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NOW is the time to buy an American car.


NOW is the time to buy an American car. The dealers WANT your business, BAD. I know from personal experience. Holy cow do they want your money. Like I said, NOW is the time to buy.


David Lignell 9 years, 5 months ago

Hi BigPrune,What leverage do I have if money is tight? How can I approach the dealer confidently, without him or her sniffing out my despiration? Needing tips here. Don't get me wrong, there's nothing I'd like better than a mid-sized with leather seats.

staff04 9 years, 5 months ago

If they ultimately go bankrupt, will my warranty be worth anything? I'd love to buy something from Chrysler in the next few months, but I don't want a worthless warranty...

TheStig 9 years, 5 months ago

Buying new is much easier that buying used. The idea is to play one dealer against the other as they both paid virtually the same price for the car (at least in the Midwest). Dealers try to maximize their profit and it is up to you to find how low they will go. Key is knowing what they paid for the car which is pretty easy these days. Also realize that everyday the car sets on the lot it cost them money. Before the current environment I would start 5% below invoice on a mid range vehicle. Today I think I would begin 10% below invoice as some dealers on some cars may be to sell at a loss to reduce their costs.http://www.edmunds.com/new/index.html?tid=edmunds.n.zipentry.new..1.*But remember the old rule of negotiation, "The first person who mentions price loses." If you have never heard that rule carefully read both articles below.Unless you have been a car sales man you should read the article "Confession of Car Salesman" at Edmunds paying particular attention to the "4-square work sheet." Every car salesman uses it as it works in their favor. I promise anywhere you go the sales man will use this technique with you!http://www.edmunds.com/advice/buying/articles/42962/article.htmlAlso good is "Negotiating 101" also at Edmunds.http://www.edmunds.com/advice/strategies/articles/45993/article.htmlYour instinct that buying just before the end of the year is right on. Taxes are due and dealers want their inventory off their lot. I would not pay over dealer invoice, keeping all incentives and rebates, in this market. But still be prepared to walk off the lot if they don't meet your price. When do leave your phone number with them. On last car I bought the salesman called and told me I could have it at my last offer two weeks after I walked off their lot if we could get the deal done before the end of the month (end of their quarter).staff04 (Anonymous) says…"If they ultimately go bankrupt, will my warranty be worth anything?"Who knows really? I'd buy something that has a great review from Consumer Reports New Car Report and expect to pay below invoice for taking that risk.

TheStig 9 years, 5 months ago

I forgot to mention if the local dealer is within a couple of hundred dollars of the best offer, take it. You want the local dealer to survive to service the car. Be prepared to pay a couple of hundred more with your local dealer.

TongieMom 9 years, 5 months ago

Buy American...I think everyone needs to look at what that means. What it means to one person may be entirely different to another. Assembled in the USA? What % of product on the car needs to be made in the USA for you to consider it 'American'? Or do you mean just an American owned company? Toyota is the best BUILT American car..more % of parts manufactured/assembled in the good ol' USA.

trinity 9 years, 5 months ago

please nobody yell, i have an honest query that is on my mind after reading this...but ok, things have been in a downhill slide vis a vis american cars for a while, now; and americans being the "me" people we are, answer me this please; are workers in the car plants really putting their all in to their jobs, or are the just kinda throwing vehicles together with that grudge factor on their minds? i am NOT laying any blame or judgment here, lol...just pondering. years ago i had a couple friends who worked in the gm plant; and i tell you what, whenever they were po'd at the union or management or something, sounds like they didn't give their work their all.

Jennifer Forth 9 years, 5 months ago

My uncle used to work for GM and seemed to do nothing but play cards all day until his early retirement package came through.

Chris Ogle 9 years, 5 months ago

Buy a new car??? ME?? Sorry,, I live in Lawrence Kansas. I am busy with my tax bill.

BigPrune 9 years, 5 months ago

Ask to see the sales manager and ask them which car they would like to really move the most - which ones have they had in inventory the longest. They had a few to choose from. I ended up getting a program (American) car off lease and immaculate. I ended up getting it for thousands below NADA and Kelley Blue Book. I didn't finance so I don't know how hard that might be these days. It was an easy buy. The Japanese dealers wouldn't deal, at all, so I paid $7000 less for a comparably equipped American car with much lower miles. The build quality is equivalent to the Japanese and reliability is rated higher on the American. Keep your emotions in check and be prepared to walk away. Buy now before the new sales tax hits!

