The Boys and Toys of Muscle Cars

Several Common Mistakes Car Buyers Make

April 30th, 2009 admin

Common Mistakes Car Buyers Make

Automakers, desperate to sell their inventories, have begun offering attractive incentives to lure prospective buyers. But, finding an automotive bargain can still prove elusive. Car dealerships can easily confound buyers and secretly hide pockets of profit. For the unwary, a trip to the auto dealer may begin as a bargain-hunting expedition, but end up as an expensive lesson in car shopping.

In this article, I’ll give you three important tips that you should use when shopping for your next vehicle. These tips will help you save money, save time, and negotiate objectively to get the best deal.

#1 – Set Your Emotions Aside

You visit the dealership lot and your eyes settle longingly on the gorgeous red automobile gracing the nearby pavement. You must have it, no matter the price. Slow down and take a breath. Buying a vehicle is a substantial investment. Unless you’re paying cash, you’ll be making monthly payments for several years. Will you feel the same way about the car three or four years down the road? Or, are you merely suffering from love at first sight?

#2 – Keep The Numbers Separate

If you’re hoping to trade-in your clunker to have the value applied to your new automobile, be careful. When it comes to numbers and amortization schedules, the dealer’s salesperson is king. Too often, prospective buyers will blend the negotiations. Predictably, the salesperson will offer what seems to be an incredibly generous amount on the trade-in. The buyer, reeling from his good fortune, practically falls into the seat of his new vehicle. Unknown to him or her, the dealer’s profit is built into the monthly payments.

Negotiate the transactions separately. Begin with cementing the price of your new automobile. Then, work on the value of your trade-in. That way, you’ll know whether you’re truly getting a good deal (on both transactions) or if you’re being taken around the block.

#3 – Shorten The Financing Terms

One of the strategies that auto dealerships are using in order to entice people into buying new vehicles is offering a 7-year loan. At first, it sounds great; a longer loan means lower monthly payments. The truth is, longer financing terms translate into a higher cost for you and more profit for the dealer. In other words, they’re not offering it to be nice.

If possible, say no to the extra long loan. Instead, opt for shorter terms that allow you to pay off the loan more quickly. You’ll pay less interest and when the time comes to sell your car, you won’t find yourself owing more than it’s worth.

Even though the car-buying landscape has shifted in favor of the buyer, you should still be wary of making a purchase decision too quickly. Remember, set your emotions aside, keep your trade-in negotiation separate, and avoid the extra long financing. By the time you leave the dealership lot, you’ll be confident that you weren’t taken for a ride.

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Should You Buy A Car At An Auction?

January 21st, 2009 admin

Should You Buy A Car At An Auction?

Older readers will remember a time when buying a used car meant looking in the local newspaper for private party ads. The pickings were often slim and the best deals were snatched up quickly. The earlier you scanned the newspaper’s ads, the better your chances were for uncovering a gem.

Today, prospective buyers have a lot of other options, including auctions. If you have never purchased a vehicle through this process, it may seem intimidating at first. But, once you pull back the cover and learn how they work (including the applicable regulations), they’re not nearly as mysterious as they might appear. Below, I’ll briefly describe a few types of car auctions. Each of them can offer compelling deals on reliable vehicles.

Government Leases And Property

To a neophyte who doesn’t know better, these events can seem unappealing. They have an undeserved reputation for selling vehicles that have been used in drug busts, sting operations, and other criminal activities. As a result, a lot of people think that each one that is sold on the block is blood-stained and riddled with bullet holes.

Let me clarify the types of vehicles sold at government auctions. The government maintains thousands of auto leases for their employees. When those leases expire, the cars are sold. Keep in mind that the majority of these employees aren’t DEA agents chasing hardened drug runners. Often, they’re IRS agents, contractors, or other “low key” personnel. Also, the IRS routinely seizes property from people who owe back taxes. At some point, that property is placed on the block. And usually, they’re not riddled with bullet holes.

Estate Sales

Think of these auctions as upscale garage sales. Typically, someone has passed away and their assets are being sold to the highest bidder. The advantage is that most people will never hear about them, reducing the number of competitive bids. The drawback is that most estate sales won’t have large car inventories (after all, who actually needs 100 vehicles?). So, you’ll have one or two chances to snag a potentially attractive deal.

eBay, Yahoo!, And More

eBay changed the automotive landscape. When eBay Motors was launched, purchasing a car online was still a novelty. Today, thousands of people visit eBay, Yahoo!, and other online auctions to find dependable used vehicles at an attractive price. One of the most significant advantages of using these online marketplaces is being able to do so from the comfort of your living room. Once you win the bid, you can even arrange to have your new vehicle shipped directly to your doorstep.

If you’re thinking about buying a used car, consider doing so through an auction. Government property, estate sales, and online resources such as eBay Motors represent a potential treasure trove of attractive automotive bargains.

Check out How to Time your New Car Purchase

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