funnymen romantic: 7 Things You Must Do Before You Walk Into a Car Dealership

Friday, August 31, 2012

7 Things You Must Do Before You Walk Into a Car Dealership

by AutoInsuranceQuotes.org Staff Writer on August 31, 2012

The days of consumers wandering into a car dealership and, while distracted by the balloons and streamers, putting themselves at the mercy of a car salesperson are pretty much over, and car dealers know this. But if you?re new to car buying, you may not know how to prepare yourself in advance and get yourself the best deal. If you want to buy a car for a fair and reasonable price, take a look at these seven things you must do before you walk into a car dealership.

Decide what kind of car you need:

Determining what your needs are ahead of your visit to a car dealer will save you and the salesperson time that might be wasted on showing you models designed for a lifestyle very different than your own. Ask yourself how much do you drive and how far? Do you have kids that need to be transported? Are you looking for a car that is eco-friendly? Narrow down your selection to one or two specific vehicles, and then see if they?re available at a dealership near you.
Decide how much you?re willing to spend:

Itemize your monthly income and spending to determine how much you can afford for an initial down payment, as well as how much you can afford each month (and for how long) to pay off a loan with interest. Knowing the amount you can afford and sticking to that number is crucial when negotiating the price of a car. Remember to negotiate the car?s total price first; the monthly payments will take care of themselves.
Find out your credit score:

The cost of a loan will depend on your credit score. By law, once a year, you can request, see, and print up your credit report from the three major credit companies. For a small fee, you can find out your credit or FICO score for two of those three companies anytime. Armed with this information, you are a step ahead of a car dealer who might try to base a financing plan on a score that?s not actually yours!
Find out what rebates or incentives apply:

Automakers offer incentives and sales as do the dealerships themselves. There are also government rebates, sometimes in the form of tax breaks, available to qualified customers who purchase hybrid, alternative fuel, or electric cars. Once you select a car, check to see if there are incentives and rebates available so you know what kind of savings you are due.
What fees and taxes apply (and don?t apply):

Your car price will come with a standard and legal set of additional fees that you?ll have to budget for as well, including sales tax (of course), title and registration fees, and cost of delivery. However, there are fees that are completely unnecessary that a dealer might try to tack on at the end of a sale, such as ?dealer prep? or ?rust proofing? fees. Find out ahead of time what fees you should expect to pay and which are absolutely unnecessary so you don?t end up paying more than you budget for.
The trade-in value of your car:

Again, this will require some homework on your part, but it?s better you do it than rely on the dealer to do it at the time of your trade-in and purchase. Once you?ve determined the value of your trade-in, use that figure in your budgeting and while negotiating.
Find out the true market value of the car you want:

The invoice price is the price the dealer paid the automaker for the car you plan to buy. Dealer holdback is the percentage, usually 2% or 3% of what the dealer paid, that the automaker returns to the dealer and is sometimes used to inflate a car?s invoice price. Edmond?s recommends you begin instead with a car?s true market value in your negotiations instead of the invoice price in order to have a figure that more accurately reflects what the dealer paid for the car.