Do your homework before buying a car
If you’re in the market for a new vehicle, plan to spend weeks, if not a month, preparing for your purchase. The time you spend will be money saved.
“ Apply at your own credit union or bank and be pre-qualified for a loan. Any financing you get via a dealership is likely to be marked up dramatically.
“ Shop online at vehicle sites. Print out quotes and take them with you to dealerships. Look at Edmunds.com as a starting point. This site will also tell you of any current rebates and incentives.
“ Make sure you know what comes standard on the vehicle. Some dealerships have printed new window stickers and put an additional cost on standard items.
“Rent the same model of vehicle for a weekend to give it a test drive. (Don’t give the dealership your driver’s license or Social Security number if you do a test drive off the lot. You could be the victim of unauthorized checks on your credit while you’re with the salesman.)
“If you have your heart set on particular options, such as an upgraded CD player, price it at audio shops. It might be cheaper than the dealer upgrade.
“Call your DMV and learn in advance what the costs are for registration and tags.
“Learn the vehicle sales lingo. Make sure you’re clear on terms such as ADM (Additional Dealer Markup), dealer prep (they peel off the stickers, check the fluids and vacuum the interior) and others you could see on the dealer’s documents.
More caveats:
“Don’t buy a vehicle that doesn’t have the MSRP (Manufacturer Suggested Retail Price) sticker on the window. It’s the law that it be there.
“Don’t buy a vehicle the first time you go into a dealership, no matter what they say.
“Don’t necessarily believe the “dealer invoice,” as in “Only $100 Over Dealer Invoice.” That invoice isn’t likely to be what the dealership actually paid for the vehicle.
“If you have a trade-in, make that a separate deal. Don’t include it in negotiations for the vehicle you’re buying.
“Remember the rule of contract law: If it’s not in writing, it doesn’t exist. Don’t believe verbal promises, no matter what they are.
“Arm yourself with even more knowledge: Read “Rip-Off Nation” at www.citizen.org/autosafety to learn about common auto dealership scams.