How To Buy A Car (From Someone Who Knows)

Hey guys!  I've been back with you on the air for a couple of months now.  But every time I'm out on remote broadcast or something, people will inevitably ask me about the last year and a half that I've been gone. Some people seem a little incredulous that in that time, I was working as an automotive broker.  Yes, I sold cars.  And people ALWAYS ask me about what it's "really like" and how they can get the best deal.  Well, I figured I'd share what I know, and then you can go and make the best decision for you.  I'll say up front that I'm not going to point you to one dealership or another, or one make versus another.  I don't want to be biased - but I will encourage you to shop locally here in Sedalia.

First, be honest with yourself.  What do you need?  If you've got a family of five, you probably don't need a sports car.  You may WANT it, but you don't NEED it.  And you don't want to have to make compromises later on after you've made the plunge.  If you NEED all wheel or four wheel drive, fine.  But if you just want it... and can live without it... it'll probably save you money.

Make sure you're honest with yourself  about what you can AFFORD as well.  Don't forget about warranties, insurance, and sales tax. It's probably smart to think about what you need your payment to be and adjust for those factors.  If you can only afford $300 a month, make sure that includes the warranty. That means when you're talking about financing, you should look at something more like $250 a month, because after warranty, financing and insurance, it's going to be closer to $300.

Don't get blindsided by sales tax.  The Department of Revenue has several tools on their websites to help you calculate about what it's going to be.  It's probably a good idea to have at least $1000 saved up for a down payment - more is better, but any down payment will help convince lenders in the business department to get you a better interest rate.   Yeah, you might be trading in your car, but don't assume your car is worth what you paid for it, even if  or ESPECIALLY if you have modified it.

Do Your Research.  Speaking of your trade, go ahead and do a little research there.  Look it up on Kelley Blue Book and a couple of other sources.  Take a good long look at the vehicle, and be realistic.  If KBB says your car is worth $5 grand in excellent condition.... you're not going to get that much.  Sure, ask for what you want, but don't be surprised or insulted when you don't get it.  Don't take it personally.  When they're making you an offer on your car, they're thinking about a lot of things.  They have to factor in reconditioning, and any work they might have to spend money on to make it worthy to sell to someone else.

Look around on the web at different makes and models. Most dealerships will have a pretty full website with lots of pictures and information.  Look at them and narrow it down to two or three makes/brands.  Think about what features you need as well.  That WILL effect the price of  your car.   If you absolutely have to have a sunroof and leather seats, know that will be more expensive.  If you can live without it, find the model and trim level that fits.

It would also be a good idea to look on one of those free credit sites and get a general idea of what your credit score is.  The dealership will do a different credit check that is more precise, but the free ones can give you a general idea.  Usually (but not ALWAYS) if you're a 700 or better you might qualify for 0% interest on some new vehicles.  If you see something more like 500 for a credit score... don't despair.  They can work with you.  Just make sure you tell your salesperson about that when you get started.  You'd be surprised at what a local dealership can get you if your finance person has a little time to work personally with banks to get you the best rate.

But, if you have a payment in mind, do the math.  If you've got a payment of $400 in mind, don't look at a $60,000 vehicle.  You're going to want look at something more like $25,000. A good rule of thumb is that every $1000 financed is about $20 or so a month in payment (I think I'm remembering the math right on that).

Be Honest With Your Salesperson.  I CANNOT STRESS THIS ENOUGH. Honestly, it was so frustrating when I was working in car sales and trying to figure out what my customers were really trying to tell me.  If you know what you can afford, be up front with that.  If you've got marginal credit, tell them. Don't be embarrassed, they don't judge you - some of them might be in your same situation, or have been there. That's actually one of the first things I learned in the industry - never judge your customer.  You can never judge a book by it's cover.  Someone who might look rich might have a terrible credit score. Someone with holes in their jeans just might have $20,000 in their wallet (and yes, that happened to me. That was the most cash I'd ever seen in person).  I've seen tears, screaming, vomiting (yes, that's 100% TRUE).... and your local dealership has seen it all.

