How to Buy GM Cars

General Motors cars can be a bargain.

General Motors, or GM, was once a profitable automaker, but its financial woes got so bad that it had to be bailed out by the United States government. This resulted in the discontinuation of some of its product lines and an overall streamlining of the company. Some buyers are reluctant to consider buying a GM car because of its past troubles. However, that can actually be a benefit because you can get a good bargain on many GM models and the warranty is backed by the U,S. government.

Instructions

1. Narrow your choices to the GM vehicle that most interests you. If you choose a model from a discontinued line like Pontiac, you can save a significant amount of money. Otherwise, choose from a line that will continue to be manufactured, like Chevrolet or Cadillac, and get more modest savings. GM dealers will still repair discontinued models, but the resale value will drop more quickly. This may not be a problem if you intend to keep the car for a long time.

2. Find out how much others have paid for the GM car you're buying. Automotive forums like Edmunds are a good resource to track car sales prices. Keep in mind, too, that some GM cars may be selling well below invoice. This research will help you come up with a fair offer.

3. Inquire about current rebates. You may get back some significant cash. Subtract the rebate amount from your offer.

4. Ask about factory-to-dealer incentives. Unlike a rebate, this money goes to the dealer, not the consumer. However, a GM dealer may offer you a good deal because he can share some of this money.

5. Check inventory at your local GM dealers to find which one has the car you're buying. Most dealers let you search their inventory online. Make a list of dealers, sorted by location, with the car you want. Start shopping at the nearest dealer.

6. Don't let the dealer doesn't add extra fees. Look for added amounts like dealer preparation and documentation fees. They are often preprinted on the contract to make them look legitimate, but they are pure profit. Have the dealer subtract them from the price. If the dealer refuses, don't sign the contract. Leave the dealership and visit the neaxt dealership on your list.

Tips & Warnings

• If you decide to purchase an extended warranty for your new GM vehicle, make sure that it is from GM rather than a third-party company. GM warranties are backed by the U.S. government, while third-party sellers often go out of business, leaving with you no coverage and recourse. It may be more difficult to get service for your GM vehicle, even though the warranty is good. Many GM dealers are closing, so be prepared to drive a longer distance and to wait a longer time for repairs.

References

• CBS Money Watch article
• Edmunds forums