Auto Buying Tips
You have made the decision. It is time for a new car. That means it is time to go to the dealership, right? Wrong. It is time to go to school. Welcome, class, to Auto Buying 101. If you study diligently and do your homework, you will have a great new automobile and you will have gotten a good deal.
Your first research project should be determining the type of vehicle you need. Take some time to honestly evaluate your lifestyle and automotive needs. Think about how much you drive and what type of driving you do. Should comfort or economy be the priority. Once you have arrived at a type of vehicle, study the different models available. Stay open minded and look at a wide variety of choices, not just your first choice.
Do not be in any rush to purchase a new car, unless your present car is in really bad shape. Experts say the best time to buy a car is during the last week of the month. Dealers are trying to meet monthly sales goals and they may give a little extra discount on the price to meet their unit sales. You may also consider buying at the end of the model year, when dealers are eager to clear the lot. If your present car is in bad shape, do not wait too long. Never let a dealer know you are desperate for a car. You do not want to be forced into making and signing a deal just to get transportation.
Once you have researched your options and have done all your homework on competitive quotes, insurance rates and your credit report, now is the time to visit the dealership. Be ready to negotiate hard and walk away if you are not comfortable with the deal. Never pay sticker price, since markups can average 10%-20%. Additionally, the factory may be offering dealer incentives or rebates that can reduce the price. If you are asked for a deposit to either test drive the car or place an order for a car, do not give the dealer a personal check. Instead, put the deposit on a credit card. That way, if there is any dispute, you can complain to the credit card company rather than fighting to get a check back.
Do not let the salesperson talk you into more car than you want or need. Negotiate for exactly what you want and if there are extras on the car, try not to pay for them if you do not want them. Use the fact that they were not on your list of needs to negotiate to the price you would pay for exactly the car you want.
Once you have reached a fair price on your new purchase, then negotiate the value of your trade-in. If you are asked up front if you will have a trade, explain that you have not decided what to do with your existing car. Many times dealers will use a low offer on a trade-in to make up for the price negotiated on the new car. Keep the negotiations and pricing separate so you can see the numbers clearly and evaluate the fairness of each offer.
As you complete your purchase, you will find yourself working with the finance manager. He or she will try to sell you rustproofing, undercoating, protection packages, dealer-added options and more. Just say no. Dealers charge a substantial mark-up on these usually useless items to beef up the profit margin on your hard fought deal. If you do want an extended warranty or payment protection insurance, talk to our loan department, as we offer these items at half the price.
If all this seems daunting, Sunshine Savings Bank can offer you additional help. If you are buying a used car, check out CarFax.com. You can run a vehicle history by using the VIN number of the car you are considering. Our loan representatives can also help determine an NADA value for you. Whether you are buying new or used, our loan rates are very competitive and many times the payments will be lower if you take the rebate option rather than the low interest rate that the dealer offers. Our car buying service, Auto Advisor, can take almost all the hassle out of buying a car. Decide on a make and model, get pre-approved by one of our loan officers and Auto Advisor will do the rest. They will find the car you are looking for and negotiate a great deal. They can even help with your trade-in. Call 942-9248 for more information.
So how do you get an “A” in Auto Buying 101? Simply enjoy your new vehicle, knowing that you did your homework and did everything possible to get the best deal.