How to Save on Car Truck Suv
So you want to save some money? Who doesn't! Whether you see it as fortunate or unfortunate, I have been working in the car industry hardcore' for the last five years and know the ins and outs of the automobile business. Most people that have worked in the industry will tell you that they have worked in sales. Sales, sales. Is that all you can bring to the table? Have you actually had an influence on the everyday operations of a car dealership? Have you ever bought inventory? Have you ever owned one? All these questions, I can honestly, honestly, answer, YES!
A car dealership at a glance:
It doesn't matter what kind of dealership, they all have expenses. Electricity, gas, telephone. Everything that you pay for for you home to operate, they pay it to. Oh wait, it's commercial, so the costs are more expensive. The first think that you have to consider and deal with' is that, they too, have expenses.There are many other things that you have to consider, these being the following:
What does their inventory cost:
Most used car dealers purchase their inventory from an auction. They never pay more than $3000 for the vehicle to begin with. SUV's will sometimes be as much as $3500, but that depends on the model. The newer the vehicle the more they paid for it. Now, imagine that the dealer still has to fix it, and 99% of the time they do. So they will put in no more than $1000 in repairs. So you are looking at a used car dealership at vehicle that you are interested in, and that vehicle is priced at $10,000. Do you think that is a good price? Sometimes not. The dealer is only invested into this vehicle for no more than $4000. So think about it. He has about $6000 of push room. Not really. He still needs to maintain his staff and pay all his bills on what he makes off of the sale of this vehicle. So we will call it as he has at least $4000 of push room. Use this.
If you do your research on the retail value of the vehicle and the fair market value of this vehicle you can come ahead of the game. As long as the vehicle is in perfect working condition, your price, given the scenario above, should not be less than $4000.
Research:
Do you research and know what you should pay for this specific car. If you find when you have researched the car and have not come up with a price more than $5000, then you should have it set in your mind that you are not going to spend more than that. Car dealers on the other hand, would rather make more money on a sale, than make sure that they have given the consumer the best possible price. After all, when selling something, don't we all want to make the most money off of the sale?
Anyone who has done their research often will throw a salesman, or dealer, for a loop. Most consumers out there don't do their research. Know what the vehicle you are interested in costs. What the average value is it can't hurt, only help. Someone who doesn't know what the vehicle they are looking at will cost in the real world is opening themselves up to be taken advantage of and being overcharged.
Most consumers enter the lot with presumption that they are looking, and nothing more, which is not the case. No one ever enter a dealership just looking. If you don't have plans to purchase anything at a dealership, you don't "just" look. Know what you are looking for before you go.
Weakness:
A salesman will see your weakness. That is what they are trained to do. If they see that you are in love with a vehicle they will turn the pressure on. Don't allow yourself to be subject to that. Try not to show emotion. Salesman, and people alike, will use it, don't let them.
Your used vehicle:
This is a gold mine, especially to a used car dealer. When they take this in, they call it for nothing. They are essentially making nothing off the initial sale, but when they want to sell your trade, that is where all the money is made. They call your trade at nothing. They essentially gave you nothing, though it may seem so on paper, they didn't. So when they do to sell this car, which is where they are making all the profit. They showed you, say $2000, but you didn't know that they raised the price of the car you are buying by $2000. So there is no difference in price. Now they go to sell that car, no matter how, and made $2000 on it. Now they have made an addition $2000 off of you.
Back end:
When a vehicle is financed, a finance company will give them an incentive on the back end. If the car is paid off, they will receive money from the finance company. If the car is a new car, then once they sell so many, then the manufacturer will reduce the price of the car that they sold it to them for making their profit even higher. So, in the end, the dealer makes more money.
Interest:
Don't allow yourself to be subject to the dealers financing. Just like back end, the dealer stand to make more money in the end if you go with the financing that they suggest. Otherwise, why would they suggest it? The price is the price. In most states, it is illegal to present, or disclose a different price regardless of financing, the price is the price.Do your own research to find the best interest rate for you. Check your credit union or bank. Make sure it is right for you. If, on the other hand, you have bad credit, their finance company might be you only option. But don't take their word for it. They have an incentive, and your incentive is your pocket. Make sure your pocket is protected.
Make your decision and informed on. Know what you are up against and it can make all the difference. No one likes to go up against someone that they think knows everything, so make it seem like you do. You will have their head spinning, and yours. They might even think more the next time they deal with you, or even a different customer.
