Car Buying 101 - How Even the Most Timid Car Buyer Can Get a Great Deal

I love buying cars. I happily buy all the cars for everyone in my family, and have helped many a friend on their car-buying quest. When I first confess to people that I would make a living buying cars if I could, they generally look at me like I've just landed on Earth from another planet. Intellectually, I understand that many, if not most, people dread buying cars. But on a purely emotional level, I can't fathom that response. What could be more fun than buying a new car?

If the thought of buying a car makes you break into a cold sweat, then you really need this quick and simple how-to guide. Print it out. Read it over and over on your way to the dealership. Bring it in with you and sneak away to the bathroom to reaffirm your instincts. And, if you do, I suspect you will walk out of that car dealership feeling ten feet tall, and as proud as a peacock!

The first step in buying a car is deciding what you want to buy. If you've already made up your mind, skip this paragraph. If you're still undecided, you're going to need to (gasp) go test-drive the top cars on your wish list. When you walk into the dealership, go straight to the sales room. Do NOT browse the lot, because if you do, you will be stalked. A salesperson will spot you, track you, and pounce - he will have the upper hand from the start. Instead, as you enter the salesroom, look for someone who is about your height (shorter, if possible), about your age (younger, if possible), and not too seedy looking. Walk straight over to him or her (pushing past other salespeople if need be), extend your hand for a handshake, and say, "My name is ____, and I'd like to test drive a ____." Immediately after they have introduced themselves to you, say, "It's nice to meet you ____. I should tell you that I am not going to buy a car today. I am test-driving four different cars, and if I like this car the best, I will be back. If you treat me well today, I will ask for you when I return." *Gulp* Now the salesperson is no longer in the driver's seat, so to speak. They know you will not be buying a car that day. They know you are looking at other cars. And they know that if they aggravate you today, you won't be back to buy a car from them. Trust me, they will be on their best behavior -- enjoy your test drive!

After you've selected the make and model you'd like to purchase, now you need to do your homework. First, go to the manufacturer's website and check for special promotional offers - many manufacturers offer rebates or low interest financing specials throughout the year. Once you know what rebates you're eligible for, and what special financing is out there, you need to figure out the true base price of the car you want. I highly recommend that you visit the Consumer Reports website (https://ec.consumerreports.org/ec/aps/order.htm). There, you can purchase a report that will tell you exactly how much each feature you want costs the dealer, and what the MSRP price is for the car. It's truly the best $14 you'll ever spend. This will give you a very accurate sense of what kid of mark-up the dealer has on the car - the amount generally varies from $500-$5000, depending on the make and model you choose. Once you know exactly what car you want, and how much the dealer paid for it, it's time to start shopping.

It's best to begin this process a few days before the end of a calendar month, as dealers have quotas to make each month, and will often give you a better price then. In fact, if you can time it so that you make the purchase in the last week of December, you'll be facing end of month and end of year quotas, which can leave you in a great bargaining position. When you're ready, get online and search for all the car dealerships within a 50 mile radius that sell the brand you're looking to buy. Visit their websites, and write down the e-mail address for the sales department at each dealership. This is where the fun begins. Send every dealership a version of the following e-mail:

Dear sales manager,

I am interested in buying a new ______________ (make and model) with the following options: ______________________ (list options here). While I would prefer the exterior color be ___________, I am willing to consider any color excluding ____________. I plan to buy the car in the next 48 hours, and am contacting local dealerships to get their best price offer. Please contact me as soon as possible with your best offer on this vehicle. I can be reached at 555-555-5555.

Now, sit back and wait. As each dealership calls you, write down their best price. Let's assume dealership one calls and offers you the car for $14,986. Then, dealership two calls and offers you the car for $15, 019. Tell the second dealership (and all subsequent dealerships) that your current low price is $14,986. If a later call comes in with a price of $14,299, call all the other salespeople back and tell them your current best price. Once you've got everyone as low as they can go, you're ready to look back at your original research on the car price and dealer costs. Your best offer should be within about $200 of what the dealer paid for the car, but don't be terribly surprised if you actually have a quote that's at or lower than the dealer price. Some car dealerships will sell a car at a loss in order to make a quota or in the hopes of attracting more business to their service department. Consider the prices, and go to the dealership with the best offer that's within a reasonable distance of you.

Ideally, in this scenario you will not be trading a car in. The fact is that the trade-in value of your car is far less than you would get by reselling it on your own. However, if you have no choice but to trade in your car, you'll likely need to visit your best three quote dealerships. Bring the car you're trading, and ask them for the trade in value given the offer they've made on the new car. You may find that trade in offers vary dramatically from dealership to dealership, so you really should plan to visit each place. Never, ever, start the negotiating process with them looking at your car. You'll get a far worse deal on your new car if you let your trade-in factor in from the start.

When you're ready to sign on the dotted line, bring the quote you've been given with you. If any of the numbers on the final deal vary, get up and walk out. The one time a dealership tried to pull this on me, I said as I was leaving, "I was quoted a price. If you can not give me that exact price, I will leave and go to a dealership who will give me what they promised." I hadn't made it out of the office door before they we're tearing up the contract and writing a new one - with the quoted price. Make sure you ask for any special financing that the manufacturer is offering and let them know if you are eligible for any rebates (if they haven't already offered them to you).

One final word of advice. As a general rule, all the products and services they try to sell you after the fact are a bad idea. You don't want to buy an extended warranty - it won't cover anything anyway. The simonizing, and rust proofing, and the fancy wheels and floor mats are all cheaper elsewhere. Save your money. Practice this: "No thank you. No thanks. Nope. Not this time. Thanks anyway, but no."

Remember, when you are buying a car, you are in charge. Car salespeople are notoriously pushy - push back. This is your car, your money, and your free time - don't let people bully you or make you feel like they are doing you some huge favor. They aren't. They're doing their job. Your job is to stand tall, be tough, and get the best price on the car you want. Happy driving!