New Car Tips - The Dolans' 10 Rules of Car Buying And Leasing! (Page 2 of 2)
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5. Don't go it alone. Always shop with a friend. It's harder for the salesmen to outnumber you, plus you'll have someone to help you negotiate. But pick a friend who isn't an impulsive shopper (and therefore likely to be a bad influence) and is willing to play "bad cop." A negative comment from your friend will drive the salesperson crazy! Script your shopping buddy, if necessary, to keep the salesman off balance.
6. Place an order. You may get a better deal if you order a car rather than buying out of dealer inventory, which the dealer must finance. But remember, there's generally no financing for orders!
7. Sell your "trade-in" elsewhere. You'll get more money for your trade-in if you sell it privately or to a used-car dealer. Shop around. Trade-in dollars at the dealership are sometimes smoke and mirrors!
Also, keep in mind that a "like" dealer is often going to offer you more. What do we mean by like? Well, if you were looking to trade in a Ford for a Honda (or vice versa), certainly a Honda dealer knows they are not going to get many used-vehicle shoppers looking for a Ford and are not going to be willing to go the "extra mile" on your trade to make a deal. However, if you visit a Ford dealer with a Ford vehicle and simply offer to sell it to them, they will more than likely offer you more than the Honda dealer. Check out AutoTrader.com.
8. Don't buy high-profit items from the dealer. That means most of the extras the dealer is chomping at the bit to sell you. Don't buy any of the following from the dealer:
- Rust-proofing
- glazing
- undercoating
- extended or service warranties
- paint/fabric protection
- alarm/security system (These are much more prominent now, but if the car you're buying doesn't have one, don't get it added in by the dealer. Buy it elsewhere - you'll save 50% or more off the dealer's price)
9. Beware of low-interest-rate financing. Many of those 1.9% and 2.9% deals are for two years only, after which you'll be making much higher payments than with a higher rate over a longer period. We're not saying don't finance with one of these deals, just be aware of the higher payments with the shorter-term loans.
10. Remember: The MOST powerful negotiating tool any car buyer has is your ability to turn around and walk out of the showroom! There are hundreds of dealerships with lots of cars for sale. Keep that positive attitude. Don't let them wear you down. Feel confident that you've done your homework and take control of the sales process.
That covers the basics. But if you're interested in learning more about car buying and leasing, you can do so by clicking here now.
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