NewCarBuyingTips

Welcome to NewCarBuyingTips!

admin — Sun, 26 Apr 2009 04:37:32 +0000

This blog is run by CarInfo.com, one of the oldest consumer protection sites for car buyers on the Web. After years of helping TV crews conduct undercover investigations of car dealers across the country, high-speed Internet technology has now enabled us to provide online videos of actual undercover stings catching dealers in the act. So learn, enjoy — and be sure to tell your friends!

The Best Deal on a New Car

admin — Sun, 26 Apr 2009 04:12:04 +0000

To learn how to get the best deal on a new car, be sure to visit CarInfo.com. You can use the Money Saving Tips page to get free quotes on new cars & trucks, auto loans, insurance, new car leases and lots more. And you can learn about more dealer tricks on the Car Buying Secrets and Auto Leasing Secrets pages.

VIDEO: Auto Financing Scams

admin — Thu, 23 Jul 2009 18:34:55 +0000

How to avoid common dealer tricks in the finance & insurance (F&I) office.
1. Know your credit score before negotiating with dealers.
2. Shop around first for car loans and rates at credit unions, banks and online lenders.
3. Limit the term of the loan to 60 months (max.) or 48 months (better). If you can’t afford the car without increasing the term, you can’t afford the car. Make a bigger down payment or find a cheaper car.
4. “Payment buyers” are usually overcharged using these tricks: higher interest rates, overpriced or unwanted extras, even the price of the car.
5. Always negotiate the price of the car, NOT the monthly payment.

VIDEO: The Spot Delivery Scam

admin — Wed, 24 Jun 2009 17:56:14 +0000

In the “spot delivery” scam, the dealer tells the customer that the financing didn’t go through and they have to return to the dealership to execute another contract with a higher monthly payment. Of course, this is always done after the customer has traded in their old car and driven the new one home. When the customer tells the dealer to return their old car and cancel the transaction, the dealer says they can’t because their old car has already been sold. According to the Washington State Attorney General’s office, this practice is illegal. If a dealer wants to cancel a transaction, it must be done within 4 days and the trade-in must be returned to the customer. If a dealer tries this trick on you, tell them to return your old car (with any money you paid) and cancel the transaction. If they won’t, tell them the deal is final and you are NOT signing another contract. Then tell them your attorney is going to sue their pants off if they keep bothering you.

New Car Dealers Selling Below Invoice

admin — Wed, 27 May 2009 22:21:57 +0000

In a normal new car market, it’s usually the slow-moving models that sell at huge discounts. But the current market is so bad (for dealers and manufacturers, anyway) that even popular cars are now selling at big discounts. Many new car dealers are now selling the Honda Odyssey, the Mazda 3 and the Dodge Ram SLT at prices that are below dealer invoice (after factoring in rebates and other incentives). According to Edmunds, the Honda Odyssey has been selling at $1677 below invoice ($4400 below MSRP) and the Mazda 3 at $1553 below invoice ($2760 below MSRP). Large rebates and dealer incentives are now allowing more models to sell below invoice, so be sure to do your homework before buying a new car or truck. Don’t overpay!

Dealer Invoice Is Not Dealer Cost

admin — Fri, 08 May 2009 16:14:06 +0000

If you’re trying to be a smart shopper by paying as little as possible for that new car or truck, here’s a common mistake: thinking that “dealer invoice” is the same as “dealer cost.” (It’s not.) While it is true that dealers buy cars from the manufacturer based on the invoice, there are items built into the invoice price that are rebated back to the dealer later. A good example of this is dealer holdback. Holdback is usually a percentage (2% to 3%) of the MSRP, but some manufacturers base it on the invoice amount. So a dealer selling a $30,000 car at the invoice amount with a 3% holdback is actually making AT LEAST $900 profit. Plus there are lots of factory-to-dealer incentives that rebate even more money back to dealers, allowing them to potentially make several thousand dollars even when selling at invoice. For more on this subject, see the Car Buying Secrets page at CarInfo.com.

VIDEO: Undercover Car Salesman, Car Buying Tips

admin — Mon, 27 Apr 2009 18:04:04 +0000

Here’s a short video based on the undercover work of a car expert in California. Covers the following new car buying scams: Stealing the Trade, Payment Packing, The Switch (from buying to leasing) and other common tricks that are taught to new salespeople.

Stealing the Trade & The Fake Buyer

admin — Thu, 30 Apr 2009 20:41:19 +0000

In the post titled “VIDEO: Undercover Car Salesman” he explained how a dishonest car salesman would “steal the trade” by making a fake phone call to their used car buyer (in front of the customer), followed by the statement that their model isn’t selling very well. This is done to convince the customer that their trade-in is worth thousands of dollars less than its true value.

A variation of this trick is when a customer is having second thoughts about buying, so another salesperson (or manager) calls that salesperson in the presence of the customer, pretending to have another customer who wants to buy that car today. (Of course, its the only one available in that color.) The real customer is then tricked into buying immediately rather than losing the car to the other (fake) customer. If a salesperson tries this trick on you, just get up and leave. As you’re walking out, say “Let the other guy have it, I don’t want it.” (Note: If you still want the car, call back one or two days later and ask a different saleperson if they still have that car.)