Reader question:
I feel completely lost in car dealerships. Every time I go to get a car, I get cheated in some way and there’s nothing I can do about it. How do I get a good deal on buying a new car without getting tricked?
Ella
Don’t be scared of the dealership, Ella.
When you go to buy a car, it’s very easy to get overwhelmed by all the possibilities. Most people buying cars don’t know much about the industry and as such believe whatever the salesperson tells them about what they need to pay. However, this is an easy way to get tricked into a bad deal. In order to avoid this, you should educate yourself. About what? The car, the features, even the car lot.
- The dealership. Before you go, you should be aware of how this place is run. How much does the new car you want to buy cost? Do they offer this car? Do the salesmen get commission?
- High priced cars. Sometimes, really popular cars can be sold for above the normal price. Know if your car is one of these. Big tip: if it’s on the car lot, it isn’t. Be aware of this and tell your salesperson that you know what’s up. Find out what the invoice price is for the car and then talk up from there instead of talking down from the price they give you.
- Trade ins. First you have to figure out a price between you and the salesperson, and then mention your trade in. If not, they will try to make the price higher to make room for the trade in.
- Research your credit score to make sure you aren’t being overcharged on interest.
- Think about the finance terms your given and compare them to others. Watch out for huge down payments, long terms, and high monthly payments.
- Stupid features. Know what you want and need and don’t let them convince you to add a thousand useless things for extra money.
The key to getting a good deal when you go on to a car lot is knowing what you want and knowing what they want you to want. By researching your car and everything to do with it, such as insurance and your credit report, you can avoid being tricked for lacking knowledge. It might seem a little overwhelming to have to know so much, but it really isn’t all that hard. That’s what the internet is for, after all. Knowing all these things only takes a couple of minutes of research.
Cheers,
Fashun Guadarrama.