anyone could sell so they tracked all of us). I could have had fun talking about cameras and selling them all day, but sadly that really wasn't the job of a salesperson. That chain (Ritz/Wolf Camera) is long gone now, and I'd love to say it was because of these tactics, but I doubt that; it was more due to the loss of film processing, another high-margin business.

Re: New car buying guide: the algorithm (2021)

#120
post #93

Earlier quoted context omitted.

The UK is heading this way too, and I hate it. If you show up with cash to buy a car, you're looked at like you're crazy. They push, and push to get you to take out a loan. It no longer puts you in a better negotiating position to be a cash buyer, as they're making more money selling you finance than selling the car. For all of Tesla's failings, car dealerships will die out. Millennials and Gen Z _hate_ being sold to…

> The UK is heading this way too, and I hate it. > If you show up with cash to buy a car, you're looked at like you're crazy. They > push, and push to get you to take out a loan. With used car dealers in Germany it's a common thing to pay in cash. At least the down payment is usually in cash. However, having payed for my used car in cash, it still makes me nervous thinking of me taking a bus to the dealership with €1…

I wasn't specific enough, sorry. By "cash" I meant "not finance". It's very unusual to turn up to a car dealership in the UK with a suitcase full of £20 notes (and would probably ring alarm bells for money laundering).

Usually dealerships insist on a bank transfer. Although, pro tip, if you can agree to paying a deposit with a credit card then the entire car purchase should be covered under Section 75 protection if the car is not sold as advertised.

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