Carlot.com

Know what you want

Make sure that before you start to contact sellers or dealers that you know what you want from your car. This includes the make, model, year, color, mileage, and options. Would you like a fast tiny sport car, or a huge SUV to lug all your kids around? You are going to want to know what options are available, if you are looking at the perfect car, except it's missing that special something, like a CD player or a/c, you are going to want to consider how much you will have to pay after you buy that car to make it exactly what you want. Trust your wants and needs, they will guide you through the rest. Make sure you have a great idea of how much the car of your choosing will cost, compare prices to similar vehicles, and that will give you a pretty good idea as to how much you are looking to spend. If you can't afford your first choice, look at other makes and models, they may be less expensive, and may surprise you, you could get a sooped up older model, with all the extras, and it may cost you a lot less. Please note that buying used may be a great option for some of you. You have the ability to get a "like new car" without having to worry about the value of the vehicle depreciating like with new cars. Used cars are 20 to 30 percent cheaper that new ones, you can afford a luxury model when buying used, you'll save money on auto insurance, bargains are bigger and easier to find when buying used, and you may be able to find a used car still under the factory warranty. If you are still skeptical about buying used, most dealers now offer certified used cars, so you know rest easy know that your "new to you" car is in tip-top condition.

Wheelin' and Dealin'

If you are shopping for a new car, look around, you may find better deals at different dealers. If you are willing to compromise on some specifics, like color, options, you may be able to use that to get some money taken off the sticker price. Dealers will often offer incentives, anything that gives you an extra reason to buy a particular car, which will more likely than not come as a cash rebate "cash back" or low-interest financing. You must ask yourself, would you like to save more now or more later. Keep in mind that if you can qualify for low or zero-interest financing this incentive will more likely than not save you much more than the cash back option. Understand that one must have a great credit score for low interest financing. Also, you are not the only one who gets incentives, dealers are often offered incentives to push specific cars. But, don't let this affect your choices, you know what you want, and how much you can spend, why settle to get the dealer some extra money? While shopping for your "new to you" used car consider that the price will vary depending on its condition, mileage, reliability, performance, and popularity, you'll also have some extra negotiation room while looking at used cars.

Pricing

When you are at the dealers lot shopping for the perfect new or used car you will be approached and the dealer will probably show you the sticker price for the car. This is the price that the dealer would LOVE you to pay. But you're smarter than that, you know that the price on the window is much higher than what they are willing to take. Remember you are the most important part of this event, it's your car that you are shopping for, one that will make you happy, but won't break the bank. Since you already know what similar new or used cars are going for you know what you should be looking for. Don't tempt yourself with high class models, if you know that you cannot afford them. Then again, if you notice that the used car area has older models of the new car you are interested in, you may want to look, it could save you thousands. Make sure you have the following info with you when you go to the dealership: the monthly payment you can afford, your calculations of how much the car should be, and any incentives you've found. Consider you financing options at the beginning of the car buying experience. Know how much you can afford each month, how much you can put down on a car, this will reduce your monthly payments, after assessing these two factors you'll have a good idea on the purchase prices that you can look at and consider. Bring these figures with you so you can have some set of numbers that will not change during the negotiations.

Research

While looking for the perfect car you may come across some that are very close, if you are willing to look at the other options, colors, or years offered, you may have an easier time finding a car you are happy with. A helpful tips is to check out car reviews, know what you are getting into when you go looking around for your next car. An educated buyer is a bargain hunter as well, so shop around. When looking for a used car make sure that you get the VIN (Vehicle Identification Number) off of each vehicle you look at, and get a Carfax report, so you know which car truly is the best one. While e-mailing the dealerships, calling the sellers, or checking up on interesting lead, have a notebook set aside for all the information you can gather on each car you research. Take note of all the specifics, make model, color, mileage, as well as any notes you have about the person you are dealing with, ensure that you are dealing with someone who is within your comfort zone.

The sale

Before you start to call and e-mail different sellers/dealers you will want to know how you will be paying for your new vehicle, with Cash, or financing? With cash , you're done, you know how much you have, this will make the whole ordeal a lot less stressful. With financing through a bank, on-line lender, or credit union, this will not be as cheap as cash, but much cheaper than financing through the dealer. This is the most popular option, as it will keep things much more simple at the dealership, or with the seller, and this option will allow you to stay with your intended price range with more ease. With financing through the dealership the interest may be much higher, but for those with not so hot credit score, dealers can usually help where banks can't. Evaluate who you talk to when you call different sellers/dealers, you will want to make sure that you are comfortable speaking with this person. If they are too eager to push specific cars on you, you may want to consider other sellers/dealers. If you are comfortable dealing with the person, ask if they have your desired car, if so great! But don't forget to shop around, you may find a much kinder person with the exact car you want, at a better price. If you find a good dealer, set up a time for your test drive, hopefully at a time when the dealer/seller is not too busy. Make sure you review your notes, and bring your car-buying notebook, a tool to help you keep you head while in the whirlwind of shopping around. You will only need to refer to this if you feel that you are being offered a good deal, if not there is no reason you should need these things.

