Negotiating a Car Deal

Knowing your credit rating ahead of time will let you know what kind of interest rates you can qualify for and how much money you can comfortably spend. Use your bank as your ally. Apply for an amount for a car loan before you look. Find out how much you actually qualify for first. This will also help you define your monthly payments ahead of time.

Now let’s begin with what type of vehicle you want. Whether it’s economical, fuel efficient, fast, comfortable, has good stereo sound, low maintenance, certain color, certain wheel rims, sedan, wagon, SUV, Crossover, or what ever, make a list of what you like and go drive. Take several week ends and go to as many dealerships as you can handle. Test drive as many cars as you can to find what really excites  you in a car.

You are going to be spending time with this vehicle, so make it something you enjoy. Even on a tight or a low budget, you can do this. You don’t have to have a fully loaded luxury car to enjoy driving. You also don’t have to have a hybrid to be fuel efficient. Hybrids are wonderful, but you really need to do your homework on these before you buy. Another quick tip on buying any car, read the internet. All you have to do is enter the make and model of the car and all kinds of info (good and bad) will come up. Alright, so you’ve made you decision, it’s time to buy.

The most important thing the buyer can do is to know their credit score. This will mean the difference in thousands of dollars, higher payments and longer payment terms.

Do not ever tell the sales person how much you can afford in monthly payments. Qualify with a bank ahead of time and you will already know this yourself. Do not give that info to the sales person.

Keep in control of the negotiation by having the sales person work for you. Have them “Sell” you the car, not take your money. Ask them take the cost of the car and subtract any manufacturer rebates. On new cars there are almost always some rebates, sales people do not always divulge this info. They will continue on insisting to know how much you can afford monthly, do not give in. Ask them to tell you how much the payments would be over a 3 year (36 month) to a 5 year (60 month) period depending upon what you want. Remember, the longer you pay, the more interest you pay.

Ask them directly what the interest will be. Your credit rating will determine that. That’s why it’s important for you to know your rating before you go shopping. When they come back too high, and they will, ask them the critical question and ask it just like this, “Do you want my business? I am asking you that because I am going to buy a car, it’s now a matter of who really wants my business.” Then ask them to go back and re-figure because “the bank is going to finance you for far less than that”.

Car sales people will also try to “Up-sale” by adding on a lot of extras, say no to them all. These items are added into your financing and your paying interest on things that will not improve the value of your car. Add ons are simply that, something else to “”add on” to the sale and increase their commission. If you are looking at a “Pre-Owned” vehicle:

Do not sign any contracts until you have had a qualified mechanic “OF YOUR CHOOSING” inspect the vehicle first. They will tell you that they have had the vehicle inspected, checked, looked over. They will even tell you it has been “certified”. This is your money being spent, you should take all measures to protect yourself. $100.00 to $150.00 spent on a pre-buy inspection is the best insurance you could ever buy. Just a note: pay a professional, don’t use a friend or relative.

New or Pre-Owned: don’t sign any contracts that have blank spaces or spaces that will be filled in at a later date. Sign only when the contract is complete!

Ask for a “CARFAX” report. Any collision damage has to be listed on any vehicle prior to purchase. However, if the car was wrecked and paid for out of pocket without filing an insurance claim, the CARFAX report will not know and will not list it. Another reason for a pre-buy inspection.

Do not buy a pre-owned vehicle without test driving first. You need to be able to drive the car at 30 mph and at 60 mph and feel safe in the car. Noises, vibrations, shaking when braking, rattles, and knocking should be signs of trouble. Have a mechanic “OF YOUR CHOOSING” inspect before you buy. The most important thing that a buyer needs to know when buying a new or used car is their credit score. This means the difference of thousands of dollars, Higher payments, longer terms, etc. When a person goes to a dealership, that person should know what prices the particular car is going for and the interest rate offered. A buyer should have their homework done before ever purchasing a vehicle new or used.