Car Buying Tips We Can All Use

Haggling with a Honda dealer is possible even with a popular car such as the Fit. If one dealer refuses to budge on price, go to the next one.

If you are searching for a new set of wheels, then you understand the amount of stress involved in your search. Just ask the average person what they dread most in life and many will tell you that “price haggling” ranks right up there with visits to the dentist.

Not too many shoppers come away from the transaction thinking that they got a good deal; if people are truly candid, they’ll admit that they got ripped off or could have held out for a better deal.

Haggling Isn’t For Everyone

Other than shopping at a “no haggle” dealer – Saturn, for example – what can you do to ensure that your car buying experience is a good one? Is that even possible? Let’s examine various ways you can gain control over the car buying experience so that you can save yourself some time, money, and avoid tons of agitation.

Avoid Popular Models. Several Japanese brands are sold at full price and bargains are hard to find. However, if you do some research you should be able to trim several hundred dollars off of the sticker price or secure a very low borrowing rate should you choose to finance your vehicle through the manufacturer’s financing arm. If the dealership doesn’t want to bargain with you, then find another Toyota, Honda, Nissan, etc. dealer who will.

Buy Last Year’s Model. Not every car is a top seller with some models still on dealer lots as the year ends. This doesn’t mean that there is something wrong with the car, rather the manufacturer has an oversupply of inventory. In this current market where supply is definitely outpacing demand, you can get a deal on last year’s model even better than the advertised discount. What’s more, if it is a car that has been discontinued or the previous generation of the same, you have additional room to negotiate.

Put together your own financing. When buying a car, you should negotiate the lowest possible price and talk about financing after a deal has been struck. If you come into the negotiation with your financing already covered, then you have additional negotiating power. If this is an all-cash transaction, then you’re in an even better position to demand a greater discount.

Get equipped. Consumer Reports offers a report detailing exactly how much a car should retail for. You can purchase a report on any model and discover what the dealer paid for the car. The price you end up paying should be well below the sticker price, closer to the dealer’s cost. Even buying a car “below dealer cost” is possible as automobile manufacturers will sometimes offer incentives to their dealers in a bid to move unsold products.

Buy your car through a club. Car clubs, including those offered by warehouse clubs such as Sam’s Club, can be a way to purchase a new car at a discounted rate without having to pay full price. Each club has their own money saving methods, but in most cases you should be able to save money and avoid the negotiating.

Wrapping It Up

Finally, if you are the sort of individual who enjoys haggling, then your car buying experience is not likely to turn out bad. You already know how the game is played and winning for you is simply securing the lowest possible price. For other shoppers extra help is needed, assistance which can save you money. Do not let your emotions tell you, “I must have this car” otherwise you will probably pay much more than you should for it. Don’t fall for the dealer sob stories about how they can’t profit off of the sale of a car to you. If they can’t figure out how to make money, then that is there problem, not yours.

Finding A Used Car That Won’t Let You Down

High gas prices are putting a strain on American family budgets, forcing some people to make hard choices when it comes to their transportation. Unless you live in an area where mass transportation is usable, you’re probably doing just like everyone else — depending on your car to take you where you need to go.

Some people are fighting back by getting rid of their SUVs and pick up trucks, deciding to shop for transportation which will cost them less, at least less per mile. Sales of new compact cars rose sharply in May 2008, bolstered by people who were making that switch.

Not everyone is in the market for a new car, but they might certainly consider a reliable used car if they could find one. As you explore the market and research particular models, there are some things you’ll want to keep in mind to ensure that your used car won’t let you down:

Visit KBB — Kelley Blue Book is the authority on used car prices. Go to their website to see what the retail value is of the car that you want. You’ll pay less if you shop the classified ads with Craigslist and your local newspapers a good place to start. Note: prices of economical used cars has been rising dramatically as demand surges accordingly.

Compare Models — Late model used cars can set you back by $10-25,000, and deliver you good gas mileage. If you are mechanically inclined, consider a Toyota, Honda, or Nissan model that is at least ten years old. Some of the older cars get better gas mileage because their emissions aren’t as strict and they don’t have all of the airbags and other safety devices which add to the weight of the car.

Get It Inspected — Before I purchased my 2001 Dodge Neon in 2003, I ordered a Carfax report to verify that it hadn’t been damaged, salvaged, or had some other glaring problem. Though I didn’t have a mechanic inspect the car, it can be worth the $50-$100 you would pay to have your guys at the garage look the vehicle over.

Shop Around — Besides checking the classified ads, consider a certified used car especially one with an extended warranty. You’ll pay a premium for those types of cars, but you’ll also get a car that has low miles and is backed by the manufacturer. Also consider buying a rental fleet car — our Toyota RAV4 was purchased from Hertz Rental Sales, a fully loaded 2003 model we bought toward the end of 2004.

Finally, when researching the market, pull up objective road tests from websites including The Truth About Cars and get a copy of Consumer Reports April car buying guide for detailed information about your ride.

A used car can save you money on gas, insurance, and registration, but if it isn’t reliable, you could pay more for maintenance and repairs, effectively canceling out your savings in the process.