8 Devious Car Buying Hacks

Revenge for Anyone Who's Ever Been Scammed by a Car Dealer

April 27, 2009

When it comes to buying a car, most people know they're going to get suckered at some point.

Even some of the most knowledgeable car buyers don't know all the tricks and techniques car dealers use. Wouldn't it be nice if we could reverse the situation? How satisfying would it be to buy a car and know you suckered them?

Well, there is a way and we're going to show you how! Most people make the mistake of trying to outsmart the car salesman. You're highly unlikely to out-negotiate a trained professional. The trick is to take advantage of loop-holes in the car buying process itself. Let us show you the way, young grasshoppa...

Disclaimer: The following is for informational purposes only. Some of the tactics may not be allowed in your state.

Hack 1:
  Take Advantage of Loyalty Programs

Car companies sometimes offer cash rebates to buyers who switch from another brand (called conquest cash). For example, Ford is offering $1,000 in conquest cash on all new Fords until July, 2009. All you have to do is show proof you currently own a different brand.

Taking advantage of this one is simple: Buy a cheap clunker for less than $1,000. You can easily find cars for less than $500 on Craigslist.org and Ebay Motors and sometimes for as little as $150. All you need is a place to store the car and register it as a stored vehicle so you don't have to pay registration or insurance.

In addition to qualifying for conquest cash, buying a clunker has some huge potential future benefits if congress passes the "cash for clunkers" bill. See next hack...

Hack 2:
  Get Up to $5,000 From Uncle Sam

Even if there are no loyalty programs currently offered for the car of your choice, buying a cheap, old used car right now could offer huge savings in the near future. It looks likely Congress will pass some form of "cash for clunkers" law giving car buyers a tax credit for trading in an older used car for a new one. In the best case scenario, the government will give a $5,000 voucher to anyone who junks an old car and replaces it with a new car manufactured in the US. To qualify, the car has to be at least 10 years old.

We don't yet know which law will pass, or if a "cash for clunkers" law will pass at all. But Europe has done it with huge success and it looks like something will pass here as well. As stated earlier, you can easily find an old car on Ebay Motors or Craigslist. Buy it now before the law passes and you could have a $5,000 credit on your hands. Coupled with Hack #1, you're looking at savings of potentially $6,000 (minus the cost of the used car).

Hack 3:
  Buy Where Regional Rebates Are Highest

Most car buyers know about rebates and incentives, but what many don't realize is these rebates vary depending on where you purchase the car. And we're not talking small potatoes - sometimes the difference in cash rebates can be as high as $5,000. Toyota in particular is known to have large differences by region. For example, you can get $6,000 cash back for the Toyota Tundra if you purchase in the Mid-Atlantic States. The rebate is only $4,000 if you purchase it anywhere else.

Of course, you'll have to deal with the hassle of potentially driving or flying out to another state and driving the car back. But for $2,000 to $5,000 in savings, that is well worth the effort.

Most regional rebates are targeted at the following regions: Mid-Atlantic, Midwest, Northern California, Southern California, New York, New England, Southwest, Southeast. If you live in one of these regions, it's worth calling up a dealership in one of the other locations to find out what the current local rebates are.

Regional specials are not limited to cash rebates. Sometimes you can find better lease deals and financing options as well. Truly one of the easiest ways to hack the price on a new car.

Hack 4:
   Use Phone and Email to Get the Best Deal

Contrary to popular belief, you DO NOT have to actually go to a dealership to purchase a new car. In fact, going to a dealership to buy a car is one of the biggest mistakes consumers make. You're going to spend hours negotiating with a car salesman and you won't be able to take advantage of your greatest negotiating weapon - forcing the dealer to compete with other dealers.

You may have heard of "car buying services" where you pay up to $500 for a professional to negotiate on your behalf. Do you honestly think they go to a dealership to negotiate? No way - they use the phone and email method and you can do the exact same thing. Here is a step-by-step guide.

Hack 5:
   Buy When Demand is Low and Supply High

Cars are basically commodities, and like commodities, price is determined by supply and demand. If everyone all of a sudden wants to drive a Honda Accord, the demand will skyrocket and dealers will quickly run out of Accords. The few dealers who still have some in stock will jack the price up like crazy.

The reverse is also true. If a certain car hasn't been selling well, dealers will have a lot of inventory and will be more likely to offer a great deal. Right now, the economy is causing a huge drop in demand, so a lot of cars are priced attractively. That doesn't mean you're going to get a good deal on ANY car. You still want to stay away from newly introduced or redesigned models. It usually takes 6 to 18 months for demand to go down to acceptable levels. (Hint: if you've got your eye on the new Nissan 370Z, forget about it!).

Hack 6:
   Time Your Purchase Near the End of the Month

The car business is all about monthly quotas. Each salesman, car dealer, and car manufacturer have goals and quotas they want to meet each month. The more sales, the better. Dealers are usually scrambling to meet their quotas near the end of the month so if you happen to come along at that time, you're more likely to get a better deal.

Dealers won't tell you this, but they usually get extra bonuses from the manufacturer if they sell a certain number of cars each month. This enables dealers to sell cars for "below invoice" and still make a profit.

The best time to buy a car is near the end of the month and on days when the dealership is least busy (Monday, Tuesday, and Wednesday are best). This doesn't guarantee a great deal, but if you contact several dealerships, you're bound to find one that needs to sell a couple extra cars to meet quotas.

Hack 7:
   Buy a 3-4 Year Old Car to Maximize Savings

By far the best method for saving money when buying a car is to buy one that is 3-4 years old. Brand new cars depreciate incredibly fast. By the time an average car is 3 years old, it has lost over 50% of its value. (BMW's and Mercedes tend to retain their values better. GM, Chrysler and Ford can lose up to 75% of their value after 4 years!).

Think about it this way: If a brand new car costs $25,000 and a 3 year old version of the same car costs 50%, that's like saving $350 for each month that you waited. Of course, you don't actually have to wait 3 years. We're assuming the car of your choice is available as a 3 or 4 year old model. Obviously, you won't be getting the latest re-design, but c'mon, that's $350 per month in your pocket and who doesn't need that in this economy?

Hack 8:
   Buy Low, Sell High

The current economy has caused something the car industry has probably never seen in its history. Due to huge rebates and incentives, it is now possible to buy certain brand new cars cheaper than a 1 year old used version. This hack is highly unlikely to work, but in theory, you could take advantage of this and buy a brand new car offering huge rebates, then turn around and sell it used the next day and make a profit. But unless you have a dealer license, the taxes are likely to make this hack hard to pull off.

Be sure to read our other money saving tips:

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