HINTS FOR BUYING A NEW CAR
The best hints for buying a new car are simple and easy to follow. There are no tricks to buying a car for a good price, just good groundwork, and good negotiating. Car buying time is a time that can either cost you a huge amount because you’re not prepared, or save you hundreds, maybe thousands, because you took some time to learn some ‘tricks’ or hints to buying a car. You need to be armed with as much information as possible when you walk into the showroom. Even if you just want to do a test drive, you should do some basic research first. It often happens that people go to a dealership just to take a casual look, and end up driving away in a new car. _________________________________________________________________ _________________________________________________________________
BEFORE YOU GO TO THE CAR LOT Here are some hints for buying a new car that you should know before you go to the dealership: Know how much it will cost to fuel your new car. See the Department of Energy Fuel Economy page. Know the price you’re willing to pay for your new car, and the trade in value of your old car. See the Purchase Price And Trade-In . Know the cost of extended warranties. See Extended Warranties . Know how much it will cost to finance. See Car Financing . Know how much it will cost to insure. See Car Insurance . Know how much your new car will cost in taxes and license. Check with your local department of revenue and license bureau to find out. And know how to negotiate. A big part of negotiating involves being armed with information. These hints for buying a new car will help with that. But negotiating is also an art form that is studied vigorously by sales people everywhere. We have a number of links below that will help get you up to speed in this vital area. _________________________________________________________________
If you’ve used the hints for buying a new car shown above you may already be in the happy position of having your insurance and financing set up, and have a price agreed to by a local dealership; all on terms better than you had expected. At the very least, when you arrive at the dealership you should know the price you’ll be willing to pay for the new car and the minimum you’ll accept for your car on a trade in. So, what do you do now that you’re at the car lot? Here are some more hints for buying a new car to get you started. _________________________________________________________________
NEGOTIATING
Have your research papers (car prices, finance data, etc.) in hand and ready to show if needed. And don’t let anyone convince you that your information isn’t accurate or valid. One of the best tricks to buying a new car for a good price is to have two different cars of similar price in mind, and be serious about it. NEVER fall in love with a certain make or model, there are just too many choices out there. Salespeople absolutely love folks who are in love with a particular car. Be sure the cars are at different dealerships. Be sure they are similar, such as a Camaro and a Firebird, or the same car at a different dealership. Check your attitude. Be polite, not rude; but be firm in your convictions. Keep in mind that you want the new car, but you probably don’t need it, not really. Be willing to walk out if you don’t get what you know to be a reasonably fair price and terms. Your strongest bargaining chip, in addition to your pre negotiation research, is the ability to walk out on the deal. But if you do walk, do so politely. Common courtesy goes a long way in any negotiation; rudeness is destructive. One of the really good hints for buying a new car is to not allow lengthy negotiations. Dealerships know almost to the penny the lowest price they will take on every car in their inventory. They also know, almost to the penny, what your trade-in is worth within a very few minutes of seeing it. Used car prices at commercial auto auctions, the ones the dealers go to, are typically determined in less than one minute. Since they already know the prices that will give them a fair profit, they don’t need to spend hours in a negotiation. When they do, it is an often profitable effort to wear you down and get you to agree to terms more favorable to them. Remember, salespeople work the negotiating game every day of the week. _________________________________________________________________ _________________________________________________________________ If you reach a point where you feel that your not going to get close to your price, simply thank the salesperson and head for the door. Don’t be surprised if you’re intercepted with a more reasonable offer. Never talk payments. Always talk bottom line price. Calculate payments AFTER you reach an acceptable price. If you’ve done your research, you should already have a good idea of the price you’ll pay and the monthly payment schedule that will fit your budget. _________________________________________________________________ CLOSING PAPERS Get comfortable and be sure you have an hour or two for this process. Don’t try to rush it. Read everything and understand everything, especially the fine print. Look for hidden expenses, and be prepared to walk out on the deal if you aren’t comfortable with what’s on the documents. Be sure the dealer has signed the papers before you sign. NEVER sign anything until you have read, understand, and agree to everything. _________________________________________________________________
We’ve touched on some bargaining hints for buying a new car, but bear in mind that volumes have been written on the art and science of negotiating. The more you learn about this fascinating field, the more you will win whenever you find yourself negotiating just about anything. _________________________________________________________________
CAR BUYING AND NEGOTIATING BOOKS Buying A Car For Dummies
Getting To Yes
The Only Negotiating Guide You’ll Ever Need _________________________________________________________________
MORE RESOURCES CarDealerCheck.com is a directory of car dealers nationwide with reviews written by customers. Edmund’s 10 Steps To Buying A New Car
And Edmund’s Confessions Of A Car Salesman
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has loads of hints for buying a new car including tips for negotiating with dealers, finance, auto insurance, and more.
