Auto Loan - How To Drive A Hard Bargain
by Ronn Jones
Taking an auto loan these days are not much of a matter. However, even in case of an easily available auto loan, one can end up paying a lot more than he should have. So bargaining becomes essential as usually is the case for many other things. A complete control of the bargaining process needs to be in the hands of the buyer. Here are a few tips to handle the bargaining process confidently:
Get pre-approved.
Avoid hassles over financing and focus on prices and rebates by getting your loan pre-approved.
* Tell the loan counselor the type of vehicle you want and the amount you want to borrow. Remember that tax, title and tags will add to the price, so factor those costs in.
* When your loan is approved, you'll probably get a "not to exceed" draft that you can use just like cash when you go car shopping. The draft is good for up to 60 days.
Before taking the loan or going in for the bargain a complete knowledge of the auto loan terms is a must. This will help you understand all the statements and offers clearly and remove any tricky and hidden costs from your bargain.
Negotiate the purchase price
The "sticker price," otherwise known as the Manufacturer's Suggested Retail Price (MSRP), is not what the dealer paid for the car. Ask to see the invoice price--the cost to the dealer when the car is delivered to the lot. The final cost to the dealer is normally even less than the invoice amounting. That's because the dealer gets rebates from the manufacturer of 2% to 3% of the invoice price. Never negotiate down from the MSRP. Always negotiate up from the invoice price. Dealer options--extended warranties; undercoating, rust proofing, upholstery and paint protection; insurance; add-ons; and fees for tags, title and taxes--all add to the price. They're high-profit items for the dealer, and their prices are negotiable. Most new cars today don't need undercoating or rust proofing. Extra warranty insurance is usually less expensive if bought from an insurance company rather than the dealer. If at any time you feel pressured, hurried or confused--leave.
Get it in writing
Make your final offer and state that the price includes all of the agreed-upon items. Get it in writing. Now ask if there are any rebates in effect. After you and the salesperson have agreed on the price, only then should you mention your trade-in.
The trade-in: Do it last
* Determine the real wholesale value of your car in advance. The "Book Price" is an average for trade-in and resale values.
* Clean up your car; drive it to three or four used car dealers; ask them what they'll pay you for it. Check average figures in the National Automobile Dealers Association (NADA) Official Used Car Guide.
* Don't talk trade-in when you are negotiating the purchase price of the new car. Only after you've reached an agreement on price should you ask the dealer what he'll give you for your trade.
These factors not only help to have complete control over the auto loan bargain but also makes the entire process smooth and free of any misunderstandings.
Showing posts with label New Car. Show all posts
Showing posts with label New Car. Show all posts
Thursday, April 9, 2009
Saturday, March 21, 2009
Things To Avoid When Getting Your New Car And Auto Loan
Things To Avoid When Getting Your New Car And Auto Loan
by Joseph Kenny
Buying that new car at the dealers can often be filled with a number of mistakes that tip off the car salesman as to the ignorance of the buyer. He or she will often then proceed to take advantage of unsuspecting customers (victims). By being informed, though, as to things that should be avoided, you can come away knowing that you got the deal on your car loan that you wanted. Here are some things you want to avoid.
1. Dressing Up For Car Shopping
If you come into the car dealership with a lot of fancy clothes, jewelry and gold, you really can forget about being offered a good deal. They certainly will look for clues as to what kind of deals to offer their clients, and will gear the deal to what they perceive the people can afford. Also, if you drive in with a Porsche - expect to pay a higher price than others on your next car.
2. Buying At End Of Season
Every year, when it comes time for the new cars to arrive, all the older models are reduced in order to make room for the new ones. Sometimes, however, the dealer may not advertise the reduced prices in order to see if there is someone who will walk in and buy it at the original price. Sure enough, there often will be somebody who has not done some homework and found out that the same model was reduced $6,000 a month earlier. Or, possibly, worse yet, he or she could have bought the new model for just $1,000 more.
3. Show Too Much Emotion Over A Car You Like
If you give the impression that you really love a certain car and must have it now type of approach, the salesman will play on this. He or she knows that your emotions will lead you to buy it - even if the price is not quite right. This means they will most likely not be as flexible with their offers as you want them to be.
