What to Do Before You Go to the Dealership

Where to Shop

Car Dealerships employ sales people. While many view the car salesman as someone that is not to be trusted, they are really just doing their job. Their job is to get as much money they can out of a consumer buying a new car. In order, to counter the car dealerships ability to hire smooth talking salesman who may back you into a corner with a higher price than you need to pay when buying a new car, you need to be prepared. You also need to think like a salesperson.

Do online research. This is one of the best new car buying tips you will find. There are so many Internet car buying portals out there that you can have your pick.  Car.com at www.car.com  is an excellent starting point for online research regardless of which car you are interested in.  They offer prices and research on both new cars and used cars, as well as car buying tips that run the gamut from blue book prices to editorial reviews of various vehicle makes and models. Whether you choose to start at Car.com or directly at the dealership you will most likely physically go to, you can find out a wealth of information online – and should. Car buying experts will tell you that doing research online before you buy is one of the best new car buying tips anyone can give you.



Who to Consult

Consult experts and friends. When looking into buying a new car, it’s an obvious fact that people will go to their friends and family and ask them what they like or dislike about their own vehicles.  It’s just common sense if you are considering buying a new car that someone you know already owns, you will get their expert opinion on what they like, and dislike, about their car. However, consulting other experts is worthwhile as well. You might consider asking your local auto shop if they have an uncanny amount of car repairs to do on a certain make or model, or if they have fixed any problems on a certain vehicle. This gives you insight from the perspective of the person who sees what can go wrong with a vehicle. You can also use the Internet, to get tips from car experts who blog about their experiences. A blog that is extremely useful is Tommy Chang’s New Car Buying Guide http://www.tommychang.net/2005/06/new-car-buying-guide.htm. He covers many areas related to buying a new car and what you should consider when consulting friends and experts including finding out about MSRP.  Finally, you can review sites that offer write ups about cars:  Edmonds.com (www.edmunds.com), CarandDriver.com (www.CarandDriver.com), and Kbb.com (www.kbb.com), offer reviews for future car buyers to examine.     

Pay attention to invoice price not MSRP. MSRP, also known as sticker price, is the manufacturer’s suggested retail price. The MSRP already figures in a profit for the car dealership. When buying a new car you don’t want to be stuck haggling downward from the MSRP, as it make more sense to haggle upwards from the invoice price. Knowing the invoice price is something just about any new car buying guide will tell you. It is also some of the best new car buying advice you will ever receive. If you do your research online, and find out the invoice price, you know what a good starting point is for debating price. However, be aware that the invoice price is not the end all be all of pricing either when buying your new car. Often dealers are offered “hold backs” from manufacturers, which means they get a certain part – often hundred of dollars – of the sale back. However, they only get this after the car has been sold. An excellent article on ”hold backs” can be found at http://money.cnn.com/2003/11/24/pf/autos/invoice_price/. Being aware of MSRP, invoice price, and the potential that your dealer got the car below invoice can be helpful bargaining tools – if you make the car dealer aware that you know about them, and you only will if you do your online research before going to the dealership.

Consider financing options. This is another area where a car buying guide or new car buying expert can be helpful. Many dealerships offer their own financing options, but you should be aware that these financing options are all in the dealerships favor. They are in the business of making money. When you are buying a new car, you are in the business of spending as little as possible to get your dream car. You may find that your favorite car expert knows nothing about financing cars, but that you bank does. Often times you can get pre-approved for a specified amount at your own financial institution before you even know what car you want to buy. And added perk of getting your new car loan through your own bank is that often you can get percentages off for holding checking, savings, or other loan accounts through your bank. Researching your financing options is as important, as researching your cars MSRP, it’s options and it’s availability. Still, none of this research is important if you don’t use it properly.

Know your data, and back it up with printouts. There is no point in doing all your online research for the car dealer, finding the perfect car you want at the perfect price you need if you don’t try to get that price. A car salesman’s job is to get as much money as he can from you. If you bend easily under pressure and fast talking sales pitches, your printouts can be your saving grace. They will tell the car salesman that you are prepared, know what you want, and intend to get it before you even open your mouth and begin sharing your knowledge. One of the best car buying tips you will ever find in any car buying guide, or any car buying advice is this: If you could sell the car, you know enough about it to buy it.