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1. When is the best time to buy a car? There is one important point to remember: Do not walk on to a car lot to buy a car until you are absolutely ready NOT to buy a car. You have to be in control. This means that you know what you want and understand your needs. You should also know your financial limits and what your options are. And finally be confident enough to walk away from a bad deal. 2. Should I buy from a big dealer or a small dealer? With a big dealer you will be able to find practically any line and model of vehicle you want to buy, and you will probably be able to buy at the best price. Big volume dealers will drop the price quicker than the little guys, but they will be more willing to let a customer walk if they don't get the price they want. Big dealers want to sell as many cars as possible at a profit in order to maintain a high Customer Satisfaction Index. (The CSI is the rating on which quality of product and service to customers is based. Smaller dealers generally have a smaller inventory, but their prices tend to be more attractive. The little guys have to make more per car than the big guy because they have fewer sales, less inventory to work with, fewer incentives and less consumer traffic. 3. How do I gauge how good a dealership is? The service department can tell you a lot about a dealership. Is it well lit and clean? If so, then you can be sure that the dealership is well managed and staffed. It shows that the owner cares about having you as a customer long after the initial sale. If the service department is a mess, then the opposite holds true. The service department is important because the minute you drive off the car lot, the warranty kicks in for the inevitable warranty work, general maintenance and other mechanical work. 4. What should I consider before I go car shopping? You should make some decisions about the price range you want to consider, how you are going to pay for your purchase, whether you are going to be financing or leasing, or can you pay cash. Will you be using an automatic factory source or leasing company, a bank that the dealer uses, or your own personal bank or credit union? Find out where you can get the best interest rate. Decide if you should go with a fixed rate or a variable rate? A fixed rate remains constant throughout the loan, while the variable rate fluctuates. It might increase or decrease depending on the prime interest rate. 5. How much down payment do I need? The down payment will depend on your past credit history. If the dealer is handling the financing, the finance manager will try to get as much down payment out of you as possible. The more you put down, the more equity you will have, and the lower your monthly payments will be. |
