Please see next post.

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Dimple2001

The following is a writing based on a recent experience.

A couple of things I'd like to wring out of the way before going any farther. A car is a depreciating asset. The moment you drive off the dealer?s parking lot, your vehicle loses some of its value. While the following is not intended for those who like cheap everything, you should also beware of the depreciation a new car would incur right away.

Before you walk into a dealership, educate yourself.

1. Have a good idea of what you are looking for in your next vehicle - this is a high level self-evaluation of your needs based on your budget. Will it be a compact high mileage vehicle, or a family van, a spacious SUV/Crossover, or a cargo hauling pickup.

2. Once you know the size of the vehicle you are looking for, self-evaluate your wants. Perhaps, you are in a mood for a brand name luxury vehicle or you are simply trying to ride a hulk of metal from A to B.

3. Once you have a decent answer for the above two, explore the choices that are available in the marketplace. You might even want to narrow down the manufacturers at this point. Better yet, rule out the manufacturers you do not want to consider. This in turn would help you eliminate the few while leaving you with the option of considering others even though you are double-minded about it.

4. Internet is your salvation. Research the vehicles you might consider. Every manufacturer has multiple vehicle models or families. For example, GM has Chevy, GMC, Buick, and Cadillac. Toyota has, well, Toyota and Lexus. Both Chevy and Cadillac have cars, only that they are several dollars away from each other. Here is where you bring in your wants.

5. Within each vehicle model, there are variants. These are the mysterious SL, SLT, LT, LTZ, and a fumbling combinations of letters. Every manufacturer has managed to come up with this discombobulated list. But, internet will save your day.

6. Let me pause and say you should not be yet stepping into the doorstep of the dealer. Here is why. The dealer would think you love the Toyota RAV4 and will show you around, or worse, will ask what you need in the vehicle. Instead of stumbling, you?d be better off if you can rattle back the exact model variant you need, say, the LTZ.

7. So, research the variants on the vehicle's website. Every manufacturer has a decent website listing all the variants (they call it the trim) and what's standard, what's optional (available as option), and what's not available on each of the variant. For example, you may not want to pay for leather seats but would like the lane departure warning sensors. Well, that may not be available on the cloth trim. You'd have to go with leather. So, will it be cloth and forego lane departure or will you definitely need the lane dep warning and therefore willing to pay extra for the higher end variant?

8. The manufacturers' website has options to "Build and Price" and to download vehicle brochures.

9. The build and Price will remove all illusions of the posted price since the actual price after you "build" will have pricing for the options, freight charges, fee, etc, etc., except taxes. For example, SUVs will be priced at the lowest which would give you a front wheel drive and standard features. If you click all- wheel drive, the pricing would instantly jump up a few thousand dollars.

10. The vehicle brochure will have great information of all the specs of all the variants. You can print them on a nice big piece of paper and compare the features.

11. Once you know what you need in terms of options, go back and "build" your vehicle on the internet and get the MSRP.

12. Finally, now you have a good grasp of what you need and want. If you have multiple vehicles in mind, do the above on all. Print them and organize them in separate folders.

13. This is step 13. Unlucky. Don't go to the dealer yet.

14. Research consumer reviews for + and -. Be sensible on how you value the reviews. If a consumer has 1 star because he didn't get the mileage he thought he would get, that's a stupid review since he should have known beforehand the mileage of the vehicle he is buying.

15. Let's talk $$$$$. I wish buying a car is as easy as buying milk in Canada - pay a lot of money and go home. But, it's not. You pay a lot of money, but almost always different than the next buyer.

16. So, research the prices and the structure of pricing. Car prices are listed under MSRP (something like max suggested retail price) and invoice price. The invoice price might not be all that transparent. Generally, the dealer will start off at the MSRP (which will vary according to the options you have loaded), and be willing to negotiate to the extent that doesn't eat up their profits.

17. Manufacturers' websites tend to provide info on offers. These offers change on the first of every month. Check them out and keep that information to use as a negotiation tool.

18. If you work in the automotive world, check and see if you are eligible for supplier discount from your employer. For example, I receive supplier discount code numbers for GM and Ford. Supplier discounts tend to be around 2.5% of the MSRP. This can be added to any other manufacturer's monthly offers and dealer rebates.

19. If you have a family member who is an employee at the manufacturer, they might be able to get you family and/or friends and family discount code authorization. This is also around 2.5% (as far as I know) off of the MSRP.

20. If you know any higher-ups at any of the manufacturer, they may be authorized to offer employee discount code to anyone. That discount tends to be around 4.5% to 5.5% off of the MSRP.

21. Gather all those authorization codes (only one of the three codes can be used, you can't combine supplier and employee code and try to get 7% or so).

