10 Things One Should Know When Purchasing a Vehicle

3.      Extended warranties are more than 100% mark-up so if you feel the value is there ensure you are not paying sticker price.  For instance, most warranties are priced with a $1000 profit for the dealer.  So there is room to have at least $250 or more taken off the price.  One thing to remember is that everyone wants to make money even if it is less than expected.

4.      Also it is important to note the short-falls of extended warranties.  For instance if you have a break in the cooler line that will not be covered by extended warranty.  In most cases it would be covered by the limited or “bumper to bumper” warranty.  Thence if a person has any problems that occur from the break in the lines you will not be covered by the extended warranty.

5.      Buy-backs are an excellent way to save a lot of money.  These are typically either lease-back (cars that people decided not to purchase after their lease came due) or they are cars that rental companies have used for a certain amount of time and now were given to dealer auctions due to an agreement between themselves and the car manufacturers.

These Cars are an excellent buy because they have typically lost most of the large depreciation from being a new car.  Hence you save yourself $5000 or more due to the discounted price.  Although it is also important to realize there is a higher mark-up in used vehicles than in new vehicles.  Most dealerships will start off with a price that is $4000 over their own costs.  Now usually they will knock off $900 or $1000 over the course of debating.  But if you are truly serious about debating you will be able to get more, but it will take some work.  And if you would like to know how to get the black book of the vehicles just search (Toyota/ Black Book) for those bottom lines.  Also to alleviate any problems always deal saying all in.  If you do this it ensures no added expenses come out of your own pocket.  Let the dealership pay for most of those expenses.  And if the vehicle is too old just phone up your local bank and ask them how much money you could borrow against your car.  This way at least you are going in with some numbers and will feel more confident with your position. 

6.      When purchasing these used vehicles it is important to get them inspected.  A person truly does not know the use of the car unless it is properly inspected.  Also note it is in the current law that the dealer should provide you with all the necessary documents such as a documented check list that ensures the car is in working order.  They also are legally forced to disclose any repairs that have been done to your vehicle.  If they fail to do so, it is up to you to report them to government bodies such as AMVIC.  This government body helps to ensure consumers are looked after in the event of mistreatment given by dealerships.      

7.      Always walk away the first time.  Often people will get overwhelmed in a dealership and make rash decisions.  It is important to take your time and compare and do your research to enable you to make a sound decision that suits your needs as well as your paycheck.    Plus if they are desperate they will definitely lower the price.

8.      When finally purchasing a vehicle and wanting to get the lowest price go late at night right before the dealership closes.  Most people do not want to haggle as they too would like to go home after a long day.  This will ensure less haggling and will give you an edge because most sales people are tired and hence not willing or too tired to debate with customers.

9.      Ensure that the dealership only includes a one-time doc fee.  This should be only around $300.00 and is completely debatable.  If a customer pushes hard and states under no circumstances will they pay this fee.  It is very likely that the owner or manager will waive the fee just to end the deal. 

10.   Always be willing to go somewhere else.  If a dealership knows that you are unwilling to bow to their demands they will treat you differently from their normal clientele.  Dealerships know that repeat customers often spend more money second and third time around.  Therefore, they will charge you more if they see you always coming back and never doing your research by running around to different dealerships for the best deal.