7/15/2013 - A Car Buying Guide for Those Looking to Buy a Car
Make sure that you get a Car Buying Guide before choosing a vehicle or a dealer. Car salesmen have been getting a bad reputation over the years, and a lot of it is deserved, while a lot of it is the fact that they are salesmen and will do everything within the law to retain both a profit and a commission. What you have to do is learn how to play the game so that they can still walk away with a profit and commission without making you pay for it. There are car buying tips, especially if you’re going to be offering a trade-in, that first time purchasers should heed.
Car salesmen always have been very competitive, but the recent crash (no pun intended) of the auto industry has put them in a position of cutting out the fat, leaving only the hard-nosed salesmen behind for the most part, because the hard sell brings in the revenue. This doesn’t mean that they will be yelling and using heavy handed tactics to con you into getting that vehicle. It does mean however that they will be more stingy on the incentives and guarantees that they used to have as an option that they held back to make sales with.
If you’re bringing in a vehicle for trade you will be exposing yourself to three or four bureaucracies, all with their requirements and paperwork to pile onto you. If you have to pay off your vehicle in order to use it as a trade in, you’ll have to void off your loan, with your first creditor. Then you’ll be dealing with a second bureaucracy in order to finance the new vehicle. You’ll also be dealing with the car dealer’s paperwork and in there they’ll want to make a profit both on the car they buy from you and the new (or used) car you’ll be buying from them.
The key to making a good deal for yourself is to find out at least one card they’re holding " the trade price for your vehicle. If the blue book value is substantially higher than what they’re offering for you for the trade in, make them explain it. If it’s not to your satisfaction, then you can put it to them that you’ll arrange for a trade-in with their competitor who’s ready to give you a better deal for your car.
You’ll want to be prudent if the car seller is also the one making the financing arrangements. Some of the dealers have asterisks even on their posters when they offer things like “0% financing”, which is usually explained as being actually for the first six months of the ownership of the car. You may choose to actually go with more bureaucracy by dealing with an outside company for the financing, as there will be more protection for you if you can separate the two. You have to always ask yourself, “how are they making money off me”, so that you can figure out if they really are giving you a deal at their expense as they say. (Not that you should believe that for a minute,)
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