At the Dealership (Part 1)

If you're in the market for a new car, please consider a few points BEFORE you head to the dealer.

“First, your present car. DON’T trade it in!”

You're just giving the dealer two profits; one one your new car and another on your trade.  Selling it yourself will almost always put hundreds or even thousands back in your pocket.  

Do some easy homework on the web.  Many sites have very accurate value estimates for your vehicle.  Use selling sites like Craigslist, Autotrader, eBay motors and even get bids from new and used dealers for a straight buy.  If you don't ask---you won't get!  Lots of dealers need good used cars so try it out and get a feel for value.

“Next, ALWAYS start your negotiations from dealer invoice—-NEVER MSRP or the dealer’s additional mark up sticker.”

Websites like Edmunds or TrueCar provide invoice prices for most makes, models and options.

Check for rebates and dealer incentives online too.  Knowing how much the factory is offering the dealer is huge because they will often kick some your way to move a unit.

Ask your sales rep or the manager which new cars THEY really want to move.  They'll be surprised you asked but overage units, demos and loaner cars over time can hurt dealers and cost them money.  It's still a new car to you and they likely will help you help them!

Always negotiate price...NEVER payments.  Most people are hung-up on payments and get skinned on the overall price!  Avoid this costly mistake and pay closer attention to the actual price and fees you are being asked to pay.  Never give them your desired payment.  Step up and calculate it yourself.  Go to sites like bankrate.com to easily calculate a payment after you input price, months to pay and your desired down payment.

Have your financing already in the bag.  Your credit union, personal banker or aunt Susie will cost you far less than most indirect lenders at the dealership.  Marking up the interest as well as adding fees is another way dealerships make money on you.

“Remember, the dealer is in business to make money...not friends.”

Their job is to get as much money from you as possible while still smiling.

You job is to smile back and KEEP all the fat!  Do your research, be pleasant and never sign before you have added all the costs and can still smile!  This is just a broad tip sheet and there is so much more to explore. We will get in to deeper details on future blogs so stay tuned!

It's really a lot of fun when you do it right.  Email me with your questions.

Blessings all!