On Monday, September 27th I wrecked our car on the way to work. It was raining and since it hadn't rained in months, there were a lot of dumb, crazy drivers on the road that day. I collided with a mini van and thankfully their vehicle only had minor damage, my car on the other hand was deemed a total loss by our insurance company. Hours after the wreck, after the initial shock wore off, I was really excited about getting a newer vehicle. Here's just a short list of what was wrong with my car - the driver's side lock would not work so I had to unlock the car from the passenger side and walk around, the AC was broken, the cassette tape player did not work (no CD player either), the antenna did not retract like it was meant to, and tape was holding up one of the back windows. Aside from those minor "luxuries" the car was great! We bought it in January and we were really hoping it would last us 2-3 years, but it's obvious now that God had other plans. Starting our car search was fairly easy, we agreed on the make, model, and price and then we just searched on the Internet. I wanted to write this blog a few days ago, but then I thought I should wait until we successful bought a car so then I could share some car buying tips with you!
So here are my car buying tips -
1. Determine exactly what you're looking for. If you're an indecisive person like me, limit yourself to a type of car first and then determine the make and model you want. For us we knew we wanted an SUV and then we determined that we like Toyota so then determining what model was fairly easy.
2. Face the facts! Buying a vehicle is a big purchase, no matter how you pay for it, so it's important to like everything about the vehicle before you purchase it. Make sure you do all the research - look at crash test videos, consumer reviews, and see what different features are offered based on year and trim.
3. Know your price range and your price limit. The number 1 question a sales person will ask you is "what's your price range?" You can have your answer to that question and then your real answer that you don't share with sales people. It's no secret that sales people will ask your price range and then show you a car that is just out of reach of your price range so by telling them a lower price, you can feel happy once you look at a slightly higher priced car and secretly know that you can afford it. Look at your monthly expenses and determine what you can afford as monthly payments. Most interest rates are between 3.25-4.75% so play around with #s to determine your price range.
4. Don't be afraid to not answer questions and/or avoid questions that dealers or sales people ask you. For us we decided we would not tell them what we do, where we work, or that we had a possible trade in. Never ever tell them you have a trade in until after you have agreed on the price for the vehicle you're purchasing. We decided not to trade my car so there was no worry there. Know up front what answers you're going to give for tough questions. For example, a lot of dealers will ask you "what do you want your monthly payments to be?" Never ever answer this question! Even if you know you can't afford anything over $200 a month, do not tell them that! Once you tell them your limit on monthly payments, they will get you down to that figure but you pay more interest and more money because they got you down to your monthly payment. It's about overall price, not monthly payments.
4. Ask what the fees are up front! I cannot tell you how outrageous doc fees, dealer fees, and other made up fees are. If you don't ask up front then the sales person could make up the fees and you would never know it. By knowing what the fees are up front you can factor those figures into your negotiation of the sticker price. You could get $300 off the sticker price and think you're at your price limit and then find out you have to pay $900 in fees. In NC the law states that a dealer cannot collect a documentation fee if it is not disclosed on their website or posted in their building. If you do not see a posted sign disclosing what the doc fee is then call them out on it and stand by the fact that you will not pay a fee that is illegal for them to collect. You could always ask for your lawyer to be present, that would get their attention.
5. Negotiate - always negotiate, always negotiate. First rule of negotiating - never let the sales person know that you love the car. We became professional actors during our car search. The dealers could not read us and it was funny! As soon as you show that you love the car and have to have it, you have lost all negotiating power. So during test drives calm down your excitement and only make minimal comments. Before you start negotiating - do your homework beforehand. Find out the Fair Market Value for the vehicle - this figure is fairly accepted by dealers. Look at other dealerships for identical or similar vehicles at lower prices and print out the ad to bring with you. When it comes to actually negotiating the price - always start your offer with a figure that is lower than your maximum price limit. If you get the car for less than your maximum price, great! Once the sales person goes to show your offer to his manager - walk away! You heard me right, walk away. If you're inside, go outside and walk around the parking lot. By walking away and not waiting on pins and needles to hear if they've accepted your offer, you show that you don't have to have the car and you're open to actually walking away if the deal doesn't go your way. I highly suggest this move if your offer is way less than the sticker price. If you can't get them to come down on the price then find an identical vehicle at a lower price at their competitor's store and ask if they can match it or beat it. If that doesn't work then negotiate for a free extended warranty or even gas in the car. I strongly believe in not paying the sticker price so I would stand strong and walk away if they won't come down on the price.
6. If you're buying as a couple or if you take someone with you, don't argue in front of the sales person. If they see you argue then they'll think that you're not serious buyers and that they could sway you on the type of vehicle you're looking at.
And I almost forgot - always ask for the latest Carfax report. There may not be flood damage or accidents on the Carfax if the owner did not report it to their insurance company. Lots of drivers will hit someone from behind and since minimal damage was done to their vehicle they don't report it to their insurance company so inspect the car yourself. There was a car we wanted to see but after seeing that the vehicle was registered in Tennessee where there were some major floods we decided not to even look at the vehicle. Play it safe and trust your instincts, if you see touch up paint or see that the vehicle was registered where there was flooding then investigate further to make the smartest decision.
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