Purchasing a car at a dealership can be a very frustrating push-and-pull process, especially for the newbie car buyer. Car salesmen also aren't exactly the ideal exemplars of honest and consummate sellers so it is wise to well-equip yourself with detailed knowledge of automobile purchasing as preparation to deal with these crafty and persuasive individuals.
Going back a couple of years ago, Rack of Lam was going through his G.E. courses in college and it is here that he took an economics class with a mole-looking professor (Okay, going back to 1st person perspective). I remember in one class, the professor went over things to consider as preventives for buying a lemon. As a caring fellow consumer, I thought I'd share with you with these insights so you too will not buy a lemon. Hopefully these tips will get you your car for a sweet deal.
1. TIMING IS EVERYTHING
The thing I seem to remember most from Mr. Moleman is the windows of time that is optimal for going car shopping. This usually occurs at the end of the month and 30 minutes before a closing day. In a rush to go home, the salespeople will cut a deal they wouldn't otherwise.
2. OWN THE LOAN
A large percentage of the time, the dealer will not be able to beat what you can find for yourself as far as loans go. This is, of course, unless the dealership is offering some kind of special financing. Either way, do your homework thoroughly and be very skeptical of the counter-offers that the salesmen shoot back because for the most part, they'll say what it takes to get you to sign on the line that is dotted (5 points for whoever can tell me what movie that's from). Sometimes, they'll tell you that your financing has been approved when it hasn't and you end up paying more than you intended. Another tactic they use is to lie about your credit score so make sure you know what your's is before going into number and figures.
3. CERTIFIED
The best deal to shoot for is a 2-year certified pre-owned car. It's the best bang for your buck because the car has only depreciated on average about 25% by the time it's left the lot but it still comes with its original warranty, which is about 3 more years of coverage for free. Only downfall: the new car smell has probably drifted away since.
4. SO MANY OPTIONS
I know everyone wants the DVD player, the PS3, monitors behind the headrests, navigation system, etc. but they're "options" for a reason; you don't have to have them. Mostly, it is the items that improve car performance that retain their value the best. By the time you've taken the car off the lot, these upgraded audio systems and other knick knacks are pretty much rendered worthless. Also, it's been said that an extended warranty is not needed but you should look into one if 1) your car is the first year's release of it's model or 2) if the car has undergone dramatic redesigns in that year. If you do decide to go with the extended warranty, make sure the contract covers wear and tear, has zero deductibles, and has exclusionary coverage. Another cautionary note: these extended warranties are pure profits for the salesman so you better believe he/she is going to try and squeeze every penny out of you.
Also, not as important but worth a mention for financial reasons, hybrid cars are not as better of an investment as you may think. They run about $3000 more then gas-powered cars on average, depreciate faster, and also cost a lot more to insure. So unless you're enviromentally-conscious, hold off on hybrids--for now. Who knows? If gas gets to be $129038129081098123312 a gallon (which it looks that way), then it might be a better investment.
Hopefully, these tips will save you from paying more than you should for your car. Don't get me wrong...you'll rarely come across a dealership that's going to try and sell you a piece of crap because it'll easily tarnish their reputation. I just don't want you to pay more than you have to, and heck, maybe even get a deal that'd make the salesman cringe a bit. It's good to be reminded that simply, your objective is to get the car for as cheap as you can and the seller's objective is to sell it to you for as much as they can. The worst feeling for a person is to get hustled, in car buying and in life. Good thing for you (and take it from me) the best defense for a hustle is the re-hustle.
-Rack of Lam
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