How to get the best deal when buying a car

[CarDealerCheck]

I'm going to take real good care of you. That's what the car salesperson says, but that's not how it usually works out. You're just another paycheck walking through the door and most car salespeople get paid on commission. Here's 6 straight-shooting tips on how to give that car salesperson hamburger for dinner when they were hoping for steak!

Tip #1
Know the difference between a car's Sticker Priceв, Invoice Priceand what you can really buy the car for. The Sticker Price is the Manufacturer's Suggested Retail Price plus other fees and charges like transportation charges. Sometimes there will be a second sticker with dealer-added options and little tricks like Dealer Preparationand Advertising. Ignore them. In fact, ignore all of the stickers because the key phrase here is suggested. That's THEIR suggested price, but it's not what you are going to pay.

You can also ignore the invoice if the salesperson is kind enough to show it to you as proof that you're getting a good deal. That invoice doesn't reflect the actual price that the dealership will finally pay for that car. The manufacturer offers incentives to the dealer for every car that they sell and those incentives not only reduce the final cost of the car, but they do not appear anywhere on the invoice. A $1 over invoice deal is a scam, don't you believe it.

You can get a good idea of what you can really buy your favorite car for by visiting Edmunds.com and using their new car calculator. Other informative web sites include www.automotive.com, www.autobytel.com, and http://autos.yahoo.com

You can also buy a New Car Price Quote report from www.consumerreports.org for just $11. It reveals the true dealer's cost for the car.

Tip #2
Lowball the salesperson. The salesperson is going to try and highball you, so turn the tables around. Start with the price that you got from Edmunds or Consumer Reports for a similarly equipped make and model, and reduce it by 20%. Offer the salesperson that price and sit back and wait for an answer. Don't say another word. When you get the response, and it isn't likely to be OK, we'll take it, you have a sane negotiating point that you can start working up from. Negotiate $100 at a time, not $1000. If you don't get the price you're looking for, leave and move on to the next dealer.

This tactic works particularly well at the end of the month when the pressure is on to close deals. It works extremely well around the last day of December when the pressure is really on to make end of year sales figures!

Tip #3
Have financing pre-arranged before you start shopping. That way you take the how much do you want to spend per month?weapon right away form the salesperson. They use that trick to pack profit into the price but still get you out the door somewhere near your target monthly payment. All you have to say is I've got financing taken care of already, let's talk about the price of the car.Check out our article on getting financing over the Internet.

Tip #5
Avoid face-to-face negotiating pressure by using e-mail instead. Many of the big dealerships have an Internet Buying Serviceon their web site. You can browse their inventory and then make an offer via e-mail. Don't give in to any pressure to talk on the phone or stop by for a visit. Keep the impersonal e-mail medium between you. It will not only make you bolder, but it will steal some of the power of persuasion away form the dealership.

Tip #6
Avoid the hassle of pricing and negotiating altogether by using a wholesale car buying service. There are a lot of scam wholesale sites out there, but legitimate ones do exist. Here are a couple of real ones for you to consider:

www.bjsauto.com
http://www.aaa.com/AAA_Travel/AutoBu...ng_service.htm

The key thing to keep in mind when buying a new car is that the dealer wants to charge you as much as possible. If you don't walk in with all of the information that you need to do battle, you're going to pay too much for your next car.

This is a joke! You wanna buy a car I will show you the real way to make it easy. And guess what? Keep everyone in business!

Tip#1 Corrected: Yes there is a sticker price and an invoice price. And yes there is also an addendum that will show all added accessories or market adjustments. If it says there is something on the car that dealer put on. Guess what? Its there and it really costs the dealer to add it. And that little bonus the dealer gets under invoice is true its called operating profit. That is what keeps them alive. If every dealer really sold a car at cost how long do you really think they could stay in business? Lets get real people. You want a reasonable deal then offer them a number over invoice. Let them keep the lights on. To understand what it means lets take you the consumers life as an example. You buy a house and live in it for five years. You put it up for sale. A person then walks in refuses to let you show them what makes it nice and demands to know what you owe on it. And they have already went to a website that uses market research to tell them what you should owe. But its wrong. In fact the website states that you should owe $5,000 less that what you actually do. But they think you are lying. So after two hours of negotiating they offer you $1,000 less than what you owe on the house. Not what it is worth or what you bought it for. But for 1,000 less than you actually owe. So that means you will lose 1,000 if you sell at that price. Could you continue to own homes if they sold like that? I think not. So thinking as a consumer that you are entitled to that money then you are dead wrong. Offer the dealership a fair number over invoice that is under MSRP. You will be pleased that being fair to the dealer will in turn the dealer will be fair to you. We are a product of what you the consumers created. And asking for the best price so you can leave and go up the street is so unproductive. You wonder why you get mad when that doesnt work. I will tell you. They wont give you a real price. they will give you a price that no one else can do so you will come back. Once again you create that situation. Car Salesman are people with families and homes. You want an easy good deal I will show you how to make it simple.

