How To Buy A Fresh Car and Avoid Scams
Using our advice and contraptions, you’ll get a fine deal that is still more than fair for the dealership. If you aren’t ready then prepare to get ripped off, it’s that elementary. People have no problem taking weeks to plan a vacation, but don’t spend a few hours doing research before they buy a $30,000 car. You will be able to save a ton of money if you go after our advice.
In this Chapter:
1. The Best Price Doesn’t Mean You Got a Good Deal
A good deal means that you were treated fairly and the dealership made a reasonable profit. The most significant thing you will read here on CarBuyingTips.com is to make sure that you don’t just concentrate on the final price. Some dealers will play the “Cash Flow Shell Game” so they can rip you off while making you think you are getting a good deal. An example:
- They give you a very low price
- Finance manager sneaks in fees
- The dealer undervalues your trade-in
- Your loan APR is enhanced
The buyer in this example thought they were getting a good deal because of the low price, but they actually got ripped off. We will explain all of the tricks to look out for and instruct you how to avoid becoming a victim. To save the most money make sure you read the entire site. Don’t just read half and think you have all the facts.
See How Much You Can Save
Get Real Pricing on Actual Cars
Begin by getting the lowest price using services like TrueCar, CarClearanceDeals and Cars.com. Don’t stop there, if you miss one valuable topic on CarBuyingTips.com it can cost you thousands of dollars. Make sure not to be a “monthly payment buyer” and only look at what your payment will be – that is the worst thing you can do. Doing this or becoming a “trade-in buyer” is exactly what the dealer wants and you will play right into their mitt. Once this happens you will get ripped off, I assure it!
Two. When is the best time to buy a car?
There are two “best times” to buy. The end of December is a good time. Everyone is out buying XMAS gifts, leaving dealer lots void of customers, motivating them to cut prices and break year end sales records. Another good time to buy is July through October as dealerships sell off cars at lower prices to clear space for the fresh models.
Trio. All Prep Work Can be Done from Your PC, Tablet or Wise Phone
The last time I bought a fresh vehicle I was able to do all my homework without leaving my house. Back in the “old days” you would waste hours at many dealerships. Fortunately the internet was invented so now you don’t have leave the convenience of your couch. There are many excellent sites that permit you to ease off, research and get quotes. Once you have determined the dealer with the best price, you take all of your research to them and calmly negotiate the best deal.
Off the hook to visitors of our site, attempt the CarBuyingTips.com Car Buying Service. It gives you special friends and family pricing, leverages volume buying power of large companies, employers, or membership groups. Choose your car and configure options online. You will get an instant price quote from a local dealer in the network. If you don’t love haggling, you’ll love our car buying service.
Four. Invoice Prices, Rebates and Incentives
As you go after this guide you will find that there are a few critical lumps of information that you will need to make sure you are getting a fine deal. They are invoice price, rebates and incentives. We will cover these in more detail later but you should know that when talking about rebates and incentives there are some that are well advertised and some that are “secret” inbetween the manufacturer and the dealer.
The most significant thing to reminisce about the invoice price is that it is not the amount the dealer paid for the car. We will display you how to calculate what the dealer actually paid later in this guide.
What are secret incentives?
Secret factory to dealer incentives can be $1,000-$6,000 in addition to known rebates! Because of these secret incentives, if you buy a car at invoice, the dealer earns thousands more. You should haggle over this incentive, as many dealers willingly give up all or part of this incentive, making your cost lower.
If you want the most accurate, accomplish and up to date data for these three significant items, I’d recommend buying the data as part of the FightingChance package. They will also make somebody available to talk to if you have questions about anything that comes up as you go through the purchase process.
Five. Competition Gets You the Best Deal
Inject the dealership armed with “The Folder” that I will talk about in Chapter Trio. Once they see that you are ready it will work to your advantage. The deal will now proceed on your terms, not theirs. Don’t inject a dealership without having numerous price quotes or you’ll overpay by thousands. Commissioned salespeople fear “The Folder” because they know you did your homework. They rely on uneducated car buyers who don’t do any research before they go shopping.
Top Recommended Car Price Quote Sites
TrueCar is an online marketplace for car shopping that provides transparency into the prices that other people paid for their cars and permits consumers to engage with TrueCar Certified Dealers. You’ll be able to research the vehicle you are interested in, get accurate pricing on in-stock dealer inventory and see your potential savings before heading out to the dealership.
CarClearanceDeals.com searches clearance pricing from their network of dealers to get you the cheapest price. Use their ordinary form to select the make and model and embark saving. Recall to get quotes from the maximum number of dealers to give you the upper forearm.
