Basic Car Buying Tips

Besides the obvious reason, that being transportation, just like water a car is now considered a necessity in most urban areas.

One of the reasons to consider when buying a car is if the vehicle being purchased is a good deal.
Is it in good condition?

How long a life does it have left?

Is it an excellent ride?

Does it have a great warranty, etc.

As we said, it’s virtually impossible to get along without a car and if you can’t afford a new car, following are some basic reasons you should consider when making that all important car purchase.

Is it a good buy?

The best time period to buy a car is later in the month. Usually, there are numerous rebate programs and bonuses offered by month’s end based on a dealer’s monthly sales quotas. The idea is, sometimes dealers fall short of meeting their sales objectives if their performance is assessed by the end of the month.

This happens more often than not. The result of this is good news to most car buyers. Since dealers are more desperate to meet their quotas, they now have no choice but to sell the vehicle at a lesser than normal price just to make the sales they need to meet their goals.

Peace of mind

Sometimes dealers will do a “dog and pony show” just for them to make that sale. The result is that car buyers then end up with features that they realize later on they do not really need with a price they actually could not afford. The moral? Don’t buy more than you absolutely need. Avoid unnecessary stress and/or sleepless nights.

Always remember to trust your instincts. If ever you feel in doubt, the answer to that is don’t — do not let yourself be pressured into making that purchase now. This is the common strategy of car dealers where they would compel the customer to buy that car, now, this moment, today!

Do not forget that you can always sleep on it and then decide. This is a lot better than making your mind up now and forever holding your peace. If the car is gone the next day, there’s probably a good reason why you shouldn’t have had it in the first place.

How To Avoid The Used Car Lemon

It doesn’t matter what type of car you’ve got your eyes on… new, used, or even the make and model, driving off in that new purchase of a car is a big financial commitment… even if you pay cash completely for your car.

For our discussion here, let’s talk a bit about buying a used car.

One decision that many of us have to come to terms with when considering the purchase of a used car is the fact that used cars won’t come with the peace of mind provided by a factory warranty (assuming the used car is beyond the factory warranty… which most all are at the time of purchase).

Because of this, there is a certain amount of risk that is at an elevated level with used car buying.

If you know how to look at a used vehicle and recognize some points that affect the dependability score, you’ll be able to avoid some of the anxiety of purchasing a used car.

Currently more than 8 out of 10 vehicles purchased are, in fact, used cars… so you’re definitely not alone here. This statistic really isn’t all that surprising since there is a great price difference between that of a used car and that of a new one.

However, if the used car you buy turns out to be in bad shape and requires large or constant repair, you can quickly give back all the savings you realized by buying a used car instead of a new car.

So, let’s take a look at some quick used car buying tips that you can easily use to help you evaluate the condition of a perspective used car.

The first really goes without saying… but just to make sure… have the car thoroughly checked by a mechanic.

Even before you get the car to your mechanic you should look on the inside of the door panels, on the seams of the hood and the trunk for over-spray. Over-spray is where the car has been painted in a body shop. Look closely. Even the best of body shops can’t blend the paint perfectly with the factory so they have taper off their paint job at natural seams or breaks in the body.

Look closely at the carpet on the floor of the car and even pull back a couple corners of the carpet to check for rust and water damage. A car that has been under water and refurbished can be a big problem down the road.

Check to make sure that the wear on the brake pedal seems to match what the mileage is on the odometer… a used car with higher mileage is going to have a brake pedal that looks almost new.

Look at the tires and check for even wear on the treads of the tires… uneven wear can be a sign of alignment problems of worn out components of the steering or suspension areas.

Also, when sitting in the car, crank the wheel to the max in both directions and listen for any ‘clunk’ or other type of noise. This could be a sign of worn CV joints. Joints that are not inexpensive to replace.

And while your in the used car be sure to check all the creature comforts as well as the heating and the air conditioning.

For the most part, if you combine these few tips with just taking your time and not getting into a rush, you’ll greatly increase your chances of purchasing a used car at price that won’t keep costing you later down the road.

Car Buying Tips - Back End Profit Center

The ‘back end’ of the car deal is essentially all the variables and salesmanship that you are confronted with once you enter the dealer’s F&I (Finance and Insurance) department to sign all the necessary paperwork (and then some).

On the back end of the car deal is where a buyer can really get lost in the numbers and the dealership can score very well on the profit… particularly if the buyer has opted in for letting the dealership arrange for the financing .

