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Seven Strategies to Evaluate a Car Dealership
Whether you’re buying your first car or ready to trade in an older model, choosing the right car dealership has the potential to save you thousands of dollars. It’s also important to do your research to make sure you’ll be happy with this important purchase for years to come. Here are seven things to look for in a dealership when buying a new or used car.
1. Get referrals
While online reviews of dealerships can give you an idea of the quality of service they provide, these sites can paint an incomplete or misleading picture. While web research is a good place to start, you should also reach out to friends and family who have recently purchased a vehicle. They will be able to tell you about their shopping experience and possibly even refer you to a specific seller.
2. Know the manufacturer’s sales
If an auto manufacturer offers a discount on the vehicle you’re interested in, find out the terms before you print the offer from the manufacturer’s website. A good dealer should give you the exact terms offered by the manufacturer, regardless of the purchase price you negotiate. Some dealers hold these discounts as profits, which is a red flag you should avoid.
3. Ask for a tutorial
Your car dealer should spend time with you for more than a five-minute test drive. The best sales associates will be happy to explain all the features and benefits of the vehicle you are considering so you have a complete understanding of your purchase before signing the sales contract.
4. Do your research
If you’re trading in a car, calculate the trade-in value you can expect to get from a car dealer using an online blue book resource. With a fair price in mind, it will be easy to avoid dealers who offer much less for your trade. You should also have an idea of the MSRP, or manufacturer’s suggested retail price, of the new or used car you’re interested in. This serves as a starting point for negotiation.
5. Avoid high pressure sales
You should stay away from a car dealership that makes you feel like you have to make a decision right away. A good salesperson will know the value of allowing you to weigh your options. This advice doesn’t just apply to the car itself; just say no to extras like VIN engraving and paint protection. These services cost substantially more when purchased directly from the dealer and do not necessarily add value to your vehicle.
6. Have the car checked
Any conscientious car dealer will allow you to have the car checked by an independent mechanic before you buy. If the dealership you’re working with balks, insisting that their mechanics have already checked the car, don’t buy your vehicle there.
7. Come prepared with financing
Bringing in your own financing can often get you a better rate than getting a car loan directly through the dealership. As with the independent examination of your car, any dealership that won’t allow you to do so should be avoided.
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