4. Don't Be In A Hurry
Giving the impression that you are in a hurry tells the salesperson that you may not have time to think things through. This will encourage them to aim high and not give you the deal you would like to have. Instead, you want to give the salesman the impression you are not in a hurry, and this will force them to make their best offer before you walk out the door.
5. Finance Through The Car Dealer
This could be a serious mistake because - in many cases - you could get better financial terms by getting preapproved for a car loan. Dealers are sometimes notorious for adding charges, or making a bait and switch auto loan which gives you higher terms than what you initially thought you were getting.
6. Failing To Research The Car's Value Before You Buy
Dealers often post high prices because they know that most people like to negotiate. This means that if you pay the initial offer, that you are giving them more than even they had hoped for. This leaves room for serious negotiation, but you need to know what the car is really going for on the market to be able to make the best deals.
A little homework on your part will enable you to be certain that you are prepared to do business. It will also help you get the car and the auto loan deal you wanted and will be proud of - proud enough to tell your friends and family.
by Joseph Kenny
Buying that new car at the dealers can often be filled with a number of mistakes that tip off the car salesman as to the ignorance of the buyer. He or she will often then proceed to take advantage of unsuspecting customers (victims). By being informed, though, as to things that should be avoided, you can come away knowing that you got the deal on your car loan that you wanted. Here are some things you want to avoid.
1. Dressing Up For Car Shopping
If you come into the car dealership with a lot of fancy clothes, jewelry and gold, you really can forget about being offered a good deal. They certainly will look for clues as to what kind of deals to offer their clients, and will gear the deal to what they perceive the people can afford. Also, if you drive in with a Porsche - expect to pay a higher price than others on your next car.
2. Buying At End Of Season
Every year, when it comes time for the new cars to arrive, all the older models are reduced in order to make room for the new ones. Sometimes, however, the dealer may not advertise the reduced prices in order to see if there is someone who will walk in and buy it at the original price. Sure enough, there often will be somebody who has not done some homework and found out that the same model was reduced $6,000 a month earlier. Or, possibly, worse yet, he or she could have bought the new model for just $1,000 more.
3. Show Too Much Emotion Over A Car You Like
If you give the impression that you really love a certain car and must have it now type of approach, the salesman will play on this. He or she knows that your emotions will lead you to buy it - even if the price is not quite right. This means they will most likely not be as flexible with their offers as you want them to be.
4. Don't Be In A Hurry
Giving the impression that you are in a hurry tells the salesperson that you may not have time to think things through. This will encourage them to aim high and not give you the deal you would like to have. Instead, you want to give the salesman the impression you are not in a hurry, and this will force them to make their best offer before you walk out the door.
5. Finance Through The Car Dealer
This could be a serious mistake because - in many cases - you could get better financial terms by getting preapproved for a car loan. Dealers are sometimes notorious for adding charges, or making a bait and switch auto loan which gives you higher terms than what you initially thought you were getting.
6. Failing To Research The Car's Value Before You Buy
Dealers often post high prices because they know that most people like to negotiate. This means that if you pay the initial offer, that you are giving them more than even they had hoped for. This leaves room for serious negotiation, but you need to know what the car is really going for on the market to be able to make the best deals.
A little homework on your part will enable you to be certain that you are prepared to do business. It will also help you get the car and the auto loan deal you wanted and will be proud of - proud enough to tell your friends and family.
Thursday, March 12, 2009
Things To Avoid When Getting Your New Car And Auto Loan
Things To Avoid When Getting Your New Car And Auto Loan
by Joseph Kenny
Buying that new car at the dealers can often be filled with a number of mistakes that tip off the car salesman as to the ignorance of the buyer. He or she will often then proceed to take advantage of unsuspecting customers (victims). By being informed, though, as to things that should be avoided, you can come away knowing that you got the deal on your car loan that you wanted. Here are some things you want to avoid.
1. Dressing Up For Car Shopping
If you come into the car dealership with a lot of fancy clothes, jewelry and gold, you really can forget about being offered a good deal. They certainly will look for clues as to what kind of deals to offer their clients, and will gear the deal to what they perceive the people can afford. Also, if you drive in with a Porsche - expect to pay a higher price than others on your next car.
