Car Buying
 

I was a lot less naiive about buying a car this time around than I was when I was a recent college grad, but I still made mistakes.

Bruce Bueno de Mesquita, a political science professor and game theorist, outlined the procedure for getting the best price on a car. In his book The Predictioneer's Game. http://www.predictioneersgame.com/book

Call up 4 or 5 dealers in your area and ask them to make their best offer. According to Bueno de Mesquita, the dealer will insist you go in the dealership, and some will tell you to get lost if you refuse. But the ones who won't will try to make you the best offer so they can sell you a car. Get the best offer and then enter the dealership.

Once they get you inside the dealership, they will know your preferences, tastes, budget, and they can dictate the terms. Pay no attention to their feelings, because they're not paid to be your friend.

I still thought that I would visit different dealerships just as a courtesy. I went in to three different dealerships a total of six times. That just made the dealers have to drive to get you, and make you more obligated to buy. Bueno de mesquita's book was published in 2009. Apparently, it's 2015 and it's pretty much the norm to call around and get the best deal.

Still, I got a Prius for about $21,000. I put $10,000 down an got a five-year, interest-free loan.

Going to the dealer is only important so that you can see and test drive.

All negotiations can be done online.

My last two cars I have bought were all online negotiations between various dealers. For the last one, I drove 200 miles away to pick it up from the dealer.

That would suck if you drive 200 miles and they change the terms when you get there. And the know they have that leverage.

They didn't. Got a killer deal.