Taking control of the new car buying process, at the dealership

(Note:  see “Taking control of the new car buying process, preparation phase” for the previous steps.)

Now that you have a written or emailed quote for the new car and a ballpark quote for the trade-in, you’re ready to go to the dealership.  Keep your guard up and be mentally prepared to walk away at any time.  If you can’t do this, I recommend bringing a friend who can help you and be a voice of reason to you.  It’s tough to walk away from your dream car, but you need to have the strength and will to do so if need be.  When you’re there and you’ve gotten a reasonable, written quote for the trade-in you’ll now start the paperwork process.  It’s a long one!  Double check all finance numbers before signing anything.    The contract is binding once you’ve signed. 

You will now meet with the finance manager.  If you are financing your car, you’ll work on the interest rate you’ll be paying.  Many dealers will advertise a low interest rate to get you into the dealership.  Typically you’ll need nearly perfect credit to qualify for this rate.  It’s best if you come with a pre-approved loan from a bank or credit union.  This way you’ll know your credit score and have an interest rate they need to beat.  Some dealerships will say you don’t qualify for the lowest rate due to your credit score.  If you know you have great credit, then you can call their bluff and get the best rate.  Once again, if you educate yourself you’ll save money. 

Now that the numbers are all agreed too, you’ll be asked if you want an extended warranty, fabric protection or other add-ons.  I recommend against purchasing these items.  First off, they don’t really add that much value to you.  If you’re buying a reliable car to begin with, why do you need an extra warranty?  Also, the paint and seats are already protected with a factory spray.  In fact, the paint protection is typically just an expensive wax job!  Just politely say “no” and continue with the signing.

Once you’ve completed the final signature, the car is now yours.  You should get a walk around with the salesperson to ensure everything looks good and a brief introduction to all the features.  If they don’t do this, ask them to do so.  It will help you feel more comfortable with the car as you drive away.

The process described in this entry and the previous entry can be very time consuming and difficult.  If you feel that it’s too much for you or you’re not able to negotiate as strongly as required, there are people who can help.  Auto shoppers or car concierge services exist and they can handle all this for you.  Typically they are paid a flat fee or percentage of MSRP.  This can be a valuable service if you’re in the right situation and they may cost less than you expect.  My company (Indy Auto Shopper, www.indyautoshopper.com) is one such service.

I wish you the best in your search for your next car.  Be sure to educate yourself, prepare before going to the dealership and be willing to walk away if you don’t get the deal you want.  These three things will help you save money on your next purchase.