How to get the Best Deal on a Car : Tip 3

So you've chosen the best-priced vehicle you love and now it's time to go in and actually purchase the vehicle. Sign on the dotted line. The actual buying process should now be fairly easy and simple, as all important negotiations have been done before entering the dealership. Still, there are some things to watch out for and a couple of finer points to execute.

1. Again, verify the VIN on the vehicle and assure you are buying the vehicle you negotiated on.
2. If the numbers are not exactly as they were discussed, walk away.
3. Assure you bring anything the dealer asked you for. Proof of Income, residence, etc.
4. When you got to finance understand that you don't have to buy any products. They can be useful, but they are optional.
5. During the signing process look for any undisclosed charges and fees such as protection packages, transport fees, floor plan fees, etc. Some fees are legal (Doc Fee) but most are attempts by the dealer to make up for the loss on the sale of the vehicle.
6. Lastly, drive away and enjoy your vehicle!

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Best Deal on a Car : Tip 2

How Do You Get the Best Deal on a Car: Tip 2

So you've done all the possible research, test drove the vehicles and narrowed your choices. What next? Now you start dealing with the salesperson.

This is the most frustrating portion of the process, for both ends of the transaction. The seller and the buyer trap themselves in a cat and mouse game of not wanting to give up any information or even commit to anything. With good reason. Both stand to win or lose hundreds if not thousands of dollars depending on the decision they make. Here are a few simple steps to make this process easy and positive.

1. Make sure when comparing prices across several dealers that you are comparing apples to apples. Again, if a deal seems to too good to be true, it probably is.
2. Ask them to either fax or email actual figures/invoice, etc. Get everything in writing with exact VIN of the vehicle also. Don't fall for the bait and switch.
3. Many times they will ask for your personal information in order to release pricing information. you can give them as much information as you'd like except for your Social Security number. They don't need that to give you pricing information. Even if you want payment information they can estimate that with an educated guess for the interest rate.
4. If the salesperson will not give you the pricing information, hang up and call back, ask for a sales manager. If for some strange reason they still will not give you any information, maybe that isn't the dealer you want to do business with.
5. They may hit you with lines such as "what price are you looking for?" or "what's the best price you've heard so far?" No need to hide anything from them. Make up a price somewhere at or below invoice. That'll get their attention.
6. Once you have all the offers you want, sit back and decide. Remember, price is only one portion. Buy the best-priced car that you love. Not the lowest-priced car you like. 

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How Do You Get the Best Deal on a Car

How Do You Get the Best Deal On A Car : Tip 1

Buying a vehicle is the second largest purchase most of us will make. And it is usually the most nerve wrecking and many times regrettable one. Did I get the best price? The best financing? The best car? I've always believed the best anything is relative. Once you make any purchase, the only question I ask myself is, did I buy what I wanted at the price I wanted? That's all. Understandably, many people second guess their every move. I don't feel there is a fool proof method to assure the best deal, but there are steps you can take to put you in better position.

The first and many times overlooked by the consumer is finding the vehicle you want. Many times we are so scared of making the wrong decision that we compare multiple vehicles, trim levels, etc. that first we lose sight of what we really wanted and, more importantly, base everything on price not needs, wants and quality. If you're going to spend thousands on any purchase, you might as well above all make sure you're buying exactly what you want.

1. Research vehicles online to find which ones fit the price/payment range you hope to be in. Go to the manufacturer's website when researching new. They will advertise all available incentives. Many dealers do not. When researching pre-owned, look for price as well as miles, year, and trim level. If a vehicle of the same year is thousands less than the rest, there is a reason for it. Usually higher mileage or equipment. Narrow your list to however many you really want.
2. Next, call the dealers and set up a test drive on that vehicle. I recommend setting an appointment because this early in the buying process you don't want to spend too much time just waiting or being shown something you're not interested in. 
3. On the test drive and while at the dealership, ask everything and anything you can about the vehicle. Take a good, long test drive. Leave no question whether this car is for you. If you don't like the vehicle, don't bother moving forward no matter what deal they offer.
4. Lastly, ask the price, financing options etc.  on the specific vehicle you drove. Ask about any specials and if they match competitor prices. Then leave.
5. Do this with all the cars you would like to own, take the information then go home, research a little more on the specific vehicles you loved. If you're comparing the same vehicle at different dealerships, just make sure you are comparing the same trim level, equipment, etc.

Once you have all the information available to you, it's time for the hardest part of the process. Choosing the vehicle for you. Many times you may need to go on second and third test drives. Also, don't take too long as incentives may expire and the vehicle may sell. But once you decide, finish your research and it's time to go in and negotiate.

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Should You Buy Service Contracts, GAP Insurance?

