| The new car market is definitely in bad shape right | | | | negotiate that price down below invoice. |
| now. The economy is suffering and gas prices are | | | | Even though car dealers are discounting new cars |
| skyrocketing. Over the past year new car inventories | | | | they are working harder than ever to nail you |
| have been rising as car dealers scramble to sell more | | | | somewhere else in the deal. |
| cars. | | | | Here are a few areas to be aware of: |
| If you need to buy a truck or suv you can really | | | | 1. Credit Report. They will lie to you about your score |
| hammer the car dealer for a great deal because sales | | | | to get a higher interest rate out of you. If you do not |
| are way down. As manufacturers gear down | | | | run your own credit first and have it with you be |
| production of these vehicles they are scrambling to sell | | | | prepared to pay more in the financing. |
| off the inventories on car dealer lots. They are offering | | | | 2. Subject to financing clause in contract: This is the |
| lots of incentives, such as 0 percent financing and big | | | | most popular dealer trick out there. When you are |
| rebates. | | | | approved at the dealer at a rate and payment make |
| Make sure you check online for any offers because if | | | | sure you have the bank approval right then before you |
| the dealer can get away with it he won't tell you about | | | | sign the paperwork. If there is a clause in your contract |
| the rebate. This allows him to pocket the money. Also | | | | that states anything like "Subject to loan approval" or |
| look out for manufacturer to dealer incentives. These | | | | "Subject to financing" then you have not officially been |
| are special rebates the manufacturer offers the dealer | | | | approved and when you drive home you will get a call |
| on certain vehicles. It is not advertised, so many | | | | a week or 2 later telling you that your loan was not |
| dealers will keep the money and you will never know it | | | | approved but we got you done through another lender. |
| existed. | | | | Your rate may be higher or the term of the loan has |
| One way to find out is to tell the salesperson; " I was | | | | been extended. |
| told that you are offering a manufacturer to dealer | | | | When you return to the dealer you will find your trade |
| rebate also, how much is that?" The salesperson can | | | | has already been sold and you are stuck. If the |
| either lie to you or come clean assuming that you | | | | contract does not have an official loan approval from |
| know about it. | | | | the lender, tell the finance person you will come back |
| Many of the hybrid and high gas mileage vehicles are | | | | when he has the approval. DO NOT drive the car |
| still selling, but sales are still down. Do not let a | | | | home! |
| salesperson try to charge you more by telling you it is | | | | 3. The interest rate bump. The finance person will |
| a high demand car and we can't do any better on | | | | bump you a few points on interest and the dealer gets |
| price. Just leave and go somewhere else. | | | | that money back from the lender. He will tell you; "I got |
| If you are a smart new car shopper you have already | | | | you a great rate! This is lower than I thought you |
| done your research online. Do not ever just go to a | | | | would get!" |
| dealer without getting new car prices first. There is no | | | | Know your rate ahead of time by applying for a loan |
| excuse for not having the new car invoice printed out | | | | online and telling the dealer if he cannot match or beat |
| and in your hand when you arrive at the dealer. | | | | that rate you will finance your car through the online |
| Make sure you have also researched information | | | | lender. now ahead of time what rate you should qualify |
| about your trade in value. Unfortunately, if you are | | | | at. |
| trading in a truck or suv you will not get anywhere | | | | Buying a new car in today's down market is an |
| near what it is worth. In fact some car dealers are not | | | | excellent time to save money. Just be aware that the |
| excepting these vehicles in trade right now. | | | | car dealers are working harder to squeeze more |
| Car Dealers are ready to deal and if you do not drill | | | | money out of in other areas besides selling price. Get |
| down the selling price you are doing yourself a great | | | | you new car prices ahead of time and negotiate hard, |
| disservice. Forget about monthly payment and | | | | but be careful once you get in the finance office. |