9 Things to do when buying a Car
1. QUALIFY YOURSELF:
Want to save yourself a lot of time and aggravation? Before you begin to look for a Vehicle, spend the time necessary to review your budget. Determine a target and maximum payment, and match it to the price of a vehicle that will fall within these ranges. In addition, find out how that payment fits into the qualification structure of the lending institution. In the majority of cases, your total debt load--including the new car payment--should be no more than 40% of your total gross income.
2. DETERMINE YOUR NEEDS
Before you go out on the search for the "perfect vehicle," take time to determine exactly what your NEEDS and WANTS are, and most importantly, be sure to distinguish between the two. Many consumers mistake one for the other and end up purchasing a vehicle that is totally wrong for them. Don't put yourself into a financial box because you bought more vehicle than you truly need. The "new car smell" fades quickly but the monthly payments go on and on and on....
3. DO BACKGROUND WORK ON THE VEHICL
Once you have a general idea of the type of vehicle that will suit you, spend the time to do the background work that will disclose advantages and disadvantages. With over 1000 different models available, you will need to eliminate many very quickly. The information needed for this process is readily available and easy to access.
4. INVESTIGATE FINANCING OPTIONS
Just as there are a number of different models of vehicles available for you, there are a number of different ways to handle the financing of the vehicle. Familiarize yourself with the workings of both conventional financing and leasing. Learn how these options work and the advantages and disadvantages of each. Check your credit to make sure that your report is accurate. Compare financing rates before you visit the dealership.
5. CHOOSE THE RIGHT DEALER
There are a number of factors which will determine the ideal dealership for a particular model, including location, service reputation, and price. A mistake here could mean a number of years of frustration and aggravation.
6. DRIVE THE CAR
It is amazing the number of people who will purchase a vehicle without ever having driven it. This is where you begin to make the comparisons not only among competing vehicles but also among competing dealerships. Take the time necessary for proper evaluation of both.
7. FIND OUT ABOUT C.S.I.
A Customer Service Index (C.S.I.) is maintained by each car maker for the dealerships that sell their vehicles. This information is an absolute necessity in the selection of a dealership, since it is the ranking of how an individual dealer satisfies its customers both in sales and service.
8. DO BACKGROUND WORK ON THE PRICE
Becoming educated on the pricing structure of vehicle, including all of the components that make up the dealer cost, is the most important factor in guaranteeing a good price. Get the most current information, including customer rebates and dealer incentives.
9. BE AWARE OF THE TOTAL COST OF THE VEHICLE
The price of the car is only the beginning. Your total cost will be determined by what you pay for the car plus financing, warranties, insurance as well as repairs and maintenance. Investigate, compare and make certain to get the best deal you can on each! Consider the advantages of volume purchasing power. AutoVantage Gold is a full service auto club that may be able to save you money over the term of your ownership. They'll even give you a 3 month trial membership for only $1 and throw in 4 free oil changes ($100 value) as a bonus
One of the most common questions we receive goes something along the lines of "How can I guarantee myself that I am getting the very best price on a car?" There are no guarantees--the car business is far too variable for that--but there are a few "moves" you can make which will give you the upper hand when it comes time to get prices on the car you want to buy.Be knowledgeable. Don't ever let a car salesperson be your primary source of knowledge--not on vehicles, and definitely not on pricing (or financing). Do research and make comparisons before you go to a car dealership. It's tough to win when your "trainer" is your adversary in negotiations!
Be realistic. If your interest is in a vehicle with a $22,000 list price and a $20,200 invoice price for example, you are not going to be able to buy it for $17,000 unless there is a rather unlikely $3000 rebate on the vehicle. Realism goes hand in hand with the knowledge you gather and allows you to be much better prepared when you enter the showroom.
Be flexible. Getting hooked on a specific vehicle--right down to the color and specific options--can be very expensive. Don't let an insistence on the "Moonglow Diamond Metallic" paint color cost you money. Dealers can often make additional concessions on vehicles that they have in stock as opposed to those they need to secure elsewhere.
Use online resources to get bona-fide quotes. Does getting a quote give you a firm point of reference? Absolutely. Instead of a hazy idea of what you may be able to buy a particular model for, you've got a specific price and a reference, in relation to the invoice cost, of the dealer's profit level. You may find that the quoted price fits within your financial parameters. If not, you can modify your choice to better fit.
