Buying A Car - Four Tips for Car Buyers
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By Robin Segal
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Americans like
to buy a car at the dealership
in one afternoon, and the dealerships
try very hard to make you 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 lean
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.
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Robin Segal PhD.
For more car buying tips, visit
http://www.thecarbuyersbible.com
Article Source: http://EzineArticles.com/?expert=Robin_Segal
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