In Part I of How To Avoid Common Car Buying Mistakes, we covered things such as not going for a test drive and not having the courage to get up and walk away from a bad deal. In part II we’ll cover some more ground in keeping you out of trouble when you go to the car dealership.
If you’re looking for a good price, one of the things you want to avoid doing is to negotiate a deal from the MSRP. There is a reason why it’s called the manufacturer’s
SUGGESTED retail price. The price you see on the sticker is only a guideline for the sale price and in no way is it written in stone.
Some people make the mistake of thinking that this is the retail price. The car salesman would love to make a deal from this starting point because the actual dealer cost for the car is much lower. They can afford to “give” you $1000 off the MSRP when in reality they’re not really giving anything away at all. If you’re shopping for a deal, start with the dealer’s invoice price or factory invoice as a place to begin pricing talks.
Don’t Be Fooled By Low Monthly PaymentsA common sales technique used by car salespeople is say, “OK, you want this car, right? I can get you out the door with your new car for only $250 a month!” This is the hook that some consumers fall for. And once this bait is taken, the salesman starts to reel in his fish or in this case, the customer.
While it may be true that you can drive the car away for only $250/month, what is often overlooked is the amount of interest that is going to be tacked onto the loan, plus the length of the payment schedule. If the car has a high interest rate added to long payment times, this means that you’ll be paying a lot more for the car no matter what price you agreed to. Make a deal over the final price of the car, and ignore low monthly payments.
Not Going to More Than One Car DealerWe know that it isn’t usually fun shopping for a car, and some individuals make this easier by just visiting one car dealership. They figure that all of them are basically the same so why bother? Although car dealers all look the same, they are definitely not all the same. Some dealerships have great service departments while others should be shut down for “mal practice.”
Taking the time out to visit different dealers may protect you from getting cheated on the car price. Sometimes car salespeople will innocently ask, “So have you been shopping for a car very long?” This question is asked to find out if you have visited other car sellers and gives them a clue as to what they can or cannot say to convince you to buy. If they know you have been to other car dealerships, they’ll have to be on their A-game and tell you the truth.
Visiting other car lots also helps you to determine what the going price of the car you are interested in is. This information can be to your advantage when you sit down to make a deal with the car salesman. If you see an offer that is too high, you can counter it by saying another car dealer is offering it lower.
But even if you do get a lower price, be on guard for any extra charges, long payment schedules, or higher interest rates on the car. A dealer may offer you a good deal, at least on the surface, but your savings may be wiped out by other factors that add back onto the price of the car.
Source: MSN Autos(http://www.msn.com/en-us/autos/buying/the-10-car-buying-mistakes-everyone-makes/ar-AAcDycr#page=1)