Shopping for a new or used car is fun the first day. By day two or week two it is a pain and a job. All the cars will begin to look the same and all the sales men seem to sing the same old tune.
What makes the process take so long is your fear. You don't want to get taken. How do you know what is a good deal. How do you know what is a good car. Interest rates, warranties, service plans and the list goes on and on.
Maybe I can help you with some of that I have sold cars, for a long time and can share some of the inside secrets. The car business like any business is all about profit. Every thing that they offer you is not bad but, you need to decide if you need it.
Instructions
- 1
Do the research
Assess the car you currently drive. What do you like about it? What do you hate about it? Has it served you well? Do this on paper so the next step will be easer for you to do.
Observe the cars you see, if see some one in a car you like ask them about it. Love it or hate it people like to talk about their cars. Get on line go to the manufacture web sites and consumer reports, cars.com and see what is being said about some of the cars you like. Check out magazines news papers any place where cars are discussed you should take the time to check out.
As you study you will begin to develop a sense of the type or types of cars you would me most interested in.
Don't be all over the place come to a conclusion of what your needs are ant the type of car that will meet them. Do you need a SUV a van or a car. Think of how you will use this vehicle most often. Who makes the car may not be as important as what the features of the car will do for you.
Now it is time to see what for sale in your market. The internet has taken a lot of the guess work out of car shopping. Sites like autotrader.com, kbb.com and cars.com are a few that you should check out before you leave the house. You may not believe this but research has proven that price is not the most important reason people purchase a car at a dealer. It is actually is number three on the list number one is the sales man two is car and price is third. I believe the order should be the car, the price then the sales man. The car is what you have to live with make the right decision there and every thing else falls in place.
It is better to pay a little more for the right car and enjoy it for at least three years than to get a good price on something you are not really happy with. If you want to beat your self up buy a car and trade it in after a year because you just are not happy with it. A car is usually the second largest purchase a person makes and if you choose wrong you will be financing your negative equity into your next car. I have seen people paying for three cars in the payment of one car as they continue to make bad decisions in the cars they purchase. Negative equity is the result of bad research and lack of preparation.
If you have negative equity and are rolling it over into next car be sure to get gap insurance. Check with your insurance company they often sell it a lot cheaper than the dealer. Also ask them about car warranty's many offer them as
Lets make sure you can buy
If you are a member of a credit union go in and see if you can get a car loan. Credit unions are a good choice because they give all members the same rate if they can get a loan. Even if you have some credit issues they may grant you a "Basic transportation loan" which will be 8-10,000 dollars. This can get you a decent pre-owned car. So if you are not a member then consider joining one because the rate tend to be good. If not go to your bank and apply. What ever the out come of these meetings ask them you beacon score and what you qualify for in terms of price of the car and the rate they can offer you. Your rate may be based on the age and mileage of the car. This is where it can get a little complicated because they may tell you thing like 120% over nada or something like that. Take notes so when you get to the dealer ship you can share that with them. If they turn you down don't tell the dealer that say "I may go to my bank, they told me to find a car first." You will understand why you should say that latter on.
With this information in hand go back to step one and make sure the cars you have chosen will work.
Knowing you already have a loan in place is very important when shopping for a car and is one of your greatest weapons at the dealerships.
Now lets plan where to shop
The "INTERNET" first and far-most the place to begin. In the comfort of your home see what is close to home. Unless you are looking at something hard to find keep it simple and close. As you search the inventories keep an open mind on color, pick light or dark as opposed to smoke gray decide on a range of mileage on the car or a not over 40,000 miles. Mileages will make a significant difference in the price of a car. Write down the stock numbers of the cars you would like better yet print the ad out. You can also check out the news papers and the penny saver type papers. The big players are going to be found in places like autotrader.com and cars.com. Most will also have there own web sites that you should check out.
Who should you buy a car from?
Private individuals often offer good value but they also offer almost no protection. I the car is a dud you are stuck. Most states consider used car sale as is from individuals unless grossly misrepresented. I advise you to stay away from them unless the car still has manufactures warranty. Be aware that often the warranty changes with the second owner know the answer to that before you pay up.
Small mom and pop lots. Most of the time these lots have higher mileage cars. They often offer easy financing but beware. These lots tend to have the cars the larger dealers don't want high miles, poor condition and bad carfax reports. There are some very good small car lots with good reputable owners that stand behind their cars and will treat you like family. If you choose to do business with this type of car lot check them out and have the car checked out before you buy it.
New car dealer. This is often a hit or miss proposition believe it or not they can be worst than the mom and pop lot. If pre-owned cars are not a large part of their business move on, unless you are purchasing the brand of car they sell. Used cars can be a high profit area for a dealer ship if they are want it to be. Often it is a step child to the new cars and not given the attention it should get. If they do heavy advertising and have a good fresh inventory of pre-owned cars then give them a good look. This type of dealer ship wants to keep you as a long term customer and eventually a new car buyer. If nothing else they hope you will use their shop to service your car. They often will give you incentives to do so. These dealerships also can afford to fix problems you may have that are not covered but in the name of good business they can do.
Pre-owned super stores Places like Carmaxx and Auction Direct are my choice as well as new car dealers that have sister stores that only sell pro-owned cars. The reason is that these dealerships are focussed on the pre-owned market. They pay closer attention to the condition of their cars. Their shops are set up with mechanics that know a wide range of cars. They know what to look for in a car that has been driven they can spot issues that may come up and either fix them or reject the car. It takes skill and knowledge to work on cars like this. That focus and dedication pays dividends to the consumer.
