No matter what car you buy, everyone wants to know they got a good deal. One of the most unsettling things about buying a car is wondering if you could have gotten it for cheaper, but cheaper isn’t always better. There is the price of the car which is what most of us focus on but there is also the quality of the car and the dealership that you do business with that is equally as important. It’s tempting to only look at the price when you’re buying a car and a lot of consumers get stuck there but there are five main things that comprise a “good deal” on a vehicle.
1. Is the car being sold by a reputable dealer?
Just about every customer I help after a poor buying experience comes from a dealer with multiple, detailed, one-star reviews. When bad reviews are not just written by one angry customer on a rant but by multiple customers who had terrible experiences that should always be a red flag. Even good companies get one-star reviews from time to time but watch for dealers with a lot of bad reviews with the story spelled out. Shady dealers get bad reviews because they are not good to do business with. Before you buy, learn about the dealer and pay attention to your gut reaction when you are talking with the staff and owner. Ask questions about how the dealers handles things if the car has a problem after the sale. Lastly, talk to friends or family who had a great experience somewhere and buy a car from that dealership,- especially if the car had an issue shortly after they purchased it and the dealer stood behind it. Not all dealers are created equal.
2. The Fees you pay
Recently I was helping a customer shop for a car, they called me very excited because they had found a great deal on the vehicle they wanted at a dealership that was about four hours away. We called the dealership, told them we were four hours away and asked them to send us a bill of sale so we could see all the fees before my customer made the drive. They sent it over and about half way down the bill of sale was a line item called “internet sale fee” to the tune of $4,500 dollars. Suddenly $42,000 became $46,500 plus taxes and fees and eight hours of driving and disappointment was saved from one seven-minute phone call! In some states a doc fee is $250-$400, in other is can be well over $1,000. Some dealers charge a recon fee, others don’t, before you jump at what looks like a low price, learn all the fees involved in purchasing a car from that dealer. If a dealer won’t disclose their fees until you’re there in person, that might be a sign there’s some extra money packed into the deal.
3. The Actual Price of the Car
A lot of websites now show you if the price of the car is good or not. They will rate the dealer price from “Great deal” to “Too high”. While this can be helpful, don’t take it as gospel. Not all dealers advertise on every site and the rating does not take in to account the condition of the vehicle or the fees the dealers charges. Using book values can be helpful but most books don’t account well for outliers. The best way to see if the price of the car is fair is to understand the condition of the car and then look for similar cars that have similar options and miles. If you find three to five similar models in similar condition, priced in the same ballpark the car is probably priced fairly.
4. Consider how badly you want the car and how rare is it?
Scarcity is a big driver in the pricing of vehicles. If there are hundreds available of a certain model within fifty miles of you, you will have more bargaining power because you can go down the street to the next lot and buy a similar car. If you are buying something that is more rare and harder to find expect to be able to negotiate less because the dealer will have a harder time replacing that vehicle. If you have a bigger budget and are buying more out of want than need worry less about the price and more about is it the car you want and will love owning. If you’re int that boat, don’t miss the right car for you over a couple bucks.
5. Does it fit your budget
No matter how good a deal something is, if it steals your peace of mind and increases stress, it’s too expensive. If you can afford an $18,000 car, buying a $30,000 for $25,000 is a bad deal. A car payment that makes it hard for you to put food on the table, go on vacation, save money or send the kids to the dentist just isn’t worth it. At the end of the day, no one winds up liking a car that they cannot afford, no matter how cool It was rolling off the showroom floor. Make sure you love the car you buy, by buying what you can afford and then put a savings plan in place so you can move up in car the next time you’re buying one.
Want help buying your next car? Let’s connect! The Car Ambassador was created to help people like you gain peace of mind for all your automotive needs. Whether it be making decisions about repairs and service work, selling your vehicle, or buying your next car, The Car Ambassador has you covered. Contact The Car Ambassador or book a consultation today!
