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CARS & TRUCKS -
Finding a Car Make & Model (continued)
4. Ask the dealer to allow you to conduct a test drive of the specific make and model you are considering purchasing. This test drive should include both interstate and local road conditions at different speeds, and require different braking scenarios. The test drive should be at least fifteen minutes, or until you understand just how well the vehicle drives and how much you like the vehicle. Make sure the vehicle will meet your needs.
5. If, after the test drive, the vehicle is still on your short list, ask the
dealer to give you their best cash price without a trade-
6. During these dealership visits, resist the urge to do anything other than become familiar with the makes and models and get an initial price quote, no matter how great the proposed “deal” might be.
Preparing for Car Negotiations & Vehicle Financing
Once you have located a few vehicles that meet your needs, do the following prior to going back to the dealerships to “negotiate” either a cash purchase, or a purchase including financing (or leasing).
1. Reexamine your budget and set a firm price (or monthly payment amount and duration) that you will not exceed. Do not “fall in love” with a car that is a budget buster.
2. Research the cost of the vehicle to the dealer. Use an Internet site such
as Edmunds.com, Kelley Blue Book (KBB.com) or one of the many other sites available
to learn the dealer’s invoice cost for the vehicle, as well as what people are actually
paying for the vehicle in your general geographical area. If you plan on trading
in your present vehicle, also research what the actual retail and trade-
3. If you plan on financing or leasing the vehicle, research what financing deals
(including interest rate, duration, down payment and other costs) are available from
sources other than the dealer, such as your credit union and bank, or even over the
Internet, and get pre-
a. Knowing what financing/leasing options are available is just as important as knowing the cost of the vehicle to the dealer. Remember, how the vehicle is financed, and on what terms, is a major determinant of the overall cost of the vehicle to you, as well as the amount of profit the dealer makes from the transaction.
b. If you can get pre-
c. But remember, just because the dealer’s monthly lease payment or finance payment is smaller than what you found elsewhere, does not mean it is cheaper. You need to compare interest rates and the number of monthly payments that are required, as well as the amount of any down payment and fees required. The primary objective in negotiating financing is to lower your overall cost of financing, not just achieve the lowest monthly payment. And if the dealer offers you a choice between cash back versus a lower interest rate on financing check the “Cash Back vs. Low Interest Calculator” at Cars.com.
d. If you are considering leasing the vehicle, you need to understand not only the interest rate, down payment, length of the lease, purchase price at end of lease, etc., but also how many miles are included in the lease before mileage charges are incurred, and what the mileage charges are. Do not lease a vehicle if you are likely to go over the mileage allowance, as this can get very expensive. Also, make sure you know how excess wear and tear charges are figured.
4. Use the Internet to research vehicle reviews by actual users of the vehicles you have chosen, to see what they think about the vehicle, and whether they have had problems with the vehicle.
5. Write down all the questions you have about the vehicle and any trade-
When buying a vehicle time is on your side, so use it wisely. Good timing of a vehicle’s purchase can reduce its price considerably. If you can afford to wait, a better deal may be just around the corner. Make the salesman do his very best to get your business now, or risk losing the sale.
1. Purchasing a car at the end of a model year (usually around September or October) can result in significant savings.
2. Better pricing is often available between Christmas and New Years, as dealers try to finish their year strong.
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