*CONSUMER ALERT! Your guide to buying a new car.
*CONSUMER ALERT! Your guide to buying a new car.
by StickBogart@badbusinessbureau.com
Auto Buyers Consumer Advocate
1. Get printed documententation of your 10-day payoff window on the car you currently drive--that shows how much you still owe on it.
2. Find out the true market value of the car you drive now. Look in the Kelly Blue Book or use their web site at www.kbb.com.
3. Figure out what car you want to buy, then see if there are any dealer or customer rebates. There are several places on the web, including CarInvoices.com.You can also look for Automotive News Magazine.
4. Decide what extra features you want on your car. For example, decide if you want to pay $20 extra each month for a moonroof.
5. Get pre-approved for a loan, and get proof in writing you are approved. The best interest rates come from the manufacturer (either call directly or see the web sites above). If you don't get anywhere from manufacturer, go to a credit union. Go to the bank last. Also, don't be afraid to see what kind of financing the dealer offers. They sometime know of deals you can get that are better than your pre-approval.
6. Go to the dealer with your trade-in pay off document and proof of your pre-approval in hand.
7. Find the car you want and take it for a test drive. See if it will fit in your garage. Is it what you need? Do you really need a 4-wheel drive? Is it the right color?
8. Tell the dealer you're ready to negotiate. Show them the payoff on your trade-in, your pre-approval, then ask to see the invoice that shows what the dealer paid for the car.
9. Once you see the invoice, say you'd like to negotiate the amount of profit you will allow them to have.
10. Expect to pay at least $500 over invoice, then add on more money for extra features. Bells and whistles will end up costing you $1 to 2-thousand dollars over invoice.
11. Extra Negotiating Edge: Offer to give them 110% on your Customer Satisfaction Report. Some (and only some) dealers will give you a better deal if you are willing to give them a better score.
MORE ADVISE
-Don't go on weekends.
Take a day off and shop on a Monday, Tuesday or Wednesday morning. A very quiet time can mean you get a good deal.
-Don't take a notepad! Let the dealer know you are already wise to what you want.
-Watch your body language. Don't cross your arms, look ready to make a deal.
-Don't take the kids! They can distract you from getting the best deal. The cost of a baby sitter is small compared to the thousands you can lose being distracted at the dealer.
DONT'T SPILL THE BEANS about your credit right off the bat. Don't start your conversation with, "I can never get a loan." And if you do have limited credit, be open to getting into a different car. If they can't get you into that huge SUV, they might be able to finance a less expensive car for you.
DO YOUR HOMEWORK
Here's a list of some web sites you can use
to research buying a new car:
-Kelley Blue Book
-CarInvoices
-MSN CarPoint
-edmunds.com
-CarReview.com (reviews by consumers)
-Motor Trend buyer's guide
-Newbuyer.com
Stick Bogart can be reached by e-mail.
Your comments and questions are always welcome.
StickBogart@badbusinessbureau.com
...Auto Buyers Consumer Advocate