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Monday, January 11, 2010

The Process of Buying a Car at the Dealer

For many people, purchasing a car at an automotive dealership is a scary process, mainly because they are not familiar with what will happen when they go inside. You may expect someone to be ready to rip you off, but many dealers are staffed with decent people who will go out of their way to treat you fairly. Still, you should be completely familiar with the basics of the process to get the most for your money.

The Beginning Stages

    Before going to the dealership, start by deciding which cars interest you. You should already have an idea of what type of vehicle you are looking for to suit your needs. Review automotive magazines and websites to see which models interest you the most. If you are interested in one or two particular brands of vehicle, limit your search to models within those brands that suit your needs. Find out what the manufacturer's invoice price is on the models that interest you most.

The First Trip To The Dealership

    Now it is time to make your first trip out to look at vehicles. Ask friends or check online for dealerships that have the best recommendations, and visit a couple of different dealerships for each model of vehicle you are interested in. You may want to inquire online or by telephone to see if they have the vehicles that interest you most. Set an appointment so one of the sales reps will have some time to spend with you. You are not going to buy on this trip, and it is a good idea to let them know this up front.

Test Drive

    Take each vehicle on a test drive, either with the salesperson or without. A good salesperson will give you a walk around tour of the vehicle to point out all of its features and benefits to you. Pay attention if your salesperson does this, as he can provide good information, and a good sign that the salesperson is interested in putting you in the correct vehicle. Spend time driving each vehicle around town and on the highway. Drive the vehicle during the day and after dark, if possible. Get a good feel for the vehicle under all possible driving conditions, to see if you like it.

Negotiations and Purchase

    When you have made a decision about which vehicle you want to buy and the dealership that you want to purchase from, make another appointment with the sales representative. Begin negotiating the price you will pay, starting from the manufacturer's invoice price plus a reasonable profit. Do not talk about monthly payments during the negotiation stage, because a dealer can hide a higher price by stretching the finance terms out longer to give a lower payment. It is best to have your financing arranged before you purchase. When you negotiate an acceptable purchase price and an acceptable trade in allowance if you have a trade, go ahead and close the deal by presenting a check from your own bank or accepting the dealership financing.

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