Many of us have been at the car dealership and have been drained by a salesperson during price negotiations for the purchase of a new car. Most people give in too easily or do not negotiate at all to avoid the dreadful act. This only means more money in the car dealers’ pocket, while you are out of several thousand dollars! Yes, they make that much in profit per car.
This article unveils the dealer’s selling tactics and how you can get around them. But before we dive into the new car buying tips, we need to understand what makes up the dealer’s profits.
In addition to the MSRP (manufacturer suggested retail price), which is the dealer’s cost for the car plus an additional 20-25% profit, a dealer also gets financial incentives from the manufacturer when a new car is sold. This is called Holdback.
Depending on the car, dealers can make hundreds on each car through holdbacks. Dealers also get additional incentives and bonuses on selling a car before the end of the month and/or quarter.
A shrewd dealer can make several thousand on a new car even by selling it at invoice price. This is how new car buying can become tricky for the consumer.
Ready to learn how not to put a dent in your wallet on your next car purchase? Here are four tips to get you started. Each one is a dealer tactic to watch out for.
1. The Guilt Trip
As you may have noticed, every desk in a dealership has photos of the salesperson’s family, instead of photos of cars. Midway in the negotiation, the sales person will bring them up and make it look like his little commission check can hardly pay for his daughters college and little Bradley’s braces.
A seasoned salesperson will soon have you feeling guilty for driving the price down and hurting his commission. Watch out not to fall for this tactic, since you already know about holdbacks and incentive programs from manufacturers.
2. Wearing You Down
Come prepared to spend half a day at the dealership or pay whatever the dealer asks for. Car Dealers are trained to delay and tire you out to the point where you give in and accept their price just to get out of there.
After you make your offer, sales people typically claim they would have to run it by their manager. You may then have to re-start negotiating with the manager, who is also a seasoned salesperson. This dance goes on for a while until you give in.
Remember, there are multiple dealerships in a city, so they need you more than you need them. Demand to speak to the manager after a certain time period or threaten to leave.
Because you are devoting a lot of time to bargain with the dealer, they know you are a serious buyer, so they will not let you leave. The earlier you can speak with the manager, the faster you can leave.
3. The Test Drive
We all enjoy a good test drive and look forward to it. Although it is essential to test drive a car before you buy it, remember to not show your absolute love for the car to the salesperson. Their goal is to get you emotionally attached to the car, so it becomes a must have for you. I have learned it the hard way.
To hide your emotional tears from the salesperson, mention the features of a competing car in the same class, like the new shape, light, leg room, resale value etc. This will make the salesperson a little vulnerable.
4. Monthly Payments
This one is to confuse you. Dealers will start talking about monthly payments rather than the total price of the car. They will start by asking how much you are willing to pay per month and how much of a down payment you are willing to pay. Since people don’t want to look like they cannot afford a certain car, they will usually give a higher number. Big Mistake!
You have left little room for negotiation when this happens. Always steer the conversation to the total price of the car and do NOT mention any trade-ins at this point. Only after the total price of the vehicle is completely negotiated then talk about interest, monthly payment and trade-ins.
As a general rule, remember to only focus and negotiate on the Total Price of the vehicle. Everything else is pretty much the car dealer’s trough.
We often ignore our tires unless they’re flat. But they play a vital role in the overall condition of your car. Maintain them properly, and you’ll save money on repairs and on fuel costs.
Keeping your tires properly inflated ensures that they wear longer and can prevent accidents. Your car likely has a card or sticker attached to the door edge or the inside of the glove box door. The right amount of air your tires need is specified here. In case your car doesn’t have this sticker, you can check your owner’s manual.
Serious accidents can happen if your tires are under-inflated or overloaded. One of my tires blew-out on me and caused an accident. Luckily I was on a little traveled country road and was going slowly. I hate to think of what might have happened if I had been in major traffic.
Buy your own quality tire gauge. You can’t tell if tires are inflated properly just by looking. And the air meters at your service station may not be correct!
Ask your auto supply dealer for a tire gauge calibrated up to 80 PSI. They’ll know what you mean, even if you don’t.
Take a moment at the beginning of each month to check your tire pressure (don’t forget the spare! Uhm, you do have a spare tire, don’t you??) Check them before you get in the car to drive. Write down the actual under-inflation amount for each tire. Take this info with you to the service station.
Now measure the inflation again and record these numbers. (Don’t worry, this only takes a couple minutes.) Now inflate the tires to a level that equals the warm pressure (that you just took) plus the first under-inflation amount. (called the “cold” inflation pressure)
If the above instructions sound intimidating or confusing, take your car to a shop and give them the “cold” pressure numbers. They’ll put the correct amount of air in your tires for a minimum fee – sometimes they’ll not charge you at all.
The leading cause of tire failure is under-inflation. So make a habit to check them once a month.
Overloading your vehicle can lead to tire failure, too. Just because you have a pick-up truck doesn’t mean it can carry an infinite load.
Schedule a tire check into your calendar each month and you’ll save money, save fuel, and perhaps, even save your family from a car accident.
As global oil prices continue to rise meteorically to record levels, we have to find ways to improve our cars’ fuel economy and save money. Especially now that drivers are doing a lot more traveling than ever, the importance of fuel economy cannot be over emphasized.
The Environmental Protection Agency reports that vehicle miles traveled by the average American has increased by over 115%. This increase in miles traveled and the present dilemma of rising fuel prices means that we are spending more on our fuel than ever before. Thus, we have to find ways to save money on gas and improve fuel efficiency, especially if our vehicles are not really known for their excellent gas mileage.
There are many ways you can significantly improve the fuel economy of your vehicle. Managing your vehicle by minimizing operating costs on gas as well as minimizing emissions is our goal. Here are some helpful tips you can use to help you achieve a fuel-efficient and environmentally conscious vehicle.
Start by determining your car’s actual gas mileage or your car’s miles per gallon. If your car has poor gas mileage then it is more important than ever to start improving your fuel economy. You can do this by changing your driving habits. Take your time and drive slower, instead of 60mph, try driving at 70mph. Although it may take you longer to reach your destination, what is important is you can save up to $5 in gas costs because of the reduction in speed. This is because aerodynamic drag increases as you drive faster and gas mileage deteriorates at speeds of over 60mph.
Regular maintenance is a very effective way to improve and keep up your car’s fuel economy. The simple reason is that a poorly maintained car works harder; and a car that has to work harder will definitely use up more fuel. Thus, maintenance issues such as under inflated tires, dirty and clogged air filters, spark plugs and fuel injectors must be resolved. Make sure that your tires are inflated to their proper pressures. Tires that are in good condition and properly inflated provide less road resistance thus improving fuel. You should also check tire pressure regularly and look out for signs of uneven wear or gas leaks that could compromise your tire’s performance. Another excellent way to cut your fuel costs is by planning your vehicle use in such a way that you can combine, streamline and consolidate your trips and reduce unnecessary travel.
You should also avoid excess idling, which is a waste of fuel. Stop your engine if you think your car will be idle for more than 30 seconds. You can also minimize air conditioning and use your car’s flow-through ventilation. You should also check which gas you use, stick with the right octane gas indicated in your car’s manual. Have your Dodge regularly checked by your trusted auto mechanic. Give more attention to those auto parts that are connected to the fuel consumption of your car