Tips on Buying a New or Used Car

Buying a car, either new or used, can be a challenging experience for even the seasoned negotiator. It is important to arm yourself with the information and knowledge to obtain the best possible deal when shopping for a car. Car salesmen typically rank near the bottom in perceived honesty and ethical standards, making it imperative the buyer beware. Car salespeople and mechanics get the highest consumer complaints of them all, except for home repair contractors.

Although appealing, the " No Hassle - No Haggle" theory may not always be the best approach. It has been shown that these pricing structures typically represent a higher price than the traditional "On The Spot Bargaining " approaches do. It is noticeably less stressful to purchase with no negotiating involved, but you will pay for the comfort. Watch out for those discount plans the manufactures offer as well. Always check Kelly Blue Book for information regarding vehicle pricing prior to negotiating price. The manufacturer may offer you special pricing that is equal to what employees receive, but in the end you may have been able to negotiate for thousands less on your own. It really does pay to do research prior to visiting the car lot.

No matter how you end up purchasing a vehicle, beware of financing gimmicks that inflate the cost for no good reason other than to profit the seller. There is much hype involved in getting you into the show room. Take for example zero percent financing, this is an attractive feature offered only to those with outstanding credit, and still will be for a term of three years or less, making the payments very high. Of course, they don't tell you all the details ahead of time, but always have alternative solutions available.

Understanding what goes on inside the dealership is important in developing your approach to purchasing a vehicle. The cars at the dealerships are purchased from the manufactures for 10 to 15 percent less than the selling price on low to moderately priced vehicles. The higher priced models are marked up approximately 30 percent above cost. Most dealerships want to sell at no less than 8 percent above invoice. Don't be ashamed to ask to see the invoice. The actual invoices are generally stored in three ring binders and salesman have been known to attempt to print out there own version of a invoice to generate a higher profit margin. Remember that car salesmen are paid on a commission only basis for the most part. It is very difficult for a car salesman to make a decent living without taking advantage of people, so make sure it is not you they are taking advantage of. The best time to buy a car is on the last weekend of the month, early Saturday morning or just before closing time on Sunday. There is a great deal of motivation to move cars off the lot during the end of the month to avoid finance charges for another month. The salesmen are ready to deal during this time and focus there attention on those folks ready to buy. You may want to do your shopping around ahead of time and reserve this time for the actual purchase due to the busy nature of things. Dealerships finance the cars and pay a certain amount to have the cars on the lot, and pay them off when they complete the sale. So, the longer the cars set on the lot the more it cost the dealerships, creating a prime buying time the last weekend of the month.

Negotiate the price before taking that new car for a test drive. As crazy as it sounds this is like going to the grocery store hungry. That new car smell and look make it much easier for the salesman to command a higher price, and much more difficult for you to negotiate in your best interest. Another fact to keep in mind about that form you are asked to sign when taking the car for a test drive, is that in the tiny print you are authorizing them to run a credit check on you. This works greatly to their advantage in negotiations. While you are out driving that new car around they are hard at work finding out all they can about you. Sometimes they will photo copy your drivers license and they are able to view your credit without running a credit check or having it show up as an inquiry on your credit report. They still pay the credit reporting agency for this service, and however illegal this practice may be, they still do it. They can even pull your information using your name in some cases. They work together and while you are talking to one salesperson one of there coworkers may very well be hard at work finding out about you. Try just using your first name while negotiating price and see what sort of a response you get.

Whenever possible find the fleet manager. The salesman are paid commission, so the more profit they generate the more money they make. Doesn't seem as they would have they same price in mind as you when considering each others goals. You are there to find the lowest possible price and they are trying to get as much as they can. The fleet managers are not permitted to compete with the salesman so they are not able to seek you out. You are not likely to get the actual fleet manager by walking in the dealership and asking for one either. It is likely you will get a salesman trying to play the role in order to get another sale. You may want to call ahead of time and speak with the fleet manager and get their name. Also ask for a business card to further assure you have the actual fleet manager. Why all the effort to get the fleet manager, you ask ? The fleet managers are paid a flat fee per car they sell. They are much more willing to get you the price you seek, rather than the salesman because they make the same amount of money regardless. If the salesman were to drop the price to the point the fleet manager is able to they would hardly make enough to pay for lunch. Who you choose to deal with will ultimately play a big part in the final price. The fleet managers make more money buy moving more cars, so that is just what they are motivated to do. Your best bet is always going to be the fleet manager. Another aspect of the fleet manager is the online salespeople. The pay is structured similar and they are likely to get you the best possible price the same as the fleet manager. This way the salesperson knows other dealerships are sending you offers as well ,and this forces competitive pricing. It is also understood that most folks requesting a price quote online have already done their homework. You are much less likely to be charged all the extra charges the salesman on the lot will try to hit you with when shopping online. Most of the time it is all inclusive online to entice buying.

