| Here's an article circulating on the internet from today, | | | | you're stuck again. |
| from CNN Money, about car buying and car | | | | Don't: Negotiate trade-in and purchase at the same |
| negotiating. I think it's ok, not great. There are a few | | | | time |
| tips left out: first, arrange your own financing and your | | | | Buying a car is really a series of transactions. Yet |
| own loan in advance, because the dealer's loan is | | | | buyers tend to subtract what the dealer is giving them |
| often deceptive and more expensive even if it seems | | | | for their trade-in from what they're paying for their |
| similar to the one you've arranged at your own bank. | | | | new car. Then they say: "Hey, I'm getting a $42,000 |
| Second, if the dealer makes any representations about | | | | car for $35,000!" |
| the car, make the dealer write these down on the | | | | Actually, those buyers can't take all the blame since |
| "due bill" portion of the sales documents, and have the | | | | that's how the salesman presents it: as if that $7,000 is |
| dealer sign the due bill and indicate that the promises | | | | a gift, and they're just doing you a favor by taking that |
| made about the car are a part of the car's warranty. If | | | | old car off your hands. |
| the dealer refuses to write down the promises, BIG | | | | Remember, they're taking something of real value in |
| RED FLAG. Third, if you're buying a used car from a | | | | exchange for that money. And you have the right to |
| franchise dealer (i.e. a Ford from a Ford dealer, etc.), | | | | get as much as you can for your old car. Don't allow |
| have the dealer print out the service records for you | | | | the dealer to tell you what it's worth. |
| so you can review the warranty service records on | | | | You also have the right to pay as little as you can for |
| the car to know if the prior owner or owners had any | | | | your new car. But there's no way you can negotiate |
| recurring major problems with the car. | | | | both those things effectively if they're attached |
| Hope these tips prove useful to you. Thanks for | | | | because you won't be able to see the numbers clearly. |
| reading & here's the article. | | | | Negotiate the price of the new car first. Get that |
| NEW YORK (CNNMoney.com) - If the annual model | | | | number down to something you're comfortable with. |
| year change-over - and all the sales that go with it - | | | | Then negotiate your trade in and get that number as |
| have you in a car shopping mood, don't be lulled into | | | | high as you can, or if you still feel like it's not enough, |
| paying more than you have to. The deep discount you | | | | take the car elsewhere or sell it yourself. |
| think you're getting may be nothing more than an | | | | Don't: Negotiate in person |
| illusion. Car dealers can make you think you're getting a | | | | For some reason, buyers still feel like they need to |
| fantastic deal, and buyers tend to hear what they | | | | negotiate the price of a new car in person at the |
| want. Here's some advice on how to really get the | | | | dealership. In the old days, that was the only way to do |
| best deal. | | | | it. If you called a car dealer on the phone, they wouldn't |
| Don't: Fall in love with a car | | | | even discuss pricing. |
| Don't get us wrong here, a new car is a big purchase, | | | | These days, most dealerships have salespeople, or |
| so it's important that you really do love your car. If you | | | | even entire departments, that specialize in dealing with |
| want to buy a microwave oven just because | | | | customers over the phone and by email. The old days |
| Consumer Reports recommends it, go ahead. A car, | | | | of not talking to customers who weren't physically in |
| like a home, should make you happy and that's | | | | the store are over because a dealer knows that if he |
| something only you can judge. | | | | doesn't negotiate a price over the phone, someone |
| But you wouldn't marry someone after just reading | | | | else will and he'll just lose the sale. |
| their Facebook profile. You'd at least want to go out a | | | | Negotiating over the phone or via email keeps you in |
| few times, right? So don't decide you've got to have | | | | your comfort zone - your home or office - not the |
| that cute new SUV you just read about in a magazine. | | | | dealer's showroom. While you're waiting for an answer |
| Calm down, catch your breath and wait. Wait until you | | | | on your offer, you're not stuck in an uncomfortable |
| can drive it. Wait until you can drive some competing | | | | chair with nothing to look at but brochures. |
| models and get a sense of whether it's really all that | | | | Many dealerships now have Web sites where you |
| terrific. | | | | can even search the vehicle inventory online and |
| And you may want to wait until the price comes | | | | request a quote on a specific vehicle. That way you |
| down. Dealers often tack on premiums, charging more | | | | can be sure the vehicle you're negotiating on really has |
| than full sticker price for brand new models they know | | | | all the features you want. |
| will be in high demand from day one. So rushing to be | | | | When the negotiating's done, ask them to fax you the |
| the first one on the block with the hottest new model | | | | deal in writing so there will be no surprises when you |
| can cost you thousands of dollars. | | | | arrive to get your car. |
| And that "first with the hot new thing" thing fades | | | | But we're not recommending you avoid dealerships |
| quickly. Then there will just be you and that car. And | | | | altogether. Before you get down to numbers, you'll |
| those car loan payments. Hope you still like it. | | | | want to test drive the vehicles and get a walkaround |
| Don't: Take that long, long, long, long loan | | | | from a knowledgeable salesperson. Just be clear |
| Super long car loans may seem like a painless way to | | | | when you go in that you'll not be purchasing the vehicle |
| get a new car with low monthly payments. That's | | | | that day. You still have some other research you want |
| certainly the way the salesman will pitch it to you. But | | | | to do. |
| here are two things to remember: | | | | Don't: Take a 'great deal' on the outgoing model year |
| First, the bottom line is that you are just, flat out, paying | | | | You may be tempted by a steep discount on an |
| more money. Whether you're paying it in three years | | | | outgoing 2007 model year car, but be careful. |
| or six years, it's just more money. (And a big part of | | | | Remember that the car will ultimately be worth less at |
| that "more money" is more interest, so it's not even | | | | trade in time than a 2008 model year car. |
| buying you anything.) | | | | That will be much less of an issue if the 2008 model |
| Second, it may be painless now, but it won't be | | | | year version is unchanged from 2007. If the 2008 |
| painless if you find yourself trading in that car in a few | | | | version is all new or substantially changed, though, |
| years. If you haven't paid off a big chunk of your loan | | | | watch out. Your car will be seen as "old" the minute |
| by that time, you could end up "upside down" in your | | | | the new version hits the roads and will take a steep |
| current car. That means you owe more money than | | | | drop in value. |
| the car is worth. | | | | In that situation, only a huge discount will make up the |
| The car dealer will be only too happy to help you out | | | | loss. Or, if you just like the old version better, the extra |
| with that problem, but that just means adding the | | | | cost may be worth it to you. As long you're aware of |
| money you owe into the loan for that next new car. | | | | what you're getting into. |
| And guess what? That means another long loan and | | | | |