Women make up the larger part of the population that purchase cars on their own. And, whether you're going with your boyfriend, your husband or your dad, the fact is that more than 80% of the time, the female makes the final decision, even if the car is not for her. These are FACTS. It is to your advantage to know other facts when going to a dealership to buy a car. Armed with said facts, you'll be able to make your experience less dreadful and you'll come away with the car you want at a good price without having to spend 8 hours trying to do it. I know. I used to work in the business and saw all the tactics that 'old school' car dealers (and their employees) utilize to intimidate women buyers. Sadly for them, they never got the concept that women are NOT as stupid OR helpless as they may have been in another era. Again, this is most definitely to your advantage.
Before I go further, I think it's important to tell you WHY I opted to sell cars. After all, most people are about as fond of car salesmen as they are of sticking castus under their fingernails. So why would anyone WANT to sell cars? Well, I was sick and tired of watching my sisters, friends and various other gals get ripped off. And I was certain that I could do a better job than most of the bozos I'd seen on various lots, using those tired old 'slick' lines and laughing all the way to the bank. You could say that I was on a mission. I spent 4 years selling cars, quite successfully I might add, and only quit the business because it was apparent to me that I was NOT going to change the way business was done. The Old School Boys Club was firmly entrenched and I wasn't going to change that. What I did change, however, is how all the women I know now buy their cars. In other words, I learned the business and can now use that knowledge to help others. It's an awesome feeling and the time I spent was well worth the payoff. To that end, I shall share what I learned in an effort to help YOU make the car-buying experience a bit less dreadful.
DO YOUR HOMEWORK:
There is a wealth of information on the Internet that can assist in your process and limit the amount of time you need to spend at the dealership. Such resources as www.Edmunds.com and www.kbb.com (Kelly Blue Book) will give you exact prices on both retail and dealer costs, as well as reviews on the vehicle in question. KBB.com is great for reviewing used cars, Edmunds.com is both new and used cars. You can also get help from Costco if you happen to be a member. They have a pretty awesome buyers plan that allows you to know before you get to the dealership what price you'll pay for the vehicle you've chosen. This eliminates all the 'haggling' nonsense. Most dealerships that allow Costco deals have one salesman who works with those customers and you can even schedule an appointment to minimize the time you're there. It's quite handy. If you don't happen to be a Costco member, you can still arrange things in advance by doing your research about the car you want and then calling the dealership to make an appointment with their Internet Sales person. But we're getting a bit ahead of ourselves.
First, figure out what you want. If you're deciding between a few different vehicles, set aside a couple of hours during the week (if possible) to go to each respective dealership to test-drive the various models. I suggest week days as opposed to weekends because there's typically less traffic at the dealerships during the week and you can get in and out pretty quickly. Depending on the state in which you live, it may be required for you to hand over your driver's license so they can make a photocopy of it. Some states actually require the dealership to have your license on file (insurance liability, etc) so you have to allow them to do this. You can check with your local DMV about your state's laws. If you must allow them to photocopy it, GO WITH THE SALESPERSON when he does this. Why? Because I've seen more than one knucklehead manager try to keep the license in his possession in an attempt to keep the buyer in the dealership. As stupid as this sounds, I've seen it happen.
So, you've driven the cars you are considering and narrowed it down to 2. Next step is to see which car is going to be the better value. Go to Edmunds and research each vehicle. Get the MSRPs as well as the dealer's invoice price. You can also use their calculator to estimate what your monthly payment will be. It's a good idea to know your credit rating beforehand, so you'll know what kind of interest rate you'll qualify for. At this point you can plug in all your numbers, from how much of a down-payment you'll have to the length of the term and figure out if it's doable. You can also go directly to the manufacturer sites to see if they have any special deals going on (offered by the manufacturer, not the dealership) and plug these numbers in as well.
FINANCING OPTIONS:
Depending on what kind of offers the manufacturer has, you may wish to finance your vehicle elsewhere and bypass the entire dealership finance department. More often than not, they're going to try to charge you a percent or 2 over what you actually qualify for. They make money on this, so they'll do their best to jack up the rate. If you go to your credit union or other financial institution beforehand, you'll be able to get the best possible rate and, again, spend less time at the dealership. When I bought my last truck, I went through my credit union and got a rate that was 5% less than the dealership offered. That's a HUGE difference in your total cost, so don't underestimate what you may be able to find.
