buying a car
Buying a Car: What to Know before You start the process
Know the Invoice Price. Invoice price is what the dealer pays the manufacturer for the car; the manufacturer’s suggested retail price (MSRP, or “sticker price”). Knowing the invoice price of your car will tell the dealer that you mean business and expect a good deal. Don’t walk into the dealership without this information.
Check the Manufacturer’s Website for Rebates. Many buyers will qualify for multiple rebates, some of which may not even be made public. Be aware of all rebates for which you qualify and make sure you receive them. Dealers are known for not giving buyers every rebate available to them, instead keeping one or two as additional profit.
Research the Dealers. Buying from a cooperative and fair dealer will save you money and headaches. There are a number of websites that allow people to post reviews of dealerships, but their coverage is spotty and incomplete. If you can’t find online reviews of the dealer you are considering, just talk to people.
Check Your Credit History. Most people who shop for cars will need a loan. How much that loan costs will depend on your credit history, and knowing your credit history will give you a better idea what to expect from lenders. The Fair and Accurate Credit Transaction Act of 2003 (FACTA) allows every consumer to get a free copy of his or her credit report once a year from each of the three major credit-reporting agencies (TransUnion, Experian, and Equifax). Get a copy of your credit report, and check it for accuracy.
Get Your Own Financing. The biggest profit center for a car dealership is its finance department. Dealers contract with banks to get the best rates available but might not actually give you those rates. They might get you a car loan for 4.9 percent APR but draw up your finance contract at 5.9 percent. That one-percent markup is strictly profit for the dealer. You can often get a better interest rate from your local bank or credit union,
Know the Invoice Price. Invoice price is what the dealer pays the manufacturer for the car; the manufacturer’s suggested retail price (MSRP, or “sticker price”). Knowing the invoice price of your car will tell the dealer that you mean business and expect a good deal. Don’t walk into the dealership without this information.
Check the Manufacturer’s Website for Rebates. Many buyers will qualify for multiple rebates, some of which may not even be made public. Be aware of all rebates for which you qualify and make sure you receive them. Dealers are known for not giving buyers every rebate available to them, instead keeping one or two as additional profit.
Research the Dealers. Buying from a cooperative and fair dealer will save you money and headaches. There are a number of websites that allow people to post reviews of dealerships, but their coverage is spotty and incomplete. If you can’t find online reviews of the dealer you are considering, just talk to people.
Check Your Credit History. Most people who shop for cars will need a loan. How much that loan costs will depend on your credit history, and knowing your credit history will give you a better idea what to expect from lenders. The Fair and Accurate Credit Transaction Act of 2003 (FACTA) allows every consumer to get a free copy of his or her credit report once a year from each of the three major credit-reporting agencies (TransUnion, Experian, and Equifax). Get a copy of your credit report, and check it for accuracy.
Get Your Own Financing. The biggest profit center for a car dealership is its finance department. Dealers contract with banks to get the best rates available but might not actually give you those rates. They might get you a car loan for 4.9 percent APR but draw up your finance contract at 5.9 percent. That one-percent markup is strictly profit for the dealer. You can often get a better interest rate from your local bank or credit union,