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The Business Manager (or Finance Officer) -
After you've negotiated a price for your vehicle,
most salespeople will escort you to the dealer's business office to sign your final sale or leasing contract.
At smaller dealers, the sales manager handles this job as well. The title is irrelevant. The function of
this step is to try to get more money from you. Most of a new-car dealer's profit is earned by these well
trained, highly paid and very successful super salesmen. Watch out!
Refuse the insurance coverage and dealer
installed extras (like paint sealant, rust proofing, VIN# etching, electronic corrosion prevention, pin striping,
fabric protection, and alarm systems) that the manager suggests. These extra-cost add-ons constribute nothing
to the value of your car at trade-in time, and exist only to fatten the dealer's profit at your expense. No
conclusive evidence exists that any of these protective add-ons actually work, while aftermarket remote-starters and
alarm systems can butcher your car's electrical system.
The last place you want to buy insurance is from
an auto dealer. Unless you're buying used, decline the extended warranty as well. If you need an extended
warranty, keep in mind that the price of coverage is negotiable (see
Warranties Explained).
If you're buying a new vehicle with a
manufacturer's special financing plan (0% to 3.9% APR), make sure the price you negotiated shows up on your sales
contract. Dishonest dealers may try to insert the MSRP instead of the price you agreed upon. Double
check the dealer's math as well, mistakes happen all the time.
Your Trade-In - If you've decided to
trade your car in, rather than donating or selling it privately, now is when you can
finally discuss your trade-in. If you've followed my advice you know what it's worth both wholesale and
retail. You have an idea of how much hassle it would be to sell it through the newspaper, and how much
satisfaction it would (or wouldn't) give you to donate the car to a charity. Knowing all this, you should have
a good idea of what price the dealer will offer you for your trade-in.
It's
time to discuss dealer financing with the business manager or finance officer. You already should know what
you can get via third-party financing. If the dealer can offer you better terms,
take them; if not, no problem.
The Leasing Manager -
Same as with the business manager. Decline all extras.
If you haven't already read Leasing Explained, do so now.
Negotiating With A Private Owner -
Buying from a private party is similar to buying from a used
car dealer, providing that the seller is realistic about the selling price. Make sure you know the fair market
value of the vehicle; bring your mechanic's report; walk away if you're not getting anywhere or you're at your
limit; but remember to leave your phone number just in case the seller has second thoughts.
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