Buying a new car

[Hugh 0ne]

Car dealers suck flippin' monkey nuts. I'm ready to bash my head against the wall. Talk about a painful experience.

 

What happened to trying to help your customers, as opposed to trying to f*ck them in the ass while simulateously giving you a bad attitude?

 

Hey Chavez, can I borrow your bicycle?

[Savage Beatings]

The power of the internet is your friend. Do enough reserach then print it out and bring it with you... they will hate you for it, but they also won't be able to bend you over (as much).

[H8tank]

Don't buy new.

[Kid Cid]

Buying a car, new or used, is one of my least favorite things to do. That's why I will now pour obscene $$$ in my Vette in an effort to keep it running until they no longer have fuels that it will burn. Then and only then will I consider investing in a flux capacitor for instantaneous matter transfer over non-trivial distances.

[Yukon Cornelius]

Car dealers suck flippin' monkey nuts. I'm ready to bash my head against the wall. Talk about a painful experience.

 

What happened to trying to help your customers, as opposed to trying to f*ck them in the ass while simulateously giving you a bad attitude?

 

Hey Chavez, can I borrow your bicycle?

 

yup

 

im dreading this also as the escort died today on the way to work... 140 on it so its about at the end of its life .. if i can find a transmission cheap i may throw it in or ill be looking for a car soon .

[TimC]

[whispers] Get the Vette [/whispers]

[Missoula Griz]

Don't buy new.

 

 

 

+1

[twiley]

Car dealers suck flippin' monkey nuts. I'm ready to bash my head against the wall. Talk about a painful experience.

 

What happened to trying to help your customers, as opposed to trying to f*ck them in the ass while simulateously giving you a bad attitude?

 

Hey Chavez, can I borrow your bicycle?

 

 

You're dealing with the same exact thing I've been suffering through that last two months. I finally picked up my new ride on Friday and let's just say the salesman and sales manager almost threw me out onto the street on Wednesday. I walked out 2 times with them following me out.

 

Stick to your guns hugh and use my most common line throughout the process, "You've wasted enough of my time and this isn't going to happen. You've got the same inventory you've had a month ago so it's obvious you need this more than I do.", then stand up and walk out. I ended up getting about 6K off the sticker in addition to the incentives they already had going which came to almost 9K in savings.

 

Edit to add: That line really kills them when you make them do a dealer locate after all of the negotiation.

Edited June 18, 2007 by twiley

[Hugh 0ne]

 

You're dealing with the same exact thing I've been suffering through that last two months. I finally picked up my new ride on Friday and let's just say the salesman and sales manager almost threw me out onto the street on Wednesday. I walked out 2 times with them following me out.

 

Stick to your guns hugh and use my most common line throughout the process, "You've wasted enough of my time and this isn't going to happen. You've got the same inventory you've had a month ago so it's obvious you need this more than I do.", then stand up and walk out. I ended up getting about 6K off the sticker in addition to the incentives they already had going which came to almost 9K in savings.

 

 

What were you buying?

[TimC]

Twiley is drunk, but correct. Always walk out at least once or you haven't done well.

[Savage Beatings]

What were you buying?

 

 

Yeah, let us know... that's some pretty shrew negotiating!

[twiley]

What were you buying?

 

2007 Chevy Tahoe

[polksalet]

Don't buy new.

 

 

werd

[Bier Meister]

wife and i have bought 5 cars together over the past 12 years (2 new, 3 used).... 4 from dealerships, 1 as a private sale.

 

the 2 new were very smooth. private sale= smooth. our current used went ok..... our lr discovery we got in 01, was a major hastle.

 

as mentioned, do research (know the options your are interested in and their prices) and bring it in. always helps to have other dealerships' quotes on paper. find out about incentives. end of the month buying should help lower the price a little also. if you are trading in... establish the cost of the new car being bought before negotiating the trade in.

 

another option is to consider an auto-broker.. very helpful. they allready have done most of the research and already have contacts at the dealerships. it's often a benefit of being part of a credit union. AAA has an auto buying service, as do some auto insurance agencies (we are with usaa and they offer such a service).

 

my best.....