Keep your eyes open for rebates and incentives. All consumer rebates and all factory-to-dealer incentives have specific start and end dates--be aware of them so you don't get caught arriving at the dealership 1 week after a $1000 rebate has expired!
Beware of "smoke and mirrors" Car salespeople are experts of distracting your attention from your gameplan. They will try to get you to focus on vehicle colors and options, leasing, sports scores, restaurants or anything they can think of to try to get your attention off of the price. Listen politely but don't be thrown off. Your goal must be simple: to get the best price (including the financing)--on the best vehicle for your needs--from the best dealer for your situation. Anything else becomes unnecessary fluff!
Watch out for the "extra costs" that can add up. You can make an excellent deal on the basic pricing of the car and still pay too much if you overpay for financing, insurance, warranties and repairs and maintenance, all of which can drive up the total cost of ownership
I have been told that the way to get the best price when buying a car is to go to a number of different dealers and ask for their "best price," then compare the results. Is this the right tactic?
Probably this is the worst tactic you can use. Salespeople hear "I want your best price" many times every single day. They do not take it seriously, and know exactly how to combat it. This is why car buyers who use this method end up frustrated and confused before they ever make a buying decision. There are better ways (and much less aggravating ways) to achieve the same purpose, allowing you to get the right car at the right price, from a dealership that is right for your needs.
Should I use one of these "Car Buying Services" I hear so much about?
It depends. The car buying services that are available at no cost to the consumer are funded by the auto dealerships to whom you will be referred. They consider it to be another avenue of advertising for customers. These services, can, however, be a time and money saver if you are sure of the make and model that you want to buy. There are numerous Car Buying sources available, and we have investigated them all.
What is this "C.S.I." that I read so much about?
C.S.I. is a catch-all phrase for Customer Satisfaction Index, which is known by different terms by the various auto manufacturers. This is the ranking by which the manufacturers keep track of the level of customer satisfaction maintained by each dealership that sells their vehicles. Knowing the C.S.I. ranking of each dealership that you are considering is an extremely important facet of your purchase decision.
I'd rather not have to deal with a dealership. Can't I buy a car direct from the manufacturer?
No. Franchise laws nationwide make it illegal for the manufacturer to sell directly to customers. All car sales must be processed through a franchised new vehicle dealer. A new option, thugh, is to buy the car completely online.
Should I finance with the dealer?
The single advantage to financing with the dealer is convenience. There could, however, be many financial disadvantages. Before you ever commit to dealer financing, check all of the alternatives.
Do all car dealerships pay the same amount for their vehicles or is there a "volume discount?"
The invoice price (the amount that a dealer pays the factory for a vehicle) is the same for all dealerships, large or small. There is no difference in this price whether a dealer buys 1 vehicle or 100 vehicles. There is, however, another aspect to this equation. Many of the automobile manufacturers offer dealerships a bonus based on their level of customer satisfaction. (See the previous question). Therefore, there could be a price differential between dealers who offer high degree of customer satisfaction and dealers who have low scores. This is another reason why the knowledge of a dealership's C.S.I. is important information to have at your disposal.
What are the most important things that I can do to ease the aggravation of a buying a car?
Two words sum up the best approach to the car buying process: Information and Preparation. Before you go shopping for a car, take the time to gather as much information as possible about vehicles you are interested in and the actual car buying process. Then, use this information to prepare yourself to be on an even level with the salespeople and dealers you will encounter.
What if I have questions while I am in the middle of the car buying process?
Until recently, you would be pretty much on your own. We've found a great resource, though in the AutoVantage Gold program. Although it is a great opportunity to join a national auto club (24-hour roadside assistance and towing, trip routing and planning and discounts on rental cars and hotels), AutoVantage Gold has a special member benefit--a toll-free hotline--where you can have your car buying questions answered by an expert. You can even call from the dealership! You can even get a 3 month trial membership for only $1 and receive 4 free oil changes ($100 value) in the process!
If I buy a car and then change my mind, what is the law regarding returning it?
The law on returning a vehicle after you have taken delivery is fairly specific -- there is none. Somehow many car buyers have gotten the idea that there is a "3 day right to cancel" period if you change your mind. You don't! This is just one of the many reasons why your preparation is crucially important.
Review your financial situation to determine what you can comfortably afford in your car purchase. Check your credit to make certain that no problems or mistakes exist. Determine a maximum payment or purchase price and etch it in stone--dealers and salespeople will be doing their best to bump you off it!
Spend some time doing research on the various models of vehicles available. Make comparisons based on what you need rather than simply what you want. Your budget will be grateful!
Eliminate any models that do not suit your needs before you begin your car shopping excursions. Don't waste time on vehicles that won't "work" in your situation.
When you have it narrowed to a few models, ask friends, co-workers or relatives who own them about their experiences with the cars they own. Consult automotive publications for road tests and service histories (this will help you to eliminate the "duds").
Do your financial comparisons first. Talk to your bank or credit union and get their terms and rates.
Develop a gameplan to make most efficient use of your time (and money). You'll find lots of information on this web site.
Getting a price quote may help to simplify the process for you. You may even be able to handle the entire transaction--from ordering to delivery--online.
Watch the cost of your total ownership experience--including insurance, warranties and repairs and maintenance. Maximize your savings here or run the risk of losing what you saved on the purchase!
Take your time. Don't rush to buy the first vehicle you see. Take a deep breath and consult your comparisons and your gameplan. If necessary, visit different dealerships to compare prices and service.
When everything is right--the car, the dealership, and the price, relax and buy the car. If you have done your preparation, there is no need to agonize needlessly. Begin to enjoy the car!
Not doing their homework
Forcing themselves to get their "product knowledge and comparisons" from automobile salespeople. They are bad teachers!!
Neglecting to test drive the model they want to buy
Always, always, always drive the vehicle. Don't take anyone else's word for how it handles. This includes friends, family, and car salespeople!
Leasing a vehicle because its the "modern" thing to do
Leasing may or may not be the right avenue for you. Investigate all your options before you commit.
Spending too much time "price comparing" and not enough "model comparing"
a great price on a bad vehicle does not make a good deal.
Assuming that the dealer will get them a good deal on the financing
This is one of the biggest pitfalls when buying a car (and a very expensive one).
Buying the wrong model because it is the right color
Sounds simple, but a lot of people will focus so strongly on color that they miss the vehicle that is under that fancy paint!
Not preparing their current vehicle
whether it be for trade-in or to resell on their own. No one wants to buy a dirty car or truck, whether it be a dealership or a private individual.
Buying add ons and accessories from the dealer
most of which is added to boost the profit of the vehicle. You generally can do this on your own much more economically and get better quality.
Not having enough information at their disposal
believing that past experience is enough ammunition in today's market. This can be one of the worst mistakes a car buyer can make. The automotive market is constantly changing and the prepared buyer is the successful one (and the one with more money in their pocket!) There are links to numerous sources of additional information on this Web Site...take advantage of them.
Giving up the savings they made on the purchase when it comes to the ownership of the car
to avoid this, Getting control of these costs can only enhance your long term savings.
1. QUALIFY YOURSELF:
Want to save yourself a lot of time and aggravation? Before you begin to look for a Vehicle, spend the time necessary to review your budget. Determine a target and maximum payment, and match it to the price of a vehicle that will fall within these ranges. In addition, find out how that payment fits into the qualification structure of the lending institution. In the majority of cases, your total debt load--including the new car payment--should be no more than 40% of your total gross income.
2. DETERMINE YOUR NEEDS
Before you go out on the search for the "perfect vehicle," take time to determine exactly what your NEEDS and WANTS are, and most importantly, be sure to distinguish between the two. Many consumers mistake one for the other and end up purchasing a vehicle that is totally wrong for them. Don't put yourself into a financial box because you bought more vehicle than you truly need. The "new car smell" fades quickly but the monthly payments go on and on and on....
3. DO BACKGROUND WORK ON THE VEHICL
Once you have a general idea of the type of vehicle that will suit you, spend the time to do the background work that will disclose advantages and disadvantages. With over 1000 different models available, you will need to eliminate many very quickly. The information needed for this process is readily available and easy to access.
4. INVESTIGATE FINANCING OPTIONS
Just as there are a number of different models of vehicles available for you, there are a number of different ways to handle the financing of the vehicle. Familiarize yourself with the workings of both conventional financing and leasing. Learn how these options work and the advantages and disadvantages of each. Check your credit to make sure that your report is accurate. Compare financing rates before you visit the dealership.
5. CHOOSE THE RIGHT DEALER
There are a number of factors which will determine the ideal dealership for a particular model, including location, service reputation, and price. A mistake here could mean a number of years of frustration and aggravation.
6. DRIVE THE CAR
It is amazing the number of people who will purchase a vehicle without ever having driven it. This is where you begin to make the comparisons not only among competing vehicles but also among competing dealerships. Take the time necessary for proper evaluation of both.
7. FIND OUT ABOUT C.S.I.
A Customer Service Index (C.S.I.) is maintained by each car maker for the dealerships that sell their vehicles. This information is an absolute necessity in the selection of a dealership, since it is the ranking of how an individual dealer satisfies its customers both in sales and service.
8. DO BACKGROUND WORK ON THE PRICE
Becoming educated on the pricing structure of vehicle, including all of the components that make up the dealer cost, is the most important factor in guaranteeing a good price. Get the most current information, including customer rebates and dealer incentives.
9. BE AWARE OF THE TOTAL COST OF THE VEHICLE
The price of the car is only the beginning. Your total cost will be determined by what you pay for the car plus financing, warranties, insurance as well as repairs and maintenance. Investigate, compare and make certain to get the best deal you can on each! Consider the advantages of volume purchasing power. AutoVantage Gold is a full service auto club that may be able to save you money over the term of your ownership. They'll even give you a 3 month trial membership for only $1 and throw in 4 free oil changes ($100 value) as a bonus
One of the most common questions we receive goes something along the lines of "How can I guarantee myself that I am getting the very best price on a car?" There are no guarantees--the car business is far too variable for that--but there are a few "moves" you can make which will give you the upper hand when it comes time to get prices on the car you want to buy.
I have been told that the way to get the best price when buying a car is to go to a number of different dealers and ask for their "best price," then compare the results. Is this the right tactic?
Probably this is the worst tactic you can use. Salespeople hear "I want your best price" many times every single day. They do not take it seriously, and know exactly how to combat it. This is why car buyers who use this method end up frustrated and confused before they ever make a buying decision. There are better ways (and much less aggravating ways) to achieve the same purpose, allowing you to get the right car at the right price, from a dealership that is right for your needs.
Should I use one of these "Car Buying Services" I hear so much about?
It depends. The car buying services that are available at no cost to the consumer are funded by the auto dealerships to whom you will be referred. They consider it to be another avenue of advertising for customers. These services, can, however, be a time and money saver if you are sure of the make and model that you want to buy. There are numerous Car Buying sources available, and we have investigated them all.
What is this "C.S.I." that I read so much about?
C.S.I. is a catch-all phrase for Customer Satisfaction Index, which is known by different terms by the various auto manufacturers. This is the ranking by which the manufacturers keep track of the level of customer satisfaction maintained by each dealership that sells their vehicles. Knowing the C.S.I. ranking of each dealership that you are considering is an extremely important facet of your purchase decision.
I'd rather not have to deal with a dealership. Can't I buy a car direct from the manufacturer?
No. Franchise laws nationwide make it illegal for the manufacturer to sell directly to customers. All car sales must be processed through a franchised new vehicle dealer. A new option, thugh, is to buy the car completely online.
Should I finance with the dealer?
The single advantage to financing with the dealer is convenience. There could, however, be many financial disadvantages. Before you ever commit to dealer financing, check all of the alternatives.
Do all car dealerships pay the same amount for their vehicles or is there a "volume discount?"
The invoice price (the amount that a dealer pays the factory for a vehicle) is the same for all dealerships, large or small. There is no difference in this price whether a dealer buys 1 vehicle or 100 vehicles. There is, however, another aspect to this equation. Many of the automobile manufacturers offer dealerships a bonus based on their level of customer satisfaction. (See the previous question). Therefore, there could be a price differential between dealers who offer high degree of customer satisfaction and dealers who have low scores. This is another reason why the knowledge of a dealership's C.S.I. is important information to have at your disposal.
What are the most important things that I can do to ease the aggravation of a buying a car?
Two words sum up the best approach to the car buying process: Information and Preparation. Before you go shopping for a car, take the time to gather as much information as possible about vehicles you are interested in and the actual car buying process. Then, use this information to prepare yourself to be on an even level with the salespeople and dealers you will encounter.
What if I have questions while I am in the middle of the car buying process?
Until recently, you would be pretty much on your own. We've found a great resource, though in the AutoVantage Gold program. Although it is a great opportunity to join a national auto club (24-hour roadside assistance and towing, trip routing and planning and discounts on rental cars and hotels), AutoVantage Gold has a special member benefit--a toll-free hotline--where you can have your car buying questions answered by an expert. You can even call from the dealership! You can even get a 3 month trial membership for only $1 and receive 4 free oil changes ($100 value) in the process!
If I buy a car and then change my mind, what is the law regarding returning it?
The law on returning a vehicle after you have taken delivery is fairly specific -- there is none. Somehow many car buyers have gotten the idea that there is a "3 day right to cancel" period if you change your mind. You don't! This is just one of the many reasons why your preparation is crucially important.
Review your financial situation to determine what you can comfortably afford in your car purchase. Check your credit to make certain that no problems or mistakes exist. Determine a maximum payment or purchase price and etch it in stone--dealers and salespeople will be doing their best to bump you off it!
Spend some time doing research on the various models of vehicles available. Make comparisons based on what you need rather than simply what you want. Your budget will be grateful!
Eliminate any models that do not suit your needs before you begin your car shopping excursions. Don't waste time on vehicles that won't "work" in your situation.
When you have it narrowed to a few models, ask friends, co-workers or relatives who own them about their experiences with the cars they own. Consult automotive publications for road tests and service histories (this will help you to eliminate the "duds").
Do your financial comparisons first. Talk to your bank or credit union and get their terms and rates.
Develop a gameplan to make most efficient use of your time (and money). You'll find lots of information on this web site.
Getting a price quote may help to simplify the process for you. You may even be able to handle the entire transaction--from ordering to delivery--online.
Watch the cost of your total ownership experience--including insurance, warranties and repairs and maintenance. Maximize your savings here or run the risk of losing what you saved on the purchase!
Take your time. Don't rush to buy the first vehicle you see. Take a deep breath and consult your comparisons and your gameplan. If necessary, visit different dealerships to compare prices and service.
When everything is right--the car, the dealership, and the price, relax and buy the car. If you have done your preparation, there is no need to agonize needlessly. Begin to enjoy the car!
Not doing their homework
Forcing themselves to get their "product knowledge and comparisons" from automobile salespeople. They are bad teachers!!
Neglecting to test drive the model they want to buy
Always, always, always drive the vehicle. Don't take anyone else's word for how it handles. This includes friends, family, and car salespeople!
Leasing a vehicle because its the "modern" thing to do
Leasing may or may not be the right avenue for you. Investigate all your options before you commit.
Spending too much time "price comparing" and not enough "model comparing"
a great price on a bad vehicle does not make a good deal.
Assuming that the dealer will get them a good deal on the financing
This is one of the biggest pitfalls when buying a car (and a very expensive one).
Buying the wrong model because it is the right color
Sounds simple, but a lot of people will focus so strongly on color that they miss the vehicle that is under that fancy paint!
Not preparing their current vehicle
whether it be for trade-in or to resell on their own. No one wants to buy a dirty car or truck, whether it be a dealership or a private individual.
Buying add ons and accessories from the dealer
most of which is added to boost the profit of the vehicle. You generally can do this on your own much more economically and get better quality.
Not having enough information at their disposal
believing that past experience is enough ammunition in today's market. This can be one of the worst mistakes a car buyer can make. The automotive market is constantly changing and the prepared buyer is the successful one (and the one with more money in their pocket!) There are links to numerous sources of additional information on this Web Site...take advantage of them.
Giving up the savings they made on the purchase when it comes to the ownership of the car
to avoid this, Getting control of these costs can only enhance your long term savings.
