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A car salesman did an AMA on Reddit today for car buying tips. He has around 6 years of experience and has closed about 1,000 deals. Today we asked him various questions and debunked many myths as well as confirmed many more. The following are takeaways from this AMA:
Important Car Buying Tips
Your monthly payment + insurance should be no more than your 10% of your monthly income.
Aim to buy your car at the end of the following months: March, June, September, December. Dealerships need to meet certain quotas in order for big bonuses. Dealerships are willing to lose money by selling a car cheaper during these times in order to get the large bonus which exceeds the amount they lose on the car.
Print out your car information on Truecar. This site will tell you the value of your car BEFORE taxes. Ask the dealership to match or beat this price.
Along with these car buying tips, the salesman also reiterated a point that I try to emphasize on all faucets of life: a dollar saved is a dollar saved no matter how much the cost of the purchase is. If you can save an extra dollar, then you do it.
People always relate the amount of savings in relation to how much the purchase is. A consumer will be more likely to want to save $1 on something that costs $5 than to save $1 on something that costs $10,000. In their minds they are saving 20% versus saving 0.01%.
In reality, that $1 has the same buying power regardless of what you’re currently purchasing. In both situations, that $1 will get you a cheeseburger at McDonalds (i.e. it retains the same buying power).
Calculate savings based off buying power versus percentage saved.
Important Car Buying Tips
Your monthly payment + insurance should be no more than your 10% of your monthly income.
Aim to buy your car at the end of the following months: March, June, September, December. Dealerships need to meet certain quotas in order for big bonuses. Dealerships are willing to lose money by selling a car cheaper during these times in order to get the large bonus which exceeds the amount they lose on the car.
Print out your car information on Truecar. This site will tell you the value of your car BEFORE taxes. Ask the dealership to match or beat this price.
Along with these car buying tips, the salesman also reiterated a point that I try to emphasize on all faucets of life: a dollar saved is a dollar saved no matter how much the cost of the purchase is. If you can save an extra dollar, then you do it.
People always relate the amount of savings in relation to how much the purchase is. A consumer will be more likely to want to save $1 on something that costs $5 than to save $1 on something that costs $10,000. In their minds they are saving 20% versus saving 0.01%.
In reality, that $1 has the same buying power regardless of what you’re currently purchasing. In both situations, that $1 will get you a cheeseburger at McDonalds (i.e. it retains the same buying power).
Calculate savings based off buying power versus percentage saved.