The bottom line is don't sign on the dotted line before you have seen the
Shopping day
Be rested have your information at hand. If there is a car that caught your eye have the print out. Take some one with you a person who's opinion you trust. Work out a signal to let them know you are ready to leave. Let them be the bad guy that pulls you away from the dealer ship. Let the salesman do his job. If he wants to show you some alternatives take a look. Often he may know something you did not think of. Don't even consider buying a car you have not driven. Even if you just drove the same model each car must be evaluated. Judge your sales man if he/she is not giving you their full attention now imagine what they will do after the sale. Tour the dealer ship if they don't take pride in their building they probably do the same to their inventory. Service is the key when you buy a pre owned car. Don't allow your self to be rushed or pushed into making a decision right now. On the other hand if you find the right car for a fair price at a dealerships that you feel good about don't be afraid to pull the trigger. Used cars are unique and if the car you are looking at is an exceptional value then waiting may cost you that car. It is funny how often a car can sit on the lot and no one looks at it until someone decides they want to buy it but have to sleep on it. No you don't have to look every where if you find what you want at the first dealerships then do it. Remember you have done the research and have a good idea of what you want and what you should pay if everything is ok then there is no reason not to say yes. You must get a carfax report and the right to have the car checked out if they balk at either of these request then no matter how good the deal walk away. Some dealerships have a no questions asked return policy for three to five days, Make sure you get it in writhing or better yet put it on the "We Owe" that it cost you nothing to return the car within the prescribed time then continue with the sale.
What happens after you say yes?
This will depend on the dealership. The traditional dealer you will now be introduced to the four squares or some version of it. The salesman will now sit you at a desk resell you on the car confirm that it the right car for you. After that he will pause and smile at you and begin to ask you, personal information, social security number, date of birth and so on. What is he doing? Filling out a credit application. If you have decided that this is the car you want and you are not paying cash or providing your own financing this is ok. He will then ask you how much you want to put down and the kind of payments you would like. If you say $250.00 he may say it would be great if we could do that but it is better to be a bit flexible say 225 to 325 that way we can show you some options. Be realistic now your research should have armed you some idea of what your payment should be. It is always a good idea to put money down but, if you are not at a fixed priced store you should challenge the price. At this point the salesman' s job is to put your focus on payment. Price reductions cost him money there is usually a pad there he has to work with. Let him know that you are prepared to do business now on that car at this point if a competitor has a similar car at a better price let him know. Advise him that if he can not meet or beat that price you will have to go and check that car out before you can make a decision. Do this before he leaves the desk with your credit application. If you are pre-approved or can go to your bank remind him of this. This will make them compete for your loan and should get you a better rate. Remember the dealership makes money off every thing it sells even the loan.
Let the game begin
Do not let him pull your credit until the price issue is solved. Remember you already know what your credit score is share that with him and tell him not to pull your credit until the price issue is solved. At that point he will tell you "Let me see what we can get" he will take the buyers order and your credit ap caution him again not to pull your credit. He will want to show the desk manager that he has a good buyer so they will work the deal in earnest. Often he will return with a paper with four squares on it one box has the down payment, one has the price of the car, one has the term and the last will have the payment. The numbers will be outrageous down payment 30%, price of the car unchanged, short term 24months and a payment that is three times what you wanted. The purpose of this is to shock you and distract you. When he presents this he will say something like "We always show people the best way to buy a car this is called our equity acceleration plan. The tactic is planed to get you negotiation on the payment term and down payment. This leaves out the price. Stop him in his tracks remember you have done research tell him the term you want and your down payment , what your payment range is and what you are willing to pay for the car. Tell him no more back and fourth give you what you want or let you go. He may try one more time don't take it get your price and terms or leave. Have a little flexibility but don't let them bully you. You got the price right and a good quote on your payment but it is not over yet get ready for finance.
The back end
Finance is called the back end in the car business and it is a manor profit center for the dealerships. The finance manager is as good or better salesman than the person that showed you the car. There should have been some pre-sale for the products he is about to present to you.
Listen closely to his presentation some of the products may be a good deal for you. Remember if you have done your refresh you know what you can get already. Warranty's can be a good investment if it is backed by a good company such as GMAC. Often they can be made refundable if not used or refunded if you sell the car before the term ends. They can also enhance the value of your car at resale. Be very clear what the coverage is. Avoid: stain guards, etching theft protection, tire and wheel and paint protection plans are all just pure profit and may or may not work if you need them.
The tighter your budget the more you need the warranty. They are not cheap but neither is anything under the hood of the new cars.
Do not even try to get rid of the doc fee yes it is nothing but a extra profit for the dealerships they will not drop it. You are better to try to get a few free oil changes.
The finance manager will show you your protected and unprotected payment. Check two things make sure he has not slipped anything you don't want into the deal and confirm your interest rate. If they have you at a rate that is higher than quoted or you can get else where shut them down. If the rate is a point or less and his explanation is good then you can go forward if you are ok with the payment. Sometimes to get the payment you want they have to extend the terms and that may up the rate. If you hold firm and gripe about the cost of the warranty very often they will reduce the price. If you are pre-approved often your bank will not advance enough for the warranty and other stuff they try to add on. You can go right from his desk to your bank and replace his loan and strip all the extras off. He really wants your business and the profit make him earn it. This is when you can save your self some money. So gut it up and give it a shot.
In the end with a little preparation you can get a good deal on a pre-owned car
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