I have been buying and flipping cars for over 25 years and have made about as many errors as 1 man can possibly make, but I do not consider them to be failures. I like to look at them as learning moments, because it taught me to not do "that" particular move again!!! So I learned what works and obviously what does not work as well. Therefore, I decided that I would jot down a few things that can help you and others to avoid my learning moments and keep some money in your pockets. Keep an open mind when reading this because if you not careful, you just might learn something valuable.
1). I got that cash on me!!!
I go to a dealership as the last possible option (either they have a unit that I want or some really unbelievable deal that I can't pass up). But if you do go to the even car lots, NEVER say up front that you are paying with cash (that only works in the private sector). Dealerships make a tremendous amount of profit off financing a car, so telling them you won't be borrowing $$$ will cause them to jack up the price of the unit to make up for the profit they won't be making on the financing. For example, you go to the Honda lot and say I am only spending $25000 as you walk toward the newly redesigned Honda Accord, but they steer you toward the lower valued Honda Civic to later up charge you to spend that $25000 on a loaded car that is valued at $17500. See how this game works!
2). I Already Have Financing Lined UP!!!
Telling a salesperson that you already have a financing deal in place tells them that they won’t be able to sell you any high-profit financing, so they will make up the profit by raising the price of the car. It is just like telling them that you are paying cash.
Of course, you absolutely want to have a pre-approved financing deal from a bank, credit union, or another lender in place before visiting the dealership. The time to pull this information out of your pocket is after you have settled on the price of the vehicle. If they don’t think that you have a financing deal in place, they have no incentive to find you a great deal on a loan. Knowing that you do forces them to meet or beat your financing if they want to earn the business.
3). My Hooptie Is Busted and Barely Running!!!
Don’t tell the dealership anything that shows that you urgently need to buy a new car. If they know that you don’t have the luxury of time to make dealerships negotiate or to drive around town looking for the best deal, you’re like fresh meat in front of a lion.
You’ve just told them that they don’t have any reason to give you a good deal.
Telling them that your current car needs work also invites them to give you a low-ball offer when it comes time to put a value on your trade-in. Before you visit the dealer, you should already have a good idea of your used car's value because Google makes this a no brainer in 2018. (Similar phrases, such as “I took the bus here” or “I just totaled my last car,” can also give the salesperson the idea that you are desperate to buy.)
4). I LOVE this car.......NOT!!!!
Telling a salesperson that the car is perfect and you don’t know how you will ever live without it lets them know that you are willing to pay whatever they want to charge.
Sometimes, a dealer will encourage you to take a car home for the weekend to get used to it. They hope that you become emotionally attached to it, and, more often than not, you will. Getting the best offer requires you to be willing to walk away from a bad deal, and the more interested you are with the car, the harder that is to do for the average sucker. Just remember that old Dionne Warrick song called "Walk on By" (Young folk can go to www.youtube.com)
5). This Is How Much I Can Afford Monthly!!!
Car dealers love to sell cars based on the monthly payment, but that’s a horrible way to buy a car. There are many ways to manipulate the financing and fees to get you to a specific monthly payment, but if you leave it up to the dealer, you’re asking for trouble with a capital (Sucka: I love this word because it's like a Drake song, its just gets us).
It’s easy to keep the monthly payment the same by extending the length of the loan. However, you’ll be making many more payments and typically paying a higher interest rate along the way. In the end, the car will be much more expensive than if you get a shorter loan with the same payment.
Slick auto dealers can also "pack" the payment with fees and add-ons that you don't want or need. If they have you looking at just the installment, you're less likely to see the overall amount that you are on the hook for. Do more question asking and less over sharing of your information.
Obviously I could go on and on for days on this but let me wrap it up by saying the following things.
A). Don't say what you do for a living, because they are sizing up your coins.
B). Never say I never had a new car before- You already know what that is saying!
C). I have a trade is saying please take my used car and charge me extra while you get over twice!
D). Always know your credit score. (its free at https://www.annualcreditreport.com/index.action) otherwise the dealer will say your score is worse than it is and charge you more.
If this is all overwhelming and you just want to get a good car for the low-low, find someone like me who will do all the dirty work and get you rolling with coins left to get you some gas along with your new car smell. This is a cold world and the streets are hungry, so buyer beware.
I am Ward.....
No comments:
Post a Comment