Top 10 Tips on Buying a Car

Need tips on buying a car? you've come to the right place.

As an Added Bonus I'm going to reveal a forbidden secret that the car dealers don't want you to know.

Now, why should you listen to me?

Well, I'm an insider. I worked in sales at a "dealer's only" auto auction for over 2 years.

I know the insides of the car business. I've been wanting to share these tips on buying a car for a while now and I'm so excited to finally give them to you.

One thing you must understand about shopping for a car. The whole system is designed to fool you.

As I was scouring the internet for tips on buying a car, I was shocked at all the information designed to lead you astray.

I found very little in the way of solid, true, hard hitting FACTS that were written with the intent of really saving you money.

Well, I'm going to give you here, what you can't find anywhere else.

Please read all the way through to the bottom because the biggest secret i'm saving for last.

Ready? Here are the top tips on buying a car....

1. Do NOT buy a new car unless you like to lose money
It is a common known fact that new cars lose 65% of their value in the first 4 years off the lot.

Let's put this in perspective, If I told you I had a killer investment that had an up front buy in of only $10,000 and in 4 years you would be able to recoup $4,500 of your money... would that sound like a good deal to you? Of course not. That's ridiculous. Well that's exactly what you're doing when you buy a new car.

Now, IF you've got the money to burn, and you still want a new car, go ahead and get one. Just know that it won't be the best investment you've ever made.

2. Pay Cash
Bringing cash to the table gives you the highest amount of negotiation power.

It also eliminates interest charges and monthly payments that will steal your wealth.

3. If you must get a loan - Get pre-approved.
Did you know that when you finance a car with an auto dealer, they get paid bonuses, from the financial institution, based on the interest rate they get you to agree with.

For that reason, you should shop around and get pre-approved on a rate before you ever go shopping for a car.

Getting pre-approved also puts you in the drivers seat on negotiation because it's essentially like have cash.

4. Have a friend in the car business
I mean a good friend. Someone that's not just looking to make a buck off you but who's actually watching out for your best interests.

Most tips on buying a car can be thrown out the window if you've got a friend in the car business that's watching out for you. They can swing you deals that you would NEVER get otherwise.

5. If you have a car you need to "trade". Don't trade it.
The best thing to do is to list the car in the classifieds, park it on a busy corner and try to sell it yourself. This way you can get a retail price out of the car versus a the wholesale price the dealer will give you.

Always make sure the car is clean, shiny and ready to market before you sell it. This will move the car faster and get help you to get top dollar.

6. Never go to promo sales
Many times car dealerships will hire 3rd party marketing companies to come to town and put on a promotion. They will mail out flyers promising big prizes and even money.

I can tell you horror story after horror story of these sales. These out of town sales groups could care less about you because their gone in a week. They take advantage of people here like crazy. Stay away from these.

7. Request a Carfax or Autocheck report
While these reports are far from perfect, they can give you a "heads up" as to whether or not the vehicle has been in an accident before. It's still wise to check the car out yourself, but these are an extra step in the screening process that will protect you.
8. Don't play the "book" game
Kelley Book, Nada book, Black book... they're all designed to take your money.

These books are meant to give you ideas as to what the car is worth. Unfortunately these books are all put together by the automobile industry.

They are not independent. Taking advice from these would be like getting advice on how much a house is worth from the person that's trying to sell it.

These books do work as a guide, but please remember that market values fluctuate widely and more often than not, are not reflected accurately in the books.

9. Never believe the "Little Old Lady Story
This is where the salesman tells you that the car you're looking at was just traded in last week by a little old lady that took great care of the car. There is a saying in the car business and that is "everyone wants to hear a story."

Be prepared for some bogus story on the history of the car.

Bottom line, check the car out before you buy. Both mechanically and cosmetically.

10. Know the true value of the vehicle
Ok... here's the bombshell. Out of all the tips on buying a car, this one's the granddaddy!

We know that the books don't give you a real reflection of the vehicles value so how do you find out what the vehicle is really worth?

It's worth what someone is willing to pay for it. Most vehicles you see on a car lot came from an auction. Did you know that all the major auction networks keep an online database as to what the cars sold for?

The best way to find the real wholesale value of the car is to check auction databases to find what dealers, nationwide, are paying for the vehicle you're looking at.

With this information, you can find accurate and up to date information as to what dealers are actually paying for any vehicle.

With these top tips on buying a car, you'll be very well armed to negotiate.

Last Minute Tips

Keep in mind that when dealers buy cars at auction, they do have costs associated with cleaning them up, checking them out and reconditioning them.

In addition, they do deserve to make some money for their efforts. Don't expect to pay exactly what they paid for the car.

Do expect to know have a rough idea as to what the dealer is making on you to avoid getting completely ripped off.

I personally know dealers that have made over $10,000 profit on 1 single used car. That's a ton of money to take from 1 family don't you think? Using these tips on buying a car will prevent that from happening to you.

Please call me with any questions or for help in coaching you through your specific situation.

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