Well, it must be said... Do your homework, check out the car you're interested in at Consumer Reports and at Car & Driver Online Magazine. Then check out the wholesale/retail prices for a new or used car at Kelly Blue Book or Edmunds.
Just sign on the bottom line... If you sign on the bottom line of a dealer's purchase order/sales contract containing financing terms, and you take the car home... you are stuck with that deal unless the dealer changes his mind and allows you to return the car. Worst case scenario? You return the car, and are reported to the credit bureaus with a "voluntary repossession."
Sticker Price... Is what the manufacturer recommends the car should sell for. It is suggested retail, not what the dealer paid. In most cases, you shouldn't pay sticker price, you should pay less. But don't forget dealers have overhead and must make a profit. You can find out pretty close to what the dealer paid for a new car by getting wholesale or invoice listings from Kelly Blue Book or Edmunds. Use the same two services to find out the wholesale and retail prices on a used car. If the vehicle is a hot selling car, then you might expect to pay sticker price or even higher.
Negotiate... Dealers have sliding prices on most of their products and services, from cars, to insurance, mechanical breakdown insurance (MBI), interest rates, payment protection insurance, guaranteed auto protection, and GAP. If you're interested in those products, negotiate the price. Don't forget that Bay Cities offers a Members Automobile Protection Plan, payment protection insurance plans, and GAP at competitive rates. Also, when you're negotiating the price you're going to pay, start by learning the factory invoice of the vehicle and then negotiating up from there instead of down from the sticker (suggested retail) price of the car. Not good at negotiating? Then let our services save you money.
Don't mention it... If you're trading in your present car, don't mention that until you've settled on the new-car price. Know the value of your old car, low blue book and high blue book, wholesale/retail. Find out what your car's worth by using Kelly Blue Book or Edmunds. The dealer wants to buy your car close to wholesale value so they can sell it at a profit. If you can get approved for 100% financing, you might not want to trade your car in but sell it yourself and get more money. Then take the funds and apply it against your new car loan. Beware -- the dealer may give you what seems like a great deal on your old junker but, in reality may be adding the loss to your new car contract. For example, the dealer gives you a $3,000 trade-in on a car that he will sell to a junk yard for $300. He then adds $3,000 onto the car you are buying. You'd be better off applying for 100% financing and selling the car yourself.
That's why they're called "options"... Do your research on undercoating, scotch-guarding, alarms, window etching and all that stuff you're going to get hit with when you sit down with the finance manager. Most of it is nonsense -- and you don't have to accept any of it. Remember that you can walk out of the showroom at any time. Don't let them bully you into paying for optional perks you didn't want and don't need.
Give yourself credit... Know what is on your credit report. Take care of any errors or problems prior to going to the dealership. There are 3 major credit bureaus, Equifax, Experian and Trans-Union. Each will send you a copy of your credit report. You can order them online at Experian, Equifax and Trans-Union's websites at a cost to you.
Reduce your risk when buying a used vehicle. CarFax is a computerized "background check" on a used car's history. The history report will answer these questions and more...
- Was the vehicle totaled?
- Is the odometer reading accurate?
- Has the odometer been rolled back?
- Was the vehicle returned as a lemon?
Even better, this service is free to you if you finance your used auto with us.
Is 0% financing right for you? It is if it’s available on the car you want with terms you can afford. If so, it may save you thousands of dollars. What can spoil it? 0% financing varies from place to place and can have any one or more of the following spoilers:
- Short-Term Financing - Can you make a $833 per month payment on a $20,000 car? That is 0% financing for 24 months. Some 0% comes only in 24 or 36 month repayment terms.
- Available Models Only - Some manufacturers only have 0% financing on selected cars. You may not be able to get it on the car you would really like to have.
- Pay Full Sticker Price - You may be required to pay the full Manufacturer’s Suggested Retail Price (MSRP) to get 0% financing. You won’t be able to bargain with the dealer over the cost of the car.
- 0% Doesn’t Last - Some 0% financing is just for part of the loan; which is followed by a high Annual Percentage Rate. Though this rarely appears, watch out for it. Buying at MSRP along with the higher sales tax could end up very expensive if the last two or three years of your loan has a high interest rate.
- Large Down Payment - Some dealers may require a large down-payment in order to get the 0% financing. If you don’t have the down payment, then you don’t get 0% financing.
- This Year’s Models - 0% financing may only apply to 2001 models. Couple this with paying MSRP and you will be faced with a large depreciation in your car as soon as you leave the dealer’s lot.
In order to zero in on the best deal, first remember, even with 0% financing, you will be signing a loan contract. Make sure it is what you really want and that you understand it. Second, if you do not qualify for 0% for whatever reason, make sure the rate you’re offered and the overall terms are better than what Bay Cites can do for you. Why not get pre-approved from Bay Cities prior to going to the dealer? Third, you should try to get a 2002 model instead of a 2001. Buying a 2001 model at MSRP means you will buy into a large drop in value when you drive off the lot. It could make a big difference when you want to sell or trade the next car you buy.
Good Luck... and if there's anything we can do to make your shopping experience better, just give us a call or email us!
|
make your experience a pleasant one. Here's some quick tips when you're in the market to purchase or refinance an auto.
