Buying a car is easier if you have a plan

It costs a lot of money to buy a car and to operate one these days. Along with the high price of gasoline and the high cost of auto insurance, there is the price of the car itself. Auto prices have increased dramatically in the last decade or so as manufacturers add more sophisticated electronics, safety devices and entertainment and comfort features.

Many people are justifiably intimidated by the prospect of visiting a dealer to discuss a car purchase. Unlike buying a TV at Wal-Mart, buying a car is often confusing. The prices are marked, but that may or may not be the amount that you will have to pay. You may have to haggle, and a lot of people are uncomfortable with haggling, as they always think the salesman is getting the best of them.

In order to make it a bit less unpleasant to buy a new car, we offer a few tips that may make it a little easier:

• Do some price checking in advance. Consumer Reports provides an annual auto issue every spring, and Edmunds has some great pricing information on their Website. If you have a good idea of how much the car costs and how much the dealer paid for it, you can be in a more comfortable position when it comes time to negotiate.
• Consider buying through a company that can negotiate for you. Insurance company USAA offers buying programs for their customers. So does Costco, the warehouse store. Many other companies do, as well. They buy in volume and make it possible to pass the savings on to people like you.

• Many old-school dealer tricks are still in use. A classic one is when the salesman offers you a price and then leaves for a minute. He comes back and says that his boss won’t go for that price, but he will settle for a higher one. If you are offered that trick or any of a number of others designed to squeeze more money out of you, get up and leave. Often, the threat of leaving will lower the price, but don’t be afraid to actually go somewhere else.
• Remain calm, even if you are absolutely taken with a particular vehicle. Excitement costs you money. The more restrained and indifferent you can remain, the greater your chances of getting a good price.
• Be aware of factory incentives, such as rebates or low-interest financing deals.
• Shop around. Make sure that you talk to two or three different dealers. If you can get several dealers bidding against each other, you are likely to get a lower price.

It doesn’t have to be difficult to buy a car; it just takes patience. You can do best by doing your homework ahead of time and having a good idea of how much the car you want will cost and how much you are willing to pay.

 

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