Consumens Guide To Buying A Car
Advertising
- Be skeptical of car advertisements and read the fine print.
- Sometimes, the advertised deal only applies to a few vehicles or is available only under certain conditions (i.e., a credit score over 750!).
- Beware of advertised minimum trade-in amounts or “free” gifts with a new car purchase. Dealers may raise the price of the car to offset a low value trade-in or the cost of the gift.
Do Your Homework
- Know what make and models you are interested in and what they should cost before you visit the dealership. Use the library or the Internet to get an idea of a price range and the cost of options.
- Find out the dealer’s cost from a reputable online authority. You can look up this information on Web sites such as www.edmunds.com and www.kbb.com.
- Know the value of any auto you plan to trade in. If it’s worth less than what you owe, the dealer will always try to add that difference to your cost.
- Check with the Better Business Bureau on the dealer’s reputation for honesty and service.
- It is often cheaper to arrange financing with a bank or credit union before going car shopping.
Negotiating the Deal
- Make buying your new car, selling your old car and financing your new car three separate transactions.
- Understand that the Manufacturer’s Suggested Retail Price (MSRP) is the sticker price and not necessarily a fair price for the car.
- Even the dealer invoice price may be higher than the dealer’s actual cost.
- Be prepared to walk away. Going “out the door” is your ultimate weapon.
- Ask for the dealer’s best price up front and keep asking for it throughout your negotiations.
- Be sure the price quote includes everything, except for sales tax, registration and title fees.
- Keep track of the details of the deal. Take a notebook, calculator, pen and tape recorder to make it easier.
- Take someone with you. Two people are less likely to miss something.
- Do not assume salespeople are your friends. Most are paid on a commission basis, so the more you spend, the more they make.
- Remember, everything is negotiable – no matter what the salesperson says.
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