 

and yeah, the process sucks

 

 

edit: as other just mentioned... i am always willing to walk out.

Edited June 18, 2007 by Bier Meister

[Hugh 0ne]

2007 Chevy Tahoe

 

 

I'm looking at the 2007 Expedition Limited. These guys are trying to tell me it's a hot car so they can't discount much. Come on, with gas $3.25/gallon, how the hell can that monster of a vehicle be hot? And the way they run the numbers and work in rebates and incentives, it just confuses you. And in the end, rest assured, you're not getting a good deal.

Edited June 18, 2007 by Hugh 0ne

[twiley]

I'm looking at the 2007 Expedition Limited. These guys are trying to tell me it's a hot car so they can't discount much. Come on, with gas $3.25/gallon, how the hell can that monster of a vehicle be hot? And the way they run the numbers and work in rebates and incentives, it just confuses you. And in the end, rest assured, you're not getting a good deal.

 

 

Been there.

 

The Sales manager was talking about how he really wanted to sell me the car I wanted on his lot but it was just impossible for him to do it at the price I wanted - then he bragged about it being a $$$K car and someone will buy it at that price. I responded by stating, "Yeah sure, just like those other 9 $$$K you've had sitting on your lot for that last two months. They're really selling like hotcakes!"

 

Example #1 of when he almost threw me out.

 

Edit: Bottom line, it came down to the fact that they didn't want to come down that low on the orginal Tahoe I looked at so at that point I had them do a dealer locate and they found one that they were willing to work with. My new ride has every option the Z series has except for the navigation system which they placed a $2500-3500 sticker price on.

Edited June 18, 2007 by twiley

[godtomsatan]

Don't buy new.

 

 

ding ding ding

[yo mama]

I like buying new. Screwing with sales people is something of a hobby of mine. Of course, I've generally done 2 months of intense research going into the process. Its like girding for war, nerd-style.

[Big Country]

Hoping I won't be there, but, with the check engine light coming on for the second time in 6 weeks on my truck (hopefully for something minor again) I fear I am on my last legs, even though it only has 125K on it and has been very reliable to this point. IT's only a '98 and Iwas hoping to get another good 50K miles out of it before having to look.

 

But, I doubt I will buy new, if I have to start looking at all, will look for a 2-3 year old lease return or something of that sort. I really do like the Nissan Titan trucks though.....

[Kid Cid]

Hoping I won't be there, but, with the check engine light coming on for the second time in 6 weeks on my truck (hopefully for something minor again) I fear I am on my last legs, even though it only has 125K on it and has been very reliable to this point. IT's only a '98 and Iwas hoping to get another good 50K miles out of it before having to look.

 

But, I doubt I will buy new, if I have to start looking at all, will look for a 2-3 year old lease return or something of that sort. I really do like the Nissan Titan trucks though.....

Check engine light is mostly associated with the emissions system. It should not be something disasterous. It could be something expensive like the cats though (highly unlikely).

[H8tank]

Check engine light can simply be the gasket on the gas cap, nothing to start thinking about buying something new for... unless it's a Ford, then it's probably dead.

[Hat Trick]

I like buying new. Screwing with sales people is something of a hobby of mine. Of course, I've generally done 2 months of intense research going into the process. Its like girding for war, nerd-style.

 

 

Wurd

 

Buying a Car

 

Outside of a home, a car is typically the largest single purchase a person makes. Cars depreciate terribly fast and require several years for the consumer to pay off. The Manufacturers Suggested Retail Price (MSRP) of a car has a high profit mark-up, which creates potential for large commissions and compensates for consumers that like to negotiate. If you have a non-confrontational personality and don’t like to negotiate, you will likely pay more for a car than one who has developed a modicum of negotiation skills. Over the years, car dealers and manufacturers have honed the “shell game” to deceptively give the appearance of deep discounts. Most advertisements for large trade-ins, rebates, and $50-over-manufacturer’s-invoice are shell games that move the profit around to less visible parts of the deal. Mainstream car dealers train employees on tactics of persuasion that they exercise all year long and “see us coming”. The naïve consumer walks in to the dealer showroom once every 5-10 years and typically pays too much for a car. Here are some factors to think about when considering purchase of a car:

 

First, do you really need a car? Between car payments, insurance, licensing, taxes, gas, oil, and other maintenance, Americans burn up a large percentage of income in car ownership. This is income that could go toward education, home ownership, nest egg, etc. Thousands of city dwellers have decided to go car-less. Questions to ask yourself:

Could you walk or bicycle to work?

