4 tips to save a bundle on your next new car purchase
by: Prashant Desai
Many of us have been at the car dealership and have been drained by a salesperson during price negotiations for the purchase of a new car. Most people give in too easily or do not negotiate at all to avoid the dreadful act. This only means more money in the car dealers’ pocket, while you are out of several thousand dollars! Yes, they make that much in profit per car.
This article unveils the dealer’s selling tactics and how you can get around them. But before we dive into the new car buying tips, we need to understand what makes up the dealer’s profits.
In addition to the MSRP (manufacturer suggested retail price), which is the dealer’s cost for the car plus an additional 20-25% profit, a dealer also gets financial incentives from the manufacturer when a new car is sold. This is called Holdback.
Depending on the car, dealers can make hundreds on each car through holdbacks. Dealers also get additional incentives and bonuses on selling a car before the end of the month and/or quarter.
A shrewd dealer can make several thousand on a new car even by selling it at invoice price. This is how new car buying can become tricky for the consumer.
Ready to learn how not to put a dent in your wallet on your next car purchase? Here are four tips to get you started. Each one is a dealer tactic to watch out for.
1. The Guilt Trip
As you may have noticed, every desk in a dealership has photos of the salesperson’s family, instead of photos of cars. Midway in the negotiation, the sales person will bring them up and make it look like his little commission check can hardly pay for his daughters college and little Bradley’s braces.
A seasoned salesperson will soon have you feeling guilty for driving the price down and hurting his commission. Watch out not to fall for this tactic, since you already know about holdbacks and incentive programs from manufacturers.
2. Wearing You Down
Come prepared to spend half a day at the dealership or pay whatever the dealer asks for. Car Dealers are trained to delay and tire you out to the point where you give in and accept their price just to get out of there.
After you make your offer, sales people typically claim they would have to run it by their manager. You may then have to re-start negotiating with the manager, who is also a seasoned salesperson. This dance goes on for a while until you give in.
Remember, there are multiple dealerships in a city, so they need you more than you need them. Demand to speak to the manager after a certain time period or threaten to leave.
Because you are devoting a lot of time to bargain with the dealer, they know you are a serious buyer, so they will not let you leave. The earlier you can speak with the manager, the faster you can leave.
3. The Test Drive
We all enjoy a good test drive and look forward to it. Although it is essential to test drive a car before you buy it, remember to not show your absolute love for the car to the salesperson. Their goal is to get you emotionally attached to the car, so it becomes a must have for you. I have learned it the hard way.
To hide your emotional tears from the salesperson, mention the features of a competing car in the same class, like the new shape, light, leg room, resale value etc. This will make the salesperson a little vulnerable.
4. Monthly Payments
This one is to confuse you. Dealers will start talking about monthly payments rather than the total price of the car. They will start by asking how much you are willing to pay per month and how much of a down payment you are willing to pay. Since people don’t want to look like they cannot afford a certain car, they will usually give a higher number. Big Mistake!
You have left little room for negotiation when this happens. Always steer the conversation to the total price of the car and do NOT mention any trade-ins at this point. Only after the total price of the vehicle is completely negotiated then talk about interest, monthly payment and trade-ins.
General Rule;
As a general rule, remember to only focus and negotiate on the Total Price of the vehicle. Everything else is pretty much the car dealer’s trough.
If the above new car buying tips seem like a lot of hassle, yet you still want to get the best price in town, there are some websites that do this for you. www.AutoAuctionBids.com for example is a great website for this because you can collect price quotes from multiple local dealers for a particular car as well as its competing car models (like Honda Accord, Toyota Camry and Ford Taurus) and compare them.
The website then allows you to send back the lowest quotes received for each car make to all participating dealers in your area through the website itself.
Dealers view this price and continue to submit new lower prices over a 3 day period. By putting local car dealers in such a price competition allows you to avoid the dreadful face to face negotiation and yet gets you the lowest price in town for up to 3 competing car makes.