And by the way… it’s probably O.K. for you to let the dealer ‘compete’ for your financing. I say compete because I know at this point you’ve done your financing and have a good idea of what you qualify for in a loan, what your credit is, and what your interest rate will be. If you don’t know this or haven’t researched your financing situation… you DO NOT want to have the dealer do this for you! Remember the ‘back end’ is where a dealer can make a lot of money on your car deal.

Bottom line… get yourself pre-approved before you even set foot on a car dealership’s lot.

One aspect of car deals and car buying tips that we’ve not touched on is the element of cash… and more precisely… if you are going to pay cash for the bottom line amount.

We all should be so lucky to even have this as an option. But, if you do, it is probably not in the best interest of you getting the best car deal possible if you tell this to the sales person right up front.

Why you ask…

Remember… we just talked about the back end of the deal and how dealers rely on the back end to make additional money on the whole deal itself. If the dealer / sales manager knows that there is not going to be a back end because you are going to pay cash; then (s)he knows that they are going to have to make their number on the front end of the deal… this means getting them to come off the selling price of the new car or squeeze some additional money out of your trade-in is going to get much tougher.

The same will probably hold true if you’ve been pre-approved for your financing… in essence you’re taking away the ‘back end’ profit for the dealer, so it’s best from a negotiating perspective that you hold those cards close your vest.

Having said this though, there is certainly nothing wrong telling the dealer up front that you would welcome offering the dealership a chance to beat the financing numbers that you’ve already got in your pocket.

Selling cars for dealerships and sales people is a very competitive business and something that you as a consumer can certainly leverage. Many times you may decide on which deal to go for between multiple dealers based simply upon how you were treated at each of the dealerships… whatever the ultimate reason… the numbers you arrive at are greatly determined by your diligence in your research and homework and your patience at the car dealer.

Car Buying Tips - Smoke, Mirrors, and Shells

Last time out we we’re talking about what not to say or talk about when you are on the car lot trying to get your best car deal. Number one is monthly payments… don’t get into this type of conversation with your sales person.

When money and profits are involved, a dealership will absolutely trying to engage you in a monthly payment discussion or focus.

The sales fundamentals for dealerships and car sales people are essentially one of moving the numbers and money around.

Because of this it probably not in your best interest to mention right up front that you are going to be introducing a trade-in into the equation. Again, another mathematical variable that the dealership has to work with if you do. And once this happens the shell game really begins.

With a trade involved the psychology of the deal really begins to come into play at this point. If you focus on the amount that you want to get out of your trade in, you’ll (at least temporarily) lose sight of the selling price of the new car. And it’s only human nature that if you dig your heels in and fight for your trade in value and feel like you won one; then the law of reciprocal respect engages in our brain and we allow the dealer to win back on the new car price even more than we though we gained on the trade value!

Answering the trade in question can be difficult for most people when they feel like they’ve been told to not mention the trade or to save it to the very end then spring it on the sales person. My car buying tips take on this is bit different in that when asked about the trade, just insist to the sales person that “we’ll talk about the trade a bit later.”

After all, if you’ve done your homework on the selling price of the new car and the value of your trade-in, you only have to keep one number in your mind that you want to hit and that is the ‘trade difference’ and this makes it much, much easier.

For example, if feel like a fair deal is the value of your trade minus the selling price that you want for the new car is say… $15,000 then until the dealer gets to a bottom line or ‘trade difference’ of $15,000 then there is still work to be done and you only have to focus on that number.

If the sales person comes back and presents you with $15,500 on the bottom line, you can mention that it really doesn’t matter to you whether they get you $500.00 more dollars for your trade or they come off the selling price of the new car by $500.00… or a little of both… either way the number that makes you happy is $15,000.00 so it’s up to them to ‘git er done’.

The value of knowing what the ‘trade difference’ is that you want to ultimately have to come up with is, this allows you to keep the numbers very clear and substantially reduces the ability of the car dealer to shuffle numbers around on you.

Next time out we’re going to discuss the ‘back end’ of the deal and why once you get to the ‘trade difference’ number you like; you’d better not let your guard down.

Car Buying Tips - Loose Lips Sink Ships

When it comes to buying a car what you don’t say can be your biggest and best car buying tip.

Feeling a bit lazy and don’t want to read the whole article?

OK… no problem… here’s the most important car buying tip once you’ve got yourself on the dealership car lot… DO NOT talk about or otherwise negotiate based on hitting a monthly payment.

There you go… that’s it. That’s numero uno.