So you've found the perfect car, negotiated the best price. Everything is perfect then you go sign all the paperwork and the Finance Manager gives you a presentation about additional products available to you. Service contracts, GAP insurance, Credit Life & Disability, Etch, Lifetime oil changes, coating, undercoating, the list is almost endless. Most products are useful and worth something.Ultimately it is the consumers choice to purchase these products or not. But I will give you some valuable information to make an informed decision when the occasion arises.

Service Contracts : These are the most difficult to choose. The plans offered can number in the dozens with slight varied coverages but large price differences. Consider these things when choosing to purchase one:

• If purchasing a new car, how long will you keep it and ow long is the manufacturer's warranty? Most consumers trade in after 2 or 3 years and most manufacturer's warranties will cover the vehicle that long. If purchasing pre-owned ask when the coverage begins, at current mileage or at mile 1? You want to buy a service contract that starts at your current mileage.
• When choosing a coverage, I don't believe in choosing anything but the best coverage. If you're going to pay for coverage, make sure it covers everything you need covered. The last thing you need is to pay for coverage and find out the one time you need it, "that's not covered."
• Ask the name of the service contract company. Not all companies are the same. Especially if the coverage is backed by the dealer. Many times dealers require you take the vehicle to them instead of any other repair shop. That can be difficult if you don't live in the area or their service department is weeks behind.
• While the finance manager will try to sell you on payment, ask the price of the service contract and negotiate that. 
• Lastly, keep in mind that a service contract can be purchased after the sale. Either from the dealer or hundreds of sources online. Usually the difference is you must pay for the service contract cash but some companies do offer short installment plans.

GAP Insurance : Many consumers do not understand what GAP Insurance is, but most buy it. GAP insurance basically covers the negative equity on your loan in case of total loss. Meaning if you wreck your new Tundra, your insurance pays it's value and GAP pays any difference without you having to pay on a vehicle you can't drive.

• Unlike service contracts, GAP insurance must be purchased at the time of financing. You can not add it to your loan later.
• Before you buy it, call your insurance agent and see if you already have that coverage or ask the cost of adding it if it is available.
• Do not buy if you're in equity at time of purchase or financing short term where you may never be in negative equity and have no need for GAP
• Other than that I highly recommend purchasing GAP insurance. It is fairly inexpensive and can save you thousands at the best time.

Credit Life & Disability : The name of this insurance is self explanatory and can be bought together or individually. Credit Life will cover the entire loan in case of your death and Disability will make your payments if you become disabled during the life of the loan.

• Credit Life is usually pretty straight forward but I would ask what the limitations there are as far as age, amount to pay, etc.
• Credit disability is more complex as far as it's usefulness. Ask the F&I manager what the requirements for disability are? How soon after disability will the payments start? What's the largest monthly payment they will pay? For how long?
• Again ask who the insurer is. Not all insurance companies are the same.
• I do recommend these insurances depending on personal situation. If you're in a one income household, expecting a child or planning a pregnancy, have medical conditions, etc.  No one likes to talk about death or health but these insurances are like life insurance, they're for the ones that we leave behind.

Lifetime oil changes, Etch, coats : 

• Lifetime oil changes can be a great purchase. If you keep your vehicle long enough. Assuming you change your oil 4 times a year at an average cost of $40 you would have to keep the vehicle for at least 3 and a half years to recoup a cost of $499. Calculate that when deciding.
• Coats (undercoating, paint coats, fabric coating, windshield, etc.) to me are a waste of money. These products are not long lasting and do not add value to the vehicle. Basically you pay hundreds of dollars for someone to spray your vehicle with something that may or may not do something.
• Etch. Etch is usually marketed in larger cities. It involves etching the Vin number of the vehicle to all parts of the vehicle in order to prevent the vehicle to be parted out if it is stolen. It also helps prevent auto thefts since thieves find it more difficult to rid themselves of an entire car. This product can be inexpensive and there is a value to it depending on your risk of having your vehicle stolen.

Always go to a dealership armed with information and ask questions. The staff is there to help you in your decision process not just to usher you through like cattle.

Which to Choose? The Rebate or the Rate?

Manufacturer's for years have enticed the consumer with either huge rebates on the purchase of a new vehicle or extremely low interest rates through their direct lender. Rarely do they offer both. So the consumer is left to decide which to choose : the money or the interest rate?

A few things to consider. First, what interest rate would banks approve you for without incentives? If Chevrolet is offering 1.9% for qualified buyers, could you qualify for that rate or something close without accepting that offer? That is important to know because if you qualify for that low financing then you can take the rebate and get the rate, win win! But let's say you don't qualify. The easiest way to decide what is best for you is to go to a financial calculators website and fill in the boxes for your particular situation. For instance if the manufacturer qualifies you for a 7.9% rate on a $35,000 loan but normally you would qualify for say 15.9%, taking the lower interest rate instead of the rebate would save you $4,113! Simply plug in the numbers and the calculator will give you the best scenario for you.

