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Sunday, September 29, 2013

Dealerships, Car Shopping, and Purchasing

Recently I've had occasion to spend a lot of time in contact with car dealerships. I figured I would take my experiences and roll it into a guide of sorts, for others looking to buy a new car.

1) Research the cars you are interested in.

You should research cars that would fit your need. This first requires you to know how many seats you want, number of doors, power range, price range, size, and so on. For any set of features there are multiple options available in today's new car market. There are lots of small, medium, and large sedans or wagons, SUVs of all varieties, hybrid vehicles of all shapes and sizes, and sports cars and coupes of varying prices and power, chances are for any list of features you come up with there is more than one available.

In order to research I strongly encourage first looking online (at both dealer sights and through pictures). Also consider looking at owner's forums for your cars and a few reviews. Some cars have more literature and presence on the internet than others, but still, this may reveal common issues or features you were not even aware of.

Once you have a sense of the vehicle you want go to a dealership and test drive that car. Look at a dealership's online inventory to make sure they have the model with the suspension, engine, and transmission features you want available for a test drive. (You can call or email ahead, if you do I suggest a new email box through gMail or something to handle the flood of emails you will get.) But when you go to drive make sure it is the car with the specs you want (stereo, moon roof, and so on will not matter so much, this is to get a feel for how the car handles and responds) and drive it to see if you are comfortable with it.

Also remember to test the vehicle at both road speeds and highway speeds (55++ mph), you may need to find a different dealership and go further out of your way to do this, but if you're someone who plans on driving on the highway with any regularity. Most modern vehicles are quiet and comfortable at daily speeds of 30 mph to 45 mph. As you move up in speed to 55 mph and higher road and wind noise will be greater. In many ways it is best to do the drive without anyone in the car with you that way you can test the breaks a bit harder, take a turn a bit sharper, and test the passing speed of the vehicle (on the highway). I'm not saying go out and drive like a lunatic but I am saying to drive it like you would on a daily basis, perhaps a bit more exuberantly, and definitely, in a safe way, test the brakes and make sure it stops like you want it to. You don't want the first time when you test the brakes to be when you really need them, do this before you buy a car.



2) Email local car dealerships.

Communicate with the dealers you are considering buying from via email. Ask them for specifics including base price, a breakdown of all the options you want, how much document fees are, and any other questions you can ask. Look for thorough responses where they answer all questions you ask and where they say things explicitly rather than vaguely.

There's a lot to be said for a salesperson willing to put terms in writing before you've even agreed to purchase the vehicle.

This also provides you a tool, when you walk into a dealership to make the purchase you have terms you've agreed to with you, you can also have the same offer from another dealership which may be a better offer. You now have written terms and play one dealership off the other for you. Make them compete for your business.



3) Ask a difficult technical question.

The salespeople know the brochures and option lists real well but often do not know repairs and so on. This aspect is more of a test of the dealership.

First, keep in mind that rarely does buying a car encompass your entire relationship with the dealership. Often times service and so on will be part of the future relationship (this is also something to consider any time you plan on using dealership service for repairs or whatever).

So, the question becomes, when you bring your car in, do you want to deal with someone behind a desk who manages service or do you want to deal with the mechanic who will actually do the work on your car? Me, I prefer the mechanic, they speak "car" and "mechanic" and know the vehicles in way the sales people don't.

When you visit a dealership you are considering buying or receiving service from ask a question that only the mechanics would know, or if you cannot come up with one, just ask if you can talk to the mechanics about the car.

A dealership who gives you direct access to the mechanics and not a desk worker is much more likely to provide better service in my opinion. There is a certain amount of dishonesty in the mechanic profession at times, it's rather common, but I'd rather take my chances with a mechanic directly than another service salesperson behind a desk. (Assume everyone at a dealership is trying to sell something, assume people behind desks are the better salespeople and generate more revenue, do not get talked into things you do not need by these people).

This can all be done when you go to test drive.



4) Financing, if you're taking a loan.

This will be different for many people, but I have some general suggestions.

First, before you go to a dealership to buy make sure you have the ranges of financing they or offering. Also look at outside banks and credit unions (through professional associations, your alma mater, or local) for what rates they offer.

Second, many places now have secure pre-approval things on their site where you can figure out what rate you qualify for.

This can give you options in terms of financing at a dealership that may not have a lot of negotiating room on interest rates because they use manufacturer financing, and it also gives you a number where you can say the equivalent of "meet it o do better."



Hopefully someone finds this helpful.

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