10 Car Buying Tips That Save You Money!
by Tom Husby | on May 4, 2012
I think you can benefit from this information about car buying tips that save you money. You see I sold cars for a living for around 4 years or so and I know first hand some car buying tips that with absolutely save you money when you sign on that dotted line.
10 Car Buying Tips That Save You Money
Check out these 10 car buying tips and then I will cover them in more detail further down in this post.
- Always Know what your trade is worth, what lots are asking for for a like model, and the same info for the model you are buying.
- It pay’s big time to buy on the last day of the month.
- Have your own financing already set up (a blank check is best).
- Never trade when you are upside down.
- If you buy the month your tabs are due you can skip buying tabs that year.
- Buy with knowledge and leverage (I always contact another salesman at another dealer while I am sitting at the desk of the salesman I am working numbers with).
- Buy a pre-owned vehicle vs a new one as it has already depreciated several thousand dollars.
- Obviously pay cash if you can and save the interest money. (tough to do unless you are a Dave Ramsey follower…lol)
- Be in a hurry, start in the morning, and get your trade in key’s back as soon as you can and leave for an appointment (just have them call you with an offer unless they give you what you want on the first penciling of the deal).
- Almost never buy gap ins. from the dealer as if you want it you can buy it for less or even get it free from some lenders.
KBB and NADA are your friends
Always know the trade in and retail values of what you are buying and what you are trading in. Look up avg trade and clean trade in with your exact trade in. Study what other dealers are selling like models of your trade in for as well. Knowledge is power in this case. Also study what clean trade, rough trade, and suggested retail is for the vehicle you plan to purchase.
It Pays To Shop On The Last Day Of The Month
Of course it pays to shop on that last day of the month because each salesman is striving for a goal and so are the sales managers. Sp this means they are more likely to take a slim or low profit deal to have another vehicle moved across the curb. For the salesman it could mean hitting a bonus level in commission payout. It’s a numbers game and the more they sell in a month the better they look.
Have Your Own Financing Set Up Or Have a Blank Check
I always have my own financing set up and prefer to shop with a blank check from the bank or lender. I do this to avoid having credit pulled a hundred times and lowering my score but also so I can make a “cash offer” I like to say I have a blank check but we have to get the numbers to 110% of clean trade in for the amount financed with nothing out of my pocket or no deal. I used this the other day and got a great deal on a used truck. Of course it all depends on the situation as my trade was worth what I owed, if I had more equity then I would have used a dif. line.
Never Trade When You Are Upside Down
I mean never trade in your vehicle if you owe more than what it is worth. You lose all your leverage and if you roll your negative equity into a new loan your setting yourself up for failure big time. Always buy from a position of power. If you are upside down it limits your buying options so much I recommend not doing it at all.
Buying The Same Month Your Tabs Are Due On Your Trade Saves You Money
If you buy in the same month your tabs are due on your trade you can skip buying tabs. Just turn in your old plate and wait till after the birthday of the first person on the loan and title then pick up the new plate and your covered for a year. (this varies by state but it just saved me $250 here in GA)
More Car Buying Tips- Buy With Knowledge
Narrow down what you are looking to buy using the Internet and study everything you can about that vehicle, options, motors, what they are selling for within 200 miles of your location act. The more knowledge you have the better. Also never buy with emotion as it will cost you money.
I want you to leave your car buying tips in the comments section and share this post to help others save money when buying a car.
If you liked this post about car buying tips you’ll love the original post at tomhusby.com Car Buying Tips. <–click here