Unlike other consumer goods, automobiles, cars and sport utility vehicles (SUVs) are non-refundable. As soon as the paperwork is signed, vehicle returns are non-negotiable. Contrary to the popular belief that there’s a three-day rescinding period on car purchases – there is not. Buying a new automobile is the second-biggest purchase following a new home.
As a result, the decision to buy a new car should never be an impetuous one. The price coupled with the
potential financing should be enough for any consumer to make an informed decision. Here are five clever
consumer tactics on buying a new car:
Before you buy…
Assemble your checklist.
Set a budget and then prioritize a wish list of car makes, models, and features. Base the purchasing
decision on how the vehicle will be used. For example, soccer moms may consider a wagon over an SUV
for three reasons: comfortably seats five people, generally has better gas mileage and is easier to
drive. A college student may opt for a Hyundai Accent for its price and consumer rating.
Research the possibilities.
Obtain data from ConsumerReports.com, check the automotive section of your local newspaper and check
Web sites with car reviews about the prospective vehicle you plan to buy. Once the new car choices have
been narrowed down, check the newspaper to determine if any local auto dealerships have any specials.
Cross-reference the cost of the cars featured at your local dealer to the price the manufacturer charged the
same dealership at an online the car-pricing site. For instance, Edmunds.com is an excellent car buying
resource because it provides the national base price, manufacturer information, the invoice price on basic
vehicle models, upgrade prices, dealer rebates, customer incentives and more.
After you have completed all research, return to the local newspaper and look for any car deals. Next, verify the details of the promotion by calling the dealership. This saves time and prevents you from enduring a hard sell. Quite often, these advertisements can be gimmicks designed to inspire customers to come in. However, it is illegal for a
dealer to run a promotion on an automobile that is not in stock. If the information regarding the car promotions pans out, proceed with caution.
Car buying tip: When buying a new car, note that the"MSRP" is not an acronym for "manufacturers suggested retail price." It stands for the "Monroney Sticker Price" – which is the highest price of the car.
Instead, negotiate the invoice price of the new car up — because it’s the amount the dealer pays the
manufacturer.
Car buyer beware.
Amongst car dealerships, bait and switch tactics arenot a rarity. Check out the reputation of the dealership. The Better Business Bureau and your state’s Attorney General’s office maintain consumer complaints or reports. Any dealership with an overwhelming number of complaints bears avoiding.
Negotiate the car deal.
In-depth research pays off at the negotiating table. For instance, if a car manufacturer extends a bonus or dealer rebate of $1000 on a particular model, it means that the dealership will make $1000 from the sale of the new car. Consequently, an informed consumer could haggle the "invoice" price of the new car or amass a $1000 savings, enabling the dealer to still pocket a decent profit. For individuals buying a used car, request that the dealership guarantee that the automobile has never incurred any damage in writing as an addendum to the contract.
Opt out of the add-ons.
Prior to signing on the dotted line, scour the agreement for irrelevant add-ons. Credit life insurance is futile because it only pays for if the car buyer perishes. Extended warranties are generally obsolete, because most automobile manufacturers offer comprehensive warranties. As for protective coating, it’s completely unnecessary.
In summation, when it comes to buying a new car, be clever, take your time, exert patience and be prepared to walk away. After all, once the vehicle is driven off the auto dealership’s lot, the sale of a new car is final. (For more consumer tips bookmark, TheConsumerJournal.com.
Car Auctions
How to Buy a Car at Government and Police Auctions
More Car Buying Information:
As Auto Show Revs Down, Car Buying Market Is Looking Up
A sluggish economy is having a serious effect on auto sales, as manufacturers and dealers are making it pretty easy to buy a car.
Welcome to The Motor Trade Apprentice where Sir Alan sets the task of buying £100000 worth of used cars and selling them at a profit within a month.
Unsuspecting Mom Victim Of Car Scam
What looked like a good car deal for a Phoenix mother of two has turned into a financial nightmare with no resolution in sight.
Several text messages and tweets later, we had bought the car. It looks to be a very good deal … we bought the car at about what a dealer would have bought it for, so we saved the dealer’s markup.
Tips On Buying A New Sports Car
There is a big difference in buying a sports car and a sedan. There is also a big difference in between a brand new model and an older one. A buyer must carefully assess his needs several times before deciding to buy a brand new model.
Author: Holly Bentz
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One Response
Jordan
June 17th, 2009 at 8:19 am
1You simply have to be able say ‘no, thanks at that price’ at least once to the dealer. This gives them a strong message that you are serious about your research.
You should also bring a piece of paper to the dealership and make sure you do all the math of the finance calculations yourself. The point is not that they will do the math wrong. The point is you will see exactly how the deal is structured. Do not be afraid to take the time to do this or look like a fool for mapping out your car deal in the dealership.
My dad swears by this process, http://tinyurl.com/nxutm2
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