Are you an impulse buyer? Do you run into a store, grab the lowest-priced
item that appeals to you and rush to the cash register? Well, maybe you do if
you're purchasing generic printer paper. But the dangers of impulse buying can
have significant consequences for your company when it comes to selecting a new
business car or truck. Getting a good deal and avoiding being ripped off at an
auto dealership takes time, effort and in-depth decision making.
Knowledge is Power
So you need a new car, or maybe your business has expanded so dramatically you
need a fleet of trucks. Have you figured out exactly how the vehicles will be
used? Would a midsize sedan suit your budget and cargo needs better than a
midsize--and pricier--SUV? Do you really need that more powerful, costlier
engine?
Knowing what you need and how much you're willing to spend gives you
negotiating confidence and keeps your budget on track. Decide whether you plan
to purchase or lease, and learn the differences. Find out the annual operating
costs from www.intellichoice.com and
the hybrid tax credits at www.cars.com. Auto
insurance should also be a consideration. And if long-distance driving is among
your company's needs, check out cars with the best fuel economy at
www.fueleconomy.gov.
Shop Around for the Best Deal
We all know about market research. To some it sounds boring, but call it
shopping, and we tend to perk up. Window shopping online for a car is much more
fun than you'd expect. Manufacturer websites are lively, colorful and
informative, and most have videos. Their databases are comprehensive and can
include current incentives and rebates.
Comparison shopping is easy, too, at
www.autobytel.com and
many other sites that provide side-by-side match-ups of specifications, features
and options. Find out the factory invoice price as well as the list--or
sticker--price. Then check out resale values at
www.kbb.com.
Arrive Prepared
You'd never attend a client meeting unprepared. Doing your homework before
negotiating with a salesperson is the best way to make sure you buy what you
want--not what the salesperson wants to sell you.
When you know exactly what you need, haggling over price is restricted to
your firm choices. You should also shop more than one same-brand dealer. Find
the addresses online at manufacturer sites. If a dealer lists a vehicle for a
lower price or has a bigger discount but is located farther away than you'd like
to drive, use the information as a negotiating tool at a nearer dealer. Show the
competitor's printout or ad to prove your point without admitting you don't plan
to shop there.
Typical Sales Tactics--and How to Avoid Them
1. Avoid negotiating down from the sticker price instead of up from the
factory invoice price. The invoice price is what the dealer pays the
manufacturer, less 2 to 3 percent, delivery and possibly other allowances; the
sticker price is the asking price the dealer would like you to pay, which
usually includes delivery charges you could negotiate out. Rip-off? Definitely,
according to Deanna Sclar's Buying a Car for Dummies.
2. Avoid stating the monthly payments you want to make before settling on
a bottom line. If you tell the salesperson too early what you want to pay
each month, it's easier for him to fit his price to your payments.
3. Avoid taking a test drive on the dealer's usual local street route.
Instead, take the car on the highway and up hills to gauge its performance and
handling.
4. Avoid settling for a quick walk-around so the salesperson can attend to
the next customer. Spend as long as you need to check out every feature and
option. Make sure the seat and steering adjustments, as well as switches and
gauges are comfortable and easy to use.
5. Avoid talking about your trade-in too soon. Wait until the final
price has been agreed on before revealing a trade-in. You don't have to lie,
just ask to discuss it later. Arriving in a friend's car or parking your
trade-in out of sight helps.