Buying a new or used vehicle can be a confusing transaction. If this is your first car buying experience and you want it to go as smoothly as possible, you should do some research before starting the process. If you are an Expert car buyer, this advice may just be a little reminder to cross all your “T’s” and dot your “i’s”.
Understanding the car buying process from the point of view of all the party’s involved will help make the transaction more clear. As the buyer, you want to get the best car for your money and possibly get the best value for your trade. Of course some buyers have a low monthly payment in mind or a fixed dollar amount per month they can spend on a car. These buyers sometimes overlook the interest percentage rate or term length because the monthly payment fits their budget. It is very important for this type of buyer to understand the loan process and purchase a vehicle that will hold its value throughout the term of the loan. Getting upside down in a car payment is a bad situation and can be prevented if some good common sense is used.
Selling automobiles for profit is the name of the game for the car dealer and they are very good at what they do. Most dealerships offer low online prices to get buyers in the showroom and often the vehicles listed at the low monthly payment or below dealer cost pricing are not available, but a similar vehicle at a slightly higher price is available. This tactic is frustrating for the car buyer and is all to common in the car dealer world. Another tactic used to mislead consumers is selling a payment. Often the dealers sales rep asks how much per month the buyer can afford before anything else. Having that information gives them the edge because they can steer the buyer into a lower priced vehicle with more profit in it. Unfortunately these tactics are still used and buyers fall for it every day. The smart buyer should do their research online about the vehicle they are interested in and understand how much they can afford before going to the dealer. This can help prevent being misled into a long term finance situation or inflated pricing.
The finance department at the dealership can be your best tool when car buying. These professionals know what finance institutions are lending and where to get the best rates. Getting input from the finance department early in the car buying process can help you make a smart buying decision. Ask the agent for multiple options and terms and don’t be afraid to put some money down to get the monthly payment you are wanting.
Research ALL of the dealerships you plan on visiting and ONLY do business with the ones with good reviews. Dealers with many negative reviews plan on only selling one car to one person once in their life. They do not care about repeat business and do their best to make the most on every transaction. These types of dealers often prey on buyers with poor credit or desperate buyers in a bad situation. Small town dealerships that have been around for many years are your best bet when buying a car, truck of SUV. These dealerships care about your happiness because they want to earn your future business. Also they expect to see you at the store or around town, their reputation is important to them. High volume dealers can advertise lower prices, however many of them end up selling vehicles at the same price as the lower volume dealers because of the large overhead they must maintain. Dealers with hundreds of cars on the lot must pay for all of those vehicles and each one potentially raises the cost of the car you are wanting to buy. More inventory and more choices DOES NOT mean lower prices for the buyer, actually it’s a sure sign that the prices are higher than normal.
With all the information available to the car buyer today, it is very possible that you will find a vehicle at or near “dealer cost” or find “employee pricing” on a new car, truck or SUV. These terms are advertised all the time to try and make the buyer think price negotiation is off the table. DON’T fall for it. ALWAYS negotiate!
Contact Sutherland Chevrolet to learn more! Selling cars since 1925.
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