5 Dumb Car Shopping Moves
#1
09-03-2007, 06:01 PM
5 Dumb Car Shopping Moves
5 dumb car shopping moves
If you're looking to purchase a new vehicle, here are a few things you definitely should not do.
By Peter Valdes-Dapena, CNNMoney.com staff writer
September 1 2007: 4:14 PM EDT
NEW YORK (CNNMoney.com) -- If the annual model year change-over - and all the sales that go with it - have you in a car shopping mood, don't be lulled into paying more than you have to. The deep discount you think you're getting may be nothing more than an illusion. Car dealers can make you think you're getting a fantastic deal, and buyers tend to hear what they want. Here's some advice on how to really get the best deal.
Don't: Fall in love with a car
Don't get us wrong here, a new car is a big purchase, so it's important that you really do love your car. If you want to buy a microwave oven just because Consumer Reports recommends it, go ahead. A car, like a home, should make you happy and that's something only you can judge.
But you wouldn't marry someone after just reading their Facebook profile. You'd at least want to go out a few times, right? So don't decide you've got to have that cute new SUV you just read about in a magazine. Calm down, catch your breath and wait. Wait until you can drive it. Wait until you can drive some competing models and get a sense of whether it's really all that terrific.
And you may want to wait until the price comes down. Dealers often tack on premiums, charging more than full sticker price for brand new models they know will be in high demand from day one. So rushing to be the first one on the block with the hottest new model can cost you thousands of dollars.
And that "first with the hot new thing" thing fades quickly. Then there will just be you and that car. And those car loan payments. Hope you still like it.
Don't: Take that long, long, long, long loan
Super long car loans may seem like a painless way to get a new car with low monthly payments. That's certainly the way the salesman will pitch it to you. But here are two things to remember:
First, the bottom line is that you are just, flat out, paying more money. Whether you're paying it in three years or six years, it's just more money. (And a big part of that "more money" is more interest, so it's not even buying you anything.)
Second, it may be painless now, but it won't be painless if you find yourself trading in that car in a few years. If you haven't paid off a big chunk of your loan by that time, you could end up "upside down" in your current car. That means you owe more money than the car is worth.
The car dealer will be only too happy to help you out with that problem, but that just means adding the money you owe into the loan for that next new car. And guess what? That means another long loan and your stuck again.
Don't: Negotiate trade-in and purchase at the same time
Buying a car is really a series of transactions. Yet buyers tend to subtract what the dealer is giving them for their trade-in from what they're paying for their new car. Then they say: "Hey, I'm getting a $42,000 car for $35,000!"
Actually, those buyers can't take all the blame since that's how the salesman presents it: as if that $7,000 is a gift, and they're just doing you a favor by taking that old car off your hands.
Remember, they're taking something of real value in exchange for that money. And you have the right to get as much as you can for your old car. Don't allow the dealer to tell you what it's worth.
You also have the right to pay as little as you can for your new car. But there's no way you can negotiate both those things effectively if they're attached because you won't be able to see the numbers clearly.
Negotiate the price of the new car first. Get that number down to something you're comfortable with. Then negotiate your trade in and get that number as high as you can, or if you still feel like it's not enough, take the car elsewhere or sell it yourself.
Don't: Negotiate in person
For some reason, buyers still feel like they need to negotiate the price of a new car in person at the dealership. In the old days, that was the only way to do it. If you called a car dealer on the phone, they wouldn't even discuss pricing.
These days, most dealerships have salespeople, or even entire departments, that specialize in dealing with customers over the phone and by email. The old days of not talking to customers who weren't physically in the store are over because a dealer knows that if he doesn't negotiate a price over the phone, someone else will and he'll just lose the sale.
Negotiating over the phone or via email keeps you in your comfort zone - your home or office - not the dealer's showroom. While you're waiting for an answer on your offer, you're not stuck in an uncomfortable chair with nothing to look at but brochures.
