Some Interesting Tips For Auto Buyers

After you have made your list of needs and have the picture of your car fixed firmly in mind, it is time to visit the dealerships. Do not sign anything until you have been to at least three dealerships. Be ready to compare models, prices, and services in order to get the best deal.

Ideally, when you step onto the car lot, you will be greeted by a friendly, informative, and non-threatening salesperson. If you do not like the salesperson, simply ask for someone else; do not let yourself be intimidated. If the salesperson asks why, just say you would prefer someone more cooperative. If there is still an objection, state that “half a commission is better than none.” (In the automobile industry, it is common practice for commissions to be split if more than one salesperson has to get involved in the sale.)

Remember, you are the customer and the salespeople are there to serve you. They want your money; you can and should use that leverage to your advantage.

Once you have found a salesperson who is friendly and informative, you are ready to proceed.

Just because a salesperson offers to sell you a car “at invoice (the price the dealer paid the manufacturer for the vehicle) or below” does not mean you are getting the best deal. The words “at or below invoice” are a gimmick. The manufacturer usually gives the dealer a rebate or other incentive, making the real cost to the dealer less than the invoice price.

Every new car on the lot has a factory sticker glued onto the window. This sticker is not put on by the dealer; it is put on by the manufacturer. The manufacturer’s sticker tells you two things. First, it lists the standard equipment, such as engine size, type of transmission, rear-window defogger. Second, it states the suggested retail price.

Occasionally you will find a second sticker on the window, put there by the dealer. This is called an addendum sticker; it lists any “aftermarket items added by the dealer. Common aftermarket items are alarms, luggage racks, paint sealant (also called paint undercoat), and special wheels. The dealer then adds the manufacturer’s sticker to the dealership’s sticker for the total price of the car. This total price has a lot of built-in profit. If you pay this price, you are paying too much. For instance, dealers may charge $795 for an alarm that costs under $400. (In addition, car alarms installed by dealers may be of poor quality.)

Generally, dealers do not want to remove factory equipment such as a stereo, or dealer installed items. They would rather discount an item than remove it.

When you visit dealerships, try to copy down everything on the factory and dealer stickers. Doing this makes it easier to compare prices from dealer to dealer. Your visits should be geared toward deciding which car(s) best fits your needs.

There are also books like Edmund’s New Car Prices and the Kelley Blue Book that provide standard costs for cars and optional items. Bookstores, libraries, and banks generally have these books.

Want to find out more on how to buy cars, then visit our site. Go to a car forums to share your experience.