7 WAYS DEALERS MAKE YOU PAY EXTRA
November, 2008
Winning strategies for playing the car-buying
game to win!
YOUR GOAL IS TO GET THE BEST CAR FOR THE BEST PRICE!
MIXING NEGOTIATIONS:
Negotiate one thing at a time: Vehicle price, trade in, financing negotiations
& what you can afford in monthly payments.
Starting Price? Forget Sticker, what did the dealer pay?
CONSUMER
REPORTS.ORG provides lists of Dealer prices without incentives,
holdbacks or rebates. Reasonable starting price is typically 4%-8% over
bottom line price depending on demand for the make and model.
Make it clear to the salesperson that you want the lowest
possible markup over starting price and you'll visit other dealerships
selling the same vehicle and will buy from the one with the best price!
Once settled on the price, then discuss financing and trade in.
0 DOWN, 0 INTEREST, 0 PAYMENTS FOR 1 YEAR:
Did you know that after the first year you will still owe all those
monthly payments you've delayed, often at a higher interest rate. You
also end up owing more for a used car now!
NO DOWN: Finance more money, monthly payments are higher, increases
the amount of interest over the life of the loan. Many buyers don't
even qualify for 0% loans and low interest rates. Know the current
interest rates and shop around!
LEASING GAME: Leasing rates are negotiable! Keep
it simple, negotiate vehicle price, then mention you would like to
lease!
Other negotiated items include: Down payment, Annual mileage limit,
purchase option price. Have Dealers compete against each other and
give your business to the one who offers you the best deal.
FINANCING & CREDIT SCORE:
DON'T MAKE FINANCING A PURCHASE-TIME DISCUSSION! Before shopping make
sure you know how you will pay for the vehicle ahead and check the dealers
rate and compare it with banks, credit unions and other lending institutions.
If pre-approved, keep financial arrangements OUT of negotiations.
REMEMBER YOUR CREDIT SCORE WILL HAVE AN EFFECT ON YOUR
INTEREST RATE, KNOW YOUR SCORE IN ADVANCE SO YOU HAVE TIME TO CORRECT
ANY ERRORS.
A SCORE OVER 700 WILL GET YOU THE LOWEST INTEREST RATE!
Credit Reports cost approximately $15.00 or less from:
EQUIFAX www.equifax.com
800-685-1111
EXPERIAN www.experian.com
888-397-3742
TRANSUNION www.transunion.com
800-888-4213
LOADING OF OPTIONS:
DO HOMEWORK ON OPTIONS YOU WANT, many times due to low sales price,
salespeople try to sell more options to make up cost. Many options are
available separately, others bought in a package. Option packages many
times offer items you don't want or need. Consider packages carefully!
REMEMBER you can negotiate the price of options especially if purchased
vehicle at TRIM LEVEL!
EXTRAS YOU DON'T NEED:
Dealer profit sources come from items such as rustproofing,
fabric protection, paint sealant, etching VIN# on windows as a theft
protection/determent. These types of changes many times show up on
your final bill, yet never discussed.
Don't waste your money! What costs the dealer about $90.00 costs
you $1,000.00
or more!
Vehicle bodies are already treated against rust! VIN etching
you can do yourself with $25.00 kit! Upholstery is typically treated
at the factory! Paint sealants & waxes available locally for about
$15.00!
Dealer PREP FEES: Checking tire pressure should be included
in the purchase price, not listed as extras. If these items are listed
on your bill of sale, refuse to pay them!
EXTENDED WARRANTIES:
Consumer Reports does not recommend buying an extended warranty
unless you plan on keeping a "trouble prone vehicle" for an
extended time after the original warranty runs out!
Most manufacturers warranties are sufficient with bumper to bumper
coverage of at least 3 years or 36,000 miles & powertrain coverage
thats often longer. Auto manufacturers warranties are typically better
than those offered by third- party companies.
BANKS DO NOT REQUIRE YOU TO BUY EXTENDED WARRANTIES! IF
A DEALERSHIP TELLS YOU THAT A BANK DOES REQUIRES YOU TO PURCHASE ONE,
THE DEALERSHIP IS DISREPUTABLE. MAKING YOU PAY FOR ONE UNDER THESE PRETENSES
IS ILLEGAL IN SOME STATES!
For more information: CONSUMER REPORTS New Car Price Report,
learn to beat dealer secret charges, cash in on rebates, get pricing
options, safety ratings, negotiating tips and much more!
For Appointments : 928-282-6621 or terri@redrockprecisionmotors.com
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