| Vehicle shopping is getting more challenging than ever. | | | | for 48 months at a 9% interest rate. Not a realistic |
| The Internet is both a source of information and | | | | payment if you are looking for a new car selling for |
| confusion. There are many so called "experts" sharing | | | | $18,000 and you have no money down. |
| tips with consumers but rather than inform they often | | | | Before going to the dealership, consumers should use |
| only serve to scare the public rather than educate | | | | online loan calculators and figure out the most they can |
| them about the auto buying process. | | | | finance, and remember to include the down payment |
| In a car-buying transaction the salesman and you the | | | | (and/or trade in equity) and taxes in your calculations. |
| customer have mutual goals. You want to buy a | | | | You can also call any bank branch or credit union and |
| vehicle and the salesman wants to sell you a vehicle. | | | | they will quickly calculate loan payments for you. Your |
| Do not mistake a low price for the best value. There | | | | sales person at the Dealership can also provide |
| are other aspects of the sale to consider in addition to | | | | generic payment information from their managers to |
| price. So do your homework on vehicle pricing but look | | | | keep focused on vehicles within your budget. |
| at the total transaction. Prices for vehicles vary based | | | | 4. Talk about your trade-in up front |
| on many factors and of course the law of supply and | | | | So called experts often misadvise people and say, |
| demand will impact pricing too. | | | | never tell the salesman you have a trade. This is a big |
| When you shop at a dealership there are certain | | | | mistake and also makes you a liar. You don't want to |
| things you expect. You should be treated with respect, | | | | start any relationship by lying. If you have a trade-in |
| obtain honest and candid answers to your questions, | | | | and still have a balance due to the bank or credit union, |
| and have things explained to you which you might not | | | | you need to call them and get a payoff quote. You |
| understand. Additionally you should be given various | | | | need to know whether you have equity in your |
| options throughout the buying process. You buy cars | | | | trade-in or negative equity. Negative equity means you |
| only once every three to five years and salespeople | | | | owe the bank more than the vehicle is worth in the |
| sell cars every day; so do not hesitate to ask "a dumb | | | | market. Obviously this is not good unless you have lots |
| question." | | | | of cash around to make up for the negative equity. |
| If at any time you feel you are not being treated | | | | The challenge comes when trying to figure out what |
| properly I suggest you leave and visit another | | | | your vehicle is worth. Well it's worth exactly what |
| dealership. You also have the right to ask for another | | | | someone will pay you for it. Also, please don't tell the |
| salesperson to help you, if you feel your original sales | | | | dealer that the book says your car is worth $$$$. |
| person is not meeting your needs. Sometimes people | | | | Books do not buy cars. That's why they are called |
| just don't click, so speak with a manager and politely | | | | guides. Do not expect a dealer to pay you the retail |
| ask to work with another team member. If the | | | | book value for your trade-in. If they pay you retail how |
| salesperson did something specific to offend you, | | | | can they mark it up and sell it on their lot for more than |
| inform the manager of that too, so they can address | | | | retail? |
| the issue. | | | | There are certain realities in the marketplace and that |
| 1. Let the salesman know if you love the car | | | | means some vehicle depreciate more than others. Do |
| Why pretend you could care less about a vehicle if | | | | not be insulted by the value a dealer puts on your |
| you really want the vehicle. The fact that you like the | | | | trade-in. You can certainly negotiate but if you have a |
| vehicle is a good thing. If there is functionality issues the | | | | vehicle with a V8 engine or large SUV be prepared to |
| salesperson can provide information that can validate | | | | deal with a valuation below market value as these |
| your love of the vehicle or point out potential issues | | | | units are not desirable at this time. Remember if you |
| and steer you to a better solution. You might love a | | | | don't like the deal you can always shop elsewhere. By |
| little two door coupe, but you shared you are getting | | | | being realistic about your trade-in value and the |
| married in three months and that may mean a family is | | | | monthly payment you can afford dealers can try to |
| coming soon. The salesman can point you to some | | | | help you reach your goal of buying a new or quality |
| sporty sedans that are fun to drive but have more | | | | pre-owned vehicle. |
| room for car seats. To think they will boost the price | | | | 5. Ask whether you should consider leasing |
| of a vehicle just because you like it is silly. Most | | | | Leasing is a great option for some consumers. First off |
| dealerships mark the price on the vehicles. Don't be | | | | understand a lease is nothing more than a long term |
| afraid to ask the price and how it compares to the | | | | rental. You agree to lease (rent) the car for a specific |
| market values. | | | | term, not exceed the allowable mileage and return it in |
| Some folks mistakenly think cars you're not in love | | | | good condition. Ask yourself these three questions to |
| with are a lot cheaper. That usually isn't the case. If | | | | see if you are a good lease prospect. |
| you want to buy an unloved car there are often odd | | | | Do you like to trade in your vehicles every four years |
| colors and cars that have been sitting on the dealers | | | | or less? |
| lot for awhile; and dealers will be happy to show you | | | | Do you take very good care of your vehicles? |
| them and provide more aggressive pricing. | | | | Do you drive less than 18,000 miles a year? |
| 2. Tell them if you need a car by tomorrow | | | | If you answered yes to these three questions you are |
| Let's bust this myth right now. Just because you need | | | | a good lease prospect and should enquire about lease |
| to buy a car right away doesn't mean a consumer will | | | | programs on the vehicles you are considering buying. |
| pay ridiculous money for the vehicle. If you need a car | | | | 6. Discuss your credit situation up front |
| quickly let the salesperson know so they can make | | | | While some people underestimate their own credit |
| sure title work and all the purchase documents can be | | | | rating dealers work with a number of banks to help |
| prepared in your time frame. If financing has to be | | | | shoppers with varying degrees of past credit |
| arranged the dealership can expedite that too. | | | | problems. Here is another case of doing some |
| Consumers still need to be aware of vehicle values, | | | | preliminary work to understand your credit score and |
| budgets and their credit standing. If a consumer feels | | | | to calculate a debt ratio. Lenders look at your past |
| they are being rushed or pressured into a purchase, | | | | credit, your ability to pay based on your current |
| they can always leave the dealership, rent or borrow a | | | | obligations and the amount of equity you have in the |
| vehicle for a few days, and look for other alternatives. | | | | vehicle. |
| Believe it or not dealers can be sensitive to your | | | | If you put no money down the lender is taking a |
| timeframe and some dealers even have return policies | | | | greater risk on the loan and this may impact the loan |
| which let you select another vehicle if you feel the first | | | | term or interest rate tier. Most finance and lease ads |
| one you chose is not the right vehicle for you. Ask | | | | from dealers or vehicle manufacturers always indicate |
| about their policies upfront. | | | | the loan payment shown in the ad is reserved for |
| 3. Share your monthly budget | | | | those that qualify. |
| Uninformed consumers fear if you share the monthly | | | | You may want to call your local bank or credit union |
| payment that is acceptable you will be oversold a | | | | and ask what their current loan rates are for new and |
| vehicle for an extended loan term and the dealer will | | | | used vehicles and take that info with you. Dealerships |
| make a fat profit. For as long as I can remember | | | | work with a variety of lenders and can usually match |
| customers have been asking for a payment of $250 a | | | | or provide a lower loan rate than what you may have |
| month. Today $250 a month will finance a $10,000 car | | | | been quoted. |