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How To Buy A Car (Trust Me - I Used To Sell Them)
By: Robin Segal
We Americans like to buy a car at the dealership in one afternoon, and the
dealerships try very hard to make us think that is possible and even smart. But
it’s not. Realize how big a purchase a car is. And it is complicated.
Buying a car is the second-largest purchase most people make after buying a
home. When you buy a home, think about all the help you have: you have a broker
to help you find the best home for you, and a mortgage broker to help you find
the best financing. And an inspector to make sure the house is safe. Sometimes
you also have an attorney to make sure the contract is fair, and a title company
makes sure the title is clear before you pay for the home. But when you buy a
car, there is not one person there to help you. And the dealers want you to
THINK you can waltz in to the dealership and buy a car from start to finish in
an afternoon… and sure, you can, but you will pay much much more if you do it
that way. Here are four tips to give you an advantage:
1. Make at least one trip to the dealership JUST to look around and drive the
cars. Promise yourself you will not buy that first time, no matter what. Why? So
that you can go home and look up information on the internet, including dealer
cost, safety ratings, option prices, and any manufacturer to dealer incentives
that the dealer has certainly not told you about!
2. Know what you can afford before you visit the dealership to buy! This means
talk to your personal banker or credit union officer before going to the
dealership. Why? Some dealerships might actually WANT you to sign on for a more
expensive car than you can afford so that you will then default on your loan and
they will repossess the car.
3. Whenever the finance manager calculates something, insist that he show you
the calculation. Why? The easiest place for dealerships to take more money from
you is in the monthly payment. It is VERY common for dealers to increase monthly
payments by just a few dollars, even $20 per month, over about a five year
period is like giving the dealership $500 extra on the spot.
E.G. If you tell the salesman you can afford a payment of $500 per month, he
might find a deal for you in which the payment works out to $460 per month. But
instead of telling you that, he might tell you that he has “great news”!! - -
that your payment is down to $480. What happens to the $20 difference between
the lender'’ $460 per month and the $480 the dealer is charging you? It goes
right into the dealer’s pocket, and you will never know it unless you Len how to
run the calculation yourself, or at least run it by your banker. How much would
a dealership make, taking in an extra $20 per month for five years, on a loan
with an interest rate of 3.9%? About $500. It is next to impossible to figure
this kind of thing out without a financial calculator, or a friend with a
financial calculator. But it’s worth the trouble!
4. Write down everything you learn about the car, from the internet, magazines,
and especially from the salesman. Why? Doing this keeps everybody honest, and
literally “on the same page”—YOUR page! Your salesman will see that you are
writing down everything he says, and he will be less inclined to lie, or to try
to change information on you later on. This tip is all about staying in control.
About the Author:
Dr. Robin Segal used to sell cars. It broke her heart to see people paying too
much. Everybody she knew asked her how to get the best deal, so she wrote a book
containing all the sneaky answers (not really sneaky, just smart and
effective!)You can find THE CAR BUYER'S BIBLE here: http://www.thecarbuyersbible.com |