1.) Let the salesman show you cars and educate you. Take the time folks. Its the second biggest purchase you will make. In doing that you will learn whether or not you like the salesperson. If you dont click with the guy leave. Dont ask for numbers, just leave. So many people have bad experiences because they go to a dealer that they think or hear will be cheapest and get treated like crap. If you like your salesperson the deal will be that much more pleasant for both sides. Research shows that the number one buying motivation for vehicles is the salesperson. People buy from people. 98% of us are not out to get you. We want to be fair and build a relationship so we can sell you and your family and your children many cars. We are not idiots we know you catch more flies with honey than vinegar. When you buy the car and need help with it the salesman that you built your relationship with will be much more likely to help you after the sale. Which once again will lead to many easy pleasant buying experiences.

2.) Do your homework! Yes it is fair look and see what people are buying them for. And yes look up what your trade is worth. If you owe $15000 on a $10000 car know that. Dont get mad when the salesperson tells you that because you didnt educate yourself. What you owe and what a vehicle is worth in the market are two different things. And yes we are taking a risk when we take your trade. Thats why you will never get retail money for your trade. We have to clean it, inspect it, and fix what may be wrong with it ,which you may not have known when you traded it or failed to tell us. And also put it up for sale, advertise it and be able to make a profit after the customer comes in and wants thousands off.

3.)Know your credit! If you have bad credit dont be suprised that we cant get to your payment. There was a part in the tips above that said to not talk payment with the salesperson. That is false. The price is only important until you see your payment. I see a lot of consumers come to an agreement on price and then walk on payment because they didnt do the simple math. A $30,000 car will not be a $200.00 payment. If you know you have bad credit be prepared for a high interest rate. We cannot control your credit. If they ask for more money down in the finance office 90% of the time its to cover bank fees so the bank will give you a loan. If we make $200.00 profit we cant give the bank $900.00 to accept your loan. In short, and I mean this with all due respect. Its not our fault that you dont pay your bills.

4.) Over the internet is not the best way to buy the car. So you get online and get the price you want and then you drive all the way to the dealership. You arrive and drive the car and guess what you hate it! Well you just wasted both you and the salesmans time. And once again leads to a negative experience. This is not a pair of jeans you can take back if they dont fit right. Its a HUGE purchase. Take the time. Yes use the web to find a car that is close to your price range. If you like the way it looks. the yes CALL the saleperson. Schedule and appointment to test drive it. If you drive it and like the car and get along with your sales rep. I promise you the purchase will be fair easy and enjoyable.

In closing folks yes knowledge is power. But also remember we are a business that has to stay alive. And we employ people with families just like you. If you think your salesperson is a sleezeball then leave before you ever talk numbers. I have been in sales for eight years. I have a wife and three children. I am a person like you. And I treat all my clients with respect. And I have a very loyal customer base. And my customers save money on their vehicles when they purchase. And I also make money. Its a win, win situation. You find a good salesperson stick with them. You wont be sorry.

You sound like a shady car salesmen to me buddy. You're the reason why I'm holding on to my car until it's a rust bucket on 4 lawn mower wheels.

Thanks

Good tips overall. But don't forget, before you commit to a car. Drive it! Even if you drove that exact make and model at another dealer. Every car is slightly different, because there are human beings involved in the assembly process. No two cars will drive and handle EXACTLY the same.

Would you ever buy a pair of shoes without trying them on first? Then why would you do the same with a car.

Also, please, don't come in to a dealership 10 minutes before closing and say "just looking". Nothing is more infuriating to a salesperson. If you stop in 10 minutes before closing, be prepared to buy that day. Its just courtesy. We have families to go home to also.

You sound like a broke down sales person who probably will screw over anybody you can

Hi,
Thats great post….and very helpful.
thanks.