But please read on… there’s more amazing money saving car buying tips.

You know what you want your monthly payment to be… you’ve done your budgeting homework (if you haven’t then get the hell off the car lot).

No body that you come in contact with at a car dealer should have any idea what you want your monthl payment to be… nobody… so don’t even answer that question!

The probabilities are high that the sales people will try to get you to commit to some sort of monthly payment figure. When this happens just politely remind them that the focus is on the price of the car not your monthly payment.

Walking into a car dealership and begining the car buying process is an aniexty filled event for most people. Generally we don’t like confrontation it’s just human nature; and most people regard any type of negotiating process a form of such confrontation… a battle… a struggle over that damn price.

Hello internet… hello www.informationsuperhiway.

Today… the average potential car buyer has the aforementioned at their disposal and as such has a tremendous tool that we of a few years back did not so readily have… information.

So use it.

Don’t go anywhere car shopping until you’ve done your homework. Shop and compare car prices, get a quote, check on your insurance coverage, check your credit, and qualify for a loan… and do it all from the comfort of your favorite chair at your house. Folks… this is powerful stuff you have at your disposal when it comes to getting your best car deal possible!

But even after you’ve taken the time to educate yourself, there are still some things you’ve got know once your on the car lot… things you just shouldn’t say… so let’s take a look.

Stay focused and keep the conversation focused with whoever you talk with on the selling price of the car… do not slide into the murkey waters of monthly payment discussions… do not do it.

Monthly payment’s are a function of several mathematical variables that can be introduced beyond the selling price of the car such as down payment in form of cash - trade - or both, your interest rate, and the length of the loan… so just don’t give the sales person the opportunity to work and swirl these variable around at you trying to hit a monthly payment…. you’ll probably lose track and lose money.

Why is the monthly payment approach from a car dealership such a common tactic?

Ok… shhhhshhhhhh… I’m going to tell you…

(Whispering)… because they can make more money.

So, you may very well hear the approach… “If I can get you in this car for $300 a month….”

If you listen real close to the sales person (or if you missed it have them repeat it)… you’ll note that they don’t say for how many months that $300 per month is going to last. A key element to be sure.

So, if the sales person can get you to commit to that nebulous monthly payment, both the sales person and the dealership now have you on the road to profit city….

If you’ve looked around my website you’ll know about the three basics business areas of a car deal: the price of the car - the financing - the trade in (the trade in may or may not be there but the vast majority of us do trade).

If you’ve just allowed the sales person to pull you into the monthly payment vortex… you’ve just about lost sight of the price of the car (cha-ching) and now you’re about to go work with their finance manager on accomplishing those monthly payments (cha-ching again)… so you’re just about to contribute to the profit margin of the dealer in two of the three areas… ouch!

Is it all just smoke and mirrors from the car dealer?

Let’s talk about that next time… in the mean time take a cruise around my car buying site… it’ll save you some money.

Car Buying Tips - Don’t Invest

Car Buying Tips

It drives me crazy when people use car buying and investing in the same sentence.

O.K… excluding antique and classic cars, I’m talking about basic everyday car buying. So, here’s the number one tip… cars are not investments… in fact they are quite the opposite.

Your car begins to depreciate the before the ink is even dry on all those papers you just signed.

How much you ask?

On average both cars and trucks will lose more than 20% of their initial value in their very first year!

Ouch!!!

If no other reason you should now be convinced it is in your very best interest to get the best possible car deal you can when you buy your car… with that kind of depreciation hit, you sure don’t want to overpay for your car right out of the gate.

Using nice, round numbers to illustrate this hit you’re taking… if you paid $20,000 for your car; after but two years of driving your $20,000 car might now be worth about $13,000! In case you are wondering that works out to about $300.00 per month to the negative… nice investment eh?

If your house or your retirement account offered up to you those types of ‘investment’ numbers, you’d probably feel like jumping off a cliff… So, again… car buying tip number one… all together now… a car is not an investment…. it’s a major expense in your life.

Keep this at the forefront of your mind the next time you feel that itch to buy a car feeling… if you do, this type of reality will be the the cold bucket of water for you.

If you’re driving a car that is getting you around and is paid off, chances are it’s older and as such you’ve already paid for the depreciation, so get some good use out of your money and keep driving your car for as long as it will stay reliable and get you to your job and back.

If, however, you just can’t stand the thought of driving your current car and your going to scratch the proverbial car buying itch, at least get the best deal you can… so that’s where we’ll start our next set of car buying tips.