Six Ways To Become A Better Listener

So, you've decided to purchase a new car and you're looking for a great deal. Here are some things you can do before visiting a dealership to purchase your car.

1. Know your credit score. Dealerships will pull three credit reports when you apply to purchase a vehicle. Expect them to do this whether or not you are purchasing a car for all cash or supplying your own financing or asking the dealership to secure financing for you. They typically give greater weight to one credit reporting agency over the other two.

The three credit reporting agencies that are used are: Experian, Equifax and TransUnion. Call the dealership that you've decided on visiting and ask for a desk manager. Ask him which of the three agencies they use to determine credit worthiness. Make sure you have all 3 reports with you when you go to the dealership; all received in less than 30 days before the purchase of your car.

2. If you are looking to the dealership to secure financing for you, remember the better financing deals are offered to those applicants who have a credit score of 730 FICO score or above. If you have a credit union or bank that you like working with, prearrange financing with them before visiting the dealership. You will have their rates as a benchmark and more leverage to negotiate a better deal.

3. Know what rebates are being offered by the manufacturer. Manufacturers offer different rebates at different times during the year. There are rebates as incentives to purchase a vehicle, rebates for loyalty for returning customers, rebates offered for switching from certain competitive brands to their brand and many manufactures offer a rebate to recent college graduates. As part of your research, know which rebates apply to you.

Rebates are offered in two ways, as a cash reduction from the price after taxes have been added and as lowered interest rates for the most qualified buyers. Even if your credit does not qualify for the rate reductions, you can qualify for the cash reduction.

4. Make sure you do your research, both on the vehicle you want and on the one you want to trade-in. New car manufacturers have made it easy to research the new vehicles. Everything you need to price your new vehicle has been provided by the manufacturer. You can find all the specifications for the vehicle that interests you on the manufacturer's website. Use the specifications and tools to build the vehicle that you want with the equipment options that you like. The use the manufacturer's tools to price the vehicle. Once you're satisfied that you have all the equipment that you want priced for the Manufacturer's Suggested Retail Price, visit a third party website like Edmunds.com and price the vehicle for the dealer's invoice pricing,

5. Most importantly you need to price your trade-in correctly. You can get pricing from Kelley Blue Book online. Here's the difficult part. No matter how attached you've become to your vehicle you have to be realistic about it's value. Dealerships do not want high mileage or vehicles in poor condition and will offer you a price that reflects that. Those vehicles are sold to a wholesaler and taken to auction.

When pricing a trade-in, dealers will never consider it in excellent condition. Due to normal wear you can't either. If your car is in really good condition, price in the "Good" category, then get a fair deal for your car.

If at all possible and you have the wherewithal and the time, sell the vehicle yourself. This can be somewhat difficult and costly in time and expense which is why most owners seek to make their best deal with the dealer.

6. We've all heard the stories about how customers are cheated when buying a car. While I don't think some caution is a bad thing, I think that carrying a negative attitude with you to the dealership is unnecessary. While the dealership is looking to make money on every deal, they will accept a fair profit if you present them one. You actually control the transaction because without you there is no deal. They will present MSRP to every customer because that's their job. They will accept a deal if they are making a profit. Your job, as I see it, is to get a price that is acceptable to you while allowing the dealer a small, but fair profit. You can do it and if you follow the 5 steps above you will get a very smooth and fair deal.