Things You Must Do If You Want To make the right deal for you!
Things You Must Do If You Want To make the right deal for you!
by Chuck Norlin
Are you armed and prepared to buy your next vehicle? Do you have a “to know” list that will guide you through the purchase process, and save you hundreds, even thousands of dollars? Are you prepared to state your position and deal in facts, or are you going to fly by the seats of your pants deal with guesswork and bravado? It is your choice, but it’s also your money, and it is your responsibility to protect it! There are a multitude of factors involved in the making of a car deal, let’s explore a few of them here.
1. Invoice.
Do you have any idea what the actual invoice is on the vehicle you are about to buy? Do you even know where to find that information? If you do know, did you price out your vehicle with all the options?
You must know what the cost is on what you are buying, and then know what to pay above that cost to own it. Many vehicles have thousands of dollars of profit in them, do you want to pay all that money for yours? It’s your money, and it serves you well to protect it.
2. Blue Book Value.
Do you know how to determine the value of the vehicle you are trading? Do you know why knowing the vaue could be worth several thousand dollars to you?
Your vehicl represents cash dollars, just as though you had money in an envelope. Would you hand a dealer the envelope as a down payment on the vehicle you are purchasing without knowing the exact amount of money in your envelope? Would you trust a stranger to tell you what that envelope was worth, or would you count the money twice to know exactly what you have, and then count it out with the dealer and get a receipt for the correct amount? Would it be better to have an idea what your vehicle was worth before you traded it in? Probably!
3. Credit Rating.
Do you have a current 3 bureau credit check? Do you know your credit score(s)? Do you know what having that information means to you and how to use that information to save money?
Your credit standing determines the price (interest) amount) you will pay to borrow money. Knowing your credit rate allows you to determine the interest you will pay on a loan. Dealers mark up the interest when putting your loan together. A dealer could get you a rate of 7% and then charge you 12% on your contract, which when multiplied out for 3, 4, or 5 years is a huge difference in dollars. On $30,000.00 for 5 years the difference is about $4200.00-that’s your money!
4. Interest Rates.
Do you know what the current best interest rates are? Do you know what rate you qualify for? How does knowing that information save you money?
Interest is a variable. Interest can be shopped, just like a car. Interest is an adjustable thing, the dealer pays some amount, you pay the dealer more than that in most cases.
Banks have interest rates. Credit Unions have interest rates (usually the best except for the special factory rates). Loan companies have interest rates. When you know your credit score and shop the rates you save money. Your credit standing is the instrument that determines your rate, it is your right to obtain the best rate and have a lower payment-it’s your money!
When the deal is completed, the papers signed, and the vehicle is in your driveway, did you buy or were you sold? Were you in charge or were you just along for the ride? Did you know the deal going in, and coming out, or did you fall prey to the “tricks of the trade” and overpay thousands of dollars?
The truth is anyone can make a car deal-ANYONE! A fifth grader could buy a car, you don’t have to have a complete education to buy a car! BUT-what about getting a “best deal”? What about knowing ahead of time where you are and what you can do? Now that takes a little education, a gathering of facts, a little preparation, and a strong dose of application. Would you go fishing without a hook? Hunting without a bullet for your rifle? Would you go into the desert at 125 degrees without some information as to how to survive?
A good deal is not a happy feeling between your ears, that’s foolhardy. A good deal is fact based business, information gathered, a PLAN. You can do that, and you will save hundreds, even thousands on your next car deal when you are prepared, and ultimately empowered.
Chuck Norlin, America’s Car Guy, is a U of California and General Motors graduate is an expert on vehicle buying, selling, and leasing-30 years/thousands of car deals.
http://www.thebestdealofyourlife.com The first complete eWorkBook to guide, empower and save you, the buyer, hundreds, even thousands on your next car deal, and the next, and the next, forever!
Written by Car Enthusiast on September 28th, 2007 with
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