THE purchase of a new vehicle is often based on emotions rather than on objective decision-making. To ensure that you get the best deal, here are a few simple steps you can follow.
First, you must determine your need for a new vehicle. Would a used vehicle fit your need? Advertising is often intended to entice customers into buying a new car. With the appealing ads, customers often get dreamy visions of owning a new vehicle. Before entering a car dealership, make sure you are acting on need rather than want.
After you’ve determined that you need a new vehicle, research the vehicle’s cost and determine what price you are able to pay. It’s important to know the dealer’s invoice cost of the vehicle before speaking with the dealer. Information on vehicle pricing can be readily found in many printed pricing guides and websites including www.consumerreports.org and www.kelleybluebook.com.
Now, you are ready to speak with the dealer. While negotiating the purchase price, it is important to keep your focus on the dealer’s invoice cost and how much you are willing to pay. Dealers talk about the Manufacturer’s Suggested Retail Price (MSRP), or sticker price; however, to avoid overpaying, know the dealer’s invoice cost for the vehicle and negotiate up from there, allowing a fair profit for the dealer. Avoid beginning to bargain at the sticker price and negotiating down.
Only after you and the dealer have settled on a purchase price is it time to begin shopping around for the best financing deal. When it is time for you to make a vehicle purchase, loan payment calculators are available on statefarm.com® to help you make educated financial decisions.
***
If you suspect a scam, call the NICB hotline at 1–800–TEL–NICB.
For information about auto insurance and insurance fraud, contact your insurance agent.
( Published on April 25, 2009 in Asian Journal Los Angeles p. C5 )
| < Prev | Next > |
|---|
