Car Buying Secrets And Tips
But many Americans make big mistakes buying cars. Take new car purchases with a trade-in. A third of buyers roll over an average of $5,000 in debt from their last car into their new loan. They're paying for a car they don't drive anymore. Ouch! That is not a winning personal finance strategy.
car buying secrets and tips
"The single best advice I can give to people is to get preapproved for a car loan from your bank, a credit union or an online lender," says Philip Reed. He's the autos editor at the personal finance site NerdWallet. He also worked undercover at an auto dealership to learn the secrets of the business when he worked for the car-buying site Edmunds.com. So Reed is going to pull back the curtain on the car-buying game.
So Reed says having that preapproval can be a valuable card to have in your hand in the car-buying game. It can help you negotiate a better rate. "The preapproval will act as a bargaining chip," he says. "If you're preapproved at 4.5%, the dealer says, 'Hey, you know, I can get you 3.5. Would you be interested?' And it's a good idea to take it, but make sure all of the terms, meaning the down payment and the length of the loan, remain the same."
So at the dealership, Reed and Van Alst both say, the first step is to start with the price of the vehicle you are buying. The salesperson at the dealership will often want to know if you're planning to trade in another car and whether you're also looking to get a loan through the dealership. Reed says don't answer those questions! That makes the game too complicated, and you're playing against pros. If you negotiate a really good purchase price on the car, they might jack up the interest rate to make extra money on you that way or lowball you on your trade-in. They can juggle all those factors in their head at once. You don't want to. Keep it simple. One thing at a time.
"Concerning the extended factory warranty, you can always buy it later," says Reed. "So if you're buying a new car, you can buy it in three years from now, just before it goes out of warranty." At that point, if you want the extended warranty, he says, you should call several dealerships and ask for the best price each can offer. That way, he says, you're not rolling the cost into your car loan and paying interest on a service you wouldn't even use for three years because you're still covered by the new car's warranty.
"We're actually living in a golden age of used cars," says Reed. "I mean, the reliability of used cars is remarkable these days." Reed says there is an endless river of cars coming off three-year leases that are in very good shape. And even cars that are older than that, he says, are definitely worth considering. "You know, people are buying good used cars at a hundred-thousand miles and driving them for another hundred-thousand miles," says Reed. "So I'm a big fan of buying a used car as a way to save money."
NPR has a personal finance Facebook group called Your Money and Your Life. And we asked group members about car buying. Many said they were shocked by how much money some other people in the group said they were spending on cars. Patricia and Dean Raeker from Minneapolis wrote, "40 years of owning vehicles and our total transportation purchases don't even add up to the cost of one of the financed ones these folks are talking about."
No one likes feeling ripped off. And while not every car salesperson is trying to pull one over on you, plenty of unscrupulous sellers will. Buying a car is often one of the biggest purchases for a household. By following these well-kept car buying secrets, you can avoid the regret so many car buyers feel after they've already bought the wrong car at the wrong price. But first, make sure you're covered with an affordable car insurance policy.
Save a little room in your binder for coupons and promotions. Most dealers these days have printable promotions all over their websites. Find as many as you can, and bring them with you to demand credit for them. This secret may not save you thousands, but it will knock a few hundred bucks off the selling price. That's a car payment, and, when used along with the other car buying secrets listed here, it will help your savings add up fast.
Ask what your rep stands to gain from your purchase of a specific car or truck. If the rep shares the secrets, you have a chance to share the spoils. Many times carmakers put incentives on their dealerships to sell more of a certain model. Dealerships themselves often run contests for their sales force in order to foster competition among their staff.
If you've followed these car buying secrets, you've already saved thousands of dollars. Once you're in the finance manager's office, however, get ready to feel the pressure. They'll attempt to convince you to buy extended warranties and all sorts of added "protections," such as car alarms and other add-ons.
