Car Dealers’ Secrets

One important car dealer secret often remains unknown – the car dealer usually buys the car from the manufacturer at the invoice price. When the car is sold, the manufacturer reimburses to the dealer, the cost incurred for keeping it in the dealer’s inventory for 90 days. If the dealer manages to sell the car before 90 days, part of the held-back payment becomes a profit for the dealer although the car is sold at the invoice price. The dealer often makes more profit from financing the vehicle and selling “extras”, than from selling the car. This is another car dealer secret that seldom comes out. Extras include extended service warranty, paint protection, scotch guard, window tinting, alarm systems, etc.

Car Dealer Tactics

Car dealer tactics are many.  The commonest car dealer tactic is to convince you into trading in your old car for a new car.  To clinch the deal, the dealer offers a good exchange on your old car. The tactic also ensures that you buy the car from the same dealer.  It is a win-win situation for both the parties.

Car Salesman’s Tricks

The car salesman’s trick aims at selling the car as quickly as possible and at a higher rate of interest if financing is involved.  He will try to sell as many “extras” as possible so he can earn more. Giving you a patient and sympathetic hearing is another of the car salesman’s tricks.   

Insider Car Secrets

Most of the car dealers, car sales persons and financial managers are ethical and honest. But all of them work on a commission basis. They think about their paychecks first when selling the car. Car salespersons are trained to cajole you into buying the car. Thus, your ‘buy decision’ is often influenced by emotion rather than sound judgment. You are seldom given the time to think the proposal through.    

Buy a New Car

Owning a new car is something everyone dreams of. This dream can be easily realized these days.  Today, getting a car loan is easier than ever before. However, your decision to buy the car should be need-based.  It should take into account your financial position.  You should ensure that you can set aside a fixed sum of money for its maintenance. Your choice of the car should be based on the purpose you want it to serve. 

Buy an Old Car

Buying an old car is often better than buying a new car. Although old cars cost more to maintain, and are more likely to break down, leading to heavy expenses, they are cheaper to own and operate. Your old car will not depreciate much. Cars lose most of their value during the first five years of use.

Tips for Buying a Car

Some tips for buying the car may come in handy.  Compare the different brands by the features and sweeteners they offer – like mileage, accessories, insurance, maintenance and warranty.  Choose a good dealer and a good finance company that quotes lower interest rates and EMIs. You will save a lot on the car buy