Question: A 2004 chrysler pacifica (28k miles, awd) is listed at $20,990 at my local chrysler dealer on Long Island (NY). This looks like a reasonable
price (and my online research confirms it is well within standard book values), but is it true that dealers can normally be talked into shaving a few dollars off the sticker price? I intend to trade in my 1994 Ford Explorer (eddie bauer) which has clocked in 102k miles. Is $19k a realistic demand? How do I spin it?
Initially I have to finance 100% of this but will pay off the full balance by March. Will they slam a bank fee? Do penalties apply for paying off the loan early
Answer: You should know that many used car lots don’t go through banks to do your financing. They offer you what amounts to a personal loan from the owner of lot. And they can really screw you. Sell the car you’ve got & then arrange a loan yourself with a credit union/bank of YOUR choosing. Only then should you even show up on the lot to negotiate. Is it possible that you could hold off on buying the new to you car until March when you’ll be able to pay cash for it? Less hassle, more negotiating power.
Loan or cash I’ve always been able to get the price down on used cars by 20-30 percent, but to do that one has to be willing to walk out the door if they won’t strike a deal.
If you’re in a situation where you can’t delay the purchase until you have the cash in hand; talk to the loan officer at your bank or credit union and get the ball rolling for an auto loan with them. In some states dealerships can increase the interest rate on bank loans run through their finance department.
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