Many dealerships now have Web sites where you can even search the vehicle inventory online and request a quote on a specific vehicle. That way you can be sure the vehicle you're negotiating on really has all the features you want.
When the negotiating's done, ask them to fax you the deal in writing so there will be no surprises when you arrive to get your car.
But we're not recommending you avoid dealerships altogether. Before you get down to numbers, you'll want to test drive the vehicles and get a walkaround from a knowledgeable salesperson. Just be clear when you go in that you'll not be purchasing the vehicle that day. You still have some other research you want to do.
Don't: Take a 'great deal' on the outgoing model year
You may be tempted by a steep discount on an outgoing 2007 model year car, but be careful. Remember that the car will ultimately be worth less at trade in time than a 2008 model year car.
That will be much less of an issue if the 2008 model year version is unchanged from 2007. If the 2008 version is all new or substantially changed, though, watch out. Your car will be seen as "old" the minute the new version hits the roads and will take a steep drop in value.
In that situation, only a huge discount will make up the loss. Or, if you just like the old version better, the extra cost may be worth it to you. As long you're aware of what you're getting into.
If you're looking to purchase a new vehicle, here are a few things you definitely should not do.
By Peter Valdes-Dapena, CNNMoney.com staff writer
September 1 2007: 4:14 PM EDT
NEW YORK (CNNMoney.com) -- If the annual model year change-over - and all the sales that go with it - have you in a car shopping mood, don't be lulled into paying more than you have to. The deep discount you think you're getting may be nothing more than an illusion. Car dealers can make you think you're getting a fantastic deal, and buyers tend to hear what they want. Here's some advice on how to really get the best deal.
Don't: Fall in love with a car
Don't get us wrong here, a new car is a big purchase, so it's important that you really do love your car. If you want to buy a microwave oven just because Consumer Reports recommends it, go ahead. A car, like a home, should make you happy and that's something only you can judge.
But you wouldn't marry someone after just reading their Facebook profile. You'd at least want to go out a few times, right? So don't decide you've got to have that cute new SUV you just read about in a magazine. Calm down, catch your breath and wait. Wait until you can drive it. Wait until you can drive some competing models and get a sense of whether it's really all that terrific.
And you may want to wait until the price comes down. Dealers often tack on premiums, charging more than full sticker price for brand new models they know will be in high demand from day one. So rushing to be the first one on the block with the hottest new model can cost you thousands of dollars.
And that "first with the hot new thing" thing fades quickly. Then there will just be you and that car. And those car loan payments. Hope you still like it.
Don't: Take that long, long, long, long loan
Super long car loans may seem like a painless way to get a new car with low monthly payments. That's certainly the way the salesman will pitch it to you. But here are two things to remember:
First, the bottom line is that you are just, flat out, paying more money. Whether you're paying it in three years or six years, it's just more money. (And a big part of that "more money" is more interest, so it's not even buying you anything.)
Second, it may be painless now, but it won't be painless if you find yourself trading in that car in a few years. If you haven't paid off a big chunk of your loan by that time, you could end up "upside down" in your current car. That means you owe more money than the car is worth.
The car dealer will be only too happy to help you out with that problem, but that just means adding the money you owe into the loan for that next new car. And guess what? That means another long loan and your stuck again.
Don't: Negotiate trade-in and purchase at the same time
Buying a car is really a series of transactions. Yet buyers tend to subtract what the dealer is giving them for their trade-in from what they're paying for their new car. Then they say: "Hey, I'm getting a $42,000 car for $35,000!"
Actually, those buyers can't take all the blame since that's how the salesman presents it: as if that $7,000 is a gift, and they're just doing you a favor by taking that old car off your hands.
Remember, they're taking something of real value in exchange for that money. And you have the right to get as much as you can for your old car. Don't allow the dealer to tell you what it's worth.
You also have the right to pay as little as you can for your new car. But there's no way you can negotiate both those things effectively if they're attached because you won't be able to see the numbers clearly.
