pre-fi.com's Mini-Guide: How to Buy a Car the Right Way Every Time!

Let us make your car buying experience the best ever by helping you understand what to do and what not to not do. We are based in Northern California and Central Florida and refer thousands of customers to preferred dealerships. This does not cost you money and does not add money to your car deal. Let us know how we can make this Guide better to serve your needs. We welcome your questions and comments. Thank you. The Editorial staff. 

Call us with your questions at 916-412-2591.

Last Updated: 8/22/2006. We will be adding to this guide regularly. We are based in Northern California near Sacramento and Central Florida in North Palm Beach.

How to Research Automobiles and Services
Use the manufacturer's website (see the eBrochures), Kelley Blue Book, and Edmunds (see what other people pay on this great website). eBay also has guides online for you.

How to Shoot Yourself in the Foot at a Dealership
Walk onto the lot and then later contact the Internet Department. Now, you've engaged both Retail and Internet. You've muddled the water and your signals. The majority of salespersons at a dealership are on commission and are required to split the commission when another salesperson is involved. The Internet Sales Manager is not allowed to give you different numbers once the Retail Salesman has given you numbers. What this translates to is a longer negotiation session for you. SO, decide before you go with whom you want to work, Retail (the guys and gals out front) or Internet (the folks you contact by phone and ask for).

How Much Car Do You Want?
Cars represent one of your biggest monthly expenses. Choose wisely. Make a decision you can live with. You can't return a mistake. Think in terms of HOW LITTLE car will meet your needs. There is the payment and there is insurance, maintenance, and gas.  

Competitive Pricing
What is competitive pricing? Typically it is a price that is within a couple of per cent of the total price. If you dislike haggling, consider having someone negotiate for you.

Car Loans
Loan guidelines depend on the age and book value of the car. When you have negative equity on a trade and you buy new, banks and credit union will loan usually 10-20% over price and tax & license on approved credit. This is why you have to put money down when you have negative equity. By the way, getting pre-approved at a bank or credit union does not save you money on the rate.

Pre-Qualifying
Just like getting a house, the auto industry likes to know that you can qualify for a loan. Getting pre-qualified is to your advantage and will reduce the time spent at the dealership. Do this through the dealership as it gives them an incentive to discount other products and services you may want.

Credit Reports
Your credit score for purchasing a house is different than your credit score for purchasing an automobile and may be less. Don't get hung up on this. You can't control it. The Credit Bureaus score credit differently for car loans.

Credit Problems
Credit problems do not automatically preclude your buying an automobile. Consider getting a co-signer. Do this before you go to the dealership.

Down Payment
Think about what you could put down now and what you could put down in upwards of three weeks.

Trade-In's
Most folks owe more than the car is worth to the dealership. The salesman does not have the authority to give you a better deal than anyone else unless there is an incentive for them in the purchase price. And, it is not the salesman setting the value, it is the guys behind the desk with twenty years' experience. Your salesman is a messenger. When you research trade-in value, keep in mind that many dealerships pay more for the popular cars than the trade-in figures you see on Kelley Blue Book.

The Car: New or Used
You always get a better price on the bread and butter new cars in a manufacturer's line. When you buy used, do it to keep the total price down or to get a LOT more car.

Lease versus Purchase
A lease allows you to pay only for what you use. When you buy, you own the depreciation. Look at both options for not only payment, but for total outlay.

Rebates and Incentives
When the dealership offers a rebate or incentive, it affects the subsequent value of your vehicle on trade.

Learning More ...
Make your purchase experience an education so that you are better prepared on the next go-round. Ask questions, lots of questions. Learn from every purchase experience.

People Who Can Help You
Since everyone gains from your purchase, the question is whom can you rely on to keep your best interests at heart? Ask friends and family for a referral to a dealership they like.

When Do I Need to Provide Personal Information?
When you are READY to buy, provide the information that the Seller needs to run credit.

How Many Internet Contacts Should I Make?
Always buy through the Internet Department. Don't shop your salesman unless you are unhappy with him. Shopping the dealership is usually easy to spot. You may get less attention by announcing you are "shopping the price."

The Dealership
Keep in mind the salesman is not versed in interest rates. His manager and those folks sitting at the desk typically use a "floor rate" to give you a picture of rate. The dealership can guarantee a rate no greater than a specific number and locks the rate in when the bank responds with a yes, usually several days after you have left with your car. The Finance Manager at the dealership can tell you who is offering the best rate. Rate is dictated by the choice of car, down payment, term, and credit.