Auto Dealers Compete

One of the steps we teach is to get pre-approved for a loan amount prior to going to the dealership. This will help to level the playing field. I found this article that suggest the same approach. Please take this advice. There are so many lending sources available find one and get pre-approved.

The best way by far to deal with financing your vehicle purchase is to get pre-approved by your personal bank or credit union. This will give you a position of power to negotiate from. When you go into the dealership you are now basically walking in with cash and the ability to do business immediately should you so desire. Another thing it gives you is the ability to play the lenders against each other to get a better rate. Many times the dealer may offer you a better rate by as much as two percent just because of the volume of business they do.

How To Buy A New Car Without Being Taken For A Ride

technorati tags:New Car Financing, car

5 car buying tips

I agree with all of the following tips, but I would stress the internet. By shopping through the internet you get fleet pricing and not retail. Big, Big difference. Check out the 5 tips and the link to the blog where I found this.

Here are 5 things you can do to get the best deal
possible.

1. Research. The more informed you are about the product the more
likely you will be able to spot a good deal, or when someone’s trying to take
advantage of you.

2. Shop. This goes hand-in-hand with number one. The more informed
you are, the better deal you can get.

3. Pre-qualify. Like shopping for the best deal on the vehicle
itself, you owe yourself the best deal on financing. Independent lenders and
Credit Unions typically strike a better deal. That’s not to say it’s that way
all the time, but knowing what you got in your hand before you start the buying
process is a lot better than getting shanghaied into high payments all in the
name of “no money down.”

4. Walk. That’s right, don’t be afraid to walk off the lot. Give
yourself time to digest what’s just been thrown at you. Check your research.
Eat some dinner. Above all, avoid impulse buying. Most dealerships now don’t
allow for buyers remorse so when you sign on the dotted line, it’s yours.

5. Haggle. As American’s we’ve kind of lost the art. We’re used to walking
in and paying a set price for things, but when it comes to buying a car, don’t
be afraid to say, “no way.” Let the dealer know you saw the same car
elsewhere for a lower price. Be prepared to get a price quoted on a business
card while out shopping, most dealers honor a price on a card as the holy
scripture.

Remember. This is about YOU getting the best deal YOU can.

Buy A Car Blog

Technorati Tags: car buying tips, fleet pricing

I found a really good description of a holdback on cars.com



For most vehicle makes, the published invoice price is not the true dealer cost because of dealer holdback. The manufacturer holds a fraction of the invoice total of all cars a dealership sells (typically 2 percent to 3 percent of either invoice price or the manufacturer’s suggested retail price) that it then returns to the dealer, usually on a quarterly basis. Dealer holdback began its life as a safety net that ensured the manufacturers would have a security deposit of sorts if a dealership missed payments, and the dealerships would have money on hand to cover overhead costs when the holdback was returned. But if you look at the bottom line the way the dealership does — with profit being profit, whether it comes from the car sale, the trade-in or a financing deal — then the holdback is arguably a profit shelter.

The author also goes on to say “Most dealers see holdback as their entitlement…”

Well times are changing and we a consumers are using the internet to cut into this holdback prices. Also lets not forget the other incentives dealers get  “Lesser known are the factory-to-dealer incentives that reduce the dealer’s true cost to buy the vehicle from the factory.”

So before you start feeling sorry for the dealership here is a list of how they make money on the sale of the car and it’s not all profit from what you give them. (This is a partial list):

• the invoice price;
• dealer holdback;
• customer incentives;
• factory-to-dealer incentives;
• supply and demand; and
• your car’s trade-in value (in some states).

cars.com: Buying Advice | Negotiating With Car Dealers

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