What a Car Dealer doesn't want you to know
I saw this new category and figured it would be a great place to impart a little wisdom.
I've been in the car business since 1985 and the following random thoughts and sugestions are based on that 20 years of experience.
First and foremost, do your homework !
For many people an automotive purchase is the largest single expense in their life. Don't fall in love with a machine, educate yourself on the fact that you are only purchasing a means of transportation. The advertisements of power, prestige, and coolness, are just that, advertisements aimed at whatever image you allow your emotions to desire to project.
Buying a vehicle is an emotional experience, dealers know this, and capitalize on those emotions. If you go in "sold" on an image the salesman will gladly help you fulfill that desire...at a price.
Now, homework, go to Kelly Blue Book, look up all of the models offered in the vehicle type you desire. Do your comparison shopping here, not on a car lot. Look for reviews by Motor Trend, Car and Driver, Consumer reports, etc..... Then do a cost / benefit analysis. Is that Caddilac Escalade or H2 really worth more than the Chev.Tahoe ?
Did you find out that they're basically the exact same vehicle with different sheet metal and interior decoration ?
This is true with most every vehicle offered today, just look at Ford / Mercury / Lincoln, or Toyota / Lexus, or Nissan / Infiniti, or Chrysler / Dodge ( hell the new Cross fire IS a Mercedes ). Half of Mazda's line has been re-badged as a Ford product and Honda's "new"Truck and SUV line are all Isuzu's.
Honda, now there is a name that has gone from Imported crap to the Gold Standard of reliability in the last 30 years. Similar to Mercedes reputation of dependability.
They're both subjective and IMHO, over-rated. Certainly the Mercedes DIESEL is a dependable car, well documented to easily achieve half a million miles, but the gas versions, the S classes, and the entry level cars do not deserve the same accolades. Look up the REQUIRED maintenance for most European Luxury cars, they require dealer attention at 5000 mile intervals that run into the hundreds of dollars( thousands if you go with a 12 cylinder ) and only an authorized facility can validate the maintenance book.
Honda, as well a built car as any, not any better than a Mazda, Mitsubishi, Toyota, Kia, Hyundai, or any domestic auto maker. It all depends on owner upkeep. But the myth has escalated the resale value to nearly ridiculous. Case in point; I bought a 1994 Honda Civic with 136k miles and paid more than I paid for a 2000 Mitsubishi Mirage with less miles and similarly equipped. The Mirage is cosmetically nicer than the older Honda, 6 years younger, and technologically more advanced, yet I sold the Honda sooner and for more money than the Mitsubishi. Bless Honda's marketing........
A Car is just a means of transportation, remember that, beyond transportation it all ego massage. Now to the salesman;
ALWAYS TAKE A FRIEND WITH YOU TO THE CAR DEALER, NEVER, NEVER, EVER, GO ALONE. ( and if it is a couples decision
take a friend anyway )
These guys are professionally trained to part you with your hard earned money, no matter how "strong willed", deal savvy, or skilled at negotiation you may think you are, these guys have a technique to overcome your objections, and guide you to "the perfect deal".
( The definition of a good deal is when both parties walk away thinking they screwed each other )
Do not drive your trade- in to the lot, don't even mention it. In fact, if you have a CARMAX close by, take it to them and have it appraised ( they will buy it if your dealer will not give a good trade value, plus you get a free bonifide appraisal )
If you do not have a credit Beacon score of at least 750, forget about all of those super low rates, get a pre-approval from your Bank or Credit Union. Tell the dealer that this is a cash deal, you do not need, want, or desire them to provide financing ( this is the highest profit center in the dealership ) You do not need the extended warranty ( it's overpriced ) and if you do need the dealer to help with financing make sure that there is no life insurance, no accident and health insurance, no GAP insurance, or any other overpriced Insurance product.
If your credit is weak you can expect to pay through the nose as far as interest rates go, but if your Beacon score is over 675 you should pay prevailing rates comparable to any local bank. Again, do your homework and you will not get "got".
Why take a 3rd party? They can get you out before it's too late. Why not drive your trade? Several reasons; it indicates your desire to buy, it offers the salesman the perfect "this or that" foil, they structure the deal differently basing on trade allowance v/s cash price. This helps hide the true value of your trade with discounts applied to the inflated allowance.
If at all possible, do not speak to a salesman ( they get an average of 25% of the profit as commission ) get the Sales Manager off his ass in the corner office and deal directly with him ( he's the one telling the salesman what to do anyway ) remind him that you do not want to pay for the salesmans new golf clubs and expect a discount equal to what he'd save in commissions. Ask about the aged inventory, any cars with "spiffs" or bonuses, ( these are usually on top of any commission, and are priority for the dealer to move due to either floor plan payoffs due or mistakes when ordering, ie, the perfect car ...with purple paint, or the loaded up, decked out, Super Truck....with a manual transmission ) and yes, it is true, SHOP AT THE END OF THE MONTH.
Salespeople, manager included, are paid on a monthly commission basis, goals are high, and that last sale could put the numbers over the top.
Do not shop for cars between Jan 31st and Apr 15th. It's "tax season", every dealer is stocked for income tax refund spenders. Prices are higher, the dealer is less inclined to negotiate, and prices will come down after the refunds are spent. ( I do 65% of my sales in the 1st quarter of the year )
Also stay away from model year introduction time. Summer is the best time to buy, because it's traditionally a slow time for sales.
Buy convertibles in the dead of winter, buy 4wd's in the summer.
"Program Cars" are nothing more than short term lease returns, usually rental cars, they do tend to be good deals though.
Run any used car thru CARFAX if the dealer does not offer one on site, beware of the used car dealer who doesn't use some recognized title verification service. And why would you buy a used car from a dealer with a junk yard out back?
Look for a Used Car Dealer who is a member of the Independent Auto Dealers Association, they're checked out by the association, receive lots of training, and tend to be better established.
Don't buy used cars from some stranger out of their front yard ( these people tend to be quasi-dealers who are not covered by any regulations )
Ok, class dismissed for today, next week I'll go over my reccomendations for the best cars for the money.