|
The excitement of buying a new car never fades. Maybe it's never quite like the thrill of your first car, the slightly beat-up one that you got when you were in high school or college. But still, there is a lot of fun in choosing among the various automakers, models, colors and options. And what can be better than getting an upgrade, a better car than your previous one? Even if you got all the nicks and dents fixed up on your old car at the local auto body repair shop, there is nothing like the smell of the new car when you first get in, the fun of removing the plastic covering on the brand new, pristine seats.
But there is a part of buying a car that is less than fun, especially for those who are not so proficient at it--negotiating with the dealership to get the best price. These are the same negotiating skills you need at the Auto Repair shop. Many people feel at a disadvantage and are disappointed that they didn't get the best deal possible.
One reason that negotiation is stressful for some folks is that they don't understand how car dealerships make their profits:
One way they profit is to offer you below-market price for your trade-in. This is why it could be smart to get minor auto body repair work done before you show them the car.
The cost of the auto body repair will be made up in the price you get for your trade-in. If you haven't done your homework and shopped around, the car dealers can quote you a higher price. Shop around. Check the car dealership websites. Get quotes. If they see that you are prepared they will treat you differently.
The salesmen can talk you into taking environmental package extras and extended warranties. But mostly, they can make their money by upping the rate they give you for new car financing. This is where they make their real profits and this is exactly where you need to be an educated consumer.
The first thing to do is to know your own credit rating and check your credit report. There may be mistakes and errors on the report that lower your rating and can cost you extra money each month in higher payments. This could affect your economic well being for several years for the duration of the loan. If you find errors, make sure the credit report company corrects them. One smart move is to get pre-approved by the bank before you even step foot in any auto dealership.
If you have a used car to sell, get some auto body repair work done to make the car more presentable and thereby fetch a better price. However, if you have a clunker, don't wait until it's ready to croak before buying a new car. In some cases all the body repair work in the world will not help. It takes several months to shop around, get approved for loans and you don't want to be desperate when you're car shopping.
>> Back to Online Mechanic Articles
|