 CarCanada.com
is a website of a Chrysler Dealer
CarCanada.ca, CarsCanada.com and
CarsCanada.ca are useless ad sites.
Besides buying
a house, buying a new car is
typically the largest purchase many of us make. But a car isn’t just a
purchase. Cars take us to work, carry us to our social lives, and for
many people our cars are a reflection of who we are.
Unfortunately, buying a car can also be an extremely
stressful event that fills us with distrust and leaves us feeling
like we were just raked over the coals.
What Kind of Car Should I Buy?
The days of visiting your local new car showroom and walking the
lot until you find a car that looks right for you are over. And so
are the days of being pressured by sales people until you buy a
car that may not be right for you. Thanks to the internet,
shoppers can go to the website of every car manufacturer and
review every model of car available. In fact, most manufacturer
sites will even let you use drop down menus to “build” an
electronic version of your dream car.
Then, when you decide which model,
colors, and accessories you want, you can hit the locate dealer
button and find the closest showroom that has your car. There are
even great websites now that compare car models and provide
information about safety, fuel economy, model ratings, prices, and
general car buying tips. The great advantage these websites give
you is the ability to walk into a dealership, and tell the
salesperson exactly which car that you want and exactly how much
you are willing to pay for the car. And if you don’t want to go to
a showroom, there are websites where you can actually buy cars.
Negotiation
Ok, so you found your dream car. It has the engine you want, it’s
the right color, and the cup holder is perfect for that gigantic
cup of coffee that you drink each morning on the way to work. Now
it’s time to sit down with your salesperson and negotiate your
price. You may qualify for special discounts or benefits for being
a Veteran or a member of another qualifying group. Here is where
your research is really going to pay off.
The sales person will offer you
discounts and cash back deals that sound great, but if you don’t
go into the negotiation knowing the dealer invoice price (how much
the dealership actually paid to buy the car) and what discounts
you qualify for, you are going to overpay. Dealers set car prices
by adding dealership overhead costs like marketing fees to the
price that they pay for each car. Then, they increase the price
again to give them a profit margin. So, when salespeople negotiate
with buyers, they start at a high price, and work their way down
toward the invoice. This makes it look like they are giving
customers steep discounts.
As a buyer, need to know the invoice price of the car you are
going to buy, because for you to get a good deal on that car you
need to negotiate up from the invoice instead of down from the
inflated price. Depending on the dealership you are shopping at,
this process can take minutes or hours. Sometimes the salesperson
has the authority to make deals with the buyer, and sometimes you
end up meeting with their supervisor, and occasionally, the owner
of the lot.
We suggest that you dress
comfortably and be prepared to walk out without the car you want.
This way, you can put whatever time is needed into making sure
that you get the best deal possible and everyone at the dealership
will know that you are serious about getting a good deal.
Car
Financing
Whew, you’re almost there. You found the car you want, you
made it through the negotiation, and you shook hands with the
salesperson on a price that you both feel good about. If you are
paying cash for the car, you’re done. But if you are financing
your purchase, there is one more important negotiation ahead of
you. The salesperson will walk you back into an office in the back
area of the dealership to meet with a financing officer. The
finance officer will have a bunch of paperwork for you to fill
out, most important of which will be one that gives them
permission and the information that they need to get your credit
score. Many lenders use Credit Scores, or specifically credit
bureau scores, to help determine whether you are likely to repay a
loan on time. So, your score tells the dealership how low an
annual percentage rate that you qualify for.
Here is another chance for your research skills to pay off. Before
you go to the dealership, you should get a copy of your credit
report, so you know what kind of rates that you should qualify
for. If you know that your score is high, 620 and up, you should
be offered the lowest rates possible. But finance officers may not
always give customers the best rates that they qualify for. Car
manufacturers often have their own finance departments, so they
make more profit when selling customers loans at higher interest
rates. So, keep your comfortable clothes on, and remain prepared
to walk out without buying the car. You may spend more time and
meet more supervisors before you agree on an interest rate for
your loan. You should also consider shopping around for loans
before you go to the dealership. Banks, credit unions, and
shopping clubs all offer car loans now, so you may be able to find
a better deal outside of the financing department of your
dealership.
CarCanada.com is a website of a Chrlysler Dealer
CarCanada.ca, CarsCanada.com and
CarsCanada.ca are useless AD sites.
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