10 Commandments of Car Buying

[Pages:4]Buying a car in today's market is not as easy as it sounds. Sure, you can drive to the nearest dealership, fall in love with a shiny new car and drive it off the lot the same day. But doing that can cost you thousands of dollars, waste valuable time, and be very frustrating. At Women's Automotive Solutions, we want you to get a great deal on a new or used car. So, we came up with our "10 Commandments of Car Buying", based on our 30+ years of experience in the automotive industry. When followed, these smart guidelines can save you time, money, and a whole lot of headaches!

The Ten Commandments of Car Buying:

Thou shalt not buy the car the same day you test drive it!

Buying a car the same day you test drive it is one of the best ways to lose money when car shopping. Most people get really excited after driving a car that they like. It's fun, it's shiny, it's something new and different... and you WANT IT! It's hard to keep a cool head and negotiate effectively when your emotions are running high ? and the car salesman KNOWS IT! Why do you think they want you to come back inside the dealership and "talk numbers" right after your little joy ride? They are counting on the impulse buy and on you not being prepared. So, exercise a little patience, separate your money from your emotions, and walk away after the test drive. Remember ? buying a car is a process, not an event.

Thou shalt not be a monthly payment buyer.

Most people determine their budget for a new car based on how much they can afford to pay per month. It's perfectly ok to think about monthly payments in your head, but NEVER share this information with the sales person (and he will

probably ask!). Dealers can easily play with different financing terms to get you the monthly payment you want without discussing the actual selling price of the car. You should do the math ahead of time and know how much car you can afford based the monthly payment you want, current interest rates and a reasonable loan term. (Check out the loan calculator on our website!)

Thou shalt not buy the car from the first dealer you talk to.

You should negotiate with at least 3 or 4 different dealers to make sure you get a good deal. Play them off of each other and let them know they are competing for your business ? both on price AND on customer service. You deserve to be treated with respect, and the process should be as easy and painless as possible.

Thou shalt not negotiate the deal in person.

Ever hear the term, "Home Court Advantage"? Well, it applies to the automotive industry as well as sports. Dealers want you to come into their store, so they can sit you down in "the box" and talk numbers. The gives them control over the negotiations. The easiest way for you to maintain control is to keep the home court advantage ? negotiate over the phone! Negotiating over the phone also makes it much easier to shop around with multiple dealers to find the best deal.

Thou shalt not trade in a car without shopping it around.

Most car buyers focus on negotiating the price of the car they are buying. If you have a "trade", negotiating a good selling price for that vehicle is equally important and should be discussed independently from the price of the new car. "Book" values, like Kelly Blue Book and NADA, are very generic and rarely accurate. Your old car is only worth what someone will actually stoke a check for. (No one at Kelly Blue Book will buy your car!) Shop your trade to 3 or 4 different dealerships to get an idea of its true market value. Ask if their quote is based on them keeping your car for their used lot, or if they just plan to haul it off to auction. Selling your trade to a dealer who actually wants it could net you an extra thousand dollars or more!

Thou shalt not buy a car without knowing your credit score and shopping the financing.

For many car buyers, financing is an after-thought. Just something they just let the dealership handle once they get into the finance office. That lack of planning can cost you thousands of dollars over the life of the loan, especially if you have less-than-perfect credit. Paying 4% vs. 3% interest will cost you over $1,000 on a $30,000 loan over 60 months. Shop your financing with banks that have competitive auto loan rates for your credit range before you go to the dealership. We frequently find better rates for our clients at banks outside the dealership. Some banks even include asset protection products like gap insurance at no extra charge. If the dealer can beat your best rate, then great! If not, you've saved yourself some money.

Thou shalt not lease if you drive more than 12k miles per year.

Leasing can be an attractive option for buyers who want to get into a nicer car, but with a lower monthly payment. The downside of leasing is the astronomical "overage" charges they hit you with at the end if you exceed your mileage limit. Most people are not good lease candidates because they either drive more than 12,000 miles per year (which is the "sweet spot" for leasing), or they don't actually know their annual mileage. Be sure you fully understand the pros, cons and fine print of a lease before you get locked into one. If you don't, you could end up owing thousands of dollars when the lease comes due!

Thou shalt not buy a used car without a Carfax.

Buying used cars can be a risky endeavor, especially in today's market. While a Carfax report does not guarantee a problem-free used vehicle, it does help to reduce the risk. So, NEVER buy a used car without reviewing its history. (At Women's Automotive Solutions, we look at 12 different pieces of data on a Carfax report when evaluating used vehicles for our clients.) Most good dealerships offer free Carfax reports on all of their used vehicles. If a dealership does NOT offer Carfax reports... well, that should tell you something about the cars that they sell.

(Note: AutoCheck is another company that offers vehicle history reports, but they are typically not as accurate as Carfax!)

Thou shalt not buy a used car without a pre-purchase inspection by an independent mechanic.

While a Carfax vehicle history report can reduce the risk of buying a used vehicle, it rarely tells the whole story. A car's maintenance history is usually more important than its accident history. A vehicle that has been well cared for, mechanically, by its previous owners is much more likely to last longer and have lower future repair costs than a vehicle that has been neglected. A good (ASE Certified), independent mechanic will be able to tell if a used car has been in an accident (which might not have been reported to Carfax), has flood or rust damage, and if it has been maintained properly. A pre-purchase inspection can also help you anticipate future maintenance costs and give you negotiating power with the seller.

Thou shalt not buy all the "extras" offered in the finance office.

Most people are concerned about paying too much for the vehicle itself. They don't realize that the "big sell" actually happens in the finance office. This is where the person known as the "finance manager" (or "business manager") offers you various products such as gap insurance, extended warranties, clear coat and fabric protection, rust-proofing, and other stuff you probably don't need. Many dealers only show you the impact to your monthly payment of purchasing these products, which appears small. Some of these products, like gap insurance and extended warranties, can be very beneficial and worth purchasing, but you can often negotiate the price with the dealer or purchase them elsewhere at a lower cost.

We hope that our 10 Commandments of Car Buying will help you to make a smart financial decision and get a great deal on your next car purchase.

If all of this sounds like WAY too much hassle, then call us for a complimentary "Car ChatTM" at 888-575-2138.

We would love to handle the entire car buy process for you to save you precious time, money and your sanity. We make car buying easy!TM

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