TRADE-INS:
If you're planning on trading in your old car, the best thing you can do is to get the value of that car on KBB. You'll need to look under 'trade-in value', NOT 'selling privately'. and here's the reason for this. Whenever you trade a car in at a dealership, that dealership is going to offer you the least amount they can in order to maximize their turn-around profit. In most states, they're required by law to run those cars through the service department to make sure the car meets minimal state requirements for reselling. This costs the dealership money, so they take that into consideration when making their offer to you for the trade-in value. Also, if the trade-in has more than 60K miles, it's value is drastically reduced because the dealership can't offer any warranty on it when they try to resell. In short, it's likely that your trade-in is going to be sold to an auction (that's where those little, privately owned car lots get their cars) and the dealer isn't likely to make any profit on it. Hence, their ridiculously low trade-in offer.
If you want to get the most for your old car, you're better off selling it yourself. It's not nearly as convenient as trading it in, but you're most likely to get the most for it if you do it yourself. If that's not something you want to contend with, then get all your information gathered about what you can get fro a trade and don't say a word about it to the salesman until AFTER you've negotiated your price on the new car. Keep the trade-in out of the equation to secure your new car price. It'll minimize even more 'negotiating'.
AT THE DEALERSHIP:
So now you've got all your information gathered and you've made your decision as to which car you're going to buy. You've also figured out where you're going to get your financing and the value of your trade-in. You're ready to buy your new car.
Before you drive onto the lot, you must have the following decisions made:
Your Down Payment (the MOST you're willing to put down on the car)
Your Monthly Payment (not a penny more)
Your Trade-In Value (the least you're willing to accept)
Your Credit Score (if you're financing through the dealership)
Go in and ask to speak to the new car (or used car) sales manager. Tell him/her what car you're going to buy. Drive the car one more time to be sure it's 'the one'. Once you've returned from your test drive, they're likely going to sit you down at some desk and begin the whole 'negotiating' process with what's called a '4-square'. This is where you'll be asked to fill in your information (including your SS number). DO NOT fill in your SS number until you've got the deal you want. Because the moment they have that number, the salesman or the manager is going to run your credit. If you already know your credit score (which you should, if you've done your homework), they don't need to do this just yet. As soon as you're done filling in your information, they're going to disappear into another office and start with their highest numbers. The moment they return to the table, take that 4 square out of his hands (he is NOT going to want you to do this, as this is his 'control' document...they actually teach you this when you're new to the car business!) But, grab the paper and cross out everything they've written down, replacing each number with YOUR numbers. These numbers will include price of the car, down payment and monthly payment. (the 4th square is for the trade-in, which you're not getting into just yet)Tell the salesman or manager that this is your 'final offer' and you've got 45 minutes before you'll be leaving the dealership. Check your watch and make a note of it on the 4 square. They may try to tell you that you can't buy a car in 45 minutes, and I'm telling you that YOU CAN. I've done it more than a dozen times with various friends/family and it is totally possible to buy a car in that amount of time IF you've done your homework and have all your ducks in a row.
At this point you're going to have nerves of steel because it's likely all the 'tactics' are going to appear. DO NOT BE SWAYED. Stick to your guns and tell them this is it. PERIOD. If there's anyone in charge who's got half a brain, you're going to be signing paperwork in 15 minutes or so. If not, stick to your plan and LEAVE. If you're making a reasonable offer, they're going to make the deal. If not, you'll know soon enough. By 'reasonable offer' what I mean is an offer that is above their invoice cost (they are entitled to make a profit. That's what they're in business for!)but not so high that they're taking your head off in their profit. Once they've agreed to your offer, THEN you can tell them that you'll be trading in your old car. Don't be surprised if this is met with great agitation. They really hate when people do this. But, again, don't expect to get top dollar for your trade, especially if you've just negotiated the deal you want. They're going to make an offer and then it's u[p to you to decide if it's worth your time to trade-in or sell on your own.
IN A NUTSHELL:
The bottom line is this: go armed with information. KNOW what you will or won't pay. And keep an eye on the time. It's not impossible to get the deal you want with little effort or time spent. You just have to know what you're talking about and stick to your guns.
One more thing:
Depending on your location (4 season climate or not), there are certain months when you're going to have an added advantage. In the 4 years I sold cars, I found that November through the end of February were much leaner (in sales) than the rest of the year. Also, the end of the month (whatever month) because dealerships have quotas and they're more likely to take any deal in order to meet those quotas. Summer is probably the busiest for dealerships, so if you can avoid shopping during the summer and wait til late October or November, it may help you even more.
Happy Hunting!
Camille Olivia Strate is an author, empowerment coach and critter keeper in search of the perfect pasture. Among her many passions is assisting people in returning to their 'true selves' by way of empowerment coaching. She believes strongly in 'paying it forward' and lives by 'do what you love and the money will follow'. Her latest book, "Whispers" is now available in eBook format. Hardcopy to follow soon! Visit her personal site at http://www.joyzachoice.com |