Congratulations on your new car purchase. You've just saved yourself thousands of dollars and years of regret. But don't tell your dealer we shared their car buying secrets. Our independent agents can share several quotes with you for car insurance as well - so you could continue to save big even after you've gotten all you can out of the dealership.
Preface: While these questions can be classified as Car Buying Tips," they are really more suited for your car buying entertainment. If you are a hard-core negotiator, these questions will benefit you by putting your salesperson on-guard and off-balanced.
Again, let me stress that most of these questions will not help you buy a vehicle at a better price unless you are a confrontational negotiator. They may help you have a little fun buying a car, which many people classify just above root canal" on their list of least-favorite activities.
Auto sales tend to peak seasonally, typically in the spring and fall, when new model years are released. During peak seasons, average car sales prices can be higher, so shopping in an off-peak season, like summer, could get you a better deal. Not only could it save you money, but it can also mean a more relaxed car-buying environment, as salespeople will likely have more time to work with you. To increase this advantage, shop on days earlier in the week and avoid the weekends, which tend to be busier.
As a result of the coronavirus pandemic, online car shopping and buying has become increasingly more popular. In response, dealers have been investing in beefing up their online inventories, as well as creating capabilities for completing transactions virtually. A great place to start is our AutoSmart website, where you can research, shop local dealer inventory and even get started with your financing all without having to leave home.
I needed this course year ago. been buying cars at co part and iai with Andre for over a year. Very knowledgeable man indeed. Always there to check on me and my purchases. I di tripped in the beginning with few cars, and I see how this course can help the beginners! He did great job putting this course together.
Some of these are more fun and informational than they are actual step by step tips to buying a car, but I felt they were very relevant and wanted to share them with you. For my complete step by step car buying guide click here: 11 Steps on How to Buy A Car.
Not only will you save a bunch of money, but those quotes will help make some of the car buying tips below easier to follow along with. Car buying tips like setting a budget and the benefits of online car shopping are made easier and you'll quickly find that competition equals immediate discounts!
New vs Used CarWhat's the better buy? Should you go with the new or used car? Here is my take and 8 things to consider when making your decision. Also additional new car buying tips.
How To Buy A CarThese 6 easy steps are an abbreviated version of my 11 step car buying guide. If you're looking for a quick reference guide on how to buy a car, well then look no further...
Tips on Buying A New CarNegotiating tip for non negotiators. Whether you do not like to negotiate or don't know how, here are some simple new car buying tips for those dreaded negotiations.
Tips on Buying a Used CarNegotiating tip for non negotiators. More car buying tips, this time regarding used car negotiations for those that don't like or don't know how to negotiate.
Best Time to Buy a CarSo, what is the best time to buy a car? Well, there are several and if you follow these new and used car buying tips you stand to save thousands of dollars buying at the right time. Timing is everything and keeping more money in your wallet is the key.
Car Dealer Fees - Gonna Getcha'If you've purchased a vehicle from a car dealership before then this car buying tip may hit home. You know when you got into the finance office and all of the sudden there are a bunch of fees that weren't disclosed to you earlier.
The Badger Car SalesmanThis little guy is hilarious. If this is your first time buying a car and you want to get an idea of what the stereotypical car salesman is like, then these videos are a must see!
Now that you've had a chance to review these "random" car buying tips, it's time to put it all together in my easy to follow car buying guide and get ready to save yourself a bunch of time and money!
Sources:1 -can-i-save-money-auto-insurance2 -buying/10-steps-to-buying-a-new-car.html3 -secrets-getting-the-best-deal-new-car4 -shopping/buying-a-car-why-you-shouldnt-focus-on-the-monthly-payment-242019
Car insurance and financial services giant, USAA, recently posted twelve tips on their website from an actually member, Marquis Willis, who used to be a car salesman and came back from the dark side to give the rest of us tips on buying a new car. These tips provide a behind the scenes look at how a car dealership earns money on every aspect of the car buying transaction. These are some great tips to help you next time you head to the car lot. My additional two cents are in red! 041b061a72