.
Dealers give bargains to customers who’ve done their homework, shopped the Web, and know what’s up at rival dealerships. The secret to getting what you want is to stay focused when you enter the showroom.
If you’ve done your homework and settled on a particular car, don’t sabotage your efforts by listening to other sales promotions and slick advertising. Rebates, financing, or other models on the lot are more distractions to watch out for.
Your goal is to leave in the car you came to buy, not one you buy on impulse.
All the best,
Timben
Saturday, September 19, 2009
New Cars – Shop around to save $$
.
Does saving hundreds, even thousands, of dollars appeal to you? Then visit, call, or inquire online for prices from at least five dealerships. Don’t be shy about telling them you are price shopping. Get them to bid against each other.
Gain an added advantage by approaching each dealer with your research in hand. Have the dealer’s invoice. That’s your point of beginning in the bidding process.
Make sure their bids include all sale-related costs, such as taxes and destination fees. And get them in writing.
All the best,
Timben
Does saving hundreds, even thousands, of dollars appeal to you? Then visit, call, or inquire online for prices from at least five dealerships. Don’t be shy about telling them you are price shopping. Get them to bid against each other.
Gain an added advantage by approaching each dealer with your research in hand. Have the dealer’s invoice. That’s your point of beginning in the bidding process.
Make sure their bids include all sale-related costs, such as taxes and destination fees. And get them in writing.
All the best,
Timben
New Cars – Know your score for better rates
.
“Your credit score isn’t good enough for our low rates.”
That’s one line slick salesman might try against you to get your money. If you don’t know any better, they’ve got you over a barrel. You’ll pay too much. But walk in with your credit report in hand. It’s an advantage, even if you find it needs repair. Once you know your score, you can do something about it.
Your credit report is available from the major credit reporting agencies. A new law states you can order one for free once each year.
* Equifax www.equifax.com 800-686-1111
* Experian www.experian.com 888-397-3742
* Trans Union www.transunion.com 800-916-8800
All the best,
Timben
“Your credit score isn’t good enough for our low rates.”
That’s one line slick salesman might try against you to get your money. If you don’t know any better, they’ve got you over a barrel. You’ll pay too much. But walk in with your credit report in hand. It’s an advantage, even if you find it needs repair. Once you know your score, you can do something about it.
Your credit report is available from the major credit reporting agencies. A new law states you can order one for free once each year.
* Equifax www.equifax.com 800-686-1111
* Experian www.experian.com 888-397-3742
* Trans Union www.transunion.com 800-916-8800
All the best,
Timben
New Cars – Wise up to your loan options
.
Save up to pay cash for a car, and you’ll save yourself thousands of dollars in interest charges. But if you have to finance it, you can save by arranging for a loan before you even enter the dealership. That way, you can choose your own terms and not feel pressured to take the dealer’s financing.
It helps to have your credit score in hand so you can prove you’re eligible for the best rates. If your score is on the low side, you may want to take steps to improve it before you apply for a car loan.
Loan sources range from credit unions to banks to online lenders. If you have a computer, that’s one of the easiest places to begin shopping. Lenders like E-LOAN at www.eloan.com and CapitalOne at www.capitaloneautofinance.com are great sources of competitive loans. Application is free and rates are guaranteed for 30 to 45 days.
Some lending services actually send your loan inquiry to several banks that respond with bids for your business. One example is LendingTree.com at www.lendingtree.com or 800-411-8733.
One benefit with online lenders is that you won’t have application fees or hidden finance charges. But if an online loan isn’t right for you or you just want to use the Web to gather information, then visit your bank or credit union next. Let them know you’ve been shopping for a deal, and you’re familiar with interest rates.
After you find some possible loans, you can plug the rates, fees, and length of payment term into an online calculator. One place to check is www.myfico.com under Calculators. It will help you get a true picture of how much you’ll pay for your car and what it’s going to cost each month.
After you have your financing squared away , you can confidently negotiate with the dealer to get the best price on your new car.
All the best,
Timben
Save up to pay cash for a car, and you’ll save yourself thousands of dollars in interest charges. But if you have to finance it, you can save by arranging for a loan before you even enter the dealership. That way, you can choose your own terms and not feel pressured to take the dealer’s financing.
It helps to have your credit score in hand so you can prove you’re eligible for the best rates. If your score is on the low side, you may want to take steps to improve it before you apply for a car loan.
