What is a Bidding War and Why is it Free?

FAQ’s

New Car Questions | Used Car Questions | Trade-In Questions | Financing Questions

New Car Questions

Absolutely! If you need to buy two cars and want to get the same make (example, Honda), this will help you get an even better deal. When you email car dealers, explain you want a price for both cars. Be specific with the make, model, and trim for each car and be consistent in your emails to every dealer.

Read more about buying two cars at once.

A man from Austin, TX asked me how he could get a good deal when there was no local competition. In Austin there’s pretty much one car dealership per manufacturer. So I suggested expanding his search to Houston and Dallas to get competitive car prices. Each city is about a 3 hour drive, but has a wide variety of dealerships. By expanding his search he could easily find 5-10 dealerships for just about every manufacturer.

Read more about how to find additional car dealers.

Sure! Ask the dealer how much it would cost to ship to you. If that is still less than your local prices, then buy. Also consider taking a long road trip or flying to pick up the car. Again, if that costs less than local dealers and you don’t mind the travel then do it!

One reader, Sara, flew cross country (from South Dakota to Georgia) to buy her Lexus and save $8500.

Yes, unfortunately. It seems silly, but some dealers will charge more for certain colors. Make sure you ask that any additional charges (like paint) are included in the price they give you.

Here are some other fees at the dealership to avoid.

These services provide pre-arranged deals which are competitive, but rarely the best price.  This is because they take their own commission from the deal.  If you try one, use the car price they give you along with prices from other dealers and run a bidding war on this website. The majority of the time this will get you a better deal.

Car buying services are largely for those people who don’t want the hassle of negotiating car price.  But remember, even when using a service you’ll still have to do your own negotiations for your trade and financing.

If you have flexibility, December is the best month to buy a car.  Car salesman and dealerships get sales incentives at the end of the financial year. Couple that with the holiday week between Christmas and New Years and you get one of the best weeks of the whole entire year to buy.

Used Car Questions

You can negotiate, but you can’t use the same process for buying a new car buying. This is because every used car is slightly different. My new car buying strategy is based upon getting prices for the exact same make, model, trim car from different sellers.

Here are some tips for buying used cars.

Slightly used cars (under 10k miles) used to be a great deal. But these are hard to find and that has driven up demand. Car dealers want to sell new cars really bad and because demand for slightly used cars is high, you can sometimes find a better deal on a new car than the same car after its been slightly used.

Trade-In Questions

Before going to the dealership, get an appraisal for your car so you know how much it’s worth. Understand how much you can get and remember the tax implications.

Financing Questions

I’m not a fan of warranties, they are a big money maker for dealership. I usually refuse all extra warranties.

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