Car Buying
Secrets
• Salesmen are more willing to haggle prices to close the deal
when in the holiday season, as most people are too busy to think about
buying a car at that time.
• Another time that is the best for getting a good deal is the
period from July to October. Dealerships are trying to get rid of their
inventory to make way for the new year models.
• Do some research online, and get some quotes – optimally
along with some good rebates or incentives. Print out your results from
the lowest quotes and bring it with you to your local dealer. Showing
them the lower quotes might compel them to give you a better deal. If
not, shop around some more.
• Visit FightingChance.com – This site has great advice,
as well as incentives and rebate offers. You may be able to save thousands
of dollars on your car purchase.
• A good tactic is to bring a copy of your credit score with you
to the dealership. It can lower your interest rates on your car loan.
Be Aware
• Be suspicious of any 'bait and switch' tactics, such as some
odd change that occurred after you initially discussed the car with the
dealer. Some unscrupulous dealers will use your preference for a particular
car as leverage in convincing you to stay with your choice; although,
unfortunately there has been some 'unforseen' change in the price or deal
you originally discussed. Stick to your guns and remind them that is not
what was agreed. If they don't back down,or at least give you a concession,
then it is up to you if you want to accept the difference.
• A rule of thumb is to never wait until your car is broken down
and you are desperate – not only are you not thinking as clearly
at a time like that, but the salesman may sense your desperation and take
advantage of you. On such a major decision, try to force yourself to take
action when you realize your car has issues, but while it is still running.
• Do your research before going in and subjecting yourself to high-pressure
tactics. Don't fall for any deals where you are required to make an on
the spot decision. This is a big commitment and you need to be on top
of the game.
Is it Really Time to Do This?
• Many times it may be cheaper to put off buying a car when you
think in terms of spending a couple thousand to make major repairs to
the car you have now, vs. a 5-year commitment to financing. Don't forget
to consider the total cost – the price vs. the price, plus total
cost of financing - these are two very different figures. Then again,
if your car seems to have one issue after another, it may be wiser to
just buy a new one with a warranty.
Trade or Sell Your Old Car?
• It is a well-known fact that you can sell your car for more money
than you will get if you trade it in. That is if you don't mind the hassle
of doing so. Keep in mind also the safety factor of having your ad in
the paper or sign on the car, and having to deal with strangers –
including the test drive, etc. If you go this way, try to park your car
away from your house, in a well-traveled area. If you do go there to meet
someone, take someone with you if you can.
If someone has called about the car and asks to see it and take a test
drive, require them to make a copy of their driver's license and at least
one other piece of ID, such as a recent utility or phone bill. It would
also be good to get their phone number and call them back, so that you
know they are not trying to hide anything. This might seem silly to you,
but there has been cases where people have been assaulted and even lost
their life in this situation.
It might be your instinct to go with the person for the test drive. However,
this is definitely not a good idea. Better to lose the car than your life.
• Don't make the mistake of thinking you are adding value to your
car so that when you sell it, it will be worth more to someone with the
documentation showing all the work you have done to overhaul it.
The bottom line is they will look at the Blue Book value, the age and
the number of miles driven, and maybe obvious body damage, period. It
doesn't make sense, but they won't consider it of any additional monetary
value that you had the brakes overhauled, all new belts, new tires, or
anything else.
Having said that, however, you do want your car to be clean inside and
out – and a good wax job. If you expect top dollar, even have the
engine steam cleaned.
One Option You May Want to Consider
• One option that is available for General Motors cars and probably
more, is OnStar. This might sound like something you could live without,
but it is surprisingly cheap for what you get, which may include (depending
on your state) a reduction in insurance rates. Here are some of the benefits
of OnStar:
• If you are in a collision, OnStar knows that your airbags have
deployed. It also knows exactly where your car is located at that moment
in time. An operator will call you in your car (the phone is in your rear
view mirror component) and ask if you are okay. If you don't answer, they
will dispatch emergency vehicles immediately. Naturally, if you do answer,
and do need help, they will also dispatch the necessary assistance.
• If your car is stolen, there is a much greater chance of it being
located very quickly due to the same technology as described above. (this
is where insurance rate reduction may apply)
• If you lock your keys in the ignition, they can unlock your car
door in 10-minutes.
• The OnStar technology includes a hands-free 'cell phone'. Merely
by pressing a button under the rear view mirror, you can dial numbers
by voice. Further, in that OnStar is actually a satellite, there are no
'roaming' or long distance charges.
• What does all this cost? It is amazingly cheap for all that you
get. By the month, for the basic service, it is around $17, but if you
buy it by the year, it is about $14 a month!
• To use the phone other than to call OnStar, you must purchase
minutes, which are cheaper in volume, but $14.99 buys you 30 minutes.
If you run out of minutes and are on the freeway and need to call someone
to ask directions, etc., the 'robot' operator will tell you to buy minutes
using the credit card they have on file, so it is basically, just say
'buy minutes' and so forth.
• At any time you can dial emergency by pressing another button,
and speak to a live operator, who can call a tow truck, or to speak with
you so you can report an accident that you are involved in or witness,
or any other emergency situation, personal or public.
Buying Used Cars
Used cars are a great alternative to people who do not have a lot of
money to spend. However, since they won't have a manufacturer's warranty
in most cases, they need to understand how to get the maximum value for
their money.
Here are some tips to keep in mind when buying used or brand new automobiles.
• Scout for the perfect deal and do your research – look
for discounts, rebates, installment payments, and have a few choices in
mind to choose from.
• Get the Car a Professional check up - Whatever you do, be sure
to spend on average, $50 to have an independent mechanic (preferably one
you already have a relationship with and trust) to give you a thorough
diagnosis on the car.
Don't imagine that you can 'tell' if the car is good by any superficial
means, such as it starts, or sounds fine, or popping the hood and looking
under the car for oil on the ground. None of this in any way determines
what is going on inside the engine. So unless you are an experienced mechanic,
get one.
Save that $50 and you could be 'nickle and dimed' to death with your
new 'used' car. Also, if at all possible ask to see documentation about
the service the car has received. You want to see that the car has had
regular maintenance for oil changes, etc. and to see if any major problems
have occurred.
Get the VIN number and do some
research
This is critical with a used car – find out if the car has been
in any major accidents. Even if it shows no apparent dents or evidence,
it could have been pieced back together in a faulty manner. There have
actually been cases of cars that looked fine, but were actually rolling
death traps, in that they were welded back together badly, and the actual
structure would be compromised in a collision. There can be fatal consequences
to this.
Be aware of the lemon law in your state
The Lemon Law covers both used and brand new cars. While different states
have different policies for used cars under the Lemon Law, basically,
it gives you the same coverage. If you find that a used car is sold to
you under false pretenses or did not function the way it was supposed
to function in accordance to the guidelines, you have the right as a consumer
to invoke the Lemon Law.
Be Aware of Consumer Ratings for the Make and Model
There are many excellent consumer review sites on the internet that have
a wealth of information on what owners like and dislike about their vehicles.Here
are a couple of sites to get you started:
|