Car Buying Tips: Get Educated to Get the Best Deal

This is the first of a post series from the Car Buying University. Throughout this series Eric, who has hands on experience “from the other side of the table” will guide you through the pitfalls that buying a car can entail.

So you need a new car, huh? Did you realize that buying a car, even though it is rewarding and exciting, is one of the greatest fears of the American consumer? It is fun shopping for a car but most of the process can be so painful. First, you need to find the right car that fits your many needs. Once you have decided on which car is right for you then you need to visit dealership after dealership or spend countless hours shopping online. Finally you need to make sure you’re not being taken advantage of along the way.

This can be overwhelming at times but rest assured you can make the process much more enjoyable. You, like so many others, need a “car buying coach” and these articles are designed to be just that.

Education is the Key:

As a former car salesman, I can tell you that nothing scares a car salesman quite like the educated buyer. If a buyer walks into the dealership educated, it can make for a frustrating sale. Now, don’t get me wrong, the salesperson deserves to make an honest fee from helping you throughout the process, but the day of car salespeople raking in $2,000 – $4,000 in profit is dead and gone, given you use the Car Buying University as your guide.

Before venturing out to a car dealership you must know the following:

The type of car you’re looking for.

• You need to understand the 4 basic features of a car like performance, safety and security, economy, and convenience. By understanding how you rate these 4 basic features, you will greatly reduce buyer’s remorse from setting in at a later point.

Rebates and special dealer offerings.

• Each manufacturer has rebates, especially in this economy, which will give you incentive to buy their product. Furthermore, used car departments and independent used car lots offer additional reductions in order to bring buyers to their businesses.

The wholesale and retail value of your trade.

• It is important to know the value of your trade before hearing what the dealer is “offering” you. A quick cash increase for a dealer is to undervalue your trade. It happens much more than you realize. To keep this from happening, be sure to check the value of your car at Edmunds or Kelley Blue Book.

If you are looking for a used car, understand the wholesale and retail value of the new car.

• You must have a general understanding of the true value of a dealer’s car. By doing so, you greatly reduce your risk of being taken advantage of and you can now negotiate with the dealer on a wholesale to wholesale basis or a retail to retail basis.

Your credit rating

• A classic car selling trick is to make a buyer self-conscious about their credit, which in turn, causes the power and control of the sale to shift to the car salesperson. To check your credit report you can visit AnnualCreditReport.

The various finance options that are available to you.

• Understanding where you can get the money to buy the car is a GREAT negotiating tool and once again gives you control.

Ultimately what you are looking to achieve from the day.

• If you can go out shopping for a car with clear goals in mind, you will maximize your day of shopping.

By keeping these principles in mind you can recapture the excitement and fun that is associated with buying a new car. You don’t have to arrive to the dealership with fear, dreading the approach of the infamous car salesman. You can step back, seize and keep control throughout the entire process, and find your new car with ease rather than dread. Remember that education is the key!

Tagged as: car buying