Meeting The Dealer Head-On

You're in the market for a new car, but you're more than a little apprehensive. Your last excursion into a new-car showroom was a nightmare and the horror stories you've heard are even worse. How do you make sure you don't get ripped off? By learning their tactics and preparing yourself to deal with them.

Three simple rules can assure success:
• Do your homework.
• Don't become a hostage.
• Be prepared to walk away.

This chapter will provide you with an overview of how to handle a trip to a dealer showroom. Not all salesmen are dishonest and not all dealers encourage or even allow deception in their sales force. But it happens too often for anyone to go in unprepared for the worst. In following chapters, we'll fill you in on the common strategies and techniques -- some deceitful, others merely clever -- dealers use to convince you to buy from them.

Here's what to do:

Don't wait until your old rust bucket is dying. It can take weeks to choose a car, get your financing, haggle and finalize a deal. Plan ahead so you aren't forced into hasty decisions.

Prepare for battle
Put together a folder of information on the cars you like and their prices. Take it with you to the dealer and make sure they see it. If your spouse is with you, agree beforehand: No impulse buys and no discussion of exactly what you are prepared to pay, even if you're alone in a sales office.

When you tell the salesman what you're looking for, inform him that you know what the car cost the dealer. You're ready to pay a fair profit to him, but you are not going to hand over several thousand extra dollars. This is critical. It will stop most of the nonsense that all too often follows.

You can also head him off at the pass by letting him know you are not willing to spend hours playing games. Some sales people will go to great lengths to tie up your day so that you're tired and ready to surrender. Plus, it stops you from going to a rival dealer for a comparison price.

Don't be a hostage on the test drive
Make the most of the test drive. Don't just cruise around a few blocks and play the radio. Check things like sight lines and how easy it is to reach important controls. Test acceleration onto highways and whether you feel entirely comfortable at the wheel. But when the salesman asks you for your driver's license in most states they need that for filling out a temporary driving permit that has your insurance cover you while you are test driving the car.

When you're trading in your old car keep in mind that if it is not a lease and is in your name in some states you get a tax credit which will give you whatever the percentage of the tax rate is by the amount of your trade in as a tax credit. So by selling it on your own you need to make sure you're gonna get what the dealership will give you plus the tax credit. If it is a lease vehicle, there is no tax credit on a vehicle for a trade in.

Let the negotiations begin
Once actual negotiations begin over the price of the new car, the salesman will usually give you a figure he needs "to put you into this car today." Counter with your lowest possible offer, based on your homework and knowledge of what the dealership paid for it. Remember, the dealership needs to make a profit.