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How To Buy A New Car Without Getting Ripped Off

For the vast majority of us the purchase of a new car is the second largest expense we will make after that of our home. It is just as important to take your time and do your research when buying a car as it is when you buy a home. You didn't just walk in and buy your house did you? No, you probably asked for comparison sales in the neighborhood, asked the realtor to reduce their commission, and anything else you could get to lower the price of the home. You should take your car purchase no less serious. First you should research the models you are considering and get all the information you can find on them from dealer invoices to rebates and special interest rates. You can do this at your local library or bookstore or on the internet.

I prefer the internet because I can find anything I want without leaving home. Leave your checkbook at home and shop around. Compare the models available and the prices offered at several dealerships. You don't owe them any loyalty, your job is to get the best deal you can. Don't buy into their offers of we will give you better service and all that garbage.

New cars need very little service. The most important thing once you have selected the model you want is the price, period. You know that unless you are buying a Saturn you will have to haggle the price. And just for your information Saturns have some of the highest profits in the industry! Dealers have several places from which to pull profit and negotiate.

They have the actual profit between the invoice and MSRP as well as dealer holdback, carry over money, and dealer incentives from the factory. Don't settle for what is on the dealer's lot if they don't have what you want either have them trade for it or order what you want and wait for it. This is a big purchase; make sure you are getting what you want.

NEVER tell the dealer that you are trading a car in. What is they ask if you are? LIE! Like I said above, you owe them nothing. If you tell them you have a trade they will hold back profit on the new car or they will try to steal your trade in. You also need to research the value of your car beforehand as well. You can do this online at KelleyBlueBook.com and also compare your car to other cars like it being sold in the area.

One thing I like to do is take my car around to different dealers and tell them I want to sell it. This will give you a good feel for the actual wholesale value and will give you a back up if the dealer you are buying from doesn't give you enough money for your trade. Don't forget sales tax implications either though.

If you trade you will get a tax credit, if you sell outright you will lose that advantage, so be sure to calculate that in.

Gregg Hall is a business consultant and author for many online and offline businesses and lives in Navarre Florida with his 16 year old son. Get patented car care products from http://www.5starshine.com



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