Welcome to New Car Buying Tips. How to buy a new car? If you're in the market to buy a new car be sure to thoroughly research the vehicle before making up your mind. Check the resell value, safety ratings, Auto Insurance rates and Gas Mileage. And don't forget to check your credit report and FICO score if you're not paying cash for the new car. Any errors in your credit file can usually be fixed and less than 30 days. This will raise your FICO score and qualify you for a lower interest rate, saving you money.
To prevent the dealer from charging you a higher interest rate, get a pre-approved car loan either online or at your credit union. If you have a trade-in research its wholesale value and fair market value online, to make sure you're getting a great deal on a new car, do you research online to find out the dealer invoice price, the dealer holdback amount, factory-to-dealer incentives and rebates. Now this part is crucial, get free multiple price quotes online, then use those quotes to make dealers compete for your business. You can get free multiple quotes on new cars, auto loans, car insurance and extended warranties at carinfo.com. Look further link next to this video.
Before you start negotiating your new car purchase, be sure to learn the most common dealer tricks or you may end up loosing your negotiated discount to a dealer scam or overcharge. For example quoting packed payments is a common trick. When the customer asks how much the monthly payment wound be the sales person gives them an inflated figure that represents a higher loan amount or interest rate, the customer might be quoted $450 per month instead the correct amount $400.
On a six year loan this represents an overcharge of $3600. If the customer falls for the inflated payment, the dealer has a number of ways to get his hands on that extra money. The dealer might offer to throw in a high profit item like an extended warranty or car alarm at little or no extra cost, at least that's what the customer has told anyway. Or the customer might be charged within an APR of 10% on loan when the going rate is only 7%. So the dealer can pocket the additional finance charges. If the inflated payments are used on a lease, the extra money could represent a secret price increase or a higher interest rate or both.
Packed payments are often used to trick people into leases. Dealer simply quote inflated payments to make a purchase look more expensive than a bad lease deal.
Other common dealer tricks include the fake buyer the dealer prep scam, stealing the trade the spot delivery scam stealing the rebate, secret APR increases and the switch, you can learn all about these and see videos of undercover investigations by visiting the websites and blog at carinfo.com.
Learn how to negotiate before you start haggling with dealers. It's all about strategy and psychology so practice with a friend until you'll able to pull this off. You need to be totally cool with they take-it-or-leave-it attitude to be successful. Keep telling yourself it's just the car; it's just the car until you really believe it. Never let on that you love the car and can't leave without it and be ready to walk out if the dealer's best offer is too high.
In fact you can usually get a much better deal after you walkout because that shows the dealer that you're a tough negotiator who is not going to give in. Tell them you're going to make the same offer at their competitors, then walk out. They'll usually try to stop at the parking lot with the promise to give you a better deal if you will just go back to their office.
Hold your ground and remember they need you a lot more than you need them. If you're doing that negotiating by email fax or phone, you won't be able to walkout but you can still terminate the negotiation if it's not going well. Just remember to get free multiple price quotes first, so you can play dealers against each other forcing them to compete for your business. You should know the real dealer's cost after holdback and incentives, so make that number your counteroffer every time they name a higher price.
Force dealers to negotiate up from their cost not down from the MSRP and if you can get the price within 2 to 3% of the real cost, that may be the best deal you can find. For more new car buying tips and free price quotes, visit carinfo.com.
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