CAR BUYING 101 - Don't Get Scammed!

Rule one in a perfect world would be to walk into the car dealership, tell the first goon who approaches you, you have exactly one hour to get me into a new car and out of here.  You add, if along the way I detect any scam on your behalf I am gone and you can keep your stinkin' car!

Of course the world is not perfect, (car buying less so) and the idea that you can actually find, test drive and sign all the necessary paper work in an hour is ambitious at best, so here is the bottom line to avoid the racket of car buying. And oh yes, it is a racket.

1.  It is their job to separate you from your money. Again, it is their job to make money off of you.  So stop feeling insecure, keep your guard up and go in guns blazing for the shoot out.

2. Eat, drink and be rested for the long haul. Endurance is key here as they will do any number of subtle things along the way to waste your time, tire you out and help you let your guard down.  This might be a good time for some "Five Hour Energy."  They want you there for hours.

3.  Do your homework!!  Know what car or two you want and know all your numbers.  Information is power.  They inevitably know more than you do, but you can level the playing field with a few key moves.  www.Trucar.com & www.Edmunds.com.  The numbers are all there.  Here are the numbers from www.Trucar.com:

Example: Honda Civic, Automatic, EX

Sticker Price: $21,005 - not interested in this price at all, irrelevant
Invoice: $19065 - Better place for a ceiling
Average: $18686 - Let's shoot for in this ball park
Dealer: $18,200 - Have this in your back pocket and negotiate up from this.
Best: $18,205 - A Goal!

Bottom line is to negotiate up from the dealer's cost within a few hundred dollars.  On occasion and if you are with any special programs and incentives you can even beat the dealers cost, but reasonably the average is where you want to be.  Notice the almost $3000 difference between INVOICE & DEALER cost.   This is the gray area to negotiate.  Dealers get buy-back money from the manufacturer, need to turn over cars and might only make a few hundred dollars off of the sale, they still make money.  And keep reading for the other ways they cash in...it's not just about the cost of the car.

4.  DO NOTS!!!

DO NOT negotiate a price as X of a monthly payment.  i.e. $399 for 60 mos., 48 mos, 36mos...Scam! Those terms do no reflect the price of the car, but instead include a hefty finance rate extended over a certain period of time that looks like a reduced monthly rate, but ultimately makes them more money.  DO the math!

DO NOT  take their financing if you can get your own.  Instead of that great 2.99 rate, they'll be happy to let you know your credit is not so good and find a way to give you a plump 7.99 rate, etc...apply yourself for financing ahead of time and once secure let them know you have your own.  This will not make them happy, let them beat the rate,

DO NOT pay for:  window etching, scotch guard, alarm systems, etc. any of the extras the finance guy you sign with throws at you.  Most things can be bought after-market at extremely reduced rates.  i.e. $300 Scotch guard is a $10 can you can do yourself or window etching they charge $100-$500 can be done for 20 bucks yourself and does not lower your insurance, scam!  ONLY an extended warranty should be considered and this should be negotiated too. You can decide if you need it.

5.  DOs!

DO Stay focused

DO negotiate a price X and then figure out the terms.  i.e.  $18,500 for 48 months @ 3.99% = $X

DO  read everything you sign and read it twice

DO be willing to "WALK" if not satisfied, unsure, etc.  THEY WILL CHASE AFTER YOU!

DO make sure the the math is right.  They will lie and try and cheat you by adding in something that does not belong in hopes you do not pick up on it and sign off  on it with the finance guy.  It happens...just happened to me.

DO know the exact number you agreed to.  Then know exactly what it is with Tax & Tags, nothing more.  Check that # three times and make sure it shows up on the pink sheet  you sign with nothing else "Added in."  No BS finance charges or extras.

DO pay cash if you can and save even more money.

REMEMBER!  They try and scam you with the price, scam you with a bad finance rate or monthly payments and finally scam you with all the add-ins.  The sales guy is not your friend, the sales manager less-so and the finance guy, well...I'll stop here.

BE EMPOWERED.  Now go get a great deal!!!

www.MichaelKelberg.com