Could you take the bus to work?

Could you car pool?

Could you pay for transportation services from a friend or neighbor?

Could you just rent a car when you need to take long trips? Some car rental companies, such as Enterprise, will deliver the rental car to your home.

 

If the answer to all these questions still points to car ownership, here are some additional alternatives to buying a car from a mainstream car dealerships:

 

Saturn (www.saturn.com) acknowledges the public’s contempt for the negotiation process and has a non-negotiation policy, theoretically cutting out enough profit “fat”, resulting in a win-win scenario for both the Saturn dealership and the consumer. Saturn’s marketing strategy appeals to buyers tired of the negotiation game, which has resulted in many satisfied customers.

 

Carmax (www.carmax.com) is a nationwide pre-owned car chain that also has a non-negotiation policy. By selling only recent models, Carmax supplies a respectable warranty, and with enough profit to keep the doors open. Carmax will also buy your used car before talking about selling you a car, a rare car business practice.

 

Brokers exist that execute the deal for you. You tell the broker what car you want, including any accessories, and the broker communicates directory with the dealership Sales Manager, bypassing the Salesperson. The price that the broker gives you is not negotiable. The broker will make some profit on the deal, but not as much as the dealership salesperson. Be prepared to pay the broker in advance of services.

 

Interest Rates: Another factor to be considered when buying a car is that lending institutions offer lower interest rates on new cars than used cars. While there is money to be saved in buying, say, a 2-year old used car, a consumer may make up the difference in higher interest rates, so you might as well buy new. Also, many lending institutions won’t lend money on cars older than 5 years old. These lending policies contribute to the car manufacturing economy, assuring that the lending institution has collateral and that their investment may be retrieved if the consumer defaults on the loan.

 

So, why are unscrupulous car dealer tactics not common knowledge? Car dealers take advantage of the fact that consumers are uninformed of dealer tactics when they walk on the lot. Broadcasters will never make an expose' on car dealers tactics because too much advertisement revenue comes in through car commercials. The car industry would probably boycott a network that airs such an expose’, instantly crippling advertisement revenue. The car manufacturer’s lobby in Washington DC assures that changes to laws regulating the car manufacturing industry happen slowly (Rent the movie “Tucker” for a historical example.)

 

Below are some tips for buying a new car that I have collected over the years, a few of which I found out the expensive way. While reading these thoughts, bear in mind that dealerships vary widely in terms of ethical policies. Not every dealer is unscrupulous. Unfortunately you will never know the truth unless you have worked at the dealership, or have a confidant that works there.

 

Understand the Players in the process:

You: You are the bearer of the wallet, which the dealership sees as a fish, to be caught, scaled and devoured. In most cases, you mean little to the dealership, except as a means to keep their doors open and make payments on a speedboat at the lake.

Salesperson: The salesperson is the first person to greet you and will say anything to make you think that they are your buddy and has your best interests at heart. Neither is true. The salesperson is motivated by greed and survival. The salesperson makes a commission (percentage) of the dealership’s profit on the sale of your car. If the salesperson does not make enough sales, he or she will eventually be fired. You will spend about 4-6 hours with the salesperson and then the salesperson will make large sums of money if they sell you a car. The Salesperson is not an advocate to protect your interests. Unless the salesperson a relative. Maybe.

Sales Manager: The Sales Manager has the job of approving deals or preventing a deal that would not make enough profit to keep the doors open. The Sales Manager is often the bad cop in the good cop / bad cop scenario. The Sales Manager is not your buddy either.

The Office: Most dealerships maintain a clerical staff that draws up paperwork necessary for the sale. The clerical staff has no say in the deal. When you spot a frivolous charge on the paperwork and protest, the clerical staff may be blamed for the error, even though the Sales Manager directed the staff person to create the frivolous charge.

