Tag Archives: cars
Everyone wants to get a deal on a car, but some people are willing to put in a little more effort than others. Let’s look at the different types of car buyers and see where you fit in.
Types of Car Buyers
- The Fabulously Wealthy. We’re talking about Vincent Chase from Entourage wealthy. You walk into the dealership, pick out a Maybach and pay the full sticker price without batting an eye. You ignore advice because your time is just too valuable to waste negotiating.
- The Average Joe. This is the category most people fall into. You know that you’re not supposed to pay full price. You do no car research, decide you like the look of a Toyota Highlander, and throw out a number. Eventually you buy it when the salesman knocks off a whopping $200 (but you could have saved $2000). You leave feeling like a winner, not knowing you left money on the table.
- The Savvy Shopper. You realize that getting car price quotes online from multiple dealerships will allow you to get a better price than negotiating at the dealership. You probably got a pretty good deal, but you didn’t bother to negotiate. In fact, you may not even know that Internet prices are still negotiable.
- The Hammer. Like the Savvy Shopper, you got price quotes online. But you took it a step further. You dropped the hammer and told each of the dealerships that you were going to take the best offer you could find, and you’ll give them each a chance to beat your best price. You don’t mind driving an hour out of your way because it could save you several hundred dollars more than your next best offer. You are a true negotiator!
So are you a Hammer? Do you want to be? It’s not that hard. Learn how to buy a car and that spending a couple hours to send a few emails could save you a couple grand. And feel free to send me a thank you note or gift basket (my wife likes chocolate 🙂 ).
The following is a guest post by Sustainable Personal Finance. Living in Canada, SPF is able to provide an interesting perspective on car buying. He and his wife were able to save thousands of dollars by importing a car from the U.S. instead of buying locally. Scroll down for a checklist of all the steps to import a car into Canada.
Why do people import cars to Canada?
Ever wondered why Canadian retailers get so nervous when the “Loonie” gets close to parity with the US green back? Simply put, Canadians seemingly pay 20%-30% more for most consumer goods than do our American cousins. Fair? Hardly. Who can blame a Canadian who wants to save his or her hard earned money?
Americans surely avoid buying Canadian when the two dollars have the same currency value. When this occurs Canadian exports to our largest trading partner decrease, various industries (such as the film industry) pull out of movie making and our tourism industry takes a big hit as less Americans spend their hard earned money in a place where it costs more for everything. Gasoline? Way cheaper in the U.S. Want to buy a book in Canada? Check the back of the book and it costs 25% more in Canada. Want a loaf of bread? Expect to pay more in Canada.
While the noted examples are small ticket purchases, buying a new (or used) vehicle is a much bigger deal. When the two dollars are at parity, a car in Canada will cost the consumer 20%-30% more than if the consumer purchases the vehicle in the United States. If a Canadian wants to purchase a car that costs $20,000 in the U.S.A they can expect to pay $24,000-$26,000 in Canada (before tacking on a very high taxation rate that ranges from 8%-15% dependent on the province the car is being imported to).
I will state that this discrepancy is not the Canadian car dealers’ fault. The invoice price and MSRP are dictated to them by the parent manufacturer. There is a double standard as to how these manufacturers treat dealers on each side of the border and it is akin to highway robbery. We recently imported a car from the U.S. and even after a small currency conversion fee and despite the Loonie not being at par at the time, we saved over $9,500 which ended up being 77.4% of the price of the same car sold in Canada.
Importing is not as difficult as it sounds
You may think that duty taxes, hassle at the border or at your local dealership, or warranties being void when you cross the border are a detriment to importing a new vehicle, but they’re really not. The horror stories you hear are usually generated by Canadian dealerships who are desperately seeing an increase of U.S. imports and a decline in their sales.
With some careful research and vehicle selection you too can save thousands upon thousands of dollars. Continue reading