The other thing to consider in choosing a low interest rate or the rebate is negative equity on your trade in if trading your auto. If your negative equity is high enough you may be forced to accept the rebate since banks limit the amount a consumer can finance on vehicles. Just because you're willing to pay $20,000 for a Dodge Neon doesn't mean a bank will be happy to loan that amount on that car. So depending on your situation you may be forced to accept the rebate in order to be approved for financing.

Arrive at the dealership armed with this information and your purchase experience will be easy and relaxing. Your biggest worry only finding the right car for you!

What is the Best Time to Buy a Car?

As consumers we always want the best deal, the edge to receive the absolute best of everything. Buying a vehicle is most people's second largest purchase in their life behind the purchase of their home. And most of us only do it once every few years. So how do you assure the best price and deal on your purchase? There are infinite ways. One easily overlooked is timing. When should you purchase?

While generally nothing is set in stone in the retail business, near the end of the month is usually the best time of the month for you to purchase. Here are the ways and reasons why :

1. New car dealers have quotas and goals to meet with their Franchise. Chevrolet may ask a dealer to sell 100 trucks. If they do so, Chevrolet will pay the dealer a set amount of money per vehicle. So when a dealer may have said no to a short deal earlier in the month, that one sale could be difference between hitting that goal or not. 

2. Even a used car dealer may have incentive to move units at the end of the month at lower gross to either rid himself of an "old age" unit or a vehicle he owns way over book. If he had a good month he may take losses on a car or two instead of risking another book drop an losing even more thousands of dollars.

3. If you like the incentives offered in that month, i.e. rebates and interest rates, don't wait to see if the next month they are better. Some do run out. During the summer months some manufacturers offer a limited amount of tax breaks on their lease programs that saves you thousands in real money and monthly payment. But they run out. If you see something you like don't pass it up looking for the next better deal.

4. Salespeople also have bonus levels and personal goals they need to reach. Their pay plan may include a large bonus if they sell a certain of cars or maybe just new cars. A "skinny" deal could mean hundreds of dollars to the salesperson. Also, manufacturers pay spins to salespeople for each new vehicle sold. The amounts increase on a tier level. For instance selling 3 new cars may pay him $100 per unit. Selling 9 new cars may pay him $300 per unit retro back to 1. Meaning the ninth unit pays him $1200!

Remember these points next time you're in search of new vehicle. I would not wait to the last day personally but to each their preference. Arrive at the dealership knowing you have bargaining power!



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Lease or Buy? Which is Best for You

Choosing to buy or a lease a new vehicle is a difficult decision.Especially since a lease is difficult to understand. The correct choice depends on your particular situation. There are pro's and con's to both.

First, let's get the basics of a lease.The first thing to understand in a lease is you are not buying the car. Essentially you're renting it.They allot you certain number of miles per year. If you go over that there's a fee. You're payment is only to cover the depreciation of the vehicle and there isn't an interest rate, in a lease it's called a money factor. It is still calculated on your credit rating. Those are the basics of leasing, so why lease instead of buying?

The best part of leasing is you get to drive a new car. A lease is best when applied to a new car. Leases are anywhere from 12 to 60 months. Since you only pay on the depreciation the payment is usually lower and at the time of turn in you are not upside down. Once the lease is up you're free to purchase another vehicle without having to worry about negative equity.It is best to do a lease for the a term equal to or less than the factory warranty of the vehicle. That way you never have to worry about repairs or such.
A lease is also good if you're trying to trade out of a vehicle with negative equity. If a car has a good residual value it can handle the negative equity brought into the deal without your payments skyrocketing. I recently trade out of a vehicle I was approximately $4,000 upside down and paying $471 a month and leased a brand new vehicle with no money down and my lease payments are $353!
The two hardest parts of leasing though are first, money down is almost always a requirement depending on the manufacturer. First, paying taxes upfront is almost always required plus your first payment and some leases also have an acquisition fee. then depending on the lease deal, a certain amount of money down may be required in order to meet the depreciation requirements. Large sums of down payment like that can be difficult, but as all parts of an auto purchase, that is negotiable.

Second, the limit in miles scares most buyers. The mileage range can be anywhere from 10,000 to 15,000 a year. 15,000 is usually plenty for most people. But if you feel you may go over that amount you can pre-pay for those miles in your lease, your payment just goes up. At lease turn in if you didn't pre-pay for your miles you will have to pay at that time. Usually at a rate .15 cents a mile. You also have to take care of your vehicle. Remember, a lease attempts to predict the value of a vehicle assuming it is in good condition. If at lease turn in your vehicle is missing the front end, you will have to pay for whatever the dealer feels that will cost or depreciate the value. You can also just purchase your vehicle at that time if you love it enough.
If you find yourself trading out of your vehicles every 2 to 3 years, a lease is for you. If you want a low payment on a top of the line vehicle, a lease is for you.