Archive for June, 2009
Wednesday, June 17th, 2009
Getting free car quotes off the internet can save you money! You have probably heard that before, but how exactly does it work? Here are a few question and answers about car quotes.
How does it work?
First, referral services usually work with a network of thousands of dealers. Because they get tons of referrals from these services, they can offer you a better price. Furthermore, your information is usually sent to the internet department of dealerships. These departments are often run by non-commissioned managers, which also allows them to make better deals.
Is my information safe and will they bug me?
Your information should be safe. If you are getting your quote with a quality service, they screen all their dealers to make sure they are reputable. Now, you should get an email with your price quote and a possible phone call asking if you want to test drive the car. You are not obligated to come in for a test drive and they should not bug you after that.
What price should I expect?
The average price is around the invoice price. In some cases it is higher, and in other cases it is lower. You should be getting multiple quotes,and you should not be using just one service. You never know who may have the best deal in your area.
Can I go lower than the quoted price?
You can sometimes haggle with this price. However, in addition to the car quotes, you should be doing your research. So make sure to get your car quotes off high quality sites like Edmunds. There, you can find out information such as dealer incentives, holdback, and rebates. This information can help you determine the dealer’s actual cost for the vehicle. You can also learn what others in your are are typically paying for the vehicle. These sites are fantastic for helping you get a deal.
What If I shop at another dealer?
Even if you decide to go to another dealer, you can still use the car quotes you received for leverage. Just make sure to take the quotes emailed to you as proof.
If used correctly car quotes can save you, in some cases, thousands of dollars. Good Luck, and I wish you the best in car shopping.
Posted in New Car Price Quote, New Car Quotes | No Comments »
Wednesday, June 17th, 2009
I have over 20 years experience at a new car dealership. I have sold cars, been in fleet sales, a fleet manager, leasing manager, finance manager, inventory manager, and produced vehicle advertising. In general I would say that a new car dealer is very motivated to get the maximum possible revenue from each customer. (This is also true for most businesses) Dealership management typically adheres to all rules and regulations and will not allow deceptive selling practices. The general problem for the consumer is that they are usually less skilled at the buy/sell process than the dealership staff. The staff does this all day, every day; the customer may buy once every few years. I can’t tell you all that I know on one page. I will try to give you a few tips to help level the playing field.
The first tip is to go slow in the shopping process. The dealer will usually press for a commitment to buy TODAY! Don’t be rushed to buy. There is almost never a great deal today that will be gone tomorrow. First choose the type of vehicle you want, and decide which options you need. Then you can contact multiple dealers for a price quote. It may be better to do this online or by phone. At this time you should find out what factory specials are available. Consider the advantages of a low rate vs. a larger rebate if that is the case. Are you eligible for any special pricing plans such as X or Z plan because of being a close relative of a factory employee or because of the company you work for? After you narrow your choice of dealers, don’t be afraid to play them against each other. Dealers HATE to lose a deal to a competitor and will likely go lower to get the deal.
The second tip is to only buy the car and nothing else from the dealer! Make it very clear that you don’t want, and won’t pay for, paint sealer, fabric protector, service coupon books, paint stripes, alarm system, window tint, life insurance, tire warranty, etc., etc., etc. Any of these things can be gotten later, if you have to have them, at a lower price. If you want an extended warranty, call a few dealers after the purchase and get it at a discounted price. It is common for the finance department to “load the boat” with extras. READ the paper work they present, especially anything with price figures. Tell them to take off any extras and walk if they won’t. (They won’t let you walk too far!)
If you have a trade in, negotiate that separately from the cost of the vehicle. If possible get a bid from a place like CarMax for an indication of your trade-in wholesale value.
Shop for your own financing and only use the dealer arranged financing if they meet or beat what you can get elsewhere.
A typical profit for the dealer can be about $3,000 including the vehicle and financing. On some customers the dealer might make $10,000 or more in profit. If you use these tips you may be able to reduce the dealers profit to a small amount.
Posted in Car Buying Tips, New Car Prices, New Car Quotes | No Comments »
Wednesday, June 17th, 2009
The global automotive industry is in a tailspin, with a double digit sales drop being felt in the United States, select European markets and elsewhere. Some analysts are predicting that depressed sales will continue through 2009 with only a modest recovery happening by late 2010.