Finance Officer: The Finance Officer executes the loan and sometimes draws up the paperwork. Typically the Finance Officer has little influence on the deal and is just there make sure that your loan is executed. Sometime Finance Officers are on a straight salary and sometimes on commission, so they may be motivated to insert junk fees, too.

Detail Tech: The job of the Detail Tech is to clean up the car before you receive it. The Detail Tech may also likely be blamed for fabricated delays.

Receptionist: The (typically attractive) Receptionist answers the phone and knows little about what goes on with sales. She may be directed to communicate excuses for the transaction taking so long, hence the appearance of flirting with the male readers of this article. But she’s dating Brutus the mechanic.

 

Take a “buddy”. Loners pay more for cars, so the first rule is to never go to a car dealer alone. Take a relative, spouse, friend, pastor, rabbi, Boy Scout troop leader...whoever can hear things being said that you may not hear. The more experienced your buddy has with car dealers, the better. Unscrupulous car dealers are masters of manipulation and prey on what you don't think of until after the papers have been signed. Dealers have honed these routines every day for years; you are doing this once. If a car dealer were a carnival, you would be called the “mark”.

 

3. Document everything. When starting the car purchasing process, dedicate a notebook, and develop a system of note-taking. When a car is of interest to you, dedicate a page to that car. Make notes on all your research, and on figures quoted during a deal. Don’t rely on your memory. As you eliminate cars from your decision-making process, just tear out the pages.

 

4. Always have a getaway plan. Always arrive at the dealership in a form of transportation that will get you off the dealer property if you feel that you are being treated with disrespect. Do not drive a limping car into the lot, which is the same as wearing a shirt that reads “Take My Money…Please”. If you don't have a car, rely on your buddy. Or rent a car for the day. A $35 car rental fee for one or two days is a small investment to protect you against unnecessarily high car payments for the next 3-5 years. Some car rental companies, such as Enterprise, will deliver the rental car to your home.

 

5. “Factory Invoice” Manipulation. Many times car dealers advertise that they sell cars for $50 over factory invoice. This is a ruse. If this were true, dealers would have to sell 10 cars an hour in order to support their staff and keep the doors open. The "Factory Invoice" that the dealer is quick to show you does not indicate artificial mark-up, kick-backs and other incentives ("spiffs") that the factory reimburses the dealer. IMPORTANT: After you have conducted your initial research and selected your car, purchase the Consumer Reports New Car Price Service (NCPS), which tells you the actual factory price that the dealer paid. Then base your negotiations from the NCPS. The NCPS costs $12, but cuts through “Factory Invoice” smokescreen. Also, the NCPS loaded with good advice. Here is the link: http://www.consumerreports.org/main/aps/ap...5&AFFADID=crreg

 

6. Never answer the question "How much can you afford in a monthly payment?" The sales person is trained to ask this question by the dealership and it is used by the dealer to make you think they will use the figure to compute a budget you. Instead, unscrupulous dealers use the figure to inflate the purchase price and stretch out the payments to meet your monthly payment objective. As an example, you might actually be able to afford to pay off the car in 4 years, but the dealer will pad the deal with extra profit and then stretch out your obligation to 5 years. If you fell for this line, you have likely been treating the Salesperson to a lobster dinner a couple times a month and didn’t even know it. Always discuss actual purchase price using the NCPS as a negotiation tool. Ask for the dealer to compute 3-, 4- and 5-year payment amounts based on the negotiated dollar amount, and then decide what you can afford.

 

7. Insurance When computing if you can afford the car, don't forget the cost of insuring the car. State laws do not permit uninsured cars on the road. Before purchasing the car, call your insurance agent and ask what the car will cost to insure. The answer may influence the model you select. Sports cars, SUVs and 4-wheel drive pickup trucks have greater insurance rates than economy sedans and 2-wheel drive pickup trucks. Insurance is typically paid on a monthly basis, although some insurance companies offer a discount if paid 6 months or a year in advance.

