BEFORE GOING TO THE DEALERSHIP
There are two things you must sit down and discuss:
1.Your Budget
2.Your Needs vs. Your Wants
Your Budget:
Sit down and discuss what your payment limits are and create a range:
Take notes:
1.Your lowest payment is what you want your range to start with.
2.Your range should have a medium or comfortable payment.
3.You must know what your limit is. This is your maximum payment - stick by it!
Remember once you take ownership that you will possibly be making payments for the next 3 to 4 years, so you must know your budget and stick to it!
PERSONAL CHECKLIST
You should take a look at your daily routine and what your driving habits are.
Do you often have passengers?
Do you ever have any kind of cargo, or move large items?
Is economy important to you?
Is safety important to you?
Is performance or comfort important to you?
What features (bell's and whistles) are important to you?
Are there any two features in your present vehicle that you would like to see in your new vehicle?
WHAT YOU NEED VERSUS WHAT YOU WANT
What we need, and what we want, are usually not the same and you must be realistic! If you have to think about it you cannot afford it. You must stick within your budget.
Decide what the most important reason or need for the vehicle is and make notes for later reference:
Transportation
Utility ( cargo )
Work
Economy
Family
Pleasure
erformance
BE HONEST WITH YOUR SALESPERSON
How about this for a tip. Be Honest with your sales person. Tell him or her what you want, and that you want a fair price. "I understand that everybody needs to make a living, but I can't afford to overpay for a vehicle. That is why I am looking at this particular model. You are here to provide me with a service. I will give you my business if you look after my needs!"
TAKE CARE OF BUSINESS WITH A CLEAR HEAD
Never shop for a car on an empty stomach. When its time to negotiate, you do not want your stomach growling or your head aching. You want to be fully alert when it's time to read the contract (and please take the time to read it). Take a snack - I know they have vending machine. NO! Take some fruit, sandwich, anything that is good for you. This will raise your blood sugar and you can take care of business with a clear head.
DO YOU HAVE A TRADE?
If you are trading a vehicle in at a dealership, you must realize the dealership will only give you the wholesale value, or book value!
What is "Wholesale value" or "Book value"?
"Wholesale" and "Book" value are figures gathered from auctions across the country. An average price is determined for all vehicle makes, and models which is updated by-monthly. Most dealerships regardless of what they say have subscriptions to these books!!
Tips:
Remember it will take up your time and money and you may find trading your vehicle for less is worth doing! Always
consider both options!
If you are trading your vehicle remember when you trade, it is the "remaining price deference" that is important as
long as the purchase vehicles are identical!
If you have a vehicle over 8 years old and it is starting to fall apart, do not do any work on it and trade it.
If you have a newer vehicle you will be better off selling privately. Again, be ready to invest your time and money
(weekends and newspaper adds).
Do not start listing all the work you have done to your vehicle. It rarely makes a difference to the dealership since
they are going by the "Wholesale" or "Book" value!
Dealerships hate it if a customer brings their trade into the negotiation after the customer has negotiated a price. |
