All posts in Auto Buying Tips

The Power of Negotiation – Saving Cash on Your Car

by Carsurfer Admin on 2013/07/19 in Auto Buying Tips with Comments Off on The Power of Negotiation – Saving Cash on Your Car

Cars are expensive. That applies to everything from basic maintenance to buying one from a dealership. However, you can cut those costs quite a bit if you are able to negotiate. Negotiation is something of a dying art these days, as most buyers don’t have the patience or knowledge to haggle. However, for those who master these skills, considerable savings await. What should you know? Here’s a quick look.

Auto Buying

Perhaps the most important area where you need to develop negotiation skills is in the arena of buying a new car. Whether you’re after the latest model, are working with a used car dealer, or buying from a private seller, the following tips will help.

Be Informed – Information is the key to negotiation in the automotive industry. If you’re not informed, you have nothing to stand on. If you’re considering buying another vehicle, you’ll need to know several things, including what the same or comparable vehicles are selling for at other dealerships. Once you’ve decided on a particular vehicle model, take some time and shop around. Find out what it’s going for from different dealers, and what incentives are being offered.

Armed with the information above, head down to your chosen dealership and negotiate the best deal for you. Let the salesperson know that the car is available for less and where. Most of the time they’ll be happy to meet or even beat their competitors.

You Have the Power – One thing that most buyers forget when dealing with car lots is that they’re the ones in control, not the salespeople. You can exercise that control in a number of ways, and showing the salesperson that you know you have the power in the exchange will help you command a lower price. For instance, don’t be afraid to walk away from a deal. The moment the salesperson sees you’re serious about it, the price will come down.

There’s Always Wiggle Room – Don’t be fooled by “final price” notices or salespeople who tell you that they simply can’t offer less than the sticker price. There is always wiggle room in the world of auto sales. Sticker price is nowhere near what the dealership actually paid for the car, so don’t be afraid to negotiate the price lower. If necessary, tell the salesperson you’re going somewhere else. Always remember – the sticker price is NOT the final price of the car, and there’s always room to knock it down.

Don’t Use Dealer Financing – Dealer financing seems like the most convenient, expedient option when buying a new car, and that’s what the dealership is counting on. Don’t fall for it. You’ll pay more in interest with dealer financing than if you got your own funding, and you’ll find that it’s common practice for dealerships to add interest points just to pad their profits (and this is legal). Get your own loan from a credit union or your local bank and you’ll save big without having to negotiate at all.

Auto Service

While you might not be able to negotiate the price of all automotive services, there are a few tips that can help. For instance, considering bringing your own oil to your service provider – most will discount the price because of this. If you have several vehicles, consider asking about a group/volume discount for your services. If you can guarantee that you’ll bring all of your vehicles to the shop for servicing, most of the time they can offer at least some discount. Finally, shop around for the best deal on the service you need, and then find out if the service provider you prefer will price match.

Don Elfrink is the owner and operator of AutoMatStore.com, that sells custom auto mats throughout the nation. Before AutoMatStore, Elfrink was the operator of an automotive production site. AutoMatStore focuses on logo, carpeted, molded and all weather floor mats.

7 Used Car Buying Tips

by Carsurfer Admin on 2013/03/26 in Used Autos & Trucks with Comments Off on 7 Used Car Buying Tips

You are in the market for a car, a used car at that. With new car prices averaging more than $30,000, buying used can be a terrific option for many consumers. Used cars have already lost a significant amount of depreciation with some newer models still under warranty. Keep in mind the following seven tips when shopping for a quality, used car.

1. Know your price.

How much car can you afford? Determine your spending limit and look for vehicles that come in below that amount. Your price should include your down payment as well as your monthly loan payments. Add in taxes, tags and your registration fees. Keep your total amount within line of your budget limit.

2. Choose your vehicle type.

What kind of vehicle do you need? Your heart may say sport coupe or luxury sedan, but your needs may be SUV. Stick with only the vehicle type that you will be happy with driving. Also consider your trim level or the amenities you need such as a navigation system, a moonroof or fancy wheels. The type of vehicle you buy will affect your insurance costs. Contact your auto insurer before you begin shopping to learn how these costs might affect you.

3. Consider your seller types.

You can buy a car from a variety of people and sources. There are new car dealers selling used cars, used car folk that sell late-model used cars, private parties and government auctions. If you want a certified used car, then a new car dealer is the way to go. If you’re looking for a bargain, then a private party will offer the best deal possible. Used car dealers may have the highest markups while government auctions tend to focus on fleet models with high mileage.

4. Reach out to the buyer.

You can locate buyers online, in newspaper ads or on the street. If you find a vehicle that you like, contact the buyer. Arrange to see the car during daylight hours and give yourself ample time to look over the car.