Cars.com gives you free, no-obligation quotes from up to three dealers. Just select your make, model, color and options. Getting quotes from numerous dealers pressures dealers to give you a discount.
CarsDirect.com lists your purchase price online instantly with better prices than dealers and cool 360° views. As you check off options, the screen shows invoice price, MSRP and your low CarsDirect price.
The CarBuyingTips.com Car Buying Service lets you get a ensured price quote without leaving your house. This special program leverages volume buying power of large companies, employers and membership groups to get you a low price on a fresh car.
Autobytel has 20,000 dealers, they give you free no hassle low price quotes, list car prices and dealer cost.
Roadster Concierge Service for California Residents will get you a excellent price and treat everything for you. They will produce your car to your home. The service is only available in California.
Use Competition for All Aspects of the Deal
Competition also works to get you the best rate on your loan. The dealer is not the only one that can finance your car, online lenders are available. Once approved you will have a check in palm and know your interest rate before you even set foot in the dealership. You can use your low rate to negotiate with the dealer or use your online financing if they won’t match or strike the online rate. We will cover this topic in more detail in our chapter on auto loans. Recall, price is only one component of a accomplish deal.
TrueCar gives you a fine baseline on pricing. Check the curve to see how your quotes stack up to what other have paid. If the TrueCar price is better, print out the Ensured Savings Certificate and head to the dealership for a hassle free deal. Recall, you still have to pay attention to the other aspects of the deal that we discuss.
6. Warning About Car Dealership Advertising
The number one aim of any car dealer is to get you in the door. If you aren’t there they can’t pull any tricks or scams on you. They hire the best advertising and marketing companies to come up with ads to get you there.
Advertisers spends millions in psychological wording research to trick you. Take a look a the picture to the right. You thought it said “I love Paris in the Springtime” right? Wrong! See the extra “the”? It truly says “I love Paris in the the Springtime.” Your brain tricked you. Advertisers rely on your brain to trick you so they don’t have to lie.
Pay very careful attention to the fine print when it comes to advertising. When you see a TV commercial it is unlikely to read it unless you are watching on a DVR and you can pause it. I don’t know why it is legal for them to put these legal statements in such a puny font and displayed for such a brief time that no human can possibly read it.
When an ad says 1.9% APR, look for the “*”. The fine print will say “with approved credit only” or “qualified buyers only.” The 1.9% reels you in. You must have flawless credit to get the 1.9% rate. Most people will not qualify. Other scams you may hear:
- “We’ll Get You Out Of Your Current Lease No Matter How Much You Owe!”
- “We’ll Pay Off Your Loan No Matter How Much You Owe!”
- “We’ll Give You $Four,000 For Any Trade-In!”
- “Don’t Make A $Five,000 Mistake!”
- “No Reasonable Suggest Will Be Refused!” (Except yours, because it’s unreasonable)
In the examples above, the dealer is not doing you any favors, they want you to buy a car from them at total MSRP. They also want your trade-in so they can give you $Four,000 below market value and resell it for a higher price. Sometimes an ad can make you think that trading in a car relaxes you of your loan or lease obligation. It does not!
This significant fact gets many buyers into trouble. You are actually taking on enlargened debt when you thought you were ripping off one debt for another. They lied to you in their ad, they are not doing you any favors. They are piling on more debt. It’s a very clever trick, but now you’re onto them. Next time you hear those ads, you’ll know what they’re up to. The ads should be worded “We’ll get you out of your current car, then roll what you owe plus penalties into your fresh car purchase so you can pay off two cars!”
Don’t trade in a car you owe money on. Aside from adding to your debt, you are inviting other problems. Since the dealer doesn’t care about your finances, it is possible that they don’t pay the bank on time and this can lead to penalties for you.
7. How Car Dealers Profit From Fresh Car Purchases
You think fresh car dealers have just one way to coax money out of you when car buying? Thank you for playing. Some fresh car dealers woo you to spend so much, you didn’t know you were taken for a rail! Car buyers who brag of high trade in value were asleep at the wheel leaving money on the table in other parts of the deal.
- Offers you $Three,000 to $Four,000 below market price for your trade-in
- The fresh car purchase price when buying a car
- Marking up the rate they give you for fresh car financing
- Environmental package extras and fresh car extended warranties
The dealership is always attempting to maximize their profit. Of course they should make a fair profit on the deal but they shouldn’t rip you off. They trick you into a bad deal using what I call the “Car Dealer Cash Flow Shell Game™”
8. How The Car Dealer Cash Flow Shell Game™ Works
Let me instruct you how the game works. Cash spent buying a car pours into buckets. For the best deal you want the most for trade-ins, discounted MSRP, low APR, no extras and few fees. Here’s what you and I want:
How to Buy a Fresh Car and Avoid Dealer Scams
How To Buy A Fresh Car and Avoid Scams
Using our advice and implements, you’ll get a superb deal that is still more than fair for the dealership. If you aren’t ready then prepare to get ripped off, it’s that elementary. People have no problem taking weeks to plan a vacation, but don’t spend a few hours doing research before they buy a $30,000 car. You will be able to save a ton of money if you go after our advice.
