How To Save Money Buying a
Car
Four Things You Should Know
by Robin Segal
Where Do Car Dealerships Make the Most Profit on Your Car Sale?
Nope, it’s not in the price negotiation that usually ends up between "dealer
invoice" and "sticker price." The Number One profit center in a new car sale is
in the financing. If you finance the purchase or lease the car, you will need to
be extremely careful. This includes bringing your own financial calculator to
the dealership. I’m not kidding. Much of the profit is taken through out-and-out
lying about the numbers that make up your loan. Remember in math class when the
teacher made you "SHOW YOUR WORK" in order for your answer to be valid? Well
that applies to car dealership finance managers too. Give them an F and move on
if they seem to be hiding their numbers from you.
Should You Buy a Car at the End of the Month?
Yes, buying at the end of the month is a good idea, but it's not that simple.
Never, EVER, make your first dealership visit at the end of the month when the
pressure is on. The salesmen will be very hungry to make the sale, and you may
not be able to resist. Try this: go to the dealership around the middle of the
month, test drive the cars, get some info, then go home and give yourself two
weeks to get the best financing, and THEN go back at month's end armed with full
information and a buying plan. Give yourself a day or two extra in case the
first dealership doesn't work out and you need to go to another one. This is a
big purchase, don't try to do it all in an afternoon!
Write Write Write
Write down everything you lean about the car, from the internet, magazines, and
ALSO from the salesman. Why? Doing this keeps everybody honest, and literally
"on the same page"-YOUR page! Then your salesman can’t change numbers and terms
on you later on. Pull out your notebook, start writing, and watch him lose his
composure and change gears in a flash. It really works!
Buying a Car Really IS a Big Deal
Realize how big a purchase a car is. And it is complicated. Buying a car is the
second-largest purchase most people make after buying a home. When you buy a
home, think about all the help you have: you have a broker to help you find the
best home for you, and a mortgage broker to help you find the best financing.
And an inspector to make sure the house is safe. Sometimes you also have an
attorney to make sure the contract is fair, and a title company makes sure the
title is clear before you pay for the home. But when you buy a car, there is not
one person there to help you. And the dealers want you to THINK you can waltz in
to the dealership and buy a car from start to finish in an afternoon- and sure,
you can, but you will pay much much more if you do it that way.
Need some more advice? Dr. Robin Segal has a lot more tips.
Author of THE CAR BUYER'S BIBLE, Robin sold cars in a high- pressure car
dealership. Being behind the scenes and seeing what car buyers went through
broker her heart, so she wrote a book to help people avoid stress and save
money. She has been helping car buyers save money on their car purchases for
years. Robin has also worked on clean air transportation planning for the
United. Find THE CAR BUYER'S BIBLE at:
www.thecarbuyersbible.com