Vehicle Buying 101

“Always know more about your situation than the dealership.”

Buyer Information Folder 

Prepare a Buyer Information Folder before going to the dealership to negotiate the purchase of your next vehicle.

See Buyer Information Folder

Credit Report

Know your credit rating before going  to the dealership.

See  Know Your Credit Rating

New Vehicle, Affordability

Before visiting the dealership the buyer should determine how much vehicle they can afford and what vehicles they can afford e.g. type of vehicle, make, model, options.

See How Much Vehicle Can You Afford and What Vehicles Can You Afford.

New Vehicle, Financing

Always obtain a pre-approved loan from a financing source e.g. Internet Financing Site, Bank, Credit Union before visiting the dealership.

See Financing a New Vehicle or Financing a Used Vehicle.

New Vehicle, Inspecting

Always inspect the new vehicle for lot damage, missing items both before you begin the negotiations and again after the purchase but before you drive the vehicle off the lot.

See Dealership Lot Walk Around and Final Walk Around.

New Vehicle, Pricing

Before visiting the dealership the buyer should determine the Dealer Invoice Price and MSRP, Manufacturer Rebates for the vehicle and options they are interested in purchasing.

See Pricing a New Vehicle and Rebates verses Zero or Low Interest Loans.

Negotiating the Purchase

Buying a vehicle is not one transaction … it is four transactions.  Three of the transactions show up on the Four Square form i.e. Net Price paid for the New Vehicle, Value Received for your Trade-in, Cost of Financing the New Vehicle.  Sale of add-ons is handled by the Business Finance Office.

See Negotiating the Purchase - The Four Square, Negotiating the Purchase - New Vehicle, Negotiating the Purchase-The Trade - in, Negotiating the Purchase - Monthly Payment and Business Finance Office - Add-ons.

Business Finance Office

The Business Finance Office is just the next step in selling process.  A significant portion of a dealerships profit margin is made by the Business Finance Office.  They make their profit selling items like financing, various types of insurance, extended warranties, rust proofing, paint protection, security system and etching.

See Business Finance Office - Add-ons

Trade-In, Valuing A

Determine the fair value of the trade-in before visitng the dealership.

See Valuing Your Trade-in.

Additional Buyer Tips

More Buyer Tips plus Dealership Tricks are located throughout this website.

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