5. Test drive and inspect.

Look at the car closely, inspecting it inside, outside and under the hood carefully. Lift the carpeting to look for signs of water intrusion. Pop the hood and inspect the engine for leaks. Examine the body for scratches, dents and repairs. Find out if equipment is missing or has been replaced — ask the seller why. Take the car for a test drive, listen carefully for telltale signs of trouble and have your car inspected by your mechanic. Do a VIN check through the National Insurance Crime Bureau to verify that the vehicle has not been stolen.

6. Negotiate a deal.

Find out what a car is worth by obtaining its retail value. You can discover that information by visiting Kelley Blue Book’s website and plugging in the information. The dealer’s price may be much higher than the retail price — your goal is to work on getting the best price possible for your ride. Start off low and be prepared to meet the seller at a mutually satisfying middle ground.

7. Arrange for financing.

You will save money by shopping around for a used car loan. Banks and credit unions offer them — talk to your banker or union representative to find out what deals are available to you. Keep financing out of the price negotiation process. Interest rates on used car loans are low for those consumers with very good credit and for those who offer up a large down payment.

Purchase Considerations

Buying a used car can save you money over a new car purchase. It can cause you to lose money if you hurry the purchase and are sloppy with your research. Take time shopping for a car and avoid the typical pressure tactics. You’re making an important investment, one that you may have to live with for many years.

Author Information

Darren likes to spend most of his time restoring classic cars back to their former glory and when he is not working on motors, he finds writing about them both relaxing and fulfilling. He knows firsthand that buying a used vehicle can be tricky and would advise anyone looking for one to always have the necessary car history checks carried out in advance.

The Insider Checklist for Buying a New Car: What Everyone Needs to Know

by Carsurfer Admin on 2013/01/21 in Auto Buying Tips with 2 Comments

Its seems like once people know you have worked on cars for decades you are their “go-to” for all car questions—which I love. One of the most common questions I get comes when a person is considering buying a used car for the first time. We constantly hear horror stories and if you’re unfamiliar of what to look for in a quality vehicle you might feel like you’re jumping into this process blind, it can be scary. Here’s an ultimate checklist for the prospective used-car buyer to help you distinguish a great deal vs. a problem waiting to happen.

Making a Budget

Before you get to the car lot it’s important to establish a budget. Buying a car can be a process in itself and it is easy to waste time looking at cars you can’t afford. Think about need vs. want and be realistic with what you can afford. Don’t strain your personal life by trying to stretch your money thin. A lot of companies offer special options like DriveTime buy here pay here financing options. If you’re looking into financing, avoid long-term loans you should be able to pay off a car loan in three years. Consider fuel and maintenance costs.

Looking for a Car

Look for brands and models known for consistency and reliability. Although luxury vehicles are known for their usability, maintaining one can be expensive. What are you using your car for? Is it mostly used for commute to work? Are you an Outdoorsman who takes vehicles into rugged terrain? Ideally you will find a car that’s well-maintained, 3- to 5-years-old and void of any major mechanical problems or a history of collisions. Typically you do not want to exceed 12 to 15 years when purchasing a used automobile. Low mileage is important, but a car cannot be judged on low-mileage alone, be sure to obtain the car history when comparing vehicles.

A cars interior condition usually says a lot about the previous life it lived. Rust anywhere on a vehicle is a bad. Looking for the cheapest car does not translate to being the best deal, you’re looking for the best mechanical condition for the most reasonable price. Try to avoid first-year models, as they usually have more glitches. Go online and see what people are saying about models you’re interested in.

Cost of Insurance

Insurance cost will vary significantly depending on the vehicle history, make, model, year etc. Get an insurance quote before you purchase a car.

Dealing With the Dealer

Going to a dealership prepared is going to make a huge difference in the way you feel at the lot, and the outcome of your buy. A dealer’s goal is to make a sale as high as possible. First check and make sure the vehicle your interested in is still available. A lot of times dealers will keep a car that’s already sold online to get people into their lot.

  • Confirm the price, color and mileage an make sure the car has all the basics: air conditioner, radio, automatic vs. manual, cruise control, working windows ABS etc. Make sure all of these work when you get there.
  • Take the car for a test drive, see how the breaks work, if the AC is cold, if you hear and odd sounds or feel any noticeable bumps in the ride.
  • A car may smoke when it’s cold or the engine may be noisy or the transmission may engage with a delay.
  • Ask about extra charges and fees and ask about what kind of warranty they have available.
  • Ask for the vehicle history and VIN number to check accidents or major repairs for yourself.
  • The price is almost always negotiable; make an offer on the total price to let them know you are a real buyer. Total price is important because often dealers will try to tack on extra fees after you’ve negotiated a price.
  • Be ready to walk away from a deal if you are feeling you’re feeling to pressured.
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