Shopping for a new or used car? Then you need to read this first. There’s several secrets to car dealerships and the car buying process you may not know–but should know before you sink your hard-earned dollars into a vehicle.
If you have ever shopped for a new or used car you probably have a few complaints about the car salesmen, or car dealership where you tried to buy your vehicle. The salesman was too pushy, or didn’t listen to you, and when they did listen they just got it all plain wrong. Maybe you found the same car at vastly different prices, or when you tried to negotiate all the salesmen did was adjust the terms and move the numbers around. Well, you weren’t imagining things, car dealers use several tricks to get you to pay more for a car–from adjusting loan terms to lower your payment, to playing bait and switch. Read up on these tricks common to most car dealers, it’s like your own defensive driving course for negotiating your next car deal.
Salesmen Simply are Trained to Sell
That car salesman is not an expert in your vehicle. In fact, most of them don’t even know the difference between those two models you are comparing. They are trained to do one thing, and one thing only–sell you the car. That’s why they hem and haw when you ask a direct question about the models you are comparing. They don’t know! So, do you own research. There’s plenty of facts online. Use a comparison tool. Shop and research on several websites until you really understand what your car is all about.
Car Ads are Designed to Get You into the Dealership
That car you found in the newspaper or online at an unbelievably low price suddenly sold, or no longer available? Usually is the case. These teaser cars are priced low and advertised to keep a steady stream of suckers coming onto the dealer’s lot. Chances are the car never existed or was only priced that low to attract customers. Salesmen are trained not to sell you this car, they know car games new and old, and may take a load of flack if they do so. Ask about it and your salesmen will come up with some excuse to get you into another car.
Price and Loan Terms
Car dealers often offer their own financing and sometimes it is a better deal than your bank. However, during negotiation they rarely lower the actual car price. Instead they change the loan terms (number of months to pay off the loan) and APR to show you a lower car payment and entice you to sign on the dotted line. But a lower payment doesn’t save you money in the long run. Some loans can run up to 84 months, instead of the normal 60 months (5 years). You might end up paying $30 to $50 less a month but end up making an additional 12 to 24 payments! Always read the loan terms before you sign.
Warranties are a Waste of Money
Car dealers are always excited to sell you a warranty. Ask yourself why. Many warranties come at a premium (some up to $2000 or more) and only cover parts of the vehicle. They also only last for a specific time, usually up to 100,000 miles–when the vehicle is covered by manufacturer warranties and less likely to break down.
Play it smart. Do your research and get everything in writing before you sign. You can save yourself headaches and heart aches when buying a car.