 |
| |
The most important thing to know is
what your used car is worth.
You need to remember that you are, in effect, selling
your car.
And just like you would do if you were selling your
car to someone outside of a dealership, learning
the value of your used car is imperative. |
|
|
 |
Automobile Trade-In
Values - Tradein Auto Value- AutoTrade-In
1. What exactly is the dealers sales price?
Sale Price: Anything above invoice price is profit.
2. Explain what the 'Trade-in Value' means.
Trade-In Value is any amount between what the actual cash
value of the car trade-in is and what the consumer agrees
to accept for the car trade-in value is the dealer's profit.
3. What is a Car Rebate?
Many dealers take the rebate in lieu of the negotiated
car purchase price. Do Not allow this to happen to you.
The rebate is your money. Negotiate the car purchase price
and take the rebate as cash back or cash down. If you
allow the dealer to take your car rebate as part of the
negotiated car purchase price the dealer adds the rebate
to his profits.
4. Should I put 'Cash Down'?
Profit is made indirectly from the car down payment. The
dealer will pressure you for more cash down. The reason
for this is to assure your new car loan will be approved
from the lender with all of the high profits the dealer
has packed into it. The greater the down payment the greater
the profit that can be made.
5. How does the Interest Rate effect the Monthly Payment?
Let's say you qualify for a loan rate of 4.9% APR for
60 months. You have no idea what your monthly payments
will be based on your agreed selling price. Because the
payments are based on the bottom line of the entire car
deal rather than the selling price alone it is impossible
to determine an accurate car monthly payment. The car
dealer calculates a payment of $450 which seems agreeable
to you and you sign the contract. The problem is when
you get home and go through your paperwork you discover
that your interest rate is actually 9.9%. The dealer profits
the difference between your buy rate 4.9% and the 9.9%
you sign for.
6. What does 'Holdback' mean?
The car dealer is paid anywhere from 1-3% of the net invoice
on all new car sold from the vehicle's manufacturer.
7. Should I purchase 'Add-On's'?
Any car dealer addendum should be carefully scrutinized.
Products like Fabric protectors, and window etching are
ploys by the car dealer to increase their profits. We
suggest pricing individual add-ons from after-market sellers
to make sure the car dealer is not over-inflating the
car prices.
8. Is 'Leasing' bteer than purchasing?
Leasing is extremely profitable because their based on
a percentage of the car and car dealers can easily charge
MSRP for the car and still quote low monthly payments.
9. Why are there 'Lease Deposits'?
If you trade in a car you leased you may have paid a refundable
security deposit If you did make sure not to sign it over
to the car dealer. Ask the finance manager to see the
paperwork that requests the deposit be returned to you.
10. Are 'Extended Warranties' a good thing?
These are almost pure profit for the car dealer selling
them. We recommend you buy a discounted car warranty from
our friends here.
11. What is the 'Resale Trade-in'?
Anything the car dealer sells the car trade-in for above
what they paid for it.
12. What are 'Pre-Printed Add-On's'?
Every car dealer charges varying prices for auto roadside
car service which is pre-printed on every purchase order.
It ranges in price from $199-$249. We recommend you don't
pay for it. Have the car dealer reduce the selling price
by the same amount as the pre-printed cost or have them
omit the line compltetly from the car buyers order. We
strongly recommend you use our car buying tools and deal
calculator to assist you in your efforts to save money.
Author have no liability for article, always consult related
professional before make any final decision to buy car.
|
|
|
|
