Buying A Car? Read This First!
Cars – Too Bad They’re A Necessity
Okay – that old car you’ve been driving for the last 17
years is finally on its last legs. This is a bad thing!
You haven’t had a car payment in more than 10 years.
This is a good thing!
Now, it’s time to replace that old car so you can get to
work, the grocery store, drop the kids off at school,
take the spouse out for a night on the town, go see
Grandma 300 miles away… well, you get the idea. You have
to have a dependable car to accomplish these ventures.
Now what?
Before You Buy, Line Up Your Ducks
First, arm yourself with the information that will keep
you from making a bad deal. If you simply go to the
dealer, find the car you want and pay the price on the
sticker, you’re cheating yourself!
It’s going to take some time and effort, but knowing
what you need to know puts you in a much better position
to negotiate. Believe me, it’s a position you want to be
in. You can save yourself literally thousands if you’re
prepared.
Pick out the vehicle and model in which you’re
interested. Better yet – pick out 2 or 3. This way you
won’t just go from dealership to dealership “looking for
the best deal”. You CAN get the car you want and at a
price that won’t necessarily break the bank.
Now, check the Blue Book value of the car (if it’s used)
or the factory invoice (if it’s new). Don’t expect to
pay low Blue Book value, either. You should be prepared
to pay somewhere between the loan value and the retail
value. Car dealers and those that sell cars for those
dealers are never – let me repeat that – NEVER going to
lose money on a deal, regardless of what they tell you.
It’s also important to keep in mind that dealerships are
still businesses. And, as such, they are entitled to
make a profit. However, because they work on commission,
the more they can sell you the car for, the more they
make.
Do I Need All These Extras?
Next, be aware of those “needed” extras, many if not all
of which you do not need. At least you don’t need them
for the price they’re going to charge you. Once you and
the salesman have agreed on the car deal, you’ll be
re-directed to the F & I guy. He will attempt to sell
you insurance coverage, extended warranties, and finance
your deal with “the best rates available”. NOT!!
Get pre-approved through your own financial institution
prior to car shopping. This will not only save you a lot
of headaches, but money as well. YOUR hard-earned money.
It Ain’t Worth What You Paid For It Once You Drive It
Away
Another important factor to keep in mind is that
automobiles depreciate the minute you drive them off the
lot, whether the car you buy is used or new. I have yet
to see a car increase in value, unless, of course, it’s
a classic and in like-new condition. Please do yourself
a favor and keep this in mind at all times when car
shopping.
“No” May Not Be Popular, But It’s Necessary
Lastly, and this is of utmost importance, learn to say,
“No”! Learn to say it with conviction. Go to the mirror,
look at yourself and say, “No”… repeat… repeat again for
however many times it takes to convince yourself that
you mean business. It’s a good word. It belongs in your
vocabulary.
Cars are money pits. But, they’re absolutely necessary.
Say, “No”… until you’ve made the deal YOU want.
It will make you feel as though you triumphed when
purchasing your next car.
By: Doc Phillips
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