CNS guide to car buying.

Republished from articles section.

This little piece of information I think is very useful. Hope it helps you.
It was first seen here:

Best place to get best price on STI? It is republished with approval of the author (Barry aka Redneck Ricer aka P-rex).

Here is what you do to get the best price and best financing.

1. any loan you get is a simple interest loan. So if you take out a 72 month loan, and pay it off after 35 months, you will have only paid interest on that 35 months, not the full term. You do not pay the interest up front like on a mortgage. There is 90% of the time no penalty for prepaying of the whole loan. The one disadvantage, an extended term loan may have a higher rate than a 60 month (ex 6.99% versus 5.99%). SO using my example of the longer term and paying off after 35 months, you will have paid an extra $520.40 on a $31,700 loan, or $14.87 each month. Keep in mind, this is just an example if the rates differ. It is not a huge amount for the safety net of a lower payment.

2. Dealers want your business. If one does not, another does. Tell them what you want. I hate it when a customer comes in like this, but it is the way to do it. Here is what you do.

-On December 19th, go to,, etc and email the same email to a bunch of dealers. Put it like this. You are buying a car before the end of the year. You want this car, with this options. You want it for $100 Under dealer invoice. Tell them that you have financing pre-arranged through your credit union for 3.49% over 60 months, or 4.49% over 72 months. You just want there lowest price, and you will give a credit card deposit over the phone. Tell them to email you back only, not call. Also, put in your email that you have sent this same email to 15 different dealers.

-Do the research for the credit unions, find one with the lowest rates, wether you are a member or not. Lie a little , it wont hurt. Say you are a member of such and such, that is their rate. This way, when the dealer goes and looks up the rate, they see you were not lying. Then, 9/10 dealers will try to meet or beat the rate (more on rate later).

- You will start to get email back. Lie to them too if you have to. Tell them another dealer is offering $200 under invoice, etc. The key is to be flexible. You should not care about locality, customer service, etc. Just the lowest price. As it gets closer to the end of the month, and year, someone will give you the price you want. If a dealer says they will nto do it, just email them back saying fine, I will buy the car somewhere else.

- Make sure you can qualify for the low interest rate loan. Make sure that you can walk in anywhere and get a loan. A lot of people are not educated on what they need to get a prime rate. Email me if you want to know specifics.

I Can almost guarantee if you so this right, you will get the car for what you want. The key is, do it towards the end of the month, and do not commit till the last three days of the month. If you have a trade, bring it in to them 2 hours before closing on the last day of the month, new years eve, and you will get more money. I did this last month, for a friend, and got him an Evo for $700 UNDER dealer invoice, with 3.99% financing over 72 months. not bad at all.

3. Most dealers are honest, and want to make a sale. They will do whatever it takes, but will not offer more than they have to right of the bat. Tell them what it will take to gain your business, and you will get it.

If anyone has questions, or wants more details, feel free to ask, or PM me. I can give a draft of the email to send to the dealers and such if you want.

The thing is, quotas have to be made. for instance. A dealer will have to sell X number of Imprezas, and if they reach it, they get $400 back for EACH of them from Subaru. If they are one or 2 away, they will GIVE a car away basically, because losing on one car gains on a bunch. This is why you want to do it on the last day of the month, dealers will always be scrambling.

Yes, some people will get pissed off at this method, but you have to do what happens in your best interest. Dealers will not like it, and I will probably have some yell at me on here for it, but oh well.

Now onto rate. A dealer can choose the rate he wants to give you, to a certain extent. So that if you want a specific rate, tell them, and they will most likely give it to you. Because after all, if they do not, someone else will./ They would rather financing you at a super low rate then not at all. Some money is better than none.