http://www.carcostcanada.com/en/research_blvd/details.asp?sno=885&catid=4&AID=5063231&PID=562066
The Car Magazine - Auto Industry News
How to Buy a New Car Without the Stress
Buying a new car is a big decision, but it doesn’t have to be a difficult one. The average person will buy 10-12 cars in their lifetime. Preparing yourself and doing your homework is the key to being able to make these decisions with total confidence. Buying the right car at a fair price does have its challenges, but here are some helpful tips and things to be aware of, to help you make the process as enjoyable and stress-free as possible.
1-Select the right model
Research new cars; view different models on line and familiarize yourself with what is available. In doing so, you may discover a particular model that you may not have known about. Try researching through our site at www.thecarmagazine.com. You can search by make, model, style, type etc. We provide excellent information about the vehicle's engine and transmission, including standard, optional and safety features, as well as price comparisons and more. There is also have a huge library of road tests and reviews about virtually every make and model.
Don’t narrow your vehicle selections down to one car, just yet. If you become set on buying one particular car, you may lose a lot of potential negotiating power. This way, if you can’t get a good deal on one car, you can negotiate on another.
Education is the key to confidence when buying a car
2-Get the real prices
Choosing between cars based on Sticker/M.S.R.P. prices alone can be a Very Costly Mistake! Due to constantly fluctuating market conditions, factory incentive programs and The Law of Supply and Demand, I have found that when negotiating between two cars with similar M.S.R.P.’s, one may only be able to be purchased for a few hundred dollars less than M.S.R.P., where the other may be able to be purchased for $3,000-$4,000 less. Without ALL of the information, how can YOU make the right choice?
Obtain the dealers invoice cost for the makes and models you are most interested in. In addition to the dealers invoice cost, all rebates, factory to dealer and factory to consumer cash incentives as well as all subsidized finance and lease rate programs are listed at www.carcostcanada.com
Most manufacturers offer special low interest financing programs. These subsidized programs are very costly to the manufacturers. Therefore, quite often, they will offer a cash incentive to buyers who do not take advantage of their low rate financing. Explore your financing options outside the dealership, such as your bank or through a credit union. Note that although the dealer may offer a lower rate, arranging financing yourself may qualify you for a cash incentive that you wouldn’t otherwise qualify for.
3-Choose to buy or lease
Leasing a vehicle was originally an option exclusively for the business owner. Over time it has become a way for anyone to drive a better car that might otherwise be unaffordable. If you regularly trade your car in every few years or prefer the security of driving a new car every three or four years, you may want to consider a lease. Leasing allows you lower monthly payments compared to financing a new car purchase, which in turn will allow you to get the vehicle you may need or want, which would otherwise be out of your budget. If you plan to drive your car for a long time, leasing may not be for you.
Investigate which choice is best for you. For assistance to help you decide whether you should buy or lease your next new car, an excellent source is Lease Busters at www.leasebusters.com. You will find very helpful information including, “How do I get out of my lease?” and “How do lease take-overs work?”
Choosing between cars based on Sticker/M.S.R.P. prices alone can be a Very Costly Mistake!”
4-Options - Think safety
Decide ahead of time, which features you want in your new car. Be aware that not every model has every feature you may be looking for. You may have to compromise by settling with one less feature or spending more and choosing the next model up. Consider safety options as your best bet: antilock brakes, traction control, side air bags etc. You may be offered a larger engine, but nine out of ten new cars perform just fine with the base engine ? and you’ll save on fuel in the long run as well.
While extras like rust proofing, extended warranties and other assorted services, may be valuable, it may be more economical to purchase them outside of the dealership. If you are interested in any of these extras, you may want to do some comparison-shopping first.
5-Take a good long test drive
Test-drive the vehicles. There is no better way for you to determine whether you will feel comfortable with a car than to take it for a test drive.
Narrow down your choice to two or three models and go out for as long as the salesperson will allow ? ideally, a minimum of 30 minutes. Some dealerships may have insurance restrictions and therefore will only allow you to go on a test drive with a sales representative. Ask to drive it yourself if possible. Take a friend and or the kids along. Take the highway. Try to park. Move the seats. Work the switches. Load some cargo. In no time, the car’s strengths and faults will become clear, helping you with the decision.
6-Negotiate from the driver's seat at home
“Dicker up” from the dealer invoice price rather than down from the (MSRP) Manufacturer’s Suggested Retail Price. Obtain the dealer cost of the vehicle you are interested in and you’ll be in the driver’s seat while negotiating at home. Negotiate on the vehicle price itself, not the monthly installments. Dealers will often ask you what you can afford to pay monthly. Be honest with yourself and the sales representative, regarding what payment level you can truly afford. This saves both parties from wasting time working on a vehicle that doesn’t fit into your budget.
If this part of the car buying experience feels intimidating, there is help and it’s cheap. By becoming a Premium member at www.carcostcanada.com, they will assign one of their Certified Negotiators to do the dirty work for you. In many cases, they have excellent prearranged prices from coast to coast. If not, they will negotiate with up to three dealers in your area to get you the best no-haggle no-nonsense deal. Although most simply buy at the lowest quoting dealer, you are free to use the leverage of their information to try to buy from whichever dealer you choose. The potential aggravation of buying a new car is totally eliminated.
Being well informed will minimize any apprehensions you may have. If you follow this as a guideline, you will do your homework, price out vehicles on line, go on a few test drives, negotiate with confidence and have a satisfying and enjoyable new car buying experience. Enjoy the process … and enjoy your new ride home!
