Car Buying Guide: 5 Things My Dad Taught Me

So you are in the market for a new or used car. Well congratulations to you, it is always a big step in ones life to own a piece of machinery that transports us. I didn't know much about car buying till I was ready to buy a car. I took my dad with me because he is amazing with money and knows how to work people no matter how embarrassing it might be for me.

1. Never Go Alone
   
   Never ever go to a car dealership when you are going to be a buy a car. it is like going to a den only to be greeted by a pack of lions. Car salesmen work on commission and want to show you the latest and greatest out in their showroom. If you are not ready you shouldn't go. You need to bring someone with you, someone who disagrees with you from time to time, but you can't live without them. It is definitely helpful to have someone who is not afraid to say what they are thinking. If you are that person who is not afraid to speak with a nagging car salesmen then kudos to you, you probably don't need to read any further. I find it terrifying going to a car dealership because I hate being talked to about products when all I am doing is browsing and if I am ready I sometimes lack confidence to keep saying No. Plus having someone there with you, you also get an opinion from a second person and you are not just relying on your own decision making to go through with the purchase.
   
   
2. Never Buy A Car On The First Visit
   
   Yes that is right, if you end up buying a car on the first visit it says that you are an impulse shopper and you are throwing money down the drain. Why are you throwing money down the drain? Well because you didn't check with other dealerships to see if you can get a better price. These days with the Internet, it has made it easier to do comparison shopping but with cars you can always pit car dealerships against each other and see which one is willing to agree to the price you want to pay. Plus if they really do give you a good deal on the first visit you should think about it, talk to friends and family and see what they think of the price. Post it on Facebook, you are bound to get positive or negative feedback.
   
   
3. Laugh At The Sticker Price
   
   Yes, laugh at the sticker price. Especially in front of the car salesman. You don't want to look insane but you do want to let the car salesman know you are business and you are not going to take a $500 off the sticker price offer. You want to keep them guessing as they are trying to figure you out. Also you want to present yourself as a friendly person willing to negotiate but with an iron sword. After all this is going to be your car and your money is on the line.
   
   
4. Negotiate However Long It Takes
   
   Negotiating is a skill, some have it some don't, I unfortunately didn't. My dad however was born and raised in a third world country were everything you want or need can be bargained for. I still remember the day when me and my dad went to buy that first car for me. We had been to this dealership for the second time and went to the same car salesman that had greeted us on the first visit. He recognized us of course. If that car salesman only knew what he was getting into. We sat with the car salesman, picked out the color of the car, did the test drive. When it was time to talk about money, my dad sent the car salesman to talk to his manager at least four times before the car dealership agreed to a price closer to what my dad had in mind. I was amazed at my dad's patience and mine as well because we were at the dealership for at least six hours before we came back home with the car. When buying a car, negotiating is key. If you are not negotiating, you are paying too much.
   
   
5. Know Your Credit Score
   
   Before you even decide to buy a car, you should know your credit score. Most car dealerships have their own financing available or they also lend through a bank. Chances are the interest rate being offered to you is going to be higher than what you should pay. In car commercials you always see "0.9% APR for qualified customers". You are most likely a qualified customer but since the car dealership along with the bank are in the business to make money will most likely try you to sign up for a higher interest rate. If the interest rate does not meet your needs then be prepared to walk away, it is never too late to walk away. This is why knowing your credit score is important, the car dealership will run your credit report and decide what they think is best APR for you. It is you who should decide what APR you are willing to pay for the car. Of course you can lend the money from your bank or credit union were the rates might be lower than what the car dealership is offering you. So as mentioned above, be prepared.

I am definitely glad I took my dad with me to buy my first car. Not only did he help me get a better deal, he also taught me some valuable lessons about money. Do you know of someone who has helped you save money on a big ticket purchase?