What you need to know about buying at car dealerships
Going to a car dealership for the first time can be an intimidating experience.
Maybe you’re worried you will be overwhelmed by the choices at the dealership. Or maybe you’re concerned about getting talked into buying or leasing a vehicle outside of your budget. Or maybe you’re concerned about driving away with a bad case of buyer’s remorse.
But it doesn’t have to be as scary as all that, especially if you arrive at the dealership prepared, said Bob O’Koniewski, executive vice president of the Massachusetts State Automobile Dealers Association (MSADA). O’Koniewski shared his advice for first-time visitors to a car dealership with Boston.com. He said consumers shouldn’t be afraid of the experience, because dealers want to help them find the right vehicle.
“Dealers don’t want to put customers in a car they can’t afford or are not going to enjoy driving,’’ said O’Koniewski. “The whole point of the purchase process is to make the customer happy so the dealer can engender customer relationship in the long run and that customer is more likely to visit that dealer again.’’
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Check out some cars that can be purchased or leased for under $300 a month.
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Do your homework
Knowing what you’re looking for before you step onto the lot will make the process easier on both the shopper and the sales rep, said O’Koniewski.
“Consumers should determine what they actually need,’’ said O’Koniewski. “ If you drive 60 miles round trip every day and it’s just you…then you probably don’t want to look at a pickup truck.’’
After you figure out the type of vehicle you need, you can look into what different car manufacturers offer in that style. Then go online or call nearby dealers to see what kind of options are available.
Assess what you can bring to the table
Once you determine the type of vehicle that’s right for you, you’ll need to figure out what you can afford to pay each month. A significant down payment or a trade-in vehicle can help reduce monthly payments, and O’Koniewski advises shoppers with an older car to consider how their clunkers can bring down their payments.
“Many people may be underwater on their vehicles, meaning they owe more on the vehicle than what it’s valued,’’ said O’Koniewski. “Depending on the type of car you have, you may have some equity in the vehicle that can go towards reducing your new vehicle purchase.’’
Look at your financial options
O’Koniewski points out that car dealerships have arrangements with a few lenders, including the financing arm of the manufacturer. But consumers can also weigh their options before arriving at the dealership by having a conversation with an outside financial agency to determine what they can afford.
“A bank or credit union may approve you up to $20,000 on a car purchase,’’ said O’Koniewski. “[Consumers] can go to an independent financer ahead of time so when they go to a dealership they have that squared away.’’
When considering a car purchase, or any other major transaction, O’Koniewski recommends staying on top of your credit report.
“You should get one every four months, one from one of the three credit agencies,’’ said O’Koniewski, referring to Experian, Exquifax, and Trans Union. Staying on top of your credit can allow you determine what you can really afford.
At the end of the day, O’Koniewski said consumers who come to a dealership prepared are likely have a much better time shopping for a new car.
“The one piece of glue that holds this together is homework,’’ said O’Koniewski. “Doing your homework ahead of time makes it a much more pleasurable experience for you and the dealer who’s trying to help you.’’
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