Of course, the flip side of the news is that consumers are still buying new cars. This means that as automakers work frantically to reduce production and cut back on capacity, some excellent deals await the savvy shopper.
Are you planning to buy a new car this year? If so, let’s take a look at some things to consider before you buy:
Research Thoroughly - Thanks to the internet, everything and anything you want to learn about new models is available online. You can compare similar models, read reviews, learn fuel mileage estimates, check out consumer ratings, simulate outfitting your car, arrange a test drive, obtain price quotes and more. Truly, before you set foot in the dealership you can have all of the information you need to ensure that you get the right car at the right price.
Not the Sticker Price - As recently as 2007, most consumers paid at or just below the sticker price for their new cars. No more. Today, a sticker price is simply a guide, but you can pay closer to what the dealer paid for the car when you uncover that information while researching your particular car. These days, most new cars can be had for just a few hundred dollars above dealer invoice, even for lower amounts when manufacturer incentives are included.
Cash or Credit? — If you are paying cash for a new vehicle, then good for you! You have much more leverage than the person who is relying upon credit, a negotiating position that few consumers have. However, even if you are needing to finance your purchase, you can still come away with a great find. Before you get started, obtain a copy of your credit report and credit score to ensure that there are no mistakes on your report and that your score is high enough to get low interest rate financing. In many cases you’d do better obtaining your own financing and taking the cash rebate, but in some cases you can find both through your dealer.
Warranties and Guarantees - How long is your car warranted for and what does that warranty cover? Standard powertrain warranties of 5 years or 60,000 miles may be enough for you but what if you plan on keeping your car for the long haul? Consider an extended warranty purchased through your dealer to cover those parts not covered in the warranty beyond the customary warranty period.
Extra, Extra - Certain popular or high end models won’t necessarily be discounted, but that doesn’t mean you will have to leave the showroom without a deal. Why not ask the dealership to include oil changes with your purchase or some sort of concierge service? Maybe having access to a loaner car while your vehicle is being maintained is all that you need; even the most basic car manufacturers typically offer this service these days.
Finally, when ready to negotiate, be prepared to walk out of a showroom if the deal doesn’t meet your needs. In a given metropolitan area, several dealerships selling the same brand cars can offer different incentives; shop around to find the best deal that is right for you.
Posted in Car Buying Tips, New Car Tips | No Comments »
Wednesday, June 17th, 2009
Buying a new car is a very crucial decision as you are going to commit to pay a certain amount of money every month for a long period of time. This means that you should make sure that you are paying the right amount of time in the right place in the right time and this needs a little search from your side just before you take that decision.
When to buy
First of all, you should decide when to buy. Choosing the best time to buy would guarantee you the best price. The best time to buy is at the end of every year, this is because of the fact that at the end of the year every car dealer is trying to close the biggest number of deals just before the holiday season just to end the year with the biggest profit. At that time, the dealer is also trying to deplete his stock of the year as if this model is still here with the beginning of the new year then he will need to sell it for a very low price. So, you can buy the car that you want with the best price at the end of the year or if you are not concerned about buying an outdated model then you can get it at the beginning of the next year.
Your car loan
If you are looking for getting the best price then you get a pre- approval on your loan just before you visit your car dealer. In this case you are negotiating from the strong side. The sales agent will be keen to give you the best auto quote in the market as he is sure that you are willing to buy.
Which car to choose
The best auto quotes could be get on the less popular cars but when you think about buying a very popular car then do not sweat in getting a good auto quote because this will be very hard. If there is a good demand on a certain model then you cannot find a dealer who is willing to give you a good price on this car.
Know the real price of the car
This is a very important stop during car quoting. Knowing the real price of a car is very important to give you an idea about how much you should pay for that car. There are two prices, the MSRP and the invoice price. The dealer will do his best to let you buy with the MSRP as it is the desired price but you should start negotiation from the invoice price which is the price paid by the dealer.
Accessories and where to buy them
When you decide to buy a new car, your car agent will try to serve you the auto quote with full accessories and believe me if you try to get these accessories after the car hits the road it will be much cheaper so do not bother getting them from the dealer.
Posted in Car Buying Tips, New Car Price Quote | 2 Comments »