Richard Heckler 9 years, 5 months ago

If they were not good enough to buy yesterday why should one be bought today?

Jim Phillips 9 years, 5 months ago

If the parts are manufactured elsewhere but assembled in the US, is that vehicle American made? What vehicles are truly fully American made anymore? Are all of the parts made in America or are they subcontracted in other countries and imported?

BigPrune 9 years, 5 months ago

I recall Isuzu made the Rodeo and Honda needed an SUV in their car line so they contracted to have Isuzu make them a rebadged Rodeo and Honda called it the Passport.JD Powers & Associates did their yearly survey, this one after the first year of the Honda Passport. Guess what ranked as #1 import SUV and guess which import SUV was ranked #10? The Honda Passport was ranked #1 in quality and reliability and the Isuzu Rodeo was ranked #10 in quality and reliability. The Rodeo and Passport were identical except for their badge. The Honda was $1200 more and had less of a warranty. Obviously, the Honda lovers loved their Passport. I guess it's all perception and some good propaganda thrown in for good measure.

BigPrune 9 years, 5 months ago

One more thing, since Obama's campaign was bought and paid for by the unions and they are basically in his back pocket, I don't think he will abandon the American car manufacturers and their unions. That's another reason why I decided to go ahead and buy American.

jayhawkbarrister 9 years, 5 months ago

A number of people have expressed concern about their warranty being worthless if the American car company from whom they buy files bankruptcy.Under Section 365 of the Bankruptcy Code, a warranty is an executory contract, which must be assumed or rejected very shortly after the filing. With the desire of the auto companies to appear to be 'customer oriented' and wanting good publicity associated with an orderly filing of a bankruptcy, there will be tremendous pressure on the company to assume the warranties shortly after filing. it does not cost anything to assume with the liability being incurred in the future. And if they want to trumpet how good their product is, assuming warranties is a good way to hide the lemons.In short, the concern about worthless warranties is not well placed. A number of the warranties are laid off to other companies, that act like insurance companies. It is a profitable business. I once did a Chapter 11 for a company that was hopelessly underwater, but for the fact that it had a division that was insuring extended warranties on kitchen and home appliances. The extended warranties produced a net profit of a million dollars a month, enough money to finance the rest of the company out of bankruptcy. Extended warranties are like cash for car companies.

BigPrune 9 years, 5 months ago

bndairdundat,I suggest you go to Topeka or Kansas City and get their price first then go to the Lawrence dealer. If you are buying new, their costs should be the same for a like equipped car or truck. The franchisees in smaller markets when added all together make up more sales than the big dealerships so they used their leverage to convince the car manufacturers to level the playing field. So, if you have been going to the Lawrence dealerships first, KC or Topeka will always beat their price. If go to Topeka and KC first for a shopping price, go to the Lawrence dealership last. One more thing, if the Lawrence dealer doesn't have it in stock, then they either dealer trade or buy the car from the dealer. If they dealer trade they keep their holdback money. If they have to buy a car from another dealer they don't get holdback money - the dealer they bought it from gets to keep it.Always negotiate from invoice when buying new. There are sources out there that can tell you if the dealer is getting any incentive money from the manufacturer to move a car. There's also sources that will tell you what the dealer's cost is, however, area dealerships are in advertising pools that the manufacturer charges so be prepared for some sort of advertising costs tacked onto the cost of a car.New car dealerships don't make hardly any profit in general (maybe 2% tops) off of new car sales. New car dealerships make their money off of the trade-in they resell. The profit margins are much higher. Other profit generators are parts and service, but used cars probably make about 60% of the dealer's profit. I recently read that one auto manufacturer's finance end would finance a car, or charge interest on a car to a dealer for 180 days and after that, the dealer has to buy the car. So, if you go in to a dealership to buy a car, ask the sales manager which car or truck they want to get rid of the most. At least you know they will deal, and some will lose money just so they won't have to pay for it outright. The manufacturers of new cars make the profit, the dealer does not, in generalIf anyone sees any misinformation please let me know.

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