 

8. Licensing and Taxes When computing if you can afford the car, don't forget the cost of licensing and taxes. Taxes on a new car can be several hundred dollars that you may have to produce in cash at the Department of Motor Vehicles (DMV) in order to license the car. These taxes may or may not be lumped in the car loan, as state laws permit. More likely, you will need to produce the taxes in cash when registering the car with the state. Before you arrive at the DMV, call or visit the DMV web site and find out what you will need in order to license the car. Typically, there are numerous documents required. Don’t wait until you stand in line at the DMV for 45 minutes to find out what documents or cash amount you need.

 

9. Never be desperate for a particular car. If you show enthusiasm for a particular car, the sales person will smell blood in the water and prey on your enthusiasm. When the dealer asks questions testing your enthusiasm, like "You do want this car, don't you?", you must remain somewhat aloof. Instead of displaying eagerness, communicate that have 3 cars in mind from 3 dealers, but you are determined to own a car in 48 hours. Now you have communicated that you are serious, and the salesperson will have to work for the sale. Salespersons are competitive by nature and you have just pressed their button.

 

10. Never write a "Good Faith" Check. When you sit down with the salesperson to discuss the deal, you will likely get asked you to write a $100 “Good Faith” or “Good Will” check to hold the car and prove your intention to buy the car. Politely decline to write this check. There are not any laws that say you have to write this check. The dealer will tell you that the check is needed to prevent someone else from buying the car that you have selected. But the real intention of the check with unscrupulous dealers is to keep you hostage in the show room. The dealership will then introduce a number of delays intended to wear you down physically and emotionally. By the time the paperwork is ready, you will be desperate to sign the contract, which is commonly steeped in junk fees. A smart dealer knows that selling the car you have selected to someone else will offend you, and you would walk off the lot.

 

11. Document the window sticker. Use a digital camera to take a digital picture of the manufacturer’s sticker, or write down the figures from the sticker, especially the totals near the bottom. Unscrupulous dealers will remove the sticker and “lose it” to make room for manipulating figures during negotiation. As the sale takes shape, scrupulous dealers will remove the sticker and hand it to you in the salesperson’s office as a sign of commitment. When negotiating the sale, make sure that the sticker is in your possession, which assures that you have figures handy, and also inhibits other consumers from taking an interest in the car. Scrupulous dealers will also move the car off the lot, away from public viewing as consumer commitment takes form.

 

12. During negotiations, concentrate only on the total. There may be a temptation to propose discounts on accessories, like air conditioning, car stereo, etc., but this tactic opens the door for the dealer to play a shell game. Negotiate on the total, never the components.

 

13. Dealer Tactics. In the movie “Fargo”, car salesman Jerry Lundegaard (William H. Macy) leaves a customer, claiming that he is going to negotiate on the customer’s behalf with the Sales Manager. Instead, Lundegaard walks around the corner and watches a ball game on TV for several minutes, making the consumer wait. This is fiction based on real dealership tactics. Why would the salesperson lie about this detail and delay the sale? An unscrupulous dealership’s intention is to wear you out physically and emotionally so that you will be desperate to sign the papers after several hours. The longer you are in the show room, the more likely you will buy the car. The Sales Manager will use every excuse in the book and person employed by the dealership to diffuse and mask this effort. Some of these folks are such good actors they should be in Hollywood. Be ready to walk out of the showroom if you detect this tactic is being exercised.

 

14. Be Prepared for Delays. There are legitimate and illegitimate reasons for delays. Take reading material to occupy yourself during the sales process while your credit history is being researched, and other delays as they arise. Take a lunch break at a predetermined time, to clear your head.

 

15. Junk Fees Consumer advocate and radio personality Clark Howard (www.clarkhoward.com) points out that the dealer will likely load up your loan with Junk Fees, such as Service Fee, Dealer Fee, Detail Fee, Preparation Fee, Serial Number Etching, and Undercoating. Most of these fees are artificial, or with ridiculous mark-up and should not be tolerated. If you feel strong about undercoating, have it done independently after you purchase the car. The etching fee for etching your serial number on your window will not likely lower your insurance, as the dealer claims The fee for preparing paperwork with the state ("Paperwork Fee") is a justifiable fee; agreeing to pay half is fair. During the paper signing, take your time, and don’t get rattled. This is your only opportunity to spot and protest junk fees. If you see any of unjustifiable fees, write them down on two identical, separate pieces of paper. Hand one to the Finance Officer and request that they are removed or the deal will be scuttled, and keep the other copy in case the first paper “got lost” when you refer to it later. The Finance Officer will likely leave the room and talk to the Sales Manager for approval. The dealership will give up a $150 Detail Fee rather than lose the whole deal. The Finance Officer should then create a new contract. Don’t settle for “scratched out” figures on the old contract. Re-check the figures on the new contract.

