How to Get a GREAT deal on a NEW CAR

The time comes when you decide to BUY A NEW CAR! Will you be stressed out and defeated? Or Knowledgable and VICTORIOUS!

Instructions

Difficulty: Moderately Easy

Things You’ll Need:

• Knowledge
• An Internet connection
• a COSTCO Membership
• Some creativity
• Pre-approval from your bank

1. So, you want a new car! I bet you even have your eye on a particular make and model!
   
   Well, I am here to save you dollars and headaches!
   
   First, decide what you NEED in a new vehicle. Is it a 2 door 2 seater? Or a family sedan? A station wagon or a truck that can TOW?
   Edmunds.com is a GREAT resource for reviews, pricing and even dealer referrals!
2. Next, go to your bank or credit union. Find out what they are offering on Auto loans. If nothing else, try to check your credit. Make sure you know your score and whether anything bad or weird shows up!
   
   Once you have a RATE, Payment and price range in mind.... it's time to go shopping. Online that is.
   
   Do your research. Look up 1 and 2 year old models of the vehicle you want. See if they hold their value. Do you care? You should!
   If it drops VERY quickly, you should ask yourself WHY? Look up consumer reviews. If the car drops in value because there are a lot of them for sale, of because of the manufacturer, that's fine. If they drop because of Dissatisfaction or problems... BEWARE!
   If a vehicle drops quickly, but has good reviews, you might consider buying a low mileage USED vehicle of that make and model!
   
   No, you want NEW.
   Okay.... and you have completed your research!
3. It's time to check your finances and get ready to go out to the dealers!
   
   Do you have a Trade-In? Run a Kelly Blue Book, NADA or any other value check. Also, a Car Fax is a good idea.
   Wash and wax your car. Vacuum it out, touch up a few blemishes, maybe even buy the cheapest set of new tires you can find.
   The dealer will offer you AT LEAST 20% LESS than Kelly Blue Book or NADA.
   They need to make a profit!
   Just be prepared.
   
   Also, if you owe more than the NADA or Kelly Blue Book.. you are "UPSIDE DOWN" in your Trade-in. It's time to re-evaluate. It could cost you THOUSANDS or REALLY "BURY" you in the new vehicle if you owe more than your trade is worth.
   Consider waiting. Leasing can also get rid of negative equity as long as you follow the LEASE RULES to the "T". (Stay within miles, no wear, make all payments and NO BALLOON PAYMENT or DEPOSIT).
   
   So, you are fine on the trade (maybe it's even paid for). EXPECT 20% or MORE discount from "BOOK" value.
   Remember, EVERYTHING is negotiable in the car business.
   
   If you expect the lower price and are okay with it..... negotiate THEIR price down!
4. The easiest way THESE DAYS to negotiate a LOW price on a new car.. is through COSTCO warehouse stores. If your are a COSTCO member, New Car Prices are Pre-Negotiated! It's usually so much OVER Invoice. Invoice is what the dealer pays. (don't get me wrong... they PAD the invoice, but then if they didn't, they would be OUT OF BUSINESS).
   
   You have them evaluate your trade in, meanwhile choose a car.... finally spring the "COSTCO DEAL" on them. If they waffle, or say they don't offer it.... go somewhere else that DOES!
   
   A word on negotiating. A dealership CAN Out- Negotiate YOU! It's what they do. They LIVE, BREATHE and GET PAID to NEGOTIATE!
   Try to arm yourself.... get pre- negotiated deals (like Costco). Deal with their "INTERNET" department, and read up on the deals, i.e. "Cash back", "Rebates", etc.
   
   Your best DEFENSE is KNOWLEDGE and a PRE-APPROVAL from your bank.
5. Dealerships make money at LEAST 3 different ways.
   #1.) They make money on the vehicle you buy. It's padded, sometimes 2nd sticker, sometime dealer incentives.\
   #2.) YOUR CAR. They lowball your trade-in. They buy it cheap, recondition it and RESELL IT!
   #3.) FINANCING. They rip you off on RATE, Extra warranties or PROTECTION packages like paint, interior or under coating, LoJack, etc, etc...
   
   THEY MUST MAKE MONEY!!!!!!!!!!!!!!!
   Otherwise, you will have a service problem and their business will be boarded up!!!!!! Make sense?
   
   It's YOUR job to get a FAIR deal.
   So, KNOW what your trade in is worth. Try to buy at the end of the MONTH, YEAR, or COSTCO, ETC deal..... and have YOUR OWN FINANCING lined up!

Tips & Warnings

• Find out what kind of deals are available
• Deal with the internet department
• Try to get a Pre-Negotiated deal like "COSTCO".
• Buy at the end of the MONTH/YEAR.
• NEVER let a dealer ABUSE you.
• NEVER assume that your credit is GOOD, or your car is worth XXX, do research and KNOW!