Friday, November 16, 2007

Car buying tips

www.carbuyingtips.com is a very good resource if you are in the market to buy a new or used car.


Despite all the hype about Internet having made it easy to buy the car, auto dealers do not seem to have learnt one lesson. That is they make it so difficult to buy the car. This web site arms with you all the necessary information and puts you in the commanding position. With this info, you are sure to be confident and negotiate a great deal. Specially work out the true price of the car you have in mind using the spreadsheet template given. Using that you can work out some sample scenarios and develop a bargaining range. You will know your upper and lower bounds and will not become victim of the pressure sales tactics. Most infamous among them is to force you sell the car and options you do not need.


Fantastic resource. If you can spend time, read everything at the site and try to absorb as much information as possible. If not, at the least, work the spreadsheet out and have the prices ready.


Don't feel obligated to show your spreadsheet and calculations to the dealer while negotiating. They try to intimidate you and challenge you to come up with data for your calculations. Rebut saying that you are there to buy a car and not explain your position. Good dealers do not insist and bad ones are not the ones from whom you would want to buy the car anyway.


Watch out for one thing. The price you offer may be accepted by the dealer without anything. If this happens, do not blame yourself that you may have quoted a very high prices and became sucker. Chances are low if you have worked out the spreadsheet and checked your numbers carefully. Dealers when the hear the right price do not argue much. They may be surprised that you are offering a fair deal and do not want to drag it too long because they can be selling more cars during that time.


With the help from this site, I bought a new car (2008 Camry Hybrid) for a just few hundred dollars above the invoice price. Dealer made a fair profit. I do not mind that. I was happy because I did not have to haggle over the price. I e-mailed the dealer after I came back from the test drive. He gave his price. I offered my price from the spreadsheet. He replied confirming the price. End of the story.


Edmunds.com, Kelly blue book etc. do a good job of providing invoice price, destination charge etc. what they do not tell you is about a hidden incentive called 'factory hold back' which is similar to mail-in rebate that the dealers get back from the car manufacturers. Hence, their price will be lower than the invoice price quoted on such site. Destination charge, dealer fees etc. are better left as such as you are not going to beat dealers in such as they have to have some basis remain standard for customers. Your data points are invoice price, factory hold back and discretionary profit (3% to 5%) you would like to offer.


Happy car buying!!!


Cheers!


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