Car-Buying Tips...

Discussion in 'Credit Talk' started by CardKid, Apr 30, 2001.

  1. CardKid

    CardKid Well-Known Member

    Just a few insider hints:

    Have your financing in place BEFORE you go to the dealership. If you do not have financing in place, take a copy of your credit report with you.

    Once you find a car, offer a price $3,000 below what the dealership is asking. If they do not bite, ask to see the "Black Book" (if you're NOT buying a new car) and have the salesperson "book the car out" in front of you. This will give you an idea of what the dealership paid for the vehicle.

    Once you agree on the price, do not sign anything excet an agreement to return the car to the dealership within 24 hours - because you should take it to a mechanic for full inspection. A good dealership will allow you to keep a car overnight to have it checked out.

    If everything checks out, find out what your interest rate will be if you allow the dealership to obtain the financing. Once you know this information, ask to speak to the finance manager (to make a counter offer on the rate). Tell them that you are pre-approved for a loan and the rate is 1.5 points less than the dealership's rate (even if you're not). They should cut their rate. If not, ask for a shorter financing term. There is an automatic point reduction if you shorten the term.

    Turn the heat up by asking to see the "Buy" rate in the finance manager's rate book.

    If you're a "hard ass" in the finance office, chances are you will get what you want and more.

    If you're interested in an extended warranty, tell the finance manager to agree "in writing" that you can purchase an extended warranty at $1 over "warranty wholesale cost and you have 30 days to make a decision on it." Don't purchase the warranty up front. Shop around first. You have 30 days. Remember?

    I've financed thousands of cars and the customers that came in the office with their "ducks in a row" left with the best deal.

    Because this board has helped me tremendously, this information is the least I could offer. I hope you save thousands on your next auto purchase.

    Good Luck!

  2. Sorin

    Sorin Well-Known Member

    All this is true and a great piece of advice for anybody in the market for a new or used car. There are several sites that can help you in the car buying process, the most usefull in my opinion are: - a funny and politically incorrect site that walks you through the process from the beginning to the end. - research your car online. - get an online quote that is quite good. You can even buy your car online if you don't mind waiting a bit.

    I went to the dealership with my carsdirect quote and I told them basically "beat this" ... after about 15 minutes I got it :))

    You should definitelly do your homework before going to the dealership, otherwise count on loosing a couple of grands....

    Hope this helps

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