ALT-3 What to know before you Walk into a Dealership
Buying a caris stressful enough without the added problems that can occur when you don’t shop knowledgably. With a few simple preparations, you can prepare you self for the best deal that you can possibly get on that new vehicle.
First, you should know your credit or (FICO) score before the dealership looks it up. The lower your score, the higher your interest payment will be and the longer you will have to make payments. A score of 600 or more will help you to get financing for a car, while a lower score may prevent you from buying one.
Each time that your credit report is requested, it lowers your credit score. If you end up visiting ten dealerships, your report is requested ten times and it will lower your score considerably. Unscrupulous dealerships have been guilty of deliberately pulling credit scores because someone walked away from a deal. It is illegal, but practiced by some dealers, nonetheless. If you keep a solid check on your own credit score and records, you’ll stand a much better chance of keeping your score from falling and you may just be able to get that car of your dreams.
Decide whether you want to lease a vehicle or buy one. Leasing is often more expensive and people can pay up to three times the value of the car and end up with a huge balloon payment if they decide to buy a leased vehicle that they’ve driven for two or more years.
You are not getting a good deal if you lease a car and pay three times its’ price just because you do not want maintenance expense; sometimes maintenance can be a lot less than leasing costs.
If you don’t put a lot of mileage on your car you can also end up paying two or three times more than what the car is worth, if you lease. Lease plans charge more for over-limit mileage, so you will end up with an even higher lease payment every month, if you go over the mileage the agreement specifies. Be certain to gather all of the information that you can on the lease agreement before you decide to lease.
Ask for a Vehicle History Report for whatever vehicle you are leasing in case there is previous damage from floods, hailstorms, tornadoes, etc., or you can be blamed and charged for any related repairs. If you know that the car has been damaged previously, you have a valid reason for not paying for that damage if problems should arise while you are leasing.
Never lease unless it is right for your income and lifestyle. It’s far less expensive to buy a car with extra GAP insurance than to lease one.
Then, decide what type of car you want, e.g., new, used, make, model, year, accessories, etc. You can research dealerships and manufacturer’s websites to help you decide where and what to purchase. Try to do this at the beginning of the month.
You can also check “Consumer Reports”, for the best dealers in your area. Go to the “Consumer’s Reports” website and find out who offers the best, most honest deals.
Next, you’ll want to visit car lots to look at their inventory. Contact a salesperson to let them know that you are not yet ready to purchase, but you want to look at a few brochures. Stay in touch with this particular salesperson at all times, write down their name and phone number if you have to, but make sure that you always deal with the same person. If you can give them some idea of what you want and when you may buy, they can be better prepared to supply your needed information and vehicle.
Try to also find out what lots are “open” or “closed”, so that you can browse the “open” lots when the dealership is closed without feeling hassled by salespeople to buy a vehicle.
Dealerships with “closed” lots, you should avoid.
If you see something that you are interested in, make note and call the salesperson you’ve contacted to ask any questions about that particular vehicle. You can work on this through the beginning and middle of the month, before you buy. You will also want to investigate what models are comparable to the one, in which you are interested. You may be able to get a better deal on a comparable one, then the one you are considering.
You’ll want to decide how you are going to finance your vehicle. Not everyone can pay cash for a new car. Check with your credit union first, they often have the best loans at the lowest interest rates. Next, if you know what dealership you are going to buy from, find out what finance companies they will work with and check them out before you go there.
ResearchGAP insurancein case your new car is in a wreck and your state insurance only covers a certain amount of damage. GAP insurance takes up where other insurance leaves off and if you’ve just bought a new car, you will want GAP or you’ll end up paying for the wrecked one and another new one.
Do your research on extended warranties. You can talk to the contact salesperson to find out some information, but you can also check your manufacturers and dealerships websites
Be certain to shop at the end of the month. Salespeople want to make their sales quota and you may be able to, better negotiate a price. If you’ve kept in touch with that particular salesperson from the beginning, it helps to protect you as a consumer and you’ll get the best deal possible.
You’ll do best if you buy at the end of the month. Salespeople have a quota to make and they are more prepared and willing to give you that special deal, just to make their quota, at month’s end.
If you’ve decided to purchase a used vehicle, don’t forget to ask if any of the manufacturer’s warranty still covers the car and ask when it will run out. Then you can purchase an extended warranty if you want to do so.
If your vehicle is, a pre-owned one and you have bad credit, be certain to ask if the dealership has a program for those with negative or bad credit history.
If you are purchasing a new one, be certain to ask if there is a, manufacturers, incentive or dealers discount or rebate applied, to that particular model.
If you are buying a pre-owned vehicle, be certain to ask for aCarfax history reportbefore you buy. It the car you are buying was serviced at that dealership and can you get the dealership’s service history. If you can’t, then don’t buy anything there. You may also be able to check out a Carfax report, yourself, at Carfax.com.
Ask if the dealer does inspections on used vehicles and ask the dealer if you can take the car to your mechanic to verify that it is in good shape. Some dealerships may say, “no” and you may want to watch what you choose to buy at such places. If the dealer won't allow, another mechanic, whom you trust, to see the vehicle before you buy, be very suspicious. You have the right to inspect any high dollar purchase before you buy.
If you decide to buy aclassic car,make sure that the dealership is reputable. If you are buying from an individual be sure to get a read the article on “Buying Classic Cars” at BuyClassicCars.com. They have some interesting information and tips that will help you buy the best possible classic.
Unless you can go and check out the car that you are planning to buy, do not buy a car at anonline auctionor otherwise. It’s one of the easiest ways to be ripped off. AutoTrader.com can help you to make a more careful online purchase and avoid those car scammers and their fraudulent fees.
Be safe, be knowledgeable and enjoy your new drive.
