Regardless of the decision you have made of purchasing a new or a previously owned vehicle, foremost in mind is receiving a good quality vehicle at a reasonable price. Perhaps this is your first vehicle purchase or you simply don’t enjoy the process of purchasing. It is our intent to enable you to become an educated and relaxed shopper by reading the tips provided. Always remember that supply & demand are the two factors that most generally influence pricing and, on occasion, some vehicles will not be discounted.

We can’t offer you a script to follow when visiting the dealership but we do encourage you do write down the questions that are important and have each answered by the sales representative or a member of management. Women, by the way, are far superior to men in this area (please see item #22, Women Shoppers). When you visit the supermarket you take a list of items to purchase. If you miss something you can pick it up on your next visit. Not quite so with a vehicle because statistics show that it will be years before you purchase another vehicle. Do it right the first time and start now by jotting down items or questions that are important to you.

1. Being honest.
   According to Frank Phillips, President of FCP/SalesMasters a national sales recruiting and training company for the automobile industry, the most common misconception of new people entering the auto sales field is that honesty has little importance. He teaches just the opposite to new hires and seasoned sales representatives. From the beginning of the sale to the closing and delivery, he encourages honesty as the only practice to observe. And, yes, his research reveals that honesty is important for the buyer as well. Many buyers feel that giving false information to the sales person is fair and will, somehow, allow them to receive a lower price. The deceptive practice of saying “no, I’m not trading my car” and then later thinking that you can “spring the trade” on the sales person is perhaps at the top of the list. More on this later.
   
2. Communicate.
   Contrary to what you might think, automotive sales people do receive training and hopefully you will be working with one that has received instructions on how to be a good listener. Why communicate? What happens when you visit your doctor, dentist, attorney, tax consultant or financial advisor? Don’t they ask you questions to evaluate your situation? Aren’t they asking in your best interest? How can they assist without correct input from you? Sure we know that these are professional people and you’re entrusting them with your savings or health. But aren’t you putting trust in the sales person to make a commitment to purchase a 10, 20, 30, 40 or $50,000 automobile? For instance, the sales person tells you that the service department is outstanding. Why don’t you walk back and ask to meet the service manager and learn for your self what the policy is on a loaner vehicle or rental vehicle if there is a problem covered under manufacturer warranty. What if you drop the vehicle off in the morning, do they have a shuttle service or can someone drop you off at work?
   
3. Prepare.
   Read about the vehicle you have in mind by visiting a local dealer and picking up a brochure or by visiting the manufacturer’s Web site. You can also visit the Recalls/Safety page on the site you are viewing now and find information that might be useful. Some dealerships have inventory that be can be viewed during the hours that they are closed. This is an ideal time to browse and look at exterior/interior color combinations, equipment packages, engine sizes and more.
   
4. Calculate.
   On this Web site you can use Calculators that will assist you in determining what type of payment you can afford within your budget. Try doing it like the professionals by jotting down how many monthly payments you have on one side and then jotting down how much income you have on the other. Be completely thorough and allow for clothing, rent or mortgage payment, food and household expenses, utilities, gas, entertainment, charge cards, vacations, insurance, and all other monthly expenses. Deduct these expenses from the total income and this should provide a “ball park” figure of what you can afford monthly for a vehicle loan.
   
5. Rebates or 0% financing.
   Most rebate programs offer you the choice of taking the cash, applying as a down payment or 0% financing on your loan. You make that decision, not the dealer. Be cautious and don’t be surprised if you can’t resist applying for the 0% financing but find that you don’t qualify (more than 9 out of 10 applicants fail to qualify) and a higher rate is quoted. This is the point where you should finance with your credit union and utilize the rebate as the down payment.
   
6. Test Drive (new).
   Loosen up and don’t resist the opportunity to drive the vehicle you very well might purchase. Looking at and driving an automobile are not the same. Don’t use the lame excuse of not testing because “its a new car and nothing is wrong with it.” You are correct, mechanically nothing is wrong with the car but how about room for your head, shoulders, legs and any other drivers/passengers of the vehicle. Be honest with yourself and don’t try to buy on price alone. There are to many competitive makes and models to settle on something that you will dislike from day one. Go ahead, take the keys and drive the vehicle. Believe this, new car dealers are concerned with CSI (Customer Satisfaction Index) and absolutely want you to drive the vehicle. It is not necessary to have a sales person riding with you. More on CSI later.
   
7. Test Drive (used).
   This is your opportunity to drive in the city, country, freeway and at high speeds and low speeds and in stop and go traffic. Does the vehicle handle the way you expected? Does the cruise control work? How about the sound system, power brakes, tilt wheel, power door locks and are there funny sounds that might indicate something could be mechanically wrong? Once you have made the purchase it will be more difficult to negotiate the repair of defective items so do it upfront before signing on the dotted line and owning the car. Waiting an extra day for delivery will not hinder but certainly could help in the long run.
   