The next step

For the used car buyer there are three options as to where to purchase your "new to you" car.

Private parties - May have the most reasonable prices, and the transaction may be more laid back.
New car dealerships - Many times the used cars at these lots are trade-ins which they get at rock-bottom prices, so if you make a low offer, but one they will make some money on, you may just get a great deal. This option also allows you to trade in your old car, which will allow you some more financial breathing room. This also offers you the option of getting a certified used car that are inspected and are offered with warranties.
Used car dealerships - This option will allow for financing, trade-in, and somewhat reasonable pricing.
Internet - Using Carlot.com will allow ease with the searching part of your buying adventure, this is also a great resource to compare the cars you are interested in.

Use the phone, call those sellers/dealers that have similar or the exact vehicle you are looking for, and ask a lot of questions, this will save you time and will ensure that you don't waste the seller/dealer's time, if you need a car with a warrantee, then call dealers, if you have questions regarding mileage, etc, ask! Just picking up the phone may help you think of more questions that you can ask when you go for your test drive. Schedule your test drive for during the day to ensure that you are getting a great look at your possible car. If you are trading in your old car, consider selling it yourself, this will ensure you more money, but can take some time, again Carlot.com is a great resource to sell your old one and find a new one. If you need to get a new car soon and do not want to deal with selling your old car, trade it in. Research how much similar cars are selling for to make sure that you get a fair price. At dealerships many things effect the amount you will get for your trade, for example, the pricing game is based on the time of the month, what's in the dealer's inventory and how the dealer feels that day. But remember to keep in mind a realistic price, you have the right to haggle how much they will give you as well as how much you will give them. Tell the salesperson, that if you get a great deal on the trade-in you will be more willing to buy the car you are interested in, this will ensure that they get you the best deal they can. If you are still not satisfied with their offer, take your old car to another dealer, or sell it yourself, remember if you want a job done right, do it yourself!

Test Drive, and Negotiation

When test driving your next car ask about any warrantee that comes with the car, or that may still be effective on the car. Remember to always read the warrantee before buying the car. If you have doubts about the used car you are looking at, take it to your mechanic, call ahead and have he/she check it out for you and get a vehicle report, this will help you haggle later on, if you decide that like the car enough to start negotiations. Look for the following while test driving the car: Leg Room, Head Room, Are the controls in comfortable places? Make sure to keep the stereo off while driving so you can hear how the engine and transmission run. Evaluate the following:

Acceleration from a stop
Visibility
Noise
Downshift quickly and smoothly
Hill-power
Brakes
Corners
How does it ride?
Cargo Space

Make sure to simulate your day-to-day driving habits, if you drive up hill a lot, make sure you test this car in that condition. Ask to see the service records and receipts, check to see if oil-changes have been done regularly and beware cars with too many repairs, if you feel like you may be tricked into buying a lemon, or even if you don't get a vehicle report, like Carfax, you will need the VIN (Vehicle Identification Number) to receive the report so don't forget to ask for that as well.

Negotiation

When looking to buy your next car, the internet can be very helpful. One way that most people don't use to their advantage is the Internet salespeople for each dealership. These are the guys you want to deal with, they want to save you time and money, so give them a call or shoot them an e-mail, and most likely they will give you the selling price up front, because they know that that is a huge factor in the decision to buy a car. Get bids from different dealers to ensure that you are getting the best price. If you get a lower offer from one dealership, call the others back and offer them the chance to counter-offer, this will ensure that you are getting the best price. Be vigilant and stand up for yourself and your needs, but do understand that the dealers will have breaking points, so keep notes on who gives you the best deal. Remember the key to negotiation is your education, so do your research.

Closing the deal

When you feel that you are getting a good deal on your trade in (if applicable) and on your new, or "new to you" car it time to close the deal. Ask the salesperson to show you an invoice before you sign the contract, if you can have them fax it to you so you may look at it at home and then decide what charges you will and will not accept. Some of the figures on the invoice are non-negotiable, but if you feel a charge is unreasonable, bring it up.

Financing

If you are needing financing from the dealer, beware the F&I (financing and insurance) people, this will not be the salesperson you've spent so much time dealing with, but understand that this new person will still try to sell you things. If you would like to listen to what they are trying to sell you, please do, but understand that the price will continue to go up each time you say "yes of course I want an upholstery warrantee", you may want to think seriously about the extended warrantee they offer, especially if you are buying a car that is certified or is still under warrantee. If you want no extras, simply say so… they will try to pressure you, but remember they do not have your best interests at heart. Once the contract is ready, review it thoroughly, again if you have questions, ask them, especially if something you have not discussed has shown up.

Final inspection

Inspect the car before you drive away, if you notice that any work needs to be done, request a "due bill" in writing this will ensure that if the dealer promises to fix the problem, they actually will. Make sure the registration is in the proper place and enjoy your new car. When buying from a private party you will need to pay with a cashier's check or cash. Before you pay for your "new to you car" request the title and have it signed over to your name. Check with your DMV (Department of Motor Vehicles) about the laws and rules that govern private party sales.

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