* Don't spend any money preparing your car
for a good trade-in value. Swap out new tires, radios and trailer
hitches with friends for extra cash so that you can decrease your
losses.
* Don't go to the dealership alone. Take someone with you because this will give you an edge with the salesman.
* Don't get too attached to a car before you buy it because you might learn that you can't afford it later.
* You should always buy used cars from lots that are connected to new car dealerships. They keep only the best trade-ins.
*
Get new and used car prices from the library, bookstore or another
dealer. Otherwise, you should insist on seeing the dealer's invoice.
Remember, the dealer can survive selling his new cars at his invoice.
*
Ask competitive dealers about rebates and any and all incentives before
you try to make a deal. Keep these rebates out of your negotiation
process and deduct them from the bottom line at closing time.
* Don't buy a used car from anyone without having it thoroughly checked out by an independent mechanic first.
*
Buy on price and not on payment. Dealers have a way of disguising the
real cost of a car by manipulating the down payment, monthly payment
and length of the loan in their favor. When you buy on payment, you can
easily be ripped off.
* Write down all differences, promises and
add-ons that the dealers place on the buyer's order, especially when
you are buying used cars.
* When you are trading in, get back
the keys to your trade-in before you start your negotiations so that
you can leave whenever you want to.
* The average yearly mileage
that you should find on a used car is 15,000 miles. Most used cars die
on you once you pass 100,000 miles.
* If a deposit is required on your car, do not offer to pay more than $100. Pay with cash, if you can, and get a receipt.
* Do not get caught in the trading allowance trap. You will want to negotiate purchase and trade on a separate basis.
*
Preparation fees are meant to cover the cost of getting your car ready
for delivery after it comes off the truck. Destination fees are
different and cover the cost of delivering the car from manufacturing
plant to the dealership. These fees are usually not negotiable so don't
bother trying.
* You should always refuse to pay for add-on
items like undercoating, fabric and paint protection, or items that are
supposed to be included with all cars.
* Check out the cost of tag and title from a competitor because you could use the information as a negotiation point later.
*
You must insist that the dealer match or better your bank finance rates
if you are going to work with them. You can always use your own bank or
credit union no matter what they say.
* Dealers are not licensed insurance agents. Don't buy credit life or disability insurance from a dealer. If you think you need it, talk to your own licensed insurance agent.
*
You should always be wary of extra warranties. All new cars now have a
100 percent bumper-to-bumper warranty included in them form the
manufacturer. You can buy a used car warranty after the original
warranty runs out if you want to and if you still have the car. Most
warranties have at least a 50 percent markup and all of them are
negotiable.
* Leasing is not for everyone. Once you sign a lease
agreement, you had better be ready to keep the car for the full lease
period. Otherwise your buyout price is going to be surprisingly high. I
would say avoid all leases because your income and lifestyle can always change in the future.
*
Gap insurance does cover the money gap between a totaled car and a
replacement car on leases. It is generally included in most leases. If
a dealer offers you this option at an extra fee, do not take it.
*
You want to get and maintain control through the entire buying
experience. Remember, it's your money being spent, and you can walk
away any time you feel uncomfortable. Pressure from dealers doesn't
change this.