Negotiate the price of the new car first. Get that number down to something you're comfortable with. Then negotiate your trade in and get that number as high as you can, or if you still feel like it's not enough, take the car elsewhere or sell it yourself.
Don't: Negotiate in person
For some reason, buyers still feel like they need to negotiate the price of a new car in person at the dealership. In the old days, that was the only way to do it. If you called a car dealer on the phone, they wouldn't even discuss pricing.
These days, most dealerships have salespeople, or even entire departments, that specialize in dealing with customers over the phone and by email. The old days of not talking to customers who weren't physically in the store are over because a dealer knows that if he doesn't negotiate a price over the phone, someone else will and he'll just lose the sale.
Negotiating over the phone or via email keeps you in your comfort zone - your home or office - not the dealer's showroom. While you're waiting for an answer on your offer, you're not stuck in an uncomfortable chair with nothing to look at but brochures.
Many dealerships now have Web sites where you can even search the vehicle inventory online and request a quote on a specific vehicle. That way you can be sure the vehicle you're negotiating on really has all the features you want.
When the negotiating's done, ask them to fax you the deal in writing so there will be no surprises when you arrive to get your car.
But we're not recommending you avoid dealerships altogether. Before you get down to numbers, you'll want to test drive the vehicles and get a walkaround from a knowledgeable salesperson. Just be clear when you go in that you'll not be purchasing the vehicle that day. You still have some other research you want to do.
Don't: Take a 'great deal' on the outgoing model year
You may be tempted by a steep discount on an outgoing 2007 model year car, but be careful. Remember that the car will ultimately be worth less at trade in time than a 2008 model year car.
That will be much less of an issue if the 2008 model year version is unchanged from 2007. If the 2008 version is all new or substantially changed, though, watch out. Your car will be seen as "old" the minute the new version hits the roads and will take a steep drop in value.
In that situation, only a huge discount will make up the loss. Or, if you just like the old version better, the extra cost may be worth it to you. As long you're aware of what you're getting into.
#2
09-03-2007, 09:42 PM
Diesel Bomber
don't EVER tell them what you can afford to pay every month. this will allow them to put you in a lesser vehicle
always know what the trade in value is on your vehicle and if buying used know the value of the vehicle you are looking at. you'd be surprised at how many people i've seen just pay what the dealer is asking without thinking. often times it's thousands over book.
try to get your own financing before you go. most dealers get a spiff off of financing. some make more on the financing then they do on the vehicle. have options before going in. if their's is as good or better go with it, if not then walk away.
remember. there's tens of thousands of car dealers in this country. never let yourself think they're the only place that can/will help you. only you know what's best for yourself.
when financing, always pay for any accessories, extended warranties, taxes, fees etc if possible. rolling them into your loan just wastes your money.
EXTENDED WARRANTY (EW) ADVICE:
always read the ultra fine print on any extended warranties. you'll be surprised how many charge extra for things like seals and gasket coverage. i've seen ALOT of people get burned by this alone. if your water pump gaskets are leaking but the water pump isn't, you won't be covered without seals/gaskets coverage. READ WHAT YOU'RE SIGNING!!
make sure you can take the vehicle to another dealer if needed won't be charged extra.
buying your service contract at a dealer usually ensures many other dealers/shops except it. many of these places that solicit you through the mail aren't excepted by alot of places. having a contract excepted by the dealer means they'll release the vehicle once you pay the deductable. if your contract isn't excepted by the shop most will not release the vehicle until the EW pays the claim via credit card or check. i've seen it take up to 48 hours for an EW to issue the credit card number to the shop and all the paperwork to be finalized. that's 2 additional days without your car!!
most shops charge diagnostic time. make sure the contract covers diag time. many don't.
know you're deductable. know not just how much it costs but when you'll have to pay it. some EW's make you pay it by the repair while others only charge you the deduct per service order. find the one that charges per ticket or it can get expensive really quick.
and remember that extended warranty pricing is typically negotiable. the dealership gets spiffed on these too. they need to sell them so push for a better price.
always know what the trade in value is on your vehicle and if buying used know the value of the vehicle you are looking at. you'd be surprised at how many people i've seen just pay what the dealer is asking without thinking. often times it's thousands over book.
try to get your own financing before you go. most dealers get a spiff off of financing. some make more on the financing then they do on the vehicle. have options before going in. if their's is as good or better go with it, if not then walk away.
remember. there's tens of thousands of car dealers in this country. never let yourself think they're the only place that can/will help you. only you know what's best for yourself.
when financing, always pay for any accessories, extended warranties, taxes, fees etc if possible. rolling them into your loan just wastes your money.
