Car Buying Tips

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*) Never buy a vehicle on your first day out to the car dealership.

*) There is no "cooling off" period on new car sales. Once you have signed a contract, you are obligated to buy the car.

*) Having selected a model, call at least two or three different dealers for price quotes and let each know your quote from the previous dealer and that you will be calling other dealers. That's being a clever shopper!!

*) Stay within the price range that you can afford. If possible, put down as much money on your new vehicle as you can. A large down payment will reduce the time of the debt and the amount you pay.

*) Be Smart, Take the Rebate! That is even more money you can deduct from your new vehicle to make your monthly payment smaller. Don't think 0% financing always means cheaper. Read more about Zero Percent Financing Versus Cash Back Rebate

*) If you have a trade in, try selling it yourself, you will get more money for it then the car dealer will give you.

*) If you can't sell your car on your own, research and know the value of your (trade in) car BEFORE you discuss a price for it with the car dealer and AFTER you have negotiated the best possible price for your new car.

*) Dealers often want to sell their current inventory quickly, so you may be able to negotiate a good deal if an in stock car meets your needs.

*) Dealer Sticker Price: Dealers will often add a sticker to the factory manufacturers suggested retail price (MSRP). Sometimes it even resembles the factory sticker, but now you know it is not. It is the dealer's asking price (suggested retail price of dealer installed options, such as additional dealer markup (ADM) or additional dealer profit (ADP), dealer preparation, and undercoating). Dealer sticker asking prices are almost always inflated. Inform the salesperson upfront that you will not be negotiating from the dealer's sticker, you will only negotiate from the invoice price.

*) Dealer preparation: (or dealer prep or preparation charges) An additional charge that dealers try to impose on buyers. It represents pure profit for the dealers, who have already been paid by the manufacturer for the cost of preparing the car for sale.

*) Know the difference between buying and * leasing a vehicle.

*) Don't buy under stress. Research suggests senior citizens, people in crisis (coping with a death or debt), college students, small business owners, minorities, and immigrants are especially at risk of being victimized. Avoid making big ticket purchases during times of duress.

Glossary For This Page
(In Alphabetical Order)

* Lease
A contract agreement between the lessee (you) and the lessor (the leasing company) for temporary use of a vehicle for an agreed period of time and for a specified payment, that you pay to the leasing company without actually buying the vehicle. The company leasing the vehicle continues to own the vehicle. The vehicle is returned to the leasing company when the lease expires unless the lessee (you) decides to buy the vehicle, if the contract allows for that option.

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