Extra charges are can add up to thousands of dollars and are usually bogus. Dealer prep charge is one that is really ridiculous. They have to get the car ready to sell regardless so why should you pay more for that? Pin striping can be hundreds of dollars at the dealer and you can have it done for under 50 dollars without much trouble at all. Undercoating cost 500 dollars or more at the dealer and the actual cost of the materials required is about 80 dollars. Fabric protection can easily be taken care of with a 6 dollar can of scotchgard from your local hardware store. An etch is between 200 and 1000 dollars and is inscribing the cars VIN number is the windshield, door frame, or under the hood. The selling point is that it makes it more difficult for a thief to alter the VIN number and make recovering the vehicle easier. The dealers true cost for this is about 12 dollars and the manufacturer already puts alter proof VIN numbers on the cars in the trunk or under the hood , and on the sticker in the doorjamb.

A new car depreciates around twenty percent when you drive it off the lot. It is often financially advantageous to buy a used car. There is always the chance of buying a "lemon " when purchasing a used car. Always do your homework and know what the car is worth prior to making any offers. Kelly blue book is one of the most accurate sources to find the value of vehicles. You are usually going to get a better price buying from a individual outright opposed to buying from a dealer or used car lot. There are advantages to buying from a dealer as well and we will discuss that further. When buying used from a individual find out the trade in price of the vehicle and bid just above that buy a couple hundred bucks to start. Inspect the car first thing in the morning after it has sat all night, not after it has been running and warmed up. This allows you to check under the chassis for leaks as well. It is a good idea to show up at least 15 minuets early to make certain the owner isn't getting the car ready before you arrive, or trying to hide any problems. Another good idea is when you test drive the car head for the highway with a solid wall as a divider, turn off the radio and listen for any strange noises. You want to hear the tires on the road and nothing else. Check the tires to see if they are the same size the manufacturer recommends, and look at the wear pattern to see if the car may be out of alignment. Another thing to examine is the carpet inside the car. Look to see if any fluids have leaked and stained the rug or excessive wear compared to the mileage. Go ahead and bounce the four corners a bit, they should only bounce a time or two before stopping. A car fax report is a worthwhile investment as well. Starting your bidding close to the trade in value and going up in 25 dollar increments has proven effective when buying a used car.

When buying from the dealer advantages like certified pre owned are recognized. Typically certified cars are 800 - 1200 dollars more than the same cars without the certified status. The extended warranty on the non certified car will cost around 1000 - 1200 dollars. The key when buying certified is to make sure it includes all fixes. Some dealers are a little shifty in that regard and try to sell you less than what it appears you may be getting. If anything goes wrong with a certified car they should fix it for free. While a certified car offers less room for price negotiations don't assume you have to pay the asking price. It may in fact be certified, but is a used car, and negotiable. It would be best to start negotiations a few hundred dollars less than the actual value rather than thousands.

With carfax being available I would not consider buying a used car without a report. You can purchase this document yourself or through a dealership. This information regarding the history of the car is traced via the VIN number for the car. A single report is around 20 dollars and for around 5 dollars extra you can get unlimited reports for a 30 day period. Extended warranty companies, previous owners, accidents reports, and Department Of Motor Vehicle records are available in one handy report. If the odometer reading is not accurate from the car to the report, steer clear of that one. Someone has most likely altered the mileage. Doing a little investigative work will pay off in the long run when buying a used car.

As consumers we must keep a watchful eye on our finances, and purchasing cars is usually the second largest investment most folks make, besides their home. Children run pretty close as well, along with educational expenses, fuel may be our largest expenditure before to long. With low perceived honesty and ethical standards we must be as well prepared as possible when dealing with car salesman. Good luck in your quest for an automobile.