EXTENDED WARRANTY (EW) ADVICE:
always read the ultra fine print on any extended warranties. you'll be surprised how many charge extra for things like seals and gasket coverage. i've seen ALOT of people get burned by this alone. if your water pump gaskets are leaking but the water pump isn't, you won't be covered without seals/gaskets coverage. READ WHAT YOU'RE SIGNING!!
make sure you can take the vehicle to another dealer if needed won't be charged extra.
buying your service contract at a dealer usually ensures many other dealers/shops except it. many of these places that solicit you through the mail aren't excepted by alot of places. having a contract excepted by the dealer means they'll release the vehicle once you pay the deductable. if your contract isn't excepted by the shop most will not release the vehicle until the EW pays the claim via credit card or check. i've seen it take up to 48 hours for an EW to issue the credit card number to the shop and all the paperwork to be finalized. that's 2 additional days without your car!!
most shops charge diagnostic time. make sure the contract covers diag time. many don't.
know you're deductable. know not just how much it costs but when you'll have to pay it. some EW's make you pay it by the repair while others only charge you the deduct per service order. find the one that charges per ticket or it can get expensive really quick.
and remember that extended warranty pricing is typically negotiable. the dealership gets spiffed on these too. they need to sell them so push for a better price.
Last edited by Johnny Cetane; 09-03-2007 at 09:54 PM.
#3
09-03-2007, 10:21 PM
5 dumb car shopping moves
If you're looking to purchase a new vehicle, here are a few things you definitely should not do.
By Peter Valdes-Dapena, CNNMoney.com staff writer
September 1 2007: 4:14 PM EDT
NEW YORK (CNNMoney.com) -- If the annual model year change-over - and all the sales that go with it - have you in a car shopping mood, don't be lulled into paying more than you have to. The deep discount you think you're getting may be nothing more than an illusion. Car dealers can make you think you're getting a fantastic deal, and buyers tend to hear what they want. Here's some advice on how to really get the best deal.
Don't: Fall in love with a car
Don't get us wrong here, a new car is a big purchase, so it's important that you really do love your car. If you want to buy a microwave oven just because Consumer Reports recommends it, go ahead. A car, like a home, should make you happy and that's something only you can judge.
But you wouldn't marry someone after just reading their Facebook profile. You'd at least want to go out a few times, right? So don't decide you've got to have that cute new SUV you just read about in a magazine. Calm down, catch your breath and wait. Wait until you can drive it. Wait until you can drive some competing models and get a sense of whether it's really all that terrific.
And you may want to wait until the price comes down. Dealers often tack on premiums, charging more than full sticker price for brand new models they know will be in high demand from day one. So rushing to be the first one on the block with the hottest new model can cost you thousands of dollars.
And that "first with the hot new thing" thing fades quickly. Then there will just be you and that car. And those car loan payments. Hope you still like it.
If you're looking to purchase a new vehicle, here are a few things you definitely should not do.
By Peter Valdes-Dapena, CNNMoney.com staff writer
September 1 2007: 4:14 PM EDT
NEW YORK (CNNMoney.com) -- If the annual model year change-over - and all the sales that go with it - have you in a car shopping mood, don't be lulled into paying more than you have to. The deep discount you think you're getting may be nothing more than an illusion. Car dealers can make you think you're getting a fantastic deal, and buyers tend to hear what they want. Here's some advice on how to really get the best deal.