 

16. Loan Agency Kick-backs The TV program 60 Minutes aired a story in Spring 2004 that revealed how dealers secretly get a kick-back from credit agencies on your car loan. This is an insidious practice that our laws currently allow. You may be approved for, say, a 4% loan, but the dealer will have the Finance Manager increase the interest rate a point or two and you won’t even know it. The dealership gets an instant kickback from the credit agency for this difference, and the credit agency gets assurance of the contract. Ask the dealer if they are getting a kick-back from the credit agency and how many points the loan has been artificially increased. Of course they could lie at this point, but if they admit it, politely ask them to remove the kickback amount.

 

17. Your Credit Rating will influence the loan interest rate available to you, and young adults have not had a chance to develop a strong credit rating. Unfortunately, this set of circumstances makes it difficult to know if the dealer is dealing truthfully. For a reality check, approach your bank for a pre-approved loan prior to the car hunt. Banks are motivated to get you the lowest interest rate to secure your business. If you get approved for an 8% loan with your bank, but the best the car dealer can do is 12%, something is sour.

 

18. Zero Percent Loans exist for selected cars when certain model cars are not selling and the national interest rates are low. But there may be qualifiers, such as the ability to pay off the loan in 3 years. You will save thousands of dollars on zero percent interest loans.

 

19. Timing Because car manufacturers are publicly-traded companies, they are more motivated to sell cars at the end of fiscal quarter to reach sales targets. Fiscal quarters are typically, but not always the end of March, June, September, and December. Research the car you want in advance, and then time your purchase during the end-of-quarter promotions to your advantage. Sometimes the tick mark next to the salespersons name on the back room white board (number of sales) means more in terms of a bonus or job security than financial profit.

 

20. Trading in Used Cars Trading in a used car to a dealer is the worst thing you can do in terms of deriving the value of the car. You might as well get out your wallet and throw $1,000 into the wind. The dealer will typically create an artificial trade-in for the car, but then make it up in another part of the sale in a little shell game. (True story: A former car salesperson who is now a workmate told me that the dealership allowed $4,000 of leeway to manipulate the trade-in). While the salesperson may make positive comments about your trade-in, the car means little to the dealer and will likely be sold at an auto auction. Instead, sell the existing car to a private party before buying the new car and you will come out at least $1,000 ahead. Here are two web sites that are useful for comparing your return on the sale to a private party versus a car dealer: www.kbb.com www.edmunds.com If you are buying or selling a car to a private party, print out the free reports from each of these web sites for a reality check.

 

21. Reducing Your Payments on an Existing Car: If you are paying a high payment on an existing car and desperate to reduce your monthly payments, you might be thinking about trading in your car and purchase a less expensive car in order to reduce payments. It would be better to continue paying a little more on a monthly basis until you can sell your existing car to a private party than to trade in your car to dealer, which would require you to sign a multi-year contract that opens the door for the dealer to play the shell game.

 

22. Trade In of Worthless Car. If you are driving a relatively worthless car, consider donating it to a charity rather than trading it in and opening yourself up to the shell game. Several charities will accept your car, running or not, and even pick it up (or tow it, if necessary) from you.

 

23. Research Used Cars using Car Fax If you are serious about buying a particular used card, use the Car Fax service to research the car (www.carfax.com) , which reveals the history of the car, including odometer roll-back, wrecks, floods, etc..Paying $20 for a report on the car is little money compared to paying for repairs on a lemon. Reputable car dealers may even buy the Car Fax for you. You will need the manufacturer, model, year, color, and Vehicle Identification Number (VIN) of the car. If the owner of the car refuses to give you the VIN, walk away.