2. Buying At End Of Season
Every year, when it comes time for the new cars to arrive, all the older models are reduced in order to make room for the new ones. Sometimes, however, the dealer may not advertise the reduced prices in order to see if there is someone who will walk in and buy it at the original price. Sure enough, there often will be somebody who has not done some homework and found out that the same model was reduced $6,000 a month earlier. Or, possibly, worse yet, he or she could have bought the new model for just $1,000 more.
3. Show Too Much Emotion Over A Car You Like
If you give the impression that you really love a certain car and must have it now type of approach, the salesman will play on this. He or she knows that your emotions will lead you to buy it - even if the price is not quite right. This means they will most likely not be as flexible with their offers as you want them to be.
4. Don't Be In A Hurry
Giving the impression that you are in a hurry tells the salesperson that you may not have time to think things through. This will encourage them to aim high and not give you the deal you would like to have. Instead, you want to give the salesman the impression you are not in a hurry, and this will force them to make their best offer before you walk out the door.
5. Finance Through The Car Dealer
This could be a serious mistake because - in many cases - you could get better financial terms by getting preapproved for a car loan. Dealers are sometimes notorious for adding charges, or making a bait and switch auto loan which gives you higher terms than what you initially thought you were getting.
6. Failing To Research The Car's Value Before You Buy
Dealers often post high prices because they know that most people like to negotiate. This means that if you pay the initial offer, that you are giving them more than even they had hoped for. This leaves room for serious negotiation, but you need to know what the car is really going for on the market to be able to make the best deals.
A little homework on your part will enable you to be certain that you are prepared to do business. It will also help you get the car and the auto loan deal you wanted and will be proud of - proud enough to tell your friends and family.
by Joseph Kenny
Buying that new car at the dealers can often be filled with a number of mistakes that tip off the car salesman as to the ignorance of the buyer. He or she will often then proceed to take advantage of unsuspecting customers (victims). By being informed, though, as to things that should be avoided, you can come away knowing that you got the deal on your car loan that you wanted. Here are some things you want to avoid.
1. Dressing Up For Car Shopping
If you come into the car dealership with a lot of fancy clothes, jewelry and gold, you really can forget about being offered a good deal. They certainly will look for clues as to what kind of deals to offer their clients, and will gear the deal to what they perceive the people can afford. Also, if you drive in with a Porsche - expect to pay a higher price than others on your next car.
2. Buying At End Of Season
Every year, when it comes time for the new cars to arrive, all the older models are reduced in order to make room for the new ones. Sometimes, however, the dealer may not advertise the reduced prices in order to see if there is someone who will walk in and buy it at the original price. Sure enough, there often will be somebody who has not done some homework and found out that the same model was reduced $6,000 a month earlier. Or, possibly, worse yet, he or she could have bought the new model for just $1,000 more.
3. Show Too Much Emotion Over A Car You Like
If you give the impression that you really love a certain car and must have it now type of approach, the salesman will play on this. He or she knows that your emotions will lead you to buy it - even if the price is not quite right. This means they will most likely not be as flexible with their offers as you want them to be.
4. Don't Be In A Hurry
Giving the impression that you are in a hurry tells the salesperson that you may not have time to think things through. This will encourage them to aim high and not give you the deal you would like to have. Instead, you want to give the salesman the impression you are not in a hurry, and this will force them to make their best offer before you walk out the door.
5. Finance Through The Car Dealer
This could be a serious mistake because - in many cases - you could get better financial terms by getting preapproved for a car loan. Dealers are sometimes notorious for adding charges, or making a bait and switch auto loan which gives you higher terms than what you initially thought you were getting.
6. Failing To Research The Car's Value Before You Buy
Dealers often post high prices because they know that most people like to negotiate. This means that if you pay the initial offer, that you are giving them more than even they had hoped for. This leaves room for serious negotiation, but you need to know what the car is really going for on the market to be able to make the best deals.
A little homework on your part will enable you to be certain that you are prepared to do business. It will also help you get the car and the auto loan deal you wanted and will be proud of - proud enough to tell your friends and family.
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