Don't: Fall in love with a car
Don't get us wrong here, a new car is a big purchase, so it's important that you really do love your car. If you want to buy a microwave oven just because Consumer Reports recommends it, go ahead. A car, like a home, should make you happy and that's something only you can judge.
But you wouldn't marry someone after just reading their Facebook profile. You'd at least want to go out a few times, right? So don't decide you've got to have that cute new SUV you just read about in a magazine. Calm down, catch your breath and wait. Wait until you can drive it. Wait until you can drive some competing models and get a sense of whether it's really all that terrific.
And you may want to wait until the price comes down. Dealers often tack on premiums, charging more than full sticker price for brand new models they know will be in high demand from day one. So rushing to be the first one on the block with the hottest new model can cost you thousands of dollars.
And that "first with the hot new thing" thing fades quickly. Then there will just be you and that car. And those car loan payments. Hope you still like it.
Don't: Take that long, long, long, long loan
Super long car loans may seem like a painless way to get a new car with low monthly payments. That's certainly the way the salesman will pitch it to you. But here are two things to remember:
First, the bottom line is that you are just, flat out, paying more money. Whether you're paying it in three years or six years, it's just more money. (And a big part of that "more money" is more interest, so it's not even buying you anything.)
Second, it may be painless now, but it won't be painless if you find yourself trading in that car in a few years. If you haven't paid off a big chunk of your loan by that time, you could end up "upside down" in your current car. That means you owe more money than the car is worth.
The car dealer will be only too happy to help you out with that problem, but that just means adding the money you owe into the loan for that next new car. And guess what? That means another long loan and your stuck again.
Super long car loans may seem like a painless way to get a new car with low monthly payments. That's certainly the way the salesman will pitch it to you. But here are two things to remember:
First, the bottom line is that you are just, flat out, paying more money. Whether you're paying it in three years or six years, it's just more money. (And a big part of that "more money" is more interest, so it's not even buying you anything.)
Second, it may be painless now, but it won't be painless if you find yourself trading in that car in a few years. If you haven't paid off a big chunk of your loan by that time, you could end up "upside down" in your current car. That means you owe more money than the car is worth.
The car dealer will be only too happy to help you out with that problem, but that just means adding the money you owe into the loan for that next new car. And guess what? That means another long loan and your stuck again.
Don't: Negotiate trade-in and purchase at the same time
Buying a car is really a series of transactions. Yet buyers tend to subtract what the dealer is giving them for their trade-in from what they're paying for their new car. Then they say: "Hey, I'm getting a $42,000 car for $35,000!"
Actually, those buyers can't take all the blame since that's how the salesman presents it: as if that $7,000 is a gift, and they're just doing you a favor by taking that old car off your hands.
Remember, they're taking something of real value in exchange for that money. And you have the right to get as much as you can for your old car. Don't allow the dealer to tell you what it's worth.
You also have the right to pay as little as you can for your new car. But there's no way you can negotiate both those things effectively if they're attached because you won't be able to see the numbers clearly.
Negotiate the price of the new car first. Get that number down to something you're comfortable with. Then negotiate your trade in and get that number as high as you can, or if you still feel like it's not enough, take the car elsewhere or sell it yourself.
Buying a car is really a series of transactions. Yet buyers tend to subtract what the dealer is giving them for their trade-in from what they're paying for their new car. Then they say: "Hey, I'm getting a $42,000 car for $35,000!"
Actually, those buyers can't take all the blame since that's how the salesman presents it: as if that $7,000 is a gift, and they're just doing you a favor by taking that old car off your hands.
Remember, they're taking something of real value in exchange for that money. And you have the right to get as much as you can for your old car. Don't allow the dealer to tell you what it's worth.
You also have the right to pay as little as you can for your new car. But there's no way you can negotiate both those things effectively if they're attached because you won't be able to see the numbers clearly.
Negotiate the price of the new car first. Get that number down to something you're comfortable with. Then negotiate your trade in and get that number as high as you can, or if you still feel like it's not enough, take the car elsewhere or sell it yourself.
