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Buyer Navigator Step 5: Choosing The Right Dealership. Choosing a Dealership: While there are always rumors about small-town vs. big-city dealerships, the truth is that you can never be sure where you'll get the best deal. That is why pricing several dealers is a good idea. Something to note, however, is that the size of the dealership doesn't affect dealer cost. All dealers pay the same amount of money for a particular vehicle, no matter where they're located or how big they are. However, sometimes manufacturers offer volume bonuses for the number of units sold, and if such a bonus exists, the volume dealer may be able to undercut competitors on price. Some people believe that small-town dealers treat customers better because they have more riding on their reputation in the community, but you cannot be sure that is how every low-volume dealership looks at it.
When to Go to the Dealership: There's as much advice about when is the best time to visit a dealer as there are days in a year. Some say that Mondays are good because business is slower on Monday than on the weekend. Some say holidays like Thanksgiving are good for the same reason: nobody else will be there, and the sales team will be hungry for a sale. Others advise to go when it's raining or snowing; after all, who wants to look at a car and get wet? Then there's the advice that the end of the month is the best time because the dealership needs to make its "quota" of car sales and will be more willing to cut a deal. Still others advise not to buy a car until the end of the model year, or in slow months like August or December when people are busy thinking about going back to school or shopping for Christmas gifts rather than shopping for a car. Don't buy a car until you need one. That's usually the best time to buy. This is our best advise to you at AutoNetDirect. By then you have saved enough for a substantial down payment, and you've had plenty of time to do your research for the lowest interest rate, and you know all the current incentives and rebates. There is no way to tell when the best time to buy actually is other than personal need. If a dealer has already made his target sales for the month, you're not going to have any advantage by showing up on the 31st of the month. Some people advise you to show up to the dealership just before closing on a weekday, so the salesperson will want to hurry up and give you a good deal. If sales have been brisk all day, however, you're not going to help yourself by showing up just before they close, only to start negotiating into the late hours of the night. In fact, those types of buyer tactics can be extremely annoying to a salesperson, and they may toughen up their negotiations just to get back at you. While there may be something to say for going to a dealership on a weekday near the end of the month on Thanksgiving, or Christmas, your best bet is to track incentives and rebates, don't buy hot new models, and do your research first. RETURN TO CAR BUYING INTRO PAGE Alternative Ways to Negotiate: Using the Telephone. This is the simplest - and often most undervalued - way to shop for a new car. Simply call every dealership in your area that offers your choice of car, talk to the fleet or sales manager, and ask for a quote over the phone (detailing exact options and color required). Explain to them that you want the absolute lowest price they can quote you for that car and the lowest financing available. This will allow you to comparison shop right from your living room. Because this is the easiest way to do business and requires less effort on the part of the buyer, some dealers may not take the phone-in order seriously. Or, they may claim that they require you to come down to the dealership and fill out a credit application before they can discuss price. Why? The selling price of the car has nothing to do with the buyer's credit history. It does, however, keep a dealership from wasting time trying to sell a car to someone who will not qualify for credit. It also tells the dealer if additional money can be made on a buyer whose credit is not perfect. Also, by requiring your presence, the dealer has greater leverage and can play games with you. It's much harder for a consumer to walk off a dealer lot than to hang up a phone. Here again, by pre-arranging your financing you've taken away one of the dealer's tools for profit enhancement. Always do compare what the dealer has as far as options. Keep good notes. If a salesperson refuses to give you a quote over the phone, simply tell them that's too bad because they're losing your business. If six out of seven area dealerships give you quotes, you have something to work with. If none of your area dealerships are willing to give you a telephone quote, however, you'll have to show up on their lots. But set up the appointment with the sales manager or fleet manager first, and have your financing arranged ahead of time so that the credit application issue is a moot point. . First, figure out your monthly income. It is wise to use net income so that you know exactly what is coming into and going out of your pocket. Next, calculate your monthly expenditures. Include debts, mortgage or rent payments, insurance, groceries, spending money, clothing, etc. This will not only help you figure out how much you can afford, but it will also allow you to see where your money is going. Now your uncertainty in this area is put in confidence, as to your auto purchase by knowing these figures. Remember, at AutoNetDirect, knowledge is power. A new car should cost considerably less than a home mortgage. A good rule of thumb: your monthly payment for a car should be no more than 20% of your monthly net income. Remember that this rule of thumb applies to car payments as a whole. If you own two vehicles and make payments on both of them, the total of the payments for both vehicles should not exceed 20% of your monthly net income. This rule will be an asset for any shortcomings that may arise. According to J.D. Power & Associates, the average sales price of a new vehicle today is $25,055 (this figure includes all light vehicles, both cars and trucks). With this in mind, it is important to know your budget. Preparation and knowledge are two of the most potent weapons you have as a consumer, so don't walk into a dealership without first sitting down and evaluating your finances. Again, you need to know. *
How much you can spend on a car Knowing all three of these numbers is important. If you enter into negotiations only knowing what you can afford per month, for instance, the finance department may rip you to shreds by shifting numbers, extending pay periods and raising interest rates. If you are prepared in this area prior to arriving at the dealership, you'll walk away happy, knowing that you are paying exactly what you wanted per month. Therefore you will have an enhanced experience with your new auto purchase. Some other things to consider when estimating the cost of a new vehicle are the costs of fuel, license, registration and insurance. Call your insurance company to determine what your monthly insurance cost will be for your top three vehicle choices. Also, check here at AutoNetDirect. Our associates and partners offer all of this to you on this website. Keep in mind that some insurance companies may give discounts for vehicles with features such as side-impact airbags, ABS, and daytime running lights. Conversely, rates can be higher for young, inexperienced drivers or those with poor driving records. "A direct auto information mainstream for the consumer" RETURN TO CAR BUYING INTRO PAGE |
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