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New car buying guide: the algorithm (2021)

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

#51

Post by maxehmookau »

roydivision wrote: post #45

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.

Car manufacturers and dealerships are now banks, 100%. For a while in the UK, Ford offered the most competitive interest rates for cash savers.

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

#52

Post by ZeroGravitas »

One slightly related topic:

How is depreciation for cars calculated correctly when the dealers are adding this random markup and/or cross subsidizing finance deals?

I originally started thinking about this due to stories about EV depreciation that make no mention of $8k plus federal/state subsidies that the buyer received.

Is it as simple as some average second hand price vs MRSP?

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

#53

Post by globular-toast »

rmason wrote: 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…

Jesus. I just went on autotrader, found one that looked good that I could afford to buy 3 times, went to bloke's house, stuck my head underneath, unscrewed the oil cap, shook hands, did a bank transfer, taxed it online and drove it home. Took me a day.

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

#54

Post by djaychela »

maxehmookau wrote: post #49
llsf wrote: 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…

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…

Can't speak other than personally, but my step son falls into this category and doesn't hate being sold to. He and his partner have both bought a number of cars from dealerships. And he's not got that from me or his mum, we're both quite the opposite.

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

#55

Post by beretguy »

valval wrote: post #42

Keep in mind that going through this strategy will take you hours and hours, and with Software Engineering salaries it's quite probable that you should instead rather be working on stuff that you're actually good at with this time. Or then you outsource this whole process to someone else and pay them a slight premium, which is what I would do. My time isn't worth an email battle and spreadsheet acrobatics to save $3k…

I think it’s ok to do it when you are not in a hurry, like if your current car is getting high on mileage and you know you will need a new car in a year or two.

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

#57

Post by maxehmookau »

djaychela wrote: post #54
maxehmookau wrote: post #49

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…

Can't speak other than personally, but my step son falls into this category and doesn't hate being sold to. He and his partner have both bought a number of cars from dealerships. And he's not got that from me or his mum, we're both quite the opposite.

Maybe a cultural thing? Are you British? I don't know anyone under 40 who enjoys the process of going to a car dealership and doing the awkward dance of trying not to get ripped off.

Hey, if he doesn't hate it, and gets a good deal then good for him. I just can't believe that his feeling is commonplace.

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

#58

Post by Klaus23 »

weq wrote: post #35

New cars are built out of plastic and are thus limited to a 10yr life span, fullstop. Every one of them. Then you add electric to the mix, and in 5-10yrs ur gonna need to buy a new one, no matter the brand, because your battery will fail. The lucky ones get a second under warrenty. I dont know, i stopped buying new cars once computers were added. I own a 95` landcruiser with 300k on the clock and i beleive it has ano…

> My plan is to swap a hydrogen motor in i guess once mature the tech and consequently ban diesel.

Good luck with that. Hydrogen in cars is dead, and even if it weren't, the tanks would take up so much space in a car not designed for it that you'd lose your boot.

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

#59

Post by hef19898 »

maxehmookau wrote: post #49
llsf wrote: 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…

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…

Dealership and sales people or not, you are still being sold to, aren't you? But yes, if you can extract more money from your customers by removing sales people, and the option to negiotiate, from the process more companies will do that.

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

#60

Post by grujicd »

The text mentions Seymours' Cray algorithm for buying cars, if you're rich enough. However, it's deleted from the linked page. To save you the search, here it is:

1. Go to nearest dealer, 2. Sit at nearest salesman’s desk 3. Buy nearest car 4. Go back to designing computers.

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