Don't: Negotiate in person
For some reason, buyers still feel like they need to negotiate the price of a new car in person at the dealership. In the old days, that was the only way to do it. If you called a car dealer on the phone, they wouldn't even discuss pricing.
These days, most dealerships have salespeople, or even entire departments, that specialize in dealing with customers over the phone and by email. The old days of not talking to customers who weren't physically in the store are over because a dealer knows that if he doesn't negotiate a price over the phone, someone else will and he'll just lose the sale.
Negotiating over the phone or via email keeps you in your comfort zone - your home or office - not the dealer's showroom. While you're waiting for an answer on your offer, you're not stuck in an uncomfortable chair with nothing to look at but brochures.
Many dealerships now have Web sites where you can even search the vehicle inventory online and request a quote on a specific vehicle. That way you can be sure the vehicle you're negotiating on really has all the features you want.
When the negotiating's done, ask them to fax you the deal in writing so there will be no surprises when you arrive to get your car.
But we're not recommending you avoid dealerships altogether. Before you get down to numbers, you'll want to test drive the vehicles and get a walkaround from a knowledgeable salesperson. Just be clear when you go in that you'll not be purchasing the vehicle that day. You still have some other research you want to do.
Don't: Take a 'great deal' on the outgoing model year
You may be tempted by a steep discount on an outgoing 2007 model year car, but be careful. Remember that the car will ultimately be worth less at trade in time than a 2008 model year car.
That will be much less of an issue if the 2008 model year version is unchanged from 2007. If the 2008 version is all new or substantially changed, though, watch out. Your car will be seen as "old" the minute the new version hits the roads and will take a steep drop in value.
In that situation, only a huge discount will make up the loss. Or, if you just like the old version better, the extra cost may be worth it to you. As long you're aware of what you're getting into.
You may be tempted by a steep discount on an outgoing 2007 model year car, but be careful. Remember that the car will ultimately be worth less at trade in time than a 2008 model year car.
That will be much less of an issue if the 2008 model year version is unchanged from 2007. If the 2008 version is all new or substantially changed, though, watch out. Your car will be seen as "old" the minute the new version hits the roads and will take a steep drop in value.
In that situation, only a huge discount will make up the loss. Or, if you just like the old version better, the extra cost may be worth it to you. As long you're aware of what you're getting into.
also with me being a salesman at one time give them as little info as possable. tell them what you have been looking at and if they are a salesperson that is on top of things he'll be able to point out why their car is better. you will know if their info is true if you have been test driving cars elsewhere. look at comfort and the erganomics of the vehicle. i spend anywhere from 2 hours a day to 11 hours a day in my company car. make sure you will like it for atleast 5 years or so. also look on the lot and see if there are many of these (whatever vehicle you are looking at) on the lot used. look at the condition of them to see how the wear and tear is over a year or so.
on the financing aspect you need to have good credit to get a good intrest rate. if your trade in is paid for then all the positive equity can be used as your "down payment" if there is no trade in the biggest downpayment you can do the better. that's less money they charge intrest on. it'll allow you a lower payment and it'll help you get financed easier since you technically have equity in the vehicle now with the downpayment.
some people find it better to get a deal from out of towwn dealers. locals usually know you and who you are and kind of profile you to try to sell you what they think you need. go where noone knows you....
those are just my thoughts. hope they help.
Benjamin
#4
09-11-2007, 02:51 AM
Diesel Enthusiast
thanks for all that great info guys. if only i had that when i got my first two trucks and got way hosed
Thread
Thread Starter
Forum
Replies
Last Post
Diesel Bombers
Latest Automotive Industry News
0
08-25-2015 09:20 AM
Diesel Bombers
Latest Automotive Industry News
0
06-16-2015 11:10 AM
Diesel Bombers
Latest Automotive Industry News
0
05-08-2015 08:30 AM
carid
Diesel Bombers Sponsors
0
12-04-2014 05:06 AM