Don't tell them you're "just looking".  You know that's a waste of time. They are there to answer your questions.  They want to help you.  That's a common misconception, actually - not all sales people are there to force you to do something you're not ready to do.  There's no magic spell.  If you're ready, you're ready.  If you're not, TELL THEM.  If you don't want to be bothered, you can say that.  They're pretty tough and deal with rejection every day.  Just tell them what's going on - but come on, don't be rude.  They really are just trying to help.

And if for some reason, you're talking with a sales person in the showroom or on the lot, and you get a bad feeling - that's okay.  They understand.  You can ask to talk to someone else.  You won't be cutting that person out, either.  Your original sales person will split the commission with the other person you work with.  They have a saying - "A half deal is better than no deal".

If you need to think about what you're doing (most of us do), you should probably do most of your thinking before you set foot on the lot.  You're not driving on the lot to buy a loaf of bread.  You're there for a reason, and they know it.  Do your research beforehand and come to your sales person asking to see maybe one or two cars.  If you've really done your research on what you need, what you want, and what you can afford, the test drive should seal it for you.  Don't get overwhelmed or confuse yourself by trying to test drive every car they've got. They know their inventory - tell them what you want and they'll show it to you.  One or two choices is usually good enough.

Now if you're planning on "sleeping on it", be upfront and honest about that as well.  I cannot count the number of times I showed someone a car, got them the payment they wanted, and then the person told me they needed to sleep on it - only for me to call them the next day to find out they left my lot to buy somewhere else.   If you're with the right salesperson, they will be straight with you if you're straight with them.  But you'd be surprised at how many customers flat out lied to my face.   They have another saying as well:  "Buyers are Liars".  I'm sorry folks, but it's true.   Don't be that guy.  Save yourself and your dealer the time and trouble.  If you decide to buy somewhere, and a competitor calls you after it's done, just tell them you bought and they'll stop calling.  If you just avoid them and hope they'll go away........... trust me.  Managers don't let sales people just "go away".

If you're going to shop around to three or four dealerships, tell them that upfront.  Most of them will be appreciative of that, and will want to make you a good deal to beat someone else's.

And lastly: BE REALISTIC.  Don't expect miracles. Think about all the factors of what you need.  Again, if you have marginal credit and need a $100 a month payment.... you're probably going to get a beater.  You should know that going in. Sure, they're going to try to get you the nicest vehicle you can afford, but....  There is no way you're going to get a payment like that on a new vehicle unless you've got a huge down payment and a vehicle with equity - and that STILL might not happen.  If you know your credit isn't great, bring a friend or family member that will be willing to help you out by co-signing.   And buying a used vehicle isn't a bad thing.  Many lots in our area can find a quality used car or truck for you that might be more affordable.

Again, be realistic on your trade in.  Don't wait til it's about to die to trade it in and then expect to get $10,000 for it.  Look around online and see what other dealerships are offering for a car similar to yours in age, mileage, make, and model.  Know that if you're going to ask for a retail price for your trade, they're going to hold you for a retail price on the car you're buying.  If you're willing to compromise, they'll work with you.

Be realistic about where you're going and who you're talking to.  The stereotype of the conniving car salesman is there, but for a good 90% of the people out there in the trenches working on the lot, they just won't fit it.  If you meet someone who gives you that impression, just don't deal with them. They're just people - sometimes personalities don't mesh, and that's okay. They're not going to run off and cry.  Be realistic about where and how you want your service work to be done as well.  Many dealerships will give you a little incentive to use their service department.   If you buy a car in Kansas City and St Louis and they offer you a "lifetime warranty", that's probably too good to be true.  It probably  means you have to get all your service work done up there, or the warranty is voided.  And who wants to drive an hour to get an oil change?  Be pragmatic and practical.  It's always best to stay local.  You want a car salesperson that you will see again in the grocery store or at the movies.

I know it's a lot of work, but it's a big investment.  Make sure you're making the right decision for you and your family... and stay local.

Vehicle-ly yours,
Behka