Hi S.,
Someone asked a similar question on mamasource about a year ago. She got a lot of good advice. Here is the link to the post and the responses for your reference:
http://www.mamasource.com/request/1320120034294497281
I read back through my response to her and it all pretty much still applies so here's my 2 cents:
If you're buying new, please know that invoice price is NOT dealer cost. The salesman will try to make you think getting the vehicle slightly above or at invoice is a GREAT deal. That still can be thousands over dealer cost.
Whenever I get ready to buy a car, I check the car ads for several weeks ahead of time to see where the "loss leaders" fall on the car that I want. That way I know at some time in the not so distant past what the least selling price was for the car that I wanted. I even save those ads and take them with me for reference sometimes. If there is an exceptional deal on the car you want, but you get there and they say that car is gone, don't be afraid to ask if they will give you the same discount on another vehicle. A "good" dealership will do that.
Shop for the car you want ahead of time, but don't buy until the last day of the month if you can manage it. Every time I've done that, on the closing table, something has come up like if I want the extended warranty, but after I've haggled them all the way down to close to their cost, the price is still more than I want to pay, I've gotten them to knock several hundred more dollars off the price of the vehicle to make up for the "unexpected" expense of the warranty because I'll say something like "Well, I budgeted for this amount so I guess we won't be able to buy the car." They look shocked and say "So you won't do the deal if we can't give you an extra $300 off the price of the warranty?" and I'll say "No, I have a budget and I have to stick to it so I guess not." Very quickly thereafter, they are knocking that $300 or whatever off that so-called "rock bottom price" on the vehicle. This might not happen on any other day than the last day of the month though so keep that in mind.
In terms of price, if there are no good "sales" on the car that I want being advertised, my general rule is to never pay more than $3000 under sticker. So if a Toyota Camry stickers at $25,000, I won't pay more than $22,000 regardless of "invoice". Furthermore, if they only have a model that has more features than I actually want, I subtract the cost for those additional features in my offer. So, if my $25000 Camry has $1000 in features that I don't want, my offer is then $21,000. This "cash price" offer is BEFORE any rebates or other incentives that are offered. So, if there is a $1500 rebate on that Camry, the price would then be $19,500.
Also, I never tell them I have a trade until I work out the "cash price". Then I bring up a trade if I have one. You should know the trade-in value of your car, which you can get on NADA or KBB, and don't let them try to give you less than trade-in value. If they do, be prepared to walk away from the deal.
In terms of financing, I have always found it best to get my financing outside of the dealership. You can go through your bank or credit union or even Costco or Sams on-line and get a better rate than the dealership will offer you initially. The last time we bought a car, we told them we were paying cash. Then, at the closing table, we told them we were actually going to finance it through our credit union and I had a letter from the credit union with all the info they needed to fund the car. The dealership asked me the rate they were giving me and said they couldn't beat that. On a previous vehicle purchase when I used a check I'd gotten from an on-line car loan deal, the dealership said they didn't take that type of check but could finance it for a quarter percent more than the rate I had gotten with the on-line deal but that's the best they could do. I said no, that if they couldn't match it, I would stick with the deal I had gotten with the on-line lender. The dealership magically matched the rate.
Most car companies are hurting right now so if you're diligent, you should be able to get the deal you want. Using www.kbb.com and www.edmunds.com to get average pricing for the area is a good start, and in general, the people who've said do most of your work on the Internet before you even go into the dealership are right.
My friend was looking to buy a Camry, contacted the on-line sales manager through the website, we went in, did all the things I mentioned above, and she not only got the car for about $3500 less than sticker, they also threw in a sun roof on top of that.
Now, in regards to your question about making sure they don't sneak anything in on the paperwork, the way I check is I bring my own business calculator to the deal. I have a $30 TI business calculator and I just input the present value, the interest rate, the length of the loan and determine both payment amount and future value. If their numbers are not almost exactly like mine, I know something is up. I've done that with almost every deal I've ever worked and in all but maybe one case, I've found mistakes. One time the finance manager argued with me that my little cheap calculator couldn't match up to their expensive computer system, but when he took off the stuff that wasn't supposed to be on there, it matched exactly. He never apologized for being condescending or trying to sneak in that other stuff either. If you get a business calculator, or have one, and want to know how to determine those values, just PM me and I'll give you step by step instructions.
Here's my most important piece of advice, I WOULD NEVER BUY FROM VANDERGRIFF TOYOTA IN ARLINGTON AGAIN. I had a terrible experience with them that ended up in the hands of the BBB and was never resolved. They have a LOT of complaints against them through the BBB and while the report states "the dealership has been responsive to all complaints", I spoke with the BBB manager directly and stated they needed to change that wording because they were far from RESPONSIVE. They may have responded to all complaints, but they were definitely not RESPONSIVE. The manager agreed with me and was going to look into changing the wording on the report. So, please do not buy from VANDERGRIFF TOYOTA in Arlington.
I hope some of this info helps. We've bought many cars and I've helped several other people buy cars as well. It can be stressful, so try to give yourself the biggest advantage you can by buying at the end of the month and doing lots of research whenever possible.
Good luck!
Blessings,
N.