Monday, November 21, 2011

Car Buying Tips To Save You Money

Car Buying Tips To Save You Money

Negotiate Car Deals; 3 Steps To Your Best Deal

Posted: 20 Nov 2011 09:41 PM PST

Negotiating a Car Deal is a process that everyone hates to go through, but it can be as easy as 1, 2, 3. Car Dealers deal in Car Deals everyday, they practice negotiating, they have dealt with EVERY scenario. Car Salesmen are good at closing deals because it is what they do, remember this. I am going to give you 3 tips to get a leg up when negotiating your next Car Deal.

1. Never, I say NEVER, negotiate your Car Deal from a payment aspect. Car Salesmen want you to negotiate with payments because they have several ways to make the payment fit your criteria. Worry about payment after you have negotiated your best price on the car of your choice. If you negotiate with payments only, the dealer can extend terms, lower interest rates, or demand more money out of your pocket. Pick the Car you want to buy and do your research to determine what you are willing to pay. Also, please do not be unreasonable when negotiating on price. The dealer must make a profit to stay in business, but they do not have to make it all on your car deal.

2. The 2nd do not, is do not make an emotional purchase because you will always pay too much. When you choose your Car to make a Deal on, realize, there are many more cars out there that you would love just as much. If you are looking at a New Car, there are many other dealerships that will have the same New Car, you may have to drive out of town to make your New Car Deal. If you are Dealing on a used car, know there are hundreds if not thousands of used cars in your area. Emotional Car Deals will always cost you more. It is always a good idea to sleep on it overnight so that you can weigh the pros and cons of the Car of your choice.

3. The 3rd Car Deal Tip is to realize that financing is a crucial and costly part of your Car Deal. You can Negotiate the best Car Deal in history and pay too much in Finance Charges and negate the great deal. Car Dealers make money on financing, sometimes there is more money made on financing than on the Car Purchase. Here is how it works. The Salesman comes and says "I have Great News, you are qualified for 7.9 percent financing. What the dealer and salesman do not want you to know is that the lender gave you a rate of 5.9 percent. That means between the "Buy Rate" and what you are charged is 2 percent. This 2 percent or 2 points is profit for the dealer. Now, I am not saying that the dealer is not supposed to make money for handling your paperwork and obtaining financing for you because this is how banks and any lending institution operates. I am saying, shop around for your financing to make sure you are getting the best rate possible. Check at your local bank or credit union as well.

These are 3 quick tips to help you get the best Car Deal possible. There are many other little tips I will discuss in detail, but be sure to negotiate on price, don't buy on emotions, and get your best interest rate to save money.

Posted: 20 Nov 2011 09:03 PM PST
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