8. Sticker Price (new).
   Prior to visiting the dealer you should be reviewing the Black Book pricing page found under Car Prices on the left hand menu of this Web site. Black Book provides new car MSRP (manufacturers suggested retail price) that is commonly referred to as sticker and also dealer invoice including transportation and the percent of markup from dealer invoice to retail. It does not show dealer hold back. Hold back is a percentage of the cost of the vehicle that the manufacturer retains. This amount is generally 2% to 3%. Many helpful hints that are posted on Web sites will encourage buyers to negotiate down to invoice and then start negotiating to have the sales person reduce even more or part of the hold back. First, you must under-stand that the hold back is only refunded to the dealer quarterly or annually. Secondly, do some math. If the dealer paid the manufacturer $20,000 (cost or invoice) for a vehicle the hold back would be 2% or $400. Third, if negotiations reach this point it will be stressful and what could be a pleasant buying experience could turn sour quickly. We suggest that the less said about dealer hold back the better. When reviewing Black Book new car prices be sure to utilize the upper right hand corner where it will give you a choice of Vehicle Base, Interior /Exterior Colors, Major Changes (from the previous year model), Optional Equipment, Price Includes, Residual Adds and Deducts and Standard Equipment.
   
9. Addendum Sticker.
   This is a sticker that is added when the dealer installs items such as “window etching” or aftermarket items. It does increase the cost of that particular vehicle and is open for negotiation. If it is something that you do not want or need, have the sales person locate or order (usually only domestic) one from the manufacturer if the model year is in production.
   
10. Used Car Pricing.
    The prices you see under Used Cars for Black Book are averages for many vehicles and are not necessarily the price of your car. All to often buyers feel that they should be receiving retail for their trade-in. It can’t be done. The basic business principle of wholesale to retail is standard in all industries, not just the automobile business. Regardless, of where you work (or retired from) your business must make a profit. No profit, no job. If you are trading your vehicle, look at Black Book Trade In Value and compare to what the dealer is offering you. Remember there are different levels of value for vehicles such as clean, average and rough. Look at your vehicle with the dealer to determine the value of your trade-in. Pricing with Black Book is done on a state-by-state basis so scroll down and click on your state and then enter the correct mileage. Black Book pricing is the most accurate and current pricing found in the marketplace. Unlike guide books that publish once a month and are some times week old, Black Book is updating constantly and the prices you find on this Web site are reliable and current.
    
11. Buyer’s Guide.
    A Federal law requires that dealers display a Buyer’s Guide on used vehicles. This guide will indicate if the vehicle is being sold “as is” or if a warranty is included. If the warranty is included there should not be an additional charge. Do not confuse warranty (which is included in the purchase price) with an extended service contract. An extended service contract is purchased separately and normally the expiration date, in either time or mileage, is longer than the warranty. A copy of the Buyer’s Guide should be given to you
    
12. Trade-in.
    This is a personal choice. Thousands of people sell or attempt to sell vehicles on their own. Some have success and sell their used vehicle without problems while others find it to be a difficult, time-consuming and unpleasant task. If you are attempting to sell on your own, use the Black Book pricing provided on this Web site and price your vehicle accordingly. If you have dents, dings, scratches, burns or torn upholstery, chipped or broken glass, worn or mis-matched tires or a combination of all, don’t price your vehicle as extra clean or clean. You should be looking at average or rough. Do a AutoCheck VIN search to show the history of your automobile. There are numerous articles written about getting a price from a salesperson and telling them that you will not be trading your car. Then, after getting the price, you tell them “that you have decided that you will trade” and that by doing this you will get a higher price for your trade-in. This is not true! Why would a trade-in be worth more by doing this? Did the wholesale price change? Did the trade-in increase in value within a few short minutes? The answer to all these questions is no, absolutely not. Be up-front with the representative that you are working with from the beginning and they will do anything within their control to get you the best price on your trade-in. There are some steps to follow before visiting a dealer and having the used car or wholesale manager evaluating your trade. Wash and waxing is an easy process and cosmetically will offer a more presentable vehicle. Cleaning the interior upholstery and emptying and discarding trash is helpful. Clean the trunk and remove all items that clutter. Clean the interior glass and remove any stickers that aren’t required by law. Usually the oil is checked when the used car manager is pricing a trade-in so have your oil changed before trading.
    
13. Recalls.
    Click on the side bar menu for Recalls/Safety and find the most updated information available provided by National Highway Traffic Safety Administration (United States Department of Transportation).
    
14. AutoCheck.
    A

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