More car buying tips

When a dealer says they are the only ones that can get you a certain financing package through a lender, know this: if that lender approved you there, they are required by law to give you the same approval at another dealer. So don't buy into the scare tactic.
If you sign a contract at the dealer, and then for whatever reason they call you back in a couple of days and say they have to change something on it in order for the bank to buy the contract, you are NOT obligated to enter into a new contract unless you are completely happy with the new terms.

Car buying facts

More than 38% of buyers never negotiate on the price of the car.
Most people who negotiate their own car deals do not even get close to getting the best deal.
People lose between $1,200 and $3,900 or more because they are uneducated about how to negotiate with trained professionals.
The dealer often makes more profit in the finance department than from the sale of the vehicle.
The dealer "invoice" is not at all necessarily what they truly pay for the car

Testimonial

Thank you so much Chris for helping me buy my new Honda Accord. I Love it! Now that I have had the opportunity to really use the navigation system, I can't imagine not having it. I am very pleased with the entire process from start to finish. I think this is the only car I have ever bought where I wasn't completely irritated by the time I left the dealership. Just as you had promised, the car was ready when I got to the dealer. You set me up with a very nice salesman who showed me all the features in the car, and gave me a nice test drive. When it came time to negotiate, it was quick and painless. I actually saved more than I was originally hoping for. I received an excellent interest rate, and was in and out of the dealer in under two hours. I will tell anyone I know who is buying a car to come see you. Thanks again

Melissa G. Sherwood, Or

Buying a new or used car in the portland area

FAQs

Here are some of the most frequent questions clients ask. Knowing the answers to these can dramatically affect the cost of owning your vehicle (not just the price)

Q. Do I really need to buy an extended warranty?

A. That depends on how long you plan to own it, and the miles you drive. Most newer vehicles have sophisticated computers running the car, and repairs can be very expensive.

Q. Should I buy from a dealer or private party?

A. I recommend a good dealer, they provide service to their vehicles and their customers.

Q. What's the deal with rebates?

A. Rebates are often offered on vehicles that are not selling as fast as the manufacturer would like. Rebates can save you money up front, but keep in mind they will also reduce the future resale value.

Q. What is GAP insurance?

A. Most insurance companies only cover "fair market value" not replacement value. If you total your car or it is stolen, and you still owe $20,000 and your insurance company will only pay $15,000, your "GAP" insurance covers any difference. If you plan on financing and putting little to no money down, GAP is an excellent value.

Q. Should I lease? Why or why not?

A. There are great advantages to leasing, however it depends on how long you plan to use your car, the anticipated miles you will drive, and the type of lease offered by the manufacturer.This can be complex, and I would be happy to expand on this issue with you.

Q. Should I use dealer financing or arrange my own?

A. Most new car dealers have access to several lenders and many credit unions. Some manufacturers offer special promotional rates which can be very attractive. I suggest checking with your bank first to have something to compare.

Q. Is it smarter to buy new or used?

A. Buying new, you know that there should be no problems and you have a warranty. Buying used can be a great value because you can save money, however you may not know the complete history or any hidden problems. Also, many used vehicles may be out of warranty and if there is a mechanical break down, the expenses can add up.

Q. Should I trade or sell?

A. In a perfect world I would suggest selling your trade on your own for as much as you can. In today's market, that can take a long time and you will most likely have to do some reconditioning to the car to get the most money. When you trade, you may not get as much as you would like, but the sale is guaranteed and you don't have to worry about advertising or reconditioning. Also, since cars depreciate fast, the sooner you get rid of it, the more money you will get.

Q. How do I know what my trade is really worth?

A. The market is fluctuating constantly. Blue Book might say a figure, but the actual cash value may be thousands of dollars different. Your trade is worth what the current market is at the time of your deal, less any damage or expenses the dealer will likely have. An example would be having to put on new tires or replace a broken windshield. I will walk around your trade with you, and then I will get some bids from independent wholesalers to help establish a realistic expectation; then, of course, we will try for more!

Q. Do dealers really sell cars at invoice?

A. Not always, or they wouldn't be in business very long. They make as much as they can when they can. Oftentimes we can get them to sell a new car for invoice or even less depending on the model, how long they have had it in stock, or how badly they want to make a sale. I always target my customers' deals as close to invoice as possible.

Q. When is the best time to buy?

A. There really is no definitive answer here. There are many variables that can affect the best time to buy. I know from experience as a Sales Manager that during the week when it was slow and we had little walk in traffic, I was much more compelled to take a small deal then no deal at all. Also, toward the end of the month many dealers are close to goals they have set and may be inclined to take a deal to hit their objective.

Q. What if I owe more than my trade is worth?

A. This is called having negative equity. The best thing to do is to pay the difference up front as cash down. If you are not in a position to do so, you can roll the balance over on the next loan or lease. Many people are in this situation. There are options we can discuss to see which would fit you best.

Q. Which dealer should I choose?

A. If you plan on servicing your vehicle at the dealer, I suggest the closest and most reputable dealer to you. You are certainly not limited to buying from your closest dealer, though. Your local dealer will still be more than happy to service your vehicle later, even if you didn't buy it from them.

Q. What if I won't service my vehicle at the dealer?

A. You don't have to, though I recommend it because they have factory trained technicians who are well trained and have the best equipment to service your vehicle. If you choose to service your own car or have a local personal mechanic, I suggest you keep a thorough log of all servicing in case a warranty issue ever comes up.

Q. Will getting my vehicle serviced by someone other than the dealer affect my warranty?

A. Not usually, just keep good records and follow the manufacturers' suggested servicing.

Q. Can I pay off early without any penalty?

A. Yes, any standard term contract uses simple interest. You only pay interest for the amount of time you borrowed the money. An example would be if you signed a 60 month contract at 6% APR and paid it off in 6 months, you only pay interest on the 6 months, not the full 60. Note: Leases work differently, you may incur a penalty for early payoff or lease termination.

Q. I am scared of fraud. What information does the dealer need?

A. If you are financing, they will need a complete credit application and a signed privacy notice. They will also need a copy of your driver's license and insurance. You will need to provide your Social Security Number as well. If you are writing a check or are paying cash, you do not have to give them your Social Security Number. The dealers are required by law to make their best effort to establish your identity to prevent fraud. Dealers take great care in protecting your information so you can breathe a little easier.