Loan sources range from credit unions to banks to online lenders. If you have a computer, that’s one of the easiest places to begin shopping. Lenders like E-LOAN at www.eloan.com and CapitalOne at www.capitaloneautofinance.com are great sources of competitive loans. Application is free and rates are guaranteed for 30 to 45 days.
Some lending services actually send your loan inquiry to several banks that respond with bids for your business. One example is LendingTree.com at www.lendingtree.com or 800-411-8733.
One benefit with online lenders is that you won’t have application fees or hidden finance charges. But if an online loan isn’t right for you or you just want to use the Web to gather information, then visit your bank or credit union next. Let them know you’ve been shopping for a deal, and you’re familiar with interest rates.
After you find some possible loans, you can plug the rates, fees, and length of payment term into an online calculator. One place to check is www.myfico.com under Calculators. It will help you get a true picture of how much you’ll pay for your car and what it’s going to cost each month.
After you have your financing squared away , you can confidently negotiate with the dealer to get the best price on your new car.
All the best,
Timben
Friday, September 18, 2009
New Cars – Homework pays off in better deals
.
The last person you should ask about the price of a new car is a car salesman. To him, uninformed shoppers equal big commissions and huge profits. So, do some homework and save your money. Position yourself to be the one who decides how much you’ll pay for your next car.
You can find information on autos, options, and accessories in books and online. Sources like the Kelly Blue Book, Edmunds.com, and Consumer Reports offer car shopping pointers, detailed descriptions and comparisons of every new vehicle, definitions of terms, and, of course, prices.
Begin your quest with one basic question – how much does the car I want really cost? If you call a dealer and ask, the first figures you’ll hear will be “sticker price” or “MSRP” (manufacturer’s suggested retail price). But the hunt for a great deal has to start with “dealer invoice” – the price the dealer pays for the car. Dealers hope to keep that a secret, so you’ll have to find it yourself. Plan to bargain up from invoice, not down from MSRP.
Next, figure out the amount they plan to make on this car. It will typically be between 10 to 20 percent. You can find the actual “profit factor” by dividing the dealer’s cost (which you’ve dug up) by the MSRP, then subtracting that amount from 1. Knowing this percentage will let you figure for yourself how much you’ll allow the dealer to profit from the sale. If you’re generous, offer him 3 percent. That would be a $750 profit on a $25,000 automobile.
If you have access to a computer, visit auto manufacturer’s Web sites. There you’ll unearth special offers, promotions, and rebates being offered on select models. These mean added bonuses and price reductions.
Finally, construct your bid and start shopping. If you’d like to spare yourself the discomfort of face-to-face negotiations with a salesman, visit dealer’s Web sites and make your offer online. Or visit sites such as Autobytel at www.autobytel.com or AutoWeb at www.autoweb.com.
All the best,
Timben
The last person you should ask about the price of a new car is a car salesman. To him, uninformed shoppers equal big commissions and huge profits. So, do some homework and save your money. Position yourself to be the one who decides how much you’ll pay for your next car.
You can find information on autos, options, and accessories in books and online. Sources like the Kelly Blue Book, Edmunds.com, and Consumer Reports offer car shopping pointers, detailed descriptions and comparisons of every new vehicle, definitions of terms, and, of course, prices.
Begin your quest with one basic question – how much does the car I want really cost? If you call a dealer and ask, the first figures you’ll hear will be “sticker price” or “MSRP” (manufacturer’s suggested retail price). But the hunt for a great deal has to start with “dealer invoice” – the price the dealer pays for the car. Dealers hope to keep that a secret, so you’ll have to find it yourself. Plan to bargain up from invoice, not down from MSRP.
Next, figure out the amount they plan to make on this car. It will typically be between 10 to 20 percent. You can find the actual “profit factor” by dividing the dealer’s cost (which you’ve dug up) by the MSRP, then subtracting that amount from 1. Knowing this percentage will let you figure for yourself how much you’ll allow the dealer to profit from the sale. If you’re generous, offer him 3 percent. That would be a $750 profit on a $25,000 automobile.
If you have access to a computer, visit auto manufacturer’s Web sites. There you’ll unearth special offers, promotions, and rebates being offered on select models. These mean added bonuses and price reductions.
Finally, construct your bid and start shopping. If you’d like to spare yourself the discomfort of face-to-face negotiations with a salesman, visit dealer’s Web sites and make your offer online. Or visit sites such as Autobytel at www.autobytel.com or AutoWeb at www.autoweb.com.
All the best,
Timben
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