Smart Vehicle Shopping

Wouldn’t it be nice if everyone knew the exact price of a car, the way we know the price of a can of soup at Walmart? Sadly, vehicle shopping is much more than just looking at it’s price tag and you need to know some basic things before negotiating a price with your local car dealer.

The first thing to do is to have a reasonable budget and stick to it. Either you can already pay for the car you want right way or you need a car loan. As much as possible, buy only a car that you can pay for without taking out a loan. Instead of buying a car that is $10,000 more than your current finances can handle, why not just buy a cheaper car? That way you won’t even need to worry about monthly car payments. The interest that you pay on a car loan is money lost forever; it’s not even tax deductible.

If you need a loan just go to your bank and apply for it. Find out how much you will need to pay each month. It is possible that when you go to the car dealer, he may offer a better deal. Take it if he does, if not, you already know from your car loan application at the bank how much you will be spending.

Approved financing also means that the dealer will treat you like a cash buyer which is always preferable to car sellers. A pre-approved car loan means that you will not be at the mercy of the dealer’s credit department.

When planning your budget keep in mind other costs such as gas and car insurance.

The internet is your friend; use it to find information and prices of the cars you want to buy. Read some user reviews. Check out colors and options. Compare various models and their prices. Browse your local car dealer’s website. Information is your weapon when it comes to vehicle shopping.

Manufacturers may also offer rebates or incentives. These can be very helpful to the consumer who is on a budget.

One option to think bout is leasing. If you just want to buy a car and keep it for a couple of years, then go ahead and do that. However, if you would like to change cars often, say at least once a year, leasing is a good idea.

Now it’s time to go to your car dealer of choice and negotiate a price. Armed with information you gathered from the dealer’s website, you should know what they have on their inventory. That way you won’t get fooled if they tell you that the car you want is hot seller and the last one in the lot (and therefore worth a premium price) when in fact they have many of the same car at the back of their lot.

Make sure to let the dealer know that you are aware of the incentives and rebates for your chosen car. Sometimes unscrupulous dealers may try to pocket the difference themselves if the car buyer is uninformed.

The cars on the lot will all display a window sticker showing the suggested retail price of that car. Often, another sticker will show added charges. Inspect that one closely and pay for the dealer-installed extras like an alarm system but beware of padding. Some charges you should not have to pay are “market value adjustments” (i.e., they added to the price because they want to) or documentation fees or “added dealer profit” (a blatant display of greed) unless the car really is selling like hotcakes.

Automakers or car manufacturers add a special dealer incentive which is a 1-3% refund of the invoice price when the car is sold. This refund goes to the dealer, of course, not to you. Knowledge of this should provide you with a good idea on how to start haggling price.

Keep in mind that if you are not fully satisfied with the pricing of your car, you are perfectly free to walk away and go to another car dealer. Don’t get emotionally attached to the car or think that you must have that one right away. Be smart when it comes to your vehicle shopping.

Do not think of the car dealer as the enemy. Always treat him or her with courtesy and you will received courtesy in return. These are just ordinary people trying to make a living. Be honest about what you need and want. In the end if you are not satisfied, walk away but be polite about it. No need to rage at n employee when there are other car dealers around.