The best part about AutoAuctionBids.com is that it is absolutely free for you and there is no obligation to buy after the new car auction is over.
About the Author
Prashant Desai, author of various consumer tips articles and industry expert for AutoAuctionBids.com. Email him at p_desai[at]autoauctionbids[dot]com to sign up for e-Ne
7 Hassle-Free ways to buying a new car
by: Prashant Desai
According to NADA, almost no single car model is sold at the same fixed price by car dealerships in a particular area. Every buyer receives a different final new car price quote.
In other words every Honda Accord buyer in your area would have paid a different price for the car based on which car dealer they went to and how well they negotiated the price. Therefore, there is no level playing field on buying a new car.
As you may have guessed, this translates to either visiting as many car dealers in your area as your time permits or negotiating really hard with a shrewd car dealer.
My 7 hassle-free tips to buying a new car will certainly help you save money and pay one of the lowest prices in your area for any new car.
1.Finalize what car model you want and how much you’re willing to spend. This way you’ll be less pressured into making hasty decisions.
2.Identify two other competing car models that you might consider buying or can use as a negotiating leverage with car dealers.
By doing this you’re showing the car dealer you have done your research and are not emotionally attached to this particular model (even though you may be).
3.Collect Internet new car price quotes for 3 competing car models. Do not step into a dealership without getting online new car price quotes. www.autoauctionbids.com is a good website to receive new car price quotes from multiple local dealers rather than just 1 car dealer as in the case of most Internet websites. Through magazines and publication, identify the dealer invoice price.
4.Take these new car price quotes and invoice price information to the car dealers who provided the online new car price quote to you.
This not only shows the car dealer you have done your research, but also shows you are serious about buying a car.
5.Now that you have invoice price & new car price quotes from 3 competing car models, stick to the total price of the car during negotiations. The car dealer may lead you to monthly payments, trade-ins etc., but only focus on negotiating the final price down.
6.During the negotiation, mention about an even lower new car price quote received on a competing car from www.autoauctionbids.com. See if the dealer would match or beat it. Leave if you have to and see if the car dealer calls you back.
7.At this point, you are already getting a great deal on the car you want, so you can always go back to that dealership and buy the car at that price, which is probably the lowest price in town.
The advantage of this process is that, you’re not engaging in much face to face negotiation with the car dealer, since you already have some facts to share like the new car price quote and invoice price.
However, the disadvantage of this is that the car dealer who made the lowest new car price quote on www.autoauctionbids.com, will pretty much be the lowest price you would pay for the car.
You may be leaving money on the table unless you keep going back and forth from dealership to dealership to see if they would beat you new low new car price quote.
An alternative to this and the ultimate hassle free way to buying a new car would be to continue negotiating on the Internet. AutoAuctionBids.com allows buyers to send back the lowest price quote received for a particular car to all participating dealers.
The car dealers can view this lowest new car price quote and submit a lower quote. Another participating dealer can view this new low price and submit an even lower price.
This can go on for up to 3 days and at the end of the car auction, buyers can contact the lowest bidding car dealer and buy the car most of the time at below invoice price.
The best part of it all is that you can conduct 3 separate auctions for all 3 competing cars absolutely free, with no obligation to buy at the end of the auction.
In summary, remember all new car price quotes are different and car dealers will make a hefty profit if you cannot provide facts about competing dealer new car price quotes and competing car models new car price quotes. Collect these prices first and no negotiation will be required.
About the Author
Prashant Desai, author of various consumer tips articles and industry expert for AutoAuctionBids.com. Email him at p_desai[at]autoauctionbids[dot]com to sign up for e-Newsletter and visit www.autoauctionbids.com for more information.
18 Simple Ways To Save Money On Your Car
by: Jeff Slokum
The upkeep of your vehicle can be quite an expense - from initial purchase to insurance to maintenance. And sometimes we get the sinking feeling that every time we need a car repair, we’re going to get taken for a ride. (pardon the pun!) Actually there are some ways to make sure you don’t get a raw deal when dealing with a local body shop.
After you get recommendations for honest mechanics, call around to check out the prices for certain jobs. It’s always smart to get a second opinion.
How about some preventative medicine? Keep your gas tank filled. This will help you avoid the gas line freezing up in cold weather. Also, driving on “fumes” allows little pieces of dirt at the bottom of your gas tank to run through the fuel lines with the last drops of gas. This debris clogs up the fuel filter and can cause carburetor damage as well.
Sometimes a problem with your car’s electrical system results from a simple blown fuse. Check to see if you have any blown fuses before investing in a tow truck!
Keep track of how much oil your car uses. A sudden change in oil consumption means you need to see a technician.
Save your brakes by having your brake fluid changed every 30,000 miles.
Check your tire pressure once a month. This simple maintenance check can add up savings at the gas pump!
Stop and go traffic causes excess wear and tear on your vehicle. Go ahead and give your car a nice twenty minute ride at 55 mph on the highway every couple weeks if you “major” in short trips.
There are other ways to save money on car expenses. Let’s look at the insurance payments.
If you’ve budgeted for possible out-of-pocket expenses in case of a car accident, you might want to consider increasing your insurance deductible to $500. This will lower the cost of your insurance.
Talk to your insurance agent. If your car is as old as the hills, you might want to drop collision coverage to save money.
Car insurance companies offer a variety of discounts. Ask your agent if the company offers reductions for driver training courses, anti-lock brakes, car alarms, air bags, mature drivers, good students or maintaining a good driving record.
Before you purchase from a dealer, ask about the dealer's return policy, get it in writing and read it carefully. Dealers are not required by law to give used car buyers a three-day right to cancel.
Visit http://www.fueleconomy.gov to find cars that are fuel efficient.
Each 5 mph you drive over 60 mph is like paying an additional $0.10 per gallon for gas.
In most cases, using cruise control on the highway will save gas.
Replacing a clogged air filter can improve your car's gas mileage by as much as 10 percent. This isn’t going to cost you an arm or leg either.
Do your homework when buying a car from an auction. Many vehicles that have been damaged by floods and hurricanes are going on the market. These won’t last long – leaving you with a flood of bills. Be a little concerned if the carpet looks too new, and check carefully for signs of rust.
Carfax.com shares info on inspecting a used car to make sure you get the best deal.
If you use your car for business, keep track of miles traveled so that you can use this for a tax deduction. Get more info at irs.gov.
When you consider all the ways you can save money on your current vehicle, you might be persuaded to put away the extra each month for a new car down the road!
About the Author
This article provided courtesy of http://www.car-alarm-guide.net
How to buy a used Car at 90% savings off the book value
by: Steve Li
To buy a used car is a great idea for saving money. Everyone knows that a new car lost 65% of its value in the first 5 years. But the case would be more extreme for a 1 to 2 years old car, it will lost its value 30-40%.
If you don’t mind to drive a used car (I mean a 2 to 5 years old car, it looks pretty new) rather than a new car, you may save much money to pay many other bills. If you want to keep the car not too old, you may resell it after driving for 2 to 3 years and buy another newer one. The value of the car will only drop 15% or less for a 5 years old car. Therefore, your driving cost for 2-3 years would only be 10-15% of the car’s original value.
The price quote above was only the price you buy from an ordinary car dealer. However, you can buy it much cheaper through some special channel.
Have you ever heard that around the country, hundreds of thousands of vehicles get repossessed by various institutions ranging from banks to US Customs, and everyone of those cars is going to be sold at an auction, online or traditional. Usually, before, only car dealers with a special license could benefit from these incredible savings, however, with a membership at some special organization, you can join the ranks of the lucky ones and find bargains that you could only dream of. Almost nothing will be out of your range as a member of this site - you will be able to get a car you always wanted but could not afford to spend so much money on.
By the way, many people may ask why wouldn't everyone buy a car this way, instead of the usual going to the dealer or classified ads routine? The secret is : because this is a very protected source of revenue for the majority of car dealerships and is not advertised to the general public. But, if you are a member you can have access rights to the direct source and buy your vehicle with up to 90% savings off the book value price.
In conclusion, buy a used car through a special organization can help you save up to 90% off the book value. You can keep the car pretty new according to the strategy I suggested. So enjoy a pretty new car with an affordable price.
Steve Li is the webmaster of http://cheapcarfinder.yourbestchoices.com.
By subscribing to his twice-weekly ezine get a FREE REPORT “Driving To Savings: Car Tips To Save You Money”, send a blank email to: mailto:carfinder[at]yourbestchoices[dot]com.
stevelkw[at]hotmail[dot]com
How To Make Your Car Show Attractive
by: Tonza Borden
Vintage automobiles, vendors and entertainment work like a magnet to attract visitors to a well planned and well executed car show. A variety of antique classic cars, trucks and cycles, great food, choice of beverage and plenty of it is what visitors want.
Music Matters
Add live music or a disc jockey spinning tunes from the 50s, 60s and 70s and your visitors will stay in the party mood from beginning to end. And no car show would be complete without fun activities for kids.
Kick It Up A Notch
Another attraction can also be your theme such as 50s costumes or funky vintage attire. This is a simple way for hosts and visitors to add to the attraction. The fun can start with shopping at thrift stores for your outfit. Another popular car show attraction is a Swap Meet.
Ask your group to donate retro items from their garage, storage room, etc. and sell it cheap. The cheaper the prices the more you will sell and there won’t be anything to pack up. Are there any musicians or artisans in your group who would perform for the love of it?
An attraction doesn’t have to be huge or expensive—just interesting and fun. Equipped with a small budget and a large cache of creativity, you can make your car show very attractive.
About The Author
Tonza Borden is the developer and administrator of AtlantaAntiqueCarClub.com. She is a successful home-based communications specialist. Collecting antique automobilia is her hobby. Learning all about vintage automobiles is her passion. Visit http://www.atlantaantiquecarclub.com or contact her for written permission to reproduce for noncommercial use ©All About Car Shows: How To Pick A Leader, giving credit to the author.
tonzaborden[at]atlantaantiquecarclub[dot]com
How To Plan A Car Show Attraction
by: Tonza Borden
Antique classic cars, especially collector and specialty automobiles are a hot attraction for any event—whether indoor or outdoor. How do you get the cars to display? If you are a classic car club, members are happy to participate with their vintage rides. Another option is contributing a donation to a nonprofit car club for their service.
Main Attraction
These beautiful motorcars are show quality. So having a contact with a car club is essential. Individual clubs have different rules and regulations for displaying cars. If you are planning a classic car attraction, you should contact the car club as soon as you decide that you want to have a car show. Time is of the essence to work out the details, and get on their calendar, in the car show season. Prepare questions prior to making the call to appear organized and save time. Some frequently asked questions are:
* What is the donation amount for your service?
* How long can the cars be exhibited?
* How many cars will you bring?
A car show requires a large venue with sections for exhibitors, vendors and visitors parking. Overall, you will need an area big enough for everyone’s ease of movement and equipment storage.
Sub-Attractions
Some car show events feature the main attraction, which are the classic cars without considering sub-attractions such as:
* Disc Jockey and musicians
* Food and beverage vendors
* Swap meet exhibitors
* Children’s activities
Just think about it. A car show with just a main attraction could possibly be boring. A great attraction is built with layers such as automobiles for visual, food for smell, music for sound, and games for interactivity to stimulate visitors—all of which contribute to having a good time—and will make your car show much more attractive.
About The Author
Tonza Borden is the developer and administrator of AtlantaAntiqueCarClub.com. She is a successful home-based communications specialist. Collecting antique automobilia is her hobby. Learning all about vintage automobiles is her passion. Visit http://www.atlantaantiquecarclub.com or contact her for written permission to reproduce for noncommercial use ©All About Car Shows: How To Pick A Leader, giving credit to the author.
tonzaborden[at]atlantaantiquecarclub[dot]com