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FREE ...New Car Buying Guide
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We've covered the nine steps you should take to get the best deal when you purchase a car. But there are some things that may fall outside those seven steps.
One thing that happens is that some people want to purchase from an individual salesperson. Maybe it's a friend or family member. Hard nose business rules state "Friends are friends but business is business"
While this is good it can't always be practiced or maybe you just don't want to practice it. You can still use the seven steps to save you money.
First off remember that the salesperson has little or no say in the negotiation...the final say always comes from the Sales Manager, the finance manager, the owner, company policy or a combination of the above. Unless the sales person also wears one of the above hats...they have no say in these matters. many times they are as frustrated as you are.
Let say your best friend is the sales person and you want to purchase from them.
What can you change in the new car buying steps?
Emotion. They probably won't hit you hard with emotion tactics. But remember they may not be able to bend company policy. What if your best friend owns the dealership? They may not hit you hard with the emotional tools...but they still want to make a profit. In either case, you still want to be aware of letting your emotions drive your decision.
Research. You still want to do as much on-line research as possible. But you can spend time at the dealership looking at the cars. I'd still et some price quotes from on-line services. But I would not wave them in their face...I'd keep it quiet. but at least I'd know where I'm standing before I embarrassed myself dealing on a car I can't afford. And, who knows, you might find that your friend gives you a better deal than you dreamed possible...or maybe you find out they are not such a good friend after all.
Credit report. You should always know what's on your credit report. Check it multiple times a year whether you're buying a car or not. Now, depending on your friend's position, at the dealership, they may or may not be able to give you the best finance package available. It's just plain good business looking for alternative sources of financing. You are being negligent to yourself if you don't shop around and find the best financing.
Test drive. Hey, they're your friend...enjoy the test drive and the company. Sit down and talk with them after the drive. But...insist on going home and thinking it over before you make a purchase decision.
Purchase. Make sure you do everything that's covered here...they only thing you could change would be doing more of it face to face or over the phone.
Delivery. Enjoy this time with your friend. Their should be a mutual feeling that you both treated each other fairly.
When all is said and done you still may have went elsewhere for your financing, GAP, Extended warrantee etc. Sure you didn't buy all the bells and whistles they would have like to sold you. But if they are a real friend they will be looking out for you as well as themselves.
I know car dealers that I would feel very comfortable going in and telling them what I need and asking them for recommendations. They would make suggestions and may even recommend against a few things. They would give me their best financing package and if I came up with sources of other financing they'd look at it and give me an honest answer.
I've purchased from some and not from others...we're all still friends. They understand...I can only buy a limited number of cars and that there are MANY decisions I must make in my purchase.
Let me tell you about one such purchase I did make.
I was a Sales Manager for an unrelated business. I was on the road a lot. I talked to my friend and told her what I needed. She suggested a higher end car because of the time I spent in it. I told her that I was more interested in mileage and reliability. She made another suggestion.
I then went and talked to my insurance company and my lender (both of them friends of mine and of the Sales lady). I went on-line and got some price quotes. I was on the road a lot so I didn't have much time. One evening I typed up a paper with how much I thought the car was worth and what I was willing to pay. The dealership wasn't open early in the morning so I put my offer in an envelope, addressed it to my friend and stuck it in the Maintenance key drop-off box.
A few hours later my friend called me on my cell phone to make sure I was serious before she ran it by the finance person. She said that she didn't know if it would fly because it was a lowball offer (I already knew that). I told her that I had the financing in place, I didn't want any extras and that was all I could afford...I would continue to drive my current car if I couldn't get one at that price.
She called me later in the day and asked when I could drop off the check. I purchased that car and my next car from her.
She's now a Sales Manager at the Dealership but I now purchase my cars elsewhere because I now purchase cars luxury cars and they are a Chevrolet dealership. We're still great friends and my wife and I were members of her wedding party.
Step Number Twelve... covers a New Car Miscellaneous Items
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Intro | Emotion | Assessment | Research | Credit Report | Loans | Search | Test Drive | Purchase | Delivery | Trade In | Friends | Miscellaneous |