Finding a good deal is all about competition. Prices go down when multiple companies sell the same thing. Whether it’s 
Car Buying Advice: Don’t be a statistic!
One of my readers (Joe) had a great one-liner last week. A dealer told him, “95% of people take our financing” and he responded, “I’m not a statistic”. I love this statement! I would argue that 95% of the public pays too much for a car and does not get the best possible financing. Are you going to jump off a bridge just because everyone else does?
Here’s some crucial car buying advice to remember. You’re not obligated to…
- buy a car where you test drive (unless the salesman can beat your best price)
- get financing from the dealership (unless the Finance Office can beat the best financing you find online)
- sell your trade-in to the dealership (unless you get a good offer)
- buy any unnecessary add-ons or extras
Remember, when you’re buying a car, your goals are very different from the car dealer’s. While you want to buy a car at the lowest possible price with the best possible financing…the car dealer wants to sell a car at the highest possible price with the worst possible financing.
When a car salesman tells you what everyone else is doing, that should mean very little to you. Figure out what you want before even talking to a salesman. Then get competitve quotes for car prices and financing and don’t become a statistic!
But enough about that, here’s some interesting news and posts from this week:
- After some statistics were released by Edmunds, there have been a couple great stories reviewing how it’s now possible to buy a new car cheaper than the same used model from GenXFinance, AutoMonster.ca and MarketWatch.
- Well Heeled has a very detailed comparison between buying new versus keeping an old car.
- Suzuki is giving out $250 prepaid debit cards if you DON’T buy one of their cars.
- More details on flying cars from ChinoHills.
- And lastly, I’ve been mentioned in posts on Babs FPF, Financially Poor, Tim’s WA University and monster Yakezie carnivals from Evan, Kevin, and the Saved Quarter.
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Why is it free? Because buying a car is something almost everyone has to do and I strongly believe the process is designed to confuse and take advantage of consumers. I'd like to level the playing field and give everyone a chance at a fair deal.
My lease is going to be up in 10 months so I’m going to have to decide if I want to return the car for a new car (not likely), simply return the car (possible), or buy out the car (also possible).
The only thing is that if I go for #2, return the car, I’ll have to be careful to not pay a bunch of extra charges for scratches here and there.
P.S. Thanks for the linkback
Love the “not a statistic” comment. I would add that timing is very important when you buy a car. As you say, a car dealers motives are quite different from the buyer. They need to make their quotas, so I suggest always going at the end of a month or the end of a quarter, when they are motivated to make a sale. Remember, you as the buyer have the money and thus the leverage.
Way to lay it out there Car Coach! That is a great line and a very bold claim. Can’t wait to start seeing your case studies.
Would also add – “You’re not obligated to be their friend, unless you knew them prior”. The coozing up of dealers makes all those other bullets easier to achieve (for them).
Hi-Love this post. Very interesting that you may be able to buy new cheaper than used!!! WOW
Also, I like my new name, very cute: Babs Friedberg Personal Finance.
Best regards, Babs