Car Buying Tips, Including Buying A New Car, Used Car, Buying Car Online, Internet Car Buying
Car Buying
A new car is second only to a home as the most expensive purchase many consumers make. According to the National Automobile Dealers Association, the average price of a new car sold in the United States as of June 1998 was $23,480.
Think about what car model and options you want and how much you are willing to spend. Do some research. You will be less likely to feel pressured into making a hasty or expensive decision at the showroom and more likely to get a better deal.
It's always smart to be pre-qualified for the loan before going to the dealer. If you are going to purchase an automobile, go with the shortest-term loan you can.
The followings are tips for buying both new and used cars:
Buying a New Car:
Bring a check list with you to check for the following on the contract: Term, Rate, Price, Payment, extended service contract (warranty), any additional insurances (Credit life & disability, involuntary unemployment etc.)
Do not talk payment with the dealer, instead talk price and interest rate. Do not hesitate to use dealer financing if it is competitive. This is one place a dealer can make money, so they might be more inclined to work with you on price.
Most dealerships have a number of lenders they work with factory financing. It is best to compare rates with the dealer to make sure that you are getting the best possible interest rate.
The paperwork can be very cumbersome and overwhelming however this is no excuse not to at least understand it. The most important papers are the contract (Lease or loan) and the "Due bill" or "We owe/you owe" paper. The Due bill should have all promises, additions or subtractions on it and be signed by both parties. The contract is the intimidating one.
Make sure that everything promised to you is in writing and signed by both you and the dealer.
If there are any charges that you did not agree to or you do not understand, do not sign anything. Just because you are sitting in the finance office, does not mean that the deal is done.
Buying a Used Car:
If you buy a used car from a private party, you never know exactly what you are getting but you will usually pay less then from a dealer.
Buying a used car from a reputable dealer has many advantages. There are very strict laws governing what the dealer must do and inspect before they can sell a used car. Learn the difference between dealer pre-owned vehicles.
If you are looking for a used car there are many things to consider. You can get a price range for used cars by looking on line and in the local newspaper for general price ranges.
No two used cars are the same, even if they are the same year, make, model, color, mileage & equipment, they have been driven differently and maintained differently and therefore will be in different condition.
The condition of the automobile will have as large an impact on the price as all the other factors combined.
If you buy a used car from a private party, ask for the maintenance records. Do they have all the maintenance records, proof of tune ups, and oil change receipts. Check the driveway or garage floor for signs of fluid leaks.
Check the tires and windows carefully for evidence of paint over spray.
Cars damaged in disasters will be salvaged, rebuilt, sold at car auctions and have their titles rebuilt, most likely out of state. Chances are that you are buying one of these cars. Look for water lines on the engine, radiator, wheel wells, inside the car. Examine the underside on a lift.
New carpeting or upholstery. No one re-carpets their car for no reason. Lift the carpet and look for a mess underneath. They don't always do a good job cleaning. Look for mold, or a damp musty smell.
Check for rust by the door hinges, and look in the trunk under the mats. Check the spare tire and crow bar, make sure they are not rusted. Use a mirror to check under the seat. If the metal has been contact with moisture, the metal rusts quickly.
Check the air intake filter. Some people don't even bother to replace the soaked air filter, so you'll see debris like grass, twigs, and papers on the filter or inside the air intake opening. Run a car title search on every used car before you buy.
A vehicle title history on a used car can be your only friend to prevent you from getting ripped off on a used car. A car title history reveals: Odometer actual mileage check, If the used car was in an accident, If the used car was flooded, Number of owners, Any auctions such as salvage or normal off lease wholesale auctions it may have been sold at, and when the dealer took delivery.
Internet Car buying
With today's ready accessibility to the Internet, auto buying and research have never been easier.
Searching for cars is just what the Internet does so well.
Car buyers use the internet for information, pricing or to locate the specific car they want.
How Car-Salesmen make money on the Deal
To help you get the best deal when you buy your next car, you should understand how the salespeople will "work the numbers" on a four-square worksheet as they negotiate. The worksheet helps the salespeople view the total profit to the dealership while reviewing the separate elements of the deal.
As the name suggests, the sheet is divided into four large squares:
Trade-in: How much the dealership will credit you for your trade-in. This figure is credited toward your purchase of a new vehicle. Dealers would like you to put 1/3 down. However, this figure is negotiable and can certainly be less than 1/3 the price of the car.
Purchase price of the dealer's car: This is the price of the car. Often a dealer will write the price of the car, then write "plus fees," indicating that, on top of the cost of the car, you will pay sales tax, title and licensing fees.
Down payment: How much cash are you are willing to pay up front? Down payments made using a credit card are also considered "cash up front."
Monthly payments: How high a monthly auto loan payment are you willing to make? Car salespeople try to get the customer to focus on this figure since it most directly affects a person's budget.
Car Buying Services
Car buying services help car buyers in the following areas
Negotiating the best price for the car selected by informing you of the real cost of the car
Car Buying Services don't just try to get you the best price for the make and model level. Car Buying Services let you select a trim level and choose options for your vehicle.
Also Car Buying Services provide you with access to Multiple Dealer Inventories
