Tips About How to Purchase a Car

The more information you know about the car you want to purchase, the better prepared you are to get a good deal. You should know the make and model of the car you want, what it should sell for and the dealers cost. In addition, know if the dealer is reputable by contacting the Better Business Bureau

When to Buy

Car manufacturers generally release new models for the upcoming year in September and October, says "Car Buying Tips Basics." However, some manufacturers may release new models any time during the year. Regardless, when new models come on the market, it's a good time to buy a current year model.

Dealers like a good weekend of selling; thus, many are willing to make a better deal on a Saturday morning. The end of the month is good, because dealers want to boost monthly sales figures.

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Knowledge

Before you begin to car shop, know the make and model of the car you want to purchase, and the dealer invoice price. The dealer invoice price is what the dealer paid for the car, and the price is the same for all dealers. You can find this information, on the internet, by doing a web search for "car invoice", and following instructions.

Know the Manufacturers Suggested Retail Price, which is on a sticker on the car. Don't confuse it with the price on a dealer's sticker, also on the car. The dealer adds that sticker after he gets the car, and it includes after market items such as rust proofing, or scotchgarding.

If the dealer complains about not making any money on the price you offer, don't forget about the dealer hold back cost. When a dealer sells a car, the manufacturer sends the dealer two percent to three percent of the Manufactures Suggested Retail Price, to help defray finance charges on the car. The refund may not all be profit, but it does give the dealer more room to work with to sell you the car.

When you're negotiating a selling price with the salesman, start from the car invoice price. A dealer wants to make 3 percent to 4 percent of the invoice price, which will be less than the Manufacturers Suggested Price, and sticker price.

Write down all the details of the negotiation, and if possible bring someone with you to sort through the details.

Add Ons

You should be wary of add ons, such as scotchgarding the upholstery in cars interior, and undercoating. The mark-up for these services is outrageous, and you can have it done elsewhere for less money.

Don't purchase an extended warranty.

Trade In

Don't commit to having a trade in. If the dealer knows you have a trade in, she'll add the trade in amount to the asking price. The closer you are to invoice price the less the dealer will offer you for your trade in; therefore, know what your trade in is worth, and the cost of what it needs in repairs.

Financing

Unless you're offered an exceptionally good interest rate, finance through your bank or credit union. They will generally be more honest, and won't try to sell you any add ons. If you do finance through the dealer, know your credit score, and your interest rate. You can find this information through a web search for credit score.

Your car payment should be no more than 20 percent of your take home pay.

Test Drive

Test drives are important, because you find out if the car "fits" you. Make sure you drive at least 15 minutes, and maybe come back another day and drive it again. Drive on the highway to see how it handles; go to a parking lot to check the brakes by coming to quick stops. While driving check for blind spots, check the air conditioner, heater, wipers, stereo and listen to the car while it runs to see if you detect any unexplained noises. In addition, if it's an automatic, make sure it shifts smoothly and quietly.

Special Desires

Do you have any special desires? A sporty look, acceleration, will you be driving it daily, have passengers, or children. Make sure the car meets all your needs, if possible. Then narrow your choices down to two or three cars. Give them all one more test drive, before making a final decision.

Sales Contract

Read the sales contract carefully. If the details of the contract don't agree with the details you previously wrote down, don't sign it. Consult with an outside insurance agent about disability or life insurance, before you buy any from the dealer.

Automotive: Car Buying Tip Basics: automotive.com