Buying a new car is a big event…at least it is for me. Think about it, you are about to buy your next dream car. Everyone will be looking at you driving your dream car and you will keep it clean and nice forever. At least that how it starts off, until you start making the high monthly payments and life starts to happen again and the car become a burden. I’ve put together some tips to help you buy your dream car and keep it being a dream car.
If you buy the car you want instead of the car you had to settle for, get low payments and a good price you’ll keep that car until you are ready to get rid of it. Instead of you getting overwhelmed by the maintenance and payments.
1.
| Don’t Go on Emotion |
Take your time to find out the exact car you want and research the available options. Learn what other people are paying for that car before you go into the dealership. Check online at websites like autotrader.com you can see what other dealers are offering the same car for.
2.
| Break It Down |
Separate your negotiation according to every profit center the dealer has: price, rebates, trade-in value, interest rate, lease rate, bank fee, alarms, maintenance, warranties, and any other products the dealer is offering. This is called “Slowing Down The Sale”. All dealers are in a rush to make a sale and finish all the paperwork because it can take a lot of time. So they will rush through all the things that will jack up the price of your car. You have to slow them down and make them go over each items that you are paying for, so you can exclude what you don’t want.
Remember you have the right to refuse anything that is considered an add-on or extra warranty on a car sale. When you do this they will usually ask you if they go over the details and they fit your needs will you buy the car. So be prepared if you are serious about buying it. Before you do that read this entire article and pay special attention to Tips #11 and #12 below.
3.
| Don’t Fall for False Urgency |
Nine times out of 10, a deal the salesman quotes you will be available the next day (unless it’s the last day of a special program). Prepare yourself to walk out of the dealership if you are being pressured and are uncomfortable.
4.
| End of the Month Is Good, But… |
The end of the month is not the only time to get a great deal. Dealerships are always motivated to sell cars. If you do want to take advantage of the dealer’s urgency to meet his monthly goal or quota, start your negotiation a few days before.
5.
| Don’t Waste Your Time |
Before you start negotiating, make sure the dealer has the particular car you want in stock. If he doesn’t, he can usually trade for it with another dealer. This can take a few days, and there is no guarantee that the dealer that can get the car for you. If not, you’ve wasted your time. Moreover, dealers typically offer better deals on cars they have in stock.
6.
| Check the Switch |
If a dealer proposes to switch you from a new car to a used car, or vice versa, get all the information on the second car. Then go home and research its market value. Take any false urgency such as, “This pre-owned car is a very special, rare, low-mileage car that may be impossible to replace,” with two grains of salt.
Sometimes these pitches are at least partially true. If you feel that the car the dealer is showing you really is special, leave and gather your information quickly. You can always ask the dealer to hold the car for a while.
7.
| Lower Payment Isn’t Lower Price |
If a salesman offers to lower your monthly payment by changing the terms of a loan or lease, he may not be offering much of anything. This is a common way to present a more comfortable payment for you without having to lower his price and profit.
8.
| The Early Bird Gets Rolled |
If you’re the type who has to be the first on your block with the new Mustang, fine, but you probably won’t get a good deal. The hype surrounding a new model (or a new version of an existing model) tilts the supply-demand ratio in the dealers’ favor, allowing them to charge retail or even more when the new car hits the showroom. If you wait a few months for the actual inventory to arrive at the dealer, you’ll usually get a better price.
9.
| Keep Future Buys in Mind |
Set yourself up to be in a good position to get your next car. If you are going to purchase a car with little or no money down and you plan to replace it within 36 months, you will likely end up owing more money on the car than it’s worth. This could create a cycle of taking negative equity from one car to another, further burying yourself in a negative trade cycle.
Instead, lease it for a 36-month term, and you’ll end up with a paid contract at the end of the lease.
10.
| A Call Ahead Saves Time |
Call the dealership before going there and ask the salesman to have the car you want to drive ready. If you don’t, it could have a dead battery, be buried behind other cars or even be stored off-site.
11.
Know Your Credit Score
The easiest way for you to lose out on a great deal and pay higher payments is to not know your credit scores. Car dealers will use one of the major credit reporting agencies to approve you for a loan. They will use Transunion, Equifax or Experian. If you know what your credit score is and your income that is showing on your reports you will be well equipped to get a better deal. Using the free credit report and score website will not give you the detailed information you’ll need to be equipped to take on the car dealer to get a better deal. Click here to get copies of all 3 credit reports and scores.
12.
If You Have Bad Credit Wait and Fix Your Credit First
If you have Bad Credit the best decision would be to wait and save your money to hire a credit repair company to repair your credit and increase your credit scores. This could save your thousand’s of dollars over the term of your loan. Another benefit is you could get a better car, truck or SUV. Click here for to get help with your credit.