My husband and I bought a 2010 Sport in May and now we need a second car since I am starting a new job. I'm going in to the dealership tomorrow and I need some negotiating tips -- I want another 2010 Sport.

Last time around we got them to give us a $500 graduate discount and throw in floor mats. And even that was like pulling teeth.

This time I want to see if I can get the mats, winter tires, and/or a discount of some sort. I noticed the $2500 rebate that Honda Canada is offering, but I have read that it is only available for cash purchases...

Please, please give me some tips on getting a good deal. How likely do you think it is that I can get them to give me that $2500 rebate if I finance? Or what should I ask for? When should I threaten to walk away?

I'm a timid woman, but if it means I'll get a good deal I'll pull out all the stops.

 

Don't pull out too many stops.

Are you going to the same dealer? That could help, for starters. What will dictate a sale is really your finances and what your credit is all about- especially if you're carrying a loan on the first car too. Your credit to debt ratio is gonna dictate what anyone is willing to do for you, be it your own bank or dealer financing. I wouldn't take high interest rate financing from a dealer just for a rebate up front and I wouldn't make a deal predicated on how much I could afford per month. You want a great price for a Fit, period. You want a low interest rate loan, period. The loan depends on you and the price depends on the dealer. Know before you go what you can afford and your credit score as it stands right now, not what it was back in May when they ran you. Forget about free mats or this or that. Good price- one you know you can afford, end of story. Anything less and you aren't in a position to own to Fits, or any two new cars. If affording another Fit is no issue, than simply say hey, I bought my first one with you. What are you gonna do for me? Either they're gonna take very good care of you, or you can walk. I would accept nothing less than a good deal for my second car purchase in a year from the same dealer. And I wouldn't do back flips for it either. Either they do the right thing by default, or bye bye. Good luck.

Dan

 

I am hoping the financing won't be an issue. The first car loan is in my husband's name, not mine. I'm not sure how much that will have to do with anything. I do have a student loan, but I live in a basement apartment in my parents' home (since I was a full-time student until this past June) so I have no mortgage. I have a part-time job I have been at for 15 years and am just beginning a full-time job that puts me in a position to more than afford another vehicle. My credit should be fine since I have never missed a payment on anything or paid anything late, and I have available credit that I have been building for the last 10 years. I'll be super pissed if the financing doesn't work out because I literally need a vehicle to be able to get to work.

I think that right now there is a 0.9% interest rate on financing up to 60 months on the 2010 Fits, so I will push for that. And try to squeeze out another discount like a grad discount or something like that.

Thanks for the advice

 

You only get that 0.9 if your credit is stellar, I mean tippy top. A low interest rate loan is what you want. If it comes in at 0.9, all the better. Your new job won't help much in the equasion [with financial qualifying] and part time even for 15 years may not be very helpful either. If you're not on your husbands car loan at all, great. That loosens things up for you. Check rates at your bank. I lean on my bank, a credit union, pretty hard for low interest rate loans when I need them. They like to take my money you see, but they don't always like to loan it unless you push them! Having my money in their bank gives me leverage. I don't ask for much- give me a freaking low interest rate loan. I've been with you forever. And you know, they always come through. My loan for my 09 Fit is @ 4.75 for 60 months and I got it that low [at the time] because I accepted automatic deductions to cover the payments. NO problem, nice rate. Get that low rate you seek, especially if you have an excellent credit rating for barganing power. See how low you can get dealer financing. Take the lowest rate for 60 months. Then like I said, I'd be nicely leaning on my dealer to come through for me in a big way. Things are different, this is car number two. Get the same sales person you dealt with last time too. All things considered, I hope you get what you want and need. Very best of luck.

Dan

 

Well, I bought my car today!

I got the 0.9% interest rate and got them to knock off money from the warranty, and an additional $600 discount. Then they also offered me my floor mats. LOL.

Then they ran the numbers to see if it would save me money to take a different loan and get the $2500 cash rebate. It worked out to $3 cheaper per month to take the $2500 rebate and go on a 5.9% interest rate loan. Basically I saved the tax that would have been added to that $2500 if I had left it as part of the price. I wasn't planning to do that, but there is 13% sales tax where I live, so it made sense to save the money on the purchase price.

I think it worked it pretty well. And I should be getting my car sometime next week

 

Good for you! Enjoy!

Dan