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Car Buying Tips - How To Beat The DealersWhen it comes to car buying, you must remember that everyone is trying to get a piece of your money (the dealers, the agents, the finance companies, insurance companies, etc). You need to protect your wallet as much as you can. Remember, before you do anything, evaluate if you really need to buy a car. If you live in the city, where everything is close and there is a lot of public transit, then you probably don't need a car. And if you live in the suburbs, you know there are ways to get by. It would take some getting used to, but you can find ways to get around. I know how it feels to be without a car (always asking for rides). It sucks! Especially if you have been driving for a long time. But car buying is a scary world! These people will do anything in their power to make a sale. The agent wants the commission, the dealership wants the sale, the financing company wants your interest payments, and all you want 4 wheels and an engine. The way you can beat the dealers is to follow these 3 rules: Rule #2: Research Research Research The RIGHT Car For You Rule #3: Buy The Car, Don't Be Sold
When you go to the dealership, they are going to expect you to know whether or not you want to buy or lease. Don't let them explain to you the difference. I can tell you right now what will happen. They will try to stick you with one of their "special financing plans". They are ultimately plans that aren't in your best interest, but sound great using special words like "Guarantee" and "No Liabilities" and "Warranty". These special deals will end up costing you more percentages than you can get from doing a little car loan shopping yourself. If you go to a bank or credit union before you buy your car, you may be able to get a loan with a lower interest rate. Then you can go to the car dealership pre-approved, which is a bonus for you. Many people think that when you are car buying, you should always finance, but leasing isn't all that bad. Leasing is almost like renting. You pay a certain amount over a pre-specified amount of time for use of the car. You end up paying only for part of the car's value that you use, plus interest. Leasing is sometimes advantageous because they don't always require you to have a down payment, or at least not a high one. You can also lease a car more expensive than what you could buy. This doesn't mean you should go out and lease a Lexus just because you can! Be smart, if leasing fits into your lifestyle and you can afford to do it, then go for it. The best part, is you don't need to worry about getting rid of your car; you just give it back. Research Research Research - Always When Car Buying This is the fun part. The research for the perfect car. There are many options when looking around for a car. The internet has been a very powerful source. There are many sites you can use to find cars. There's Vehix.com, and Cars.com, Autotrader.com and you can even buy cars on Ebay.com. Check your local newspaper and the most recent issue of Consumer Report. Look for the car that won't end up costing you more in the long run. Makes like Toyota and Honda usually top the charts as they have high MPG ratings and crash/safety ratings. They usually last forever too. When car buying, you may choose to look for cooler, less efficient car. For example, you want a Mustang, and you see it's affordable. Should I buy it? Can I make these insurance payments? How much money on gas is this going to cost me? Gas prices are escalating to $4 a gallon. That means, to fill up a tank of only 14 gallons, would cost you over $50. So be careful!! Don't make a decision you will regret later. It's not worth having to give up the car because you can't afford the gas (or insurance payments). This is why you will be happy you did research before car buying. Buy The Car, Don't Be Sold This may sound confusing, but let me explain. You are on a mission. You have done the research. You know exactly what you are looking for and how much you want to spend. You are sure of whether or not you want to finance or lease. Now, you must use this knowledge and go to the dealership (or private owner). You must be on the mission to Buy The Car. Stay focused! The dealer will do anything in their power to make the sale. The salesperson will tell you everything you want to hear. He is taught to read you like an open book, and he can smell your fear. But you have all the research done and have the power! Use the dealer only for questions about the car that you don't know. Use the dealer for a test drive or two. Then, when you are ready. Make your decision and buy the car YOU want. Don't let them sell you something you didn't go in expecting to buy. And if they do change your mind about what car to get, go back home, and research research research again. This is the car buying process. Don't go in expecting to buy automatically. It takes time, and it should. It will be one of the most expensive things you have ever bought. Just remember to stay in control!
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