In this Chapter:
1. The Best Price Doesn’t Mean You Got a Good Deal
A good deal means that you were treated fairly and the dealership made a reasonable profit. The most significant thing you will read here on CarBuyingTips.com is to make sure that you don’t just concentrate on the final price. Some dealers will play the “Cash Flow Shell Game” so they can rip you off while making you think you are getting a good deal. An example:
- They give you a very low price
- Finance manager sneaks in fees
- The dealer undervalues your trade-in
- Your loan APR is enlargened
The buyer in this example thought they were getting a good deal because of the low price, but they actually got ripped off. We will explain all of the tricks to look out for and instruct you how to avoid becoming a victim. To save the most money make sure you read the entire site. Don’t just read half and think you have all the facts.
See How Much You Can Save
Get Real Pricing on Actual Cars
Begin by getting the lowest price using services like TrueCar, CarClearanceDeals and Cars.com. Don’t stop there, if you miss one valuable topic on CarBuyingTips.com it can cost you thousands of dollars. Make sure not to be a “monthly payment buyer” and only look at what your payment will be – that is the worst thing you can do. Doing this or becoming a “trade-in buyer” is exactly what the dealer wants and you will play right into their forearm. Once this happens you will get ripped off, I assure it!
Two. When is the best time to buy a car?
There are two “best times” to buy. The end of December is a good time. Everyone is out buying XMAS gifts, leaving dealer lots void of customers, motivating them to cut prices and break year end sales records. Another good time to buy is July through October as dealerships sell off cars at lower prices to clear space for the fresh models.
Three. All Prep Work Can be Done from Your PC, Tablet or Clever Phone
The last time I bought a fresh vehicle I was able to do all my homework without leaving my house. Back in the “old days” you would waste hours at many dealerships. Fortunately the internet was invented so now you don’t have leave the convenience of your couch. There are many fine sites that permit you to relieve, research and get quotes. Once you have determined the dealer with the best price, you take all of your research to them and calmly negotiate the best deal.
Sensational to visitors of our site, attempt the CarBuyingTips.com Car Buying Service. It gives you special friends and family pricing, leverages volume buying power of large companies, employers, or membership groups. Choose your car and configure options online. You will get an instant price quote from a local dealer in the network. If you don’t love haggling, you’ll love our car buying service.
Four. Invoice Prices, Rebates and Incentives
As you go after this guide you will find that there are a few critical lumps of information that you will need to make sure you are getting a superb deal. They are invoice price, rebates and incentives. We will cover these in more detail later but you should know that when talking about rebates and incentives there are some that are well advertised and some that are “secret” inbetween the manufacturer and the dealer.
The most significant thing to reminisce about the invoice price is that it is not the amount the dealer paid for the car. We will display you how to calculate what the dealer actually paid later in this guide.
What are secret incentives?
Secret factory to dealer incentives can be $1,000-$6,000 in addition to known rebates! Because of these secret incentives, if you buy a car at invoice, the dealer earns thousands more. You should haggle over this incentive, as many dealers willingly give up all or part of this incentive, making your cost lower.
If you want the most accurate, accomplish and up to date data for these three significant items, I’d recommend buying the data as part of the FightingChance package. They will also make somebody available to talk to if you have questions about anything that comes up as you go through the purchase process.
Five. Competition Gets You the Best Deal
Inject the dealership armed with “The Folder” that I will talk about in Chapter Trio. Once they see that you are ready it will work to your advantage. The deal will now proceed on your terms, not theirs. Don’t come in a dealership without having numerous price quotes or you’ll overpay by thousands. Commissioned salespeople fear “The Folder” because they know you did your homework. They rely on uneducated car buyers who don’t do any research before they go shopping.
Top Recommended Car Price Quote Sites
TrueCar is an online marketplace for car shopping that provides transparency into the prices that other people paid for their cars and permits consumers to engage with TrueCar Certified Dealers. You’ll be able to research the vehicle you are interested in, get accurate pricing on in-stock dealer inventory and see your potential savings before heading out to the dealership.
CarClearanceDeals.com searches clearance pricing from their network of dealers to get you the cheapest price. Use their elementary form to select the make and model and embark saving. Reminisce to get quotes from the maximum number of dealers to give you the upper palm.