 

24. Strategy. Have a strategy and plan for purchasing the car before arrival to the car dealer and share it with your “purchasing buddy”. Here is a system that helps offset the shell game:

 

i. Research what car would be a good fit for you. Purchase a notebook dedicated to car research. Make notes about different models. Use the Internet, Consumer Reports, etc. about cars of interest.

 

j. Approach your bank or credit union and get pre-approved for a car loan. Ask what interest rate they can offer on a new and used car. Write the interest rates down in your notebook, and what payments would be.

 

k. After you have picked out the car that you want, test-drive the car. Then leave, regardless of the time of day. Continue your research on the car using the Internet, Consumer Reports, etc. Remember, if the car gets sold, the factory will crank another to replace it. It’s just a car.

 

l. On the day you are ready to deal, verify that the car is in the lot, and arrive around 9:30 or so to discuss the deal. Take some reading material to occupy yourself during the periods that will have to wait. After looking at the car one more time and verifying that you are interested in the car, the sales person will escort you to sit in a little office. Ask for the best deal the dealer can offer, what interest rates are available for you, and what monthly payments will be based on that loan in 3, 4, and 5 year loans. Also ask what other fees will be on the contract.

 

It will take a little time to obtain your credit report and type up paperwork, but not a great deal of time; the Internet has speeded a number of processes that were previously dependent on human reaction time. This is when the dealer will likely start pouring on the delays. Be ready to walk out if you are waiting in the show room more than 2 hours.

 

d. At 11:30 or so, calmly decide to take a lunch break. This drives 'em crazy; The dealer is afraid you will take your business elsewhere. When you go to lunch, take with all the paperwork that the salesperson has given you up to this point.

 

e. Eat lunch. This break is mentally and physically healthy. You are about to obligate yourself to a large debt, and get into a deal that, if ever defaulted upon, will severely affect your credit rating. Review your notes.

 

f. Purchase the New Car Price Service (NCPS) on the car from Consumer Reports using the Internet. Use a computer at the public library if you have to. Comparing the figure by the deal to the figure from the NCPS, determine what would be a fair price with a significant discount.

 

g. Call your insurance agent and find out what the cost of insuring the car will be. Call or visit the state licensing bureau, or web site and find out the cost of taxes on the car. Call your bank or credit union and investigate a car loan in lieu of the dealership’s loan.

 

h. When the above steps have been executed, continue the conversation with the salesperson on the telephone (not a personal visit), negotiate your final price, the best available interest rate, and ask for the junk fees to be waived. The salesperson will likely conference or transfer the call with/to the Sales Manager, for deal approval. If the deal is agreeable to both you and the Sales Manager, the dealership will need a little time to finalize the paperwork with the negotiated purchase price. Agree on a time to sign the papers.

 

i. Before you leave your home to execute the deal, telephone the salesperson or the Sales Manager, and make sure the papers are ready. Verify the negotiated price again. If the papers still aren't ready, you can elect to re-schedule the signing or just blow off the deal. Everybody deserves a second change, but how good will after-sale service be if they can't follow through with a simple paper signing? There are horror stories floating around of dealers that lost the car title, sabotaged the loan process, etc. Sure, you lost a day, but you will be paying for this car for the next 3-5 years. Protect your interests first.

 

j. When you arrive to sign the paperwork, verify the negotiated dollar figure and examine the paperwork for junk fees. Politely protest as required. Sign when appropriate.

 

k. Congratulations, you are in debt for a big shiny metal thing with wheels.

[twiley]

Wurd

 

Buying a Car

 

Outside of a home, a car is typically the largest single purchase a person makes. Cars depreciate terribly fast and require several years for the consumer to pay off. The Manufacturers Suggested Retail Price (MSRP) of a car has a high profit mark-up, which creates potential for large commissions and compensates for consumers that like to negotiate.........................

 

I think the link would have condensed this a little better.

[Hat Trick]

I think the link would have condensed this a little better.

 

 

What link? It's an email I have. It's long but well worth the read IMO.

Edited June 18, 2007 by Hat Trick

[twiley]

What link? It's an email I have. It's long but well worth the read IMO.

 

Ah, that's cool.