For people who have failed their mechanical aptitude test, the difference between a handbrake and the fender would probably be something that needs consulting in the dictionary. Buying a new car is never easy but for some it can even rival the SAT.
With hundreds of articles handing out tips in buying a new car, you should know by now what you should look for, what you should bring and what else you should do, but do you know what you should not do when buying that new car you want?
Never go without knowing what you want.
In buying a new car, it is not uncommon to have one or two choices but please keep it at that. Having more than two choices will spell not only trouble for your pocket but also a waste of your time. Knowing what you want when buying a new car will give you the confidence to talk to car dealers plus it will also enable you to ask questions specific to the car model. This will also allow you to do some research before hitting the stores. Believe this, there is no one dubious car dealers want more than buyers who do not have an idea what they want when buying a new car.
Never negotiate for something that you know nothing of
When haggling with dealers, do not negotiate until you have already canvassed the price. This is a no no in buying a new car. If you have no time to scout for car prices, you can always go to your car dealer’s websites or even ask friends and people you work with. Just tell them you are buying a new car and they will be more than happy to help. That way, you know what the bottomline and you know whether that bottomline can fit your budget.
Never let on that you absolutely need the car
Attitude is the name of the game when buying a new car. Remember that dealers need you more than you need them, so don’t act as if the car is the last of its model on earth (unless it’s vintage). In buying a new car, do it with professional savvy. Never let on that you are desperate for their product or that their price is the lowest you have seen in a hundred miles radius. Be cool when buying a new car and you’ll surely get a cool deal.
Never let one dealer buy you a car from another dealer
While others do this because of the absolute lack of time, it is still not advisable especially if you are buying a new car for the first time. Some dealers may not only try to sell you the car at a higher price, they might even try to scam you. If you absolutely have to do it, do not sign anything or put down a deposit until you have seen the product in the flesh.
Never take on add-on fees until you have reviewed them
Scammers plague people who are buying a new car for the first time. Because they know that you don’t have much experience in buying a new car, dealers will sometimes put on additional somethings to the final cost of the car such as “rustproofing,” “environmental prep,” and a host of others. Beware of this first-time buyer scams.
Ah, the excitement of a brand new car! Driving to every friend’s house you ever had to show it off. Spit shining it ever chance you get.
The only bad part about the deal is, well… the deal.
Fortunately, there’s a way get a great price on a new car and this insider info will save you both time and money.
How many hours have you wasted talking about a new car deal, only to find out that the dealer had other contract clauses in mind that exploded the cost? I have wasted entire days in the car buying process.
What does “factory invoice price” really mean? The price that you see on the car is the “manufacturer’s suggested retail price”. You don’t want to pay this over-inflated price. Supposedly, the “factory invoice price” is what the dealer paid the manufacturer for the car. The dealer will have an invoice with this price on it.
When you hear a dealer say that he’ll sell to you “below invoice”, you wonder how on earth he could make any money. You may think that you’re getting the bargain of the century.
Well, not so fast. See, the factory invoice price probably isn’t what the dealer had to pay for the car.
Dealers get all sorts of incentives on top of this base price. Carryover allowances and other special discounts added in make the actual cost of the vehicle less than the price on the invoice. This can add up to the tune of $500-$2000 dollars.
So you could buy a car at $100 below the factory invoice and still be fattening the salesman’s wallet more than enough.
Ask if the car manufacturer offers a factory-to-customer rebate. You have to get this straight from the manufacturer, but every little bit helps!
The more you know about factory-to-dealer incentive payments, “holdbacks,” and other allowances the dealer will receive, the better off you’ll be. Do your research so you’ll know the best prices cars like yours have recently been selling for.
Now, you don’t want to get a great price on a car, and then lose out by paying too much for financing, for an extended service contract, and for unnecessary add-ons.
Also, check to see what the market value is of your current car if you’re considering a trade in. Don’t talk about a trade in until you have agreed on a price.
Before going car shopping, check the annual percentage rate currently offered by banks in your area. Sometimes credit unions offer good rates.
Many new cars are very reliable and often carry long manufacturer warranties. An extended service contract may be a waste of your money. If you do want one, make sure you check over it with a fine-toothed comb to see what it covers and what it doesn’t. Nothing like being surprised by a repair bill.
If your car already has rust-proofing, paint sealant, or fabric protection, make sure you don’t end up paying more than $50 for it. Any more than that will be pure profit and mark up.
A good deal on your new car can be negated if you get a lousy price on your trade-in. Go ahead and take your car to a few dealerships beforehand and ask what they’d pay you for it straight out. Explain that you’re selling your car and getting offers from different dealers.
If the dealership where you’re buying offers you a ridiculously lower price, you may as well sell your car outright to one of the dealers you checked with.
You do want to get the true wholesale value for your trade-in. A dealer who offers some extraordinary trade-in allowance is likely making it up on the new car price.
It takes a little extra time to ensure a great deal on your new car, but your savings can be substantial. You just might find the whole process fun!