BEFORE GOING TO THE
DEALERSHIP
There are two things you must sit down and discuss:
- Your Budget
- Your Needs vs. Your Wants
Your Budget:
Sit down and discuss what your payment limits are and create a range:
Take notes:
- Your lowest payment is what you want your range to start with.
- Your range should have a medium or comfortable payment.
- 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
- Performance
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.
