Buying a new car can be an exciting experience. Certainly everyone looks forward to a new car. However, you should not let this excitement cloud your judgment.
Purchasing a new car can also be very frustrating and intimidating. There are a lot of dangers awaiting new car buyers. When going to a car dealership in your area, watch out for these 15 important tidbits of information.
15. The Salesperson’s Trick
Car salespersons will present buyers with four squares, representing price of the car, monthly payment, down payment, and trade-in value. While they have you focus on one of the blocks, maybe getting a fair deal on your trade in for instance, they may increase one of the other blocks in their favor. Examine each closely and don’t let the salesperson inflate one over the other.
Don’t take the rebate as a check after the sale. Make sure it is deducted from the purchase price, otherwise you’ll pay more taxes on it. Don’t allow anyone from a dealership tell you that you are getting a great deal because of rebates.
Any rebate comes right from an automobile manufacturer and is applied no matter what the price of a vehicle is. Don’t fall for any strings attached to a rebate either. You may be told that you have to buy a certain option package to get a rebate when in reality you do not.
13. Don’t Talk Payments
You will be asked how much you can afford each month. Whatever that number is, the salesperson will usually add an extra $25 to $50 to it. If you give up a number, a salesperson will believe that you have committed to a certain payment level. Don’t talk about payments; talk about the price of the car.
12. Fees And Other Extras
As a general rule, just tell your salesperson that you will not pay any fees. Dealers will try and sneak in things like a documentation fee. It’s unnecessary. Either the dealer gets rid of the fees or you will buy your vehicle from someone else who will get rid of them.
Do not fall for any fees offered after you have finished negotiating a sales price. Anything that someone like an insurance manager or finance manager tries to sneak in after the price has been confirmed is unnecessary.
11. Dealer Financing
Do not finance through the dealer that is selling you the vehicle. Before looking at new cars, find your own financing. Dealers will sometimes offer customers a certain APR but in reality, a customer pays a whole percentage point higher. The dealer ends up keeping the difference. Secure your own financing before even looking at cars. It will be less expensive.
10. Watch Where You Sign
Do not sign anything until you have made up your mind to make the purchase. A dealer does not need your signature until the sale is completed.