Cars.com gives you free, no-obligation quotes from up to three dealers. Just select your make, model, color and options. Getting quotes from numerous dealers pressures dealers to give you a discount.
CarsDirect.com lists your purchase price online instantly with better prices than dealers and cool 360° views. As you check off options, the screen shows invoice price, MSRP and your low CarsDirect price.
The CarBuyingTips.com Car Buying Service lets you get a assured price quote without leaving your house. This sensational program leverages volume buying power of large companies, employers and membership groups to get you a low price on a fresh car.
Autobytel has 20,000 dealers, they give you free no hassle low price quotes, list car prices and dealer cost.
Roadster Concierge Service for California Residents will get you a superb price and treat everything for you. They will supply your car to your home. The service is only available in California.
Use Competition for All Aspects of the Deal
Competition also works to get you the best rate on your loan. The dealer is not the only one that can finance your car, online lenders are available. Once approved you will have a check in palm and know your interest rate before you even set foot in the dealership. You can use your low rate to negotiate with the dealer or use your online financing if they won’t match or strike the online rate. We will cover this topic in more detail in our chapter on auto loans. Reminisce, price is only one component of a finish deal.
TrueCar gives you a superb baseline on pricing. Check the curve to see how your quotes stack up to what other have paid. If the TrueCar price is better, print out the Assured Savings Certificate and head to the dealership for a hassle free deal. Recall, you still have to pay attention to the other aspects of the deal that we discuss.
6. Warning About Car Dealership Advertising
The number one purpose of any car dealer is to get you in the door. If you aren’t there they can’t pull any tricks or scams on you. They hire the best advertising and marketing companies to come up with ads to get you there.
Advertisers spends millions in psychological wording research to trick you. Take a look a the photo to the right. You thought it said “I love Paris in the Springtime” right? Wrong! See the extra “the”? It indeed says “I love Paris in the the Springtime.” Your brain tricked you. Advertisers rely on your brain to trick you so they don’t have to lie.
Pay very careful attention to the fine print when it comes to advertising. When you see a TV commercial it is unlikely to read it unless you are watching on a DVR and you can pause it. I don’t know why it is legal for them to put these legal statements in such a petite font and displayed for such a brief time that no human can possibly read it.
When an ad says 1.9% APR, look for the “*”. The fine print will say “with approved credit only” or “qualified buyers only.” The 1.9% reels you in. You must have ideal credit to get the 1.9% rate. Most people will not qualify. Other scams you may hear:
- “We’ll Get You Out Of Your Current Lease No Matter How Much You Owe!”
- “We’ll Pay Off Your Loan No Matter How Much You Owe!”
- “We’ll Give You $Four,000 For Any Trade-In!”
- “Don’t Make A $Five,000 Mistake!”
- “No Reasonable Suggest Will Be Refused!” (Except yours, because it’s unreasonable)
In the examples above, the dealer is not doing you any favors, they want you to buy a car from them at total MSRP. They also want your trade-in so they can give you $Four,000 below market value and resell it for a higher price. Sometimes an ad can make you think that trading in a car relaxes you of your loan or lease obligation. It does not!
This significant fact gets many buyers into trouble. You are actually taking on enhanced debt when you thought you were ripping off one debt for another. They lied to you in their ad, they are not doing you any favors. They are piling on more debt. It’s a very clever trick, but now you’re onto them. Next time you hear those ads, you’ll know what they’re up to. The ads should be worded “We’ll get you out of your current car, then roll what you owe plus penalties into your fresh car purchase so you can pay off two cars!”
Don’t trade in a car you owe money on. Aside from adding to your debt, you are inviting other problems. Since the dealer doesn’t care about your finances, it is possible that they don’t pay the bank on time and this can lead to penalties for you.
7. How Car Dealers Profit From Fresh Car Purchases
You think fresh car dealers have just one way to coax money out of you when car buying? Thank you for playing. Some fresh car dealers coax you to spend so much, you didn’t know you were taken for a rail! Car buyers who brag of high trade in value were asleep at the wheel leaving money on the table in other parts of the deal.
- Offers you $Three,000 to $Four,000 below market price for your trade-in
- The fresh car purchase price when buying a car
- Marking up the rate they give you for fresh car financing
- Environmental package extras and fresh car extended warranties
The dealership is always attempting to maximize their profit. Of course they should make a fair profit on the deal but they shouldn’t rip you off. They trick you into a bad deal using what I call the “Car Dealer Cash Flow Shell Game™”
8. How The Car Dealer Cash Flow Shell Game™ Works
Let me instruct you how the game works. Cash spent buying a car pours into buckets. For the best deal you want the most for trade-ins, discounted MSRP, low APR, no extras and few fees. Here’s what you and I want: