BUYING A CAR

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BUY A CAR, DON’T WASTE TIME

Wednesday, October 27th, 2010
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Buying a car today can be one of the easiest purchases of your life  with no time waste if you have the right plan and know what to do. You can buy with complete confidence you are car agreementgetting a great deal while avoiding going through a long drawn out and what seems to be a painfully endless process.

With all of the endless amounts and sources of information available on the internet, from dealers, and from other sources it’s pretty easy to get totally frustrated, confused, and end up with a massive migraine. What you need more than information is a simple plan that will ensure you get a good deal without spending 3 weeks in research, shopping a 1/2 dozen dealerships and spending countless hours in painful negotiations going back and forth between the sales person and manager…Done that before?

These 6 steps will get you a great deal without wasting time and confrontation:

1) Connect! Approach the Dealer as a buyer. Your best offense when buying a car, contrary to popular belief, is to identify yourself as a buyer, not a shopper. Don’t be defensive, present yourself with wide open demeaner and approachable. This will actually make it easier for you and the dealer representative to make a connection. The customer that approaches a car dealer defensive and pushy tends to cause the dealership personnel to respond the same way.

2) Don’t make Price your greatest concern… Let the sales person know that the most important thing to you is NOT price but knowing, first, you are on the right car. This will be music to the sales person’s ears and assure a great connection. Communicate that you are confident than once the vehicle is perfect the dealership and you can come to agreeable terms. This is going to make the sales process quicker by reducing confrontation and later make getting your best terms even easier.

3) Make sure you are on the right vehicle. The single biggest mistake a buyer can make is buying the wrong product. Don’t put price in front of selection of the right vehicle. If the product is not right the terms can never be good enough! The best way to determine the right unit is not online or on the phone but at the dealership. A trick to make sure you are on the right vehicle is to look at the vehicles just above and just below what you think you want. Any interest on either of the other two product choices means you are not yet on the perfect product for you.

4) Get behind the wheel and test drive the vehicle. Dealerships love for you to drive their products. This makes the dealership feel like they have done their job and provides them with more confidence in giving you the information you want and their best price. Taking time to demonstrate the vehicle will save you time later and give both parties more confidence when negotiating.

5) Ask for a computer generated proposal. Ask the dealership if they could please present their offer to you electronically, rather than by hand. Because of technological advances the most customer driven auto dealers today utilize software technology to provide the buyer with computer generated proposals. The proposal should include price, trade figures, purchase and lease payment, down payments and interest rates all at one time.  Computer generated proposals avoid wasted time in the negotiations and unnecessary figuring by management. An electronic generated proposal should produce 9 or 10  purchase payments and  lease payment options and can take less time than it takes to fill out a credit app. This also reduces chances of mistakes and wasting time going back and forth. Computer generated worksheets guarantee a full disclosure, complete transparency, and a quick and easy negotiation process that is non-confrontational. Customer oriented Car dealers know that time is important to to the 21st century car buyer.

6) How do you determine a fair price? First of all,  franchised automotive dealers in the US operate on about the same net margins as a grocery store–about 2% net margin (after all expenses). Most car transactions generate more money to state and local taxes than profits for the dealer. For instance, the taxes in California are 8.75, so if the dealer has a mark up of 6% on a 20,000 car, they will have a gross profit (before any expenses) of 1200 while the state will collect almost 1800. Keep in mind the State of California isn’t even in the car business, doesn’t wash the car, service it, or inventory the products only promises you schools, roads and hospitals for the taxes they collected. If it were not for dealerships’ service departments and pre-owned cars, the car dealer wouldn’t be able to even stay in business to sell new cars. Can you find another dealer 50 miles away to sell for a couple of hundred less? Probably, but your local car dealer who you will be servicing your car with is a human being too. Remind him that you are a loyal service customer.

There is no reason that buying a car should be a painful or a long drawn out ordeal today. Most auto dealers are not interested in taking advantage of you and are extremely interested in making you happy. It is time wasteful to shop 5 locations to get a good deal.

Follow these steps when you are ready for something shiny and new. let your dealer know you are there to buy and make a connection with your sales representative. Be sure you are on the right car and ask that they present their proposal electronically. Follow this plan and you will have a great car buying experience, not waste valuable time, and know that you have received a great deal.

BUYING A CAR? HOW TO TALK TO THE CAR DEALER

Wednesday, June 2nd, 2010
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Do you hate the thought of shopping for a new car? Afraid you’ll say the wrong thing to a car dealer that will give him the upper hand in the price battle? Chances are , you will. It doesn’t have to be that way though…confused car buyer

For starters, the wide access of the Internet allows car shoppers to go into battle armed with more information today than ever before. It’s quite easy to get basic information from sites like kbb.com that includes MSRP, features, options and reviews on any car you might have your eye on before you visit a car dealer.

Here are some things candidly from car dealers that suggest What To Say and What Not To Say once you’re on a car dealer’s turf.

  • Don’t start talking about monthly payments. Focus on negotiating the purchase price. Everything gets confusing when talking monthly payments because suddenly you don’t know if that’s the payment for 24 months, or 36 months, or how much of that would include interest charges if you’re financing. Dealers want to try to get you to negotiate monthly payments instead of purchase price because they make more money financing the car.
  • It’s OK to mention that you might want to trade your car in, because you don’t want to get caught telling them something that isn’t true. You may just tell the sales rep, ‘We’ll talk about that later, let’s just focus on the price of the new car for now. Hammering to get the most money for your trade in may not save you money in the end though because once they’ve loaded up in your car, it may be pretty hard to get them to lower a sale price on the new car.

These days, with CarMax and DriversWay being almost everywhere, a consumer might want to consider not trading their car in at all, and just selling it to one of those large dealers. You will almost always get a better price for it if you sell it than what a dealer will give you in trade-in value.

  • There’s nothing wrong with telling the car dealer that you’re definitely looking to a buy a car in the next few days. Look, dealers are trying to make a living and if they think you’re just out kicking tires and are six months away from making a purchase, they might think you’re wasting their time, so you won’t get as much attention from them.
  • Do your homework, find out what incentives are out there, and use a payment calculator you can find online so you’re educated on how much car you can get into for the price you want to pay.
  • Get preapproved for a car loan before you hit the showroom marathon. That way, if you’re pre approved to get your financing elsewhere, dealers will not have leverage to hit you with a high interest rate. That’s what a lot of dealers will try to do without even knowing what your credit rating is.
  • If you’re lucky enough to have plenty of loose coin lying around and want to pay cash for your car, you may not want to announce it right up front. Dealers anticipate making money on the back end with financing. If they know you’re paying cash, the dealer knows he has no opportunity to make money off you from financing. So, he might not be negotiable on purchase price since he isn’t going to make any money off you from financing. This also holds true if you’ve been preapproved for financing. It may be best not to reveal your hand on the outset that you don’t plan to use dealer financing before you negotiate the vehicle price.  After negotiating the purchase price, you can always say, “I changed my mind”.
  • It’s OK to say you’ve been to other dealers, because cross-shopping between two dealers is always a good idea. From the dealer standpoint, customer service is what separates one dealership from another dealer who sells the same brand. Some customers are willing to pay more money if they were treated right during the purchase process, because that’s a pretty good indicator that you’ll also be treated right later on, when you come back to have your car serviced or repaired.