We would like to get your feedback on this or any other article in The Car Magazine. Any comments, suggestions or improvement ideas are always welcome. Please forward your comments to the Editor at editor@thecarmagazine.com
Automotive stories, road tests, reviews and information, supplied courtesy of www.thecarmagazine.com, Canada’s premier source for Automotive information
The Car Magazine - Auto Industry News
How to Buy a New Car Without the Stress
Buying a new car is a big decision, but it doesn’t have to be a difficult one. The average person will buy 10-12 cars in their lifetime. Preparing yourself and doing your homework is the key to being able to make these decisions with total confidence. Buying the right car at a fair price does have its challenges, but here are some helpful tips and things to be aware of, to help you make the process as enjoyable and stress-free as possible.
1-Select the right model
Research new cars; view different models on line and familiarize yourself with what is available. In doing so, you may discover a particular model that you may not have known about. Try researching through our site at www.thecarmagazine.com. You can search by make, model, style, type etc. We provide excellent information about the vehicle's engine and transmission, including standard, optional and safety features, as well as price comparisons and more. There is also have a huge library of road tests and reviews about virtually every make and model.
Don’t narrow your vehicle selections down to one car, just yet. If you become set on buying one particular car, you may lose a lot of potential negotiating power. This way, if you can’t get a good deal on one car, you can negotiate on another.
Education is the key to confidence when buying a car
2-Get the real prices
Choosing between cars based on Sticker/M.S.R.P. prices alone can be a Very Costly Mistake! Due to constantly fluctuating market conditions, factory incentive programs and The Law of Supply and Demand, I have found that when negotiating between two cars with similar M.S.R.P.’s, one may only be able to be purchased for a few hundred dollars less than M.S.R.P., where the other may be able to be purchased for $3,000-$4,000 less. Without ALL of the information, how can YOU make the right choice?
Obtain the dealers invoice cost for the makes and models you are most interested in. In addition to the dealers invoice cost, all rebates, factory to dealer and factory to consumer cash incentives as well as all subsidized finance and lease rate programs are listed at www.carcostcanada.com
Most manufacturers offer special low interest financing programs. These subsidized programs are very costly to the manufacturers. Therefore, quite often, they will offer a cash incentive to buyers who do not take advantage of their low rate financing. Explore your financing options outside the dealership, such as your bank or through a credit union. Note that although the dealer may offer a lower rate, arranging financing yourself may qualify you for a cash incentive that you wouldn’t otherwise qualify for.
3-Choose to buy or lease
Leasing a vehicle was originally an option exclusively for the business owner. Over time it has become a way for anyone to drive a better car that might otherwise be unaffordable. If you regularly trade your car in every few years or prefer the security of driving a new car every three or four years, you may want to consider a lease. Leasing allows you lower monthly payments compared to financing a new car purchase, which in turn will allow you to get the vehicle you may need or want, which would otherwise be out of your budget. If you plan to drive your car for a long time, leasing may not be for you.
Investigate which choice is best for you. For assistance to help you decide whether you should buy or lease your next new car, an excellent source is Lease Busters at www.leasebusters.com. You will find very helpful information including, “How do I get out of my lease?” and “How do lease take-overs work?”
Choosing between cars based on Sticker/M.S.R.P. prices alone can be a Very Costly Mistake!”
4-Options - Think safety
Decide ahead of time, which features you want in your new car. Be aware that not every model has every feature you may be looking for. You may have to compromise by settling with one less feature or spending more and choosing the next model up. Consider safety options as your best bet: antilock brakes, traction control, side air bags etc. You may be offered a larger engine, but nine out of ten new cars perform just fine with the base engine ? and you’ll save on fuel in the long run as well.
While extras like rust proofing, extended warranties and other assorted services, may be valuable, it may be more economical to purchase them outside of the dealership. If you are interested in any of these extras, you may want to do some comparison-shopping first.
5-Take a good long test drive
Test-drive the vehicles. There is no better way for you to determine whether you will feel comfortable with a car than to take it for a test drive.
Narrow down your choice to two or three models and go out for as long as the salesperson will allow ? ideally, a minimum of 30 minutes. Some dealerships may have insurance restrictions and therefore will only allow you to go on a test drive with a sales representative. Ask to drive it yourself if possible. Take a friend and or the kids along. Take the highway. Try to park. Move the seats. Work the switches. Load some cargo. In no time, the car’s strengths and faults will become clear, helping you with the decision.
6-Negotiate from the driver's seat at home
“Dicker up” from the dealer invoice price rather than down from the (MSRP) Manufacturer’s Suggested Retail Price. Obtain the dealer cost of the vehicle you are interested in and you’ll be in the driver’s seat while negotiating at home. Negotiate on the vehicle price itself, not the monthly installments. Dealers will often ask you what you can afford to pay monthly. Be honest with yourself and the sales representative, regarding what payment level you can truly afford. This saves both parties from wasting time working on a vehicle that doesn’t fit into your budget.
If this part of the car buying experience feels intimidating, there is help and it’s cheap. By becoming a Premium member at www.carcostcanada.com, they will assign one of their Certified Negotiators to do the dirty work for you. In many cases, they have excellent prearranged prices from coast to coast. If not, they will negotiate with up to three dealers in your area to get you the best no-haggle no-nonsense deal. Although most simply buy at the lowest quoting dealer, you are free to use the leverage of their information to try to buy from whichever dealer you choose. The potential aggravation of buying a new car is totally eliminated.
Being well informed will minimize any apprehensions you may have. If you follow this as a guideline, you will do your homework, price out vehicles on line, go on a few test drives, negotiate with confidence and have a satisfying and enjoyable new car buying experience. Enjoy the process … and enjoy your new ride home!
We would like to get your feedback on this or any other article in The Car Magazine. Any comments, suggestions or improvement ideas are always welcome. Please forward your comments to the Editor at editor@thecarmagazine.com
Automotive stories, road tests, reviews and information, supplied courtesy of www.thecarmagazine.com, Canada’s premier source for Automotive information
