Buying the car you want for the price you want without getting fleeced
You know the deal, right? First make sure you have the money or credit necessary to buy the car or truck you desire. Second, go on down to the dealer and strike a deal. It’s that easy, right? Not. If you don’t do your homework you will pay too much and probably get fleeced in the process. What do I mean by fleeced? Hosed, ripped off, get taken advantage of, etc… I don’t know about you, but most of us work far too hard to give an extra $3,000 or more to your local car dealer. Where do I get that $3,000 figure from? That’s the average profit a car dealer makes per car on the sale and warranties, etc… That means that the average person all across America pays $3,000 too much – don’t let yourself become one of these people! Below are some great, time tested and surefire tips on how to get a car the right way at the right price. Read on before you head on out to your local car dealer.
1. Recognizing the efficiency to pay
First, you should know your credit score and your ability to pay. Know what you can afford and by already knowing your credit score you won’t seem like a deer caught in the headlights when the finance manager tries to make your credit out to be worse than it really is – they are pros at this and this makes it so it is easier for them to give you a higher rate (more money for them) and worse terms (more money for them). You could easily walk in on a 0-3% advertised interest rate and walk out with 12 -18% when in fact you actually qualified for much better. That could easily result in your paying hundreds or thousands more over the term of the loan. Remember this, finance managers are not your friend. They get paid off the rate and any products they sell you. All their products are grossly marked up 50% to over 100% or more (as in the case of paint sealant protection).
Cleaner headlights not only look better, but they are also a lot safer when driving at night!
2. Getting pre-authorized for a loan
This is so very important – I cannot stress this enough. You don’t know how many times people that could easily have gotten a great interest rate are given terrible ones and accept because they never shopped their credit around. Even if you have bad credit it pays to shop around. Credit unions almost always will have better used car rates and terms than the car dealer. Even if you can’t beat the car dealer’s rate, you will feel much more comfortable knowing you got a great deal! It pays to do your homework as it’ll increases the leverage that you have when making negotiations with the finance manager and sales staff. On average, by shopping your credit first buyers can on average $2000 or more (per Consumer Reporting info). Be sure to check out online banks and websites for more on this.
3) Canvassing the price online
This is more important now than ever. Whether you are looking at buying a new or used car, truck or SUV you need to use the vast array of available tools on the internet. Even if you don’t buy your vehicle online you can easily find the invoice price, true market value (what others are paying for that vehicle), rates and special offers, etc… A great place to start is Edmunds.com. They disclose the invoice prices, shipping costs and even option costs so they can’t play games with you at the car dealership. This information will not only save you time, it will save you big money.
Do you have cloudy headlights? Restore them to new again!
4. Knowing your trade’s worth
This one is a little tougher as it varies depending on the vehicle. Each used car is unique and its value is dependent upon condition, mileage, color (yes, some colors are worth more than others and some strange colors are actually a deduction), and more. You can get a good idea of your vehicles worth online and then be sure to visit several car dealers to compare prices. It also helps if you have a CarMax nearby as they will give you the true wholesale value of your vehicle even if you don’t buy their vehicle. This will help you know when a car dealer is undershooting your trade-in’s value (which is almost always the case). You can always sell your vehicle through the newspaper classifieds or through Ebay or other online sites as an option if you want to try and get more money for it.
5. Recommending insurance quotes
This is vitally important as each car or truck has a different insurance premium rating associated with it. Also, each insurance company is different. Just by shopping around a little you may find you actually save $1,000 or more (especially if you are under 25, have some points from speeding or similar infractions, etc…) The best companies with the lowest prices are Progressive followed by Geico. If you use a local office, big name insurance company like Allstate you will pay far too much. It’s that simple. By doing your homework beforehand you will best know what you can really afford and what price you should really pay. Also, it’s a good tip to avoid buying any insurance or other similar products in the finance office at the car dealership. All their items are marked up with huge profits and can be bought online or elsewhere for much, much cheaper.
6. Preparation is a must – do your homework!
Now that you’ve got the above 5 tips, here’s the last. You should be prepared. Bring all information you have found to your dealership. If it’s okay, carry a financial calculator with you for your negotiations. Here’s another great tip – always work to the point where the negotiations come to a stand point and leave. Be nice and listen to their “what if’s” and other low ball techniques designed to get you back in. If you are a serious buyer and look like a serious buyer they will give you the deal you want to get you back in there. They will call you back and make you another offer. Especially in this economy. By walking out, regardless of the deal you will always leave on a fairly decent price (under $1,000 markup on the sales price) unless the sales manager is a complete idiot or you are looking at a very rare model that is in high demand. Then, by walking out you will always get that extra $500 or more off – is it worth it to come back tomorrow for an extra $500 (unless you make $500 for a few minutes time I think it is).
Car shopping should be a pleasant experience, but it never is. It involves heavy negotiations, lies and untruths from the sales and finance staff, and a lot of homework to best make sure you get a great deal. And keep in mind, the finance manager is not your friend. If you aren’t careful and fall for all their scams you will easily pay an extra $3,000 or more in addition to the front end profit and then you’ll pay thousands more in financing their crap. This is how some people buy a $20,000 car and end up giving the dealer $7500 in profit and then end up paying over $30,000 for the vehicle by the time their loan is done. That is what is referred to in the trade as a 7 pounder and it happens all the time. Just remember to do your homework and follow these tips. Trust me, it works and will save you thousands.
Articles provided by MDWholesale.com headlight cleaner, headlight restoration and headlight repair.