22. Reprice your vehicle. This may be hard unless you know the exact %.

23. If you think, you might drastically change your mind after knowing what your insurance premium will be, then get a preliminary quote on your future vehicle, so you have a good idea of what's going to hit you.

24. Now you are ready to visit the dealer for the first time.

25. Walk in with empty hands. Leave all the printouts of your knowledge out of dealer's view.

26. Ask for a test drive. Tell them you want to drive the specific variant you have in mind (not just the model).

27. Get a good feel for the ride comfort, blind spots on A and B pillars, dashboard layout, colors, look, ease of use, etc. You'd be surprised that you could change your mind real quick. We test drove Buick Encore since we thought it would be a good vehicle to consider. Unfortunately, it was sorely under powered at 1.4 L engine.

28. Tell the dealer you are reviewing competing vehicles and you'd be back if interested. Walk away.

29. Test drive all the vehicles you had in mind.

30. Narrow down to one.

31. Prepare a list of all the questions you might have or want to check out in a vehicle. For example, I wanted to know how spacious the second row and third row seats were. I wanted to know what mechanism opened the hood - hydraulic rod, self-supporting spring mechanism, or the metal hook. I wanted to know what adjustable sill plate light meant. Write them down.

32. Go to the dealer of your chosen vehicle.

33. Test drive again just to make sure this is what you want/need.

34. Ask or see answers for all the questions.

35. If you are satisfied, tell them what exactly you are looking for. Most dealers will look up inventory to find you the vehicle with 100% match on the options and color.

36. Ask the dealer to price the vehicle. Do not show or take any of your research material with you.

37. At this point, you can either negotiate or tell the dealer you'd come back after doing some research and comparing your notes. This will help you to think clearly rather than rushing into a purchase.

38. It's always better to compare notes in the leisure of your home than at the dealer. Also, pull your calculator out and punch the numbers the dealer gave you and verify everything adds up the way it's supposed to.

39. Sometimes, the dealer might want you to clear the pre-approval for leasing/financing before you begin the negotiation. This is not a bad idea since your pre-approval will be on the pricing the dealer gave you (minus any supplier/employee discounts you may mention to the dealer). Pre-approval will eliminate wasting each other's time. You are by no means signing any paperwork at this time.

40. After making the decision, walk into the dealer.

41. At this time, you probably have cleared the pre-approval, have a good idea of what to negotiate and what vehicle, model and variant you need.

42. Negotiate the price and settle the deal. Do not sign any papers yet.

43. If you have specific requirements on the vehicle, your dealer has to order that vehicle and therefore will carry extra time before you get the vehicle.

44. When you have the vehicle, settle all the paperwork and sign all the dotted lines, and take delivery of the vehicle. Make sure all the numbers match up with what was agreed upon in the previous visit.

45. You are now a proud owner of a brand new depreciating, but shiny asset.

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Dimple2001

Quote:

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Originally posted by dimple2001

45. You are now a proud owner of a brand new depreciating, but shiny asset.

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I am surprised to see such a detailed, step by step, instructions for a new comer to first get his ducks in a row, before signing on the dotted line. It is worth saving a copy or making it a sticky one.

Now.., I don't want to throw a curve ball or bring in too many hindrances into this such a happy event. But just want to say my two bits here, and to ask some Insurance Broker for a quote on any make or model by quoting the year that you want to buy and when you price in this quote into the equation, see if you can afford this buggy plus the insurance costs and then add the running and maintenance costs to it and get your total figure per month, just to see if it is needed or move it forward by an year or two..

My two nickels into the deal.. bits have gone out of service now.

FH.
Some new comers pay, pretty close to TEN bucks a day now.

Quote:

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Originally posted by Full House

I am surprised to see such a detailed, step by step, instructions for a new comer to first get his ducks in a row, before signing on the dotted line. It is worth saving a copy or making it a sticky one.

Now.., I don't want to throw a curve ball or bring in too many hindrances into this such a happy event. But just want to say my two bits here, and to ask some Insurance Broker for a quote on any make or model by quoting the year that you want to buy and when you price in this quote into the equation, see if you can afford this buggy plus the insurance costs and then add the running and maintenance costs to it and get your total figure per month, just to see if it is needed or move it forward by an year or two..

My two nickels into the deal.. bits have gone out of service now.

FH.
Some new comers pay, pretty close to TEN bucks a day now.

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Dimple2001

Welldone Dimple2001 Very well written . Upvoted !. Thanks to FH for highlighting insurance factor.

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Clinton

Quote:

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Originally posted by clinton

Welldone Dimple2001 Very well written . Upvoted !. Thanks to FH for highlighting insurance factor.

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Dimple2001