The Art of a Deal – Shopping for a Vehicle

If you know which vehicle you want to buy, do your homework and research the values.

By Steve Larrosa

For many people, making a trip to the dealership is sometimes an unavoidable painful experience that we have to go through. No one wants to be taken advantage of, or spend hours negotiating with a pushy salesperson, or feel that we are not really being told the truth. Car dealers know this, and many use it to their advantage in closing a deal. In addition, most car dealers also know that many women dislike the process even more than men do, and unfortunately, this means that sometimes women are perceived as easy targets.



However,
research shows that women influence the purchase of 85% of all new
vehicles in the USA. Furthermore, according to www.edmonds.com, women
are noted for researching and comparing dealerships before making a
purchase. Still, a study of 200 Chicago dealerships shows that women
are consistently quoted higher prices than men. So, whether you are a
man or a woman, keep on reading this article. We have compiled some
useful advice given by lenders and researchers that will arm you with
negotiating power.


Perhaps most
important is to get pre-approved financing before going to the
dealership. Don’t be a monthly payment buyer. Getting your financing
ready will allow you to face any credit problems and it will also put
you on a position to better negotiate the best interest rate.


As we all know,
weekends are when people go car shopping. Be smarter than the rest of
the crowd.

With lots of potential buyers looking around and the same
number of sales associates available, customer service will not be
great, and, following the laws of economics, high demand prices will
stay high. Consider the Monday option. The weekend seems to be far –
far away for most managers on a Monday when they still need to keep the
sales moving! Explore taking a day off on a Monday, for a more relaxing
experience at the dealership.


Always look at
the bottom line price on the buyer’s order or purchase agreement. The
upfront price, or the amount that the dealer says it will sell the car
for, might be quite appealing. However, there could be additional fees
and charges that you have not been told about between those two
amounts. Besides sales taxes and registry fees, you could also see a
charge for life insurance, disability insurance, Guaranteed Asset
Protection insurance or GAP. While these are insurance products that
might fit your needs, make sure that you are explained what they are
and how much you are paying for them. Again, getting pre-approved
before hand could give you a better deal on those items.


Moving to
another point, remember that an extended warranty is negotiable and you
can always buy it later. An extended warranty will never be in effect
the minute that you sign for it. If the vehicle that you buy comes with
a 30,000 miles warranty and on top of that you buy the 100,000 miles
extended warranty, you are not getting 130,000 miles worth of warranty
protection; you are only getting 70,000 miles. Yes, you can always buy
it later, but it will be more expensive.


If you know
which vehicle you want to buy, do your homework and research the
values. You can use Kelley Blue Book, NADA (National Automobile Dealer
Association) or any other method that you feel comfortable with. Obtain
not only the retail value of the vehicle you are buying but also the
trade in value of your current ride, if this is an option for you.


Another good
idea is to ask your insurance carrier which valuation method they use.
In the event that the vehicle gets totaled in an accident or stolen,
the settlement amount will reflect that value, not the amount that you
actually owe on your car. Use this fact to your favor to shown that you
know what you are talking about.


Finally, if the
salesperson is to pushy, or you feel that they are putting too much
emphasis on the color of the car instead of the gas mileage or consumer
reviews for performance, or if there is anything else making you feel
uneasy, simply leave the dealership, don’t do business with them. There
are lots of places to buy a car where you can be treated with respect.