Buying a car is a significant investment, and the last thing you want is to be caught off guard by hidden fees and unwanted add-ons that can quickly drive up the cost. To ensure you get the best deal possible and avoid any unpleasant surprises, it's crucial to be informed, engaged, and resolute throughout the car-buying process. By knowing what to look for and being prepared to negotiate, you can walk away with the car you want at a price you can afford.
Getting the Total Cost in Advance
To avoid surprises when picking up your car, ask that the contract be emailed or faxed to you in advance. That way, you can review it at your own pace at home. You may also want to consider negotiating your purchase through a dealer's "internet department," if available. Those salespeople make lower commissions but sell more cars. They may have less to lose by allowing you to negotiate away fees and add-ons. Since the process is all completed via email, everything will be in writing before you visit the dealership for the final purchase.
Scrutinizing Extras and Fees
When you've settled on the car you want, ask the dealer for an itemized breakdown of all fees and add-ons before finalizing the purchase. To avoid overpaying for your vehicle, it's essential to scrutinize each item and question anything that seems unusual or overpriced.
Equipment add-ons could include a non-factory alarm system, pin striping, paint protection, undercoating, floor mats, and other extras. If items you do not want are added to your car or are priced out of line with what you would expect, ask that they be removed. If they can't be removed, you can walk out or require a substantial discount (50%, for example) as a condition of the sale.
Most dealers charge a documentation fee with every car sold. Still, any fee over a few hundred dollars may be excessive. It's helpful to ask what the fee is in advance and compare it among local dealers. Also, be aware of other costs not on the car's factory invoice, including handling, advertising, or car preparation fees.
Navigating Extended Warranties
Dealers often offer extended warranties when completing the final paperwork but proceed cautiously. These warranties are significant money-makers for dealers and may duplicate coverage provided by the factory warranty.
Extended warranties also vary significantly in cost, services offered, mileage limits, deductibles, and payment structure (some warranties will pay when the repair is completed; others require that you pay and contact them for reimbursement).
Extended warranties can be negotiated like everything else in the car-buying process. They can also be purchased from sources other than the dealer selling the car, so shop around if you think an extended warranty may be right for you.
Knowing When to Walk Away
If a dealer tries to push add-ons and excessive fees, don't be afraid to walk away from the deal. In many cases, a dealer will become more negotiable when they see you're serious about leaving. Remember, there are plenty of other dealerships and opportunities to find the car you want at a fair price.
Finally, before signing any paperwork, carefully read and understand all contracts, including the fine print. Don't hesitate to ask questions or seek clarification on any points you don't understand. By being an informed and resolute consumer, you can confidently navigate the car-buying process and avoid being hit with any unpleasant surprises when it's time to sign on the dotted line.
