One of things you should know about a car buying loan that comes from the car dealer is that when you finance a car at the car dealership the financing is simply a product that the car dealer sells to you so they can make money. That’s right, the car dealership is merely an agent or middle man that sells you a car dealer loan. You know what happens when you have a middle man, they want to get paid. So when you buy a car with a car dealer loan it’s not really a car dealership loan, but another item that they sell. This product is provided by the actual auto loan lender.

A Brief Car Buying Loan History

Many years ago when cars were not so plentiful as they are today the car dealers and the manufacturers realized that they need to provide car buying loans if they were going to sell more cars. Early on they would make arrangements with banks to provide financing and then in the later years the car makers set up their own lending institutions to make car dealer loans for their buyers.

Back to today, we now have many different lenders that will provide you with a car buying loan. Most of them are banks, credit unions or lenders that are owned by the car manufacturers. The car dealer will make arrangements with many different lenders to finance the cars they sell and then they place or sell the car dealer loan to one of these lenders. They will choose a lender to sell the “Paper” or your car financing loan contract based on several different factors. First and foremost is the amount the car dealer gets paid to sell you an auto loan. Secondly they select a lender that will accept your contract (car finance agreement) based on your credit. With all things being equal, they naturally select the lender that is the most lenient and pays them the most for being the middle man.

Low Rate Financing and Car Buying Loans

You might wonder about those specials on new cars that you hear about that have 0% financing or very low interest rates. This type of car buy loan is financed by the car maker’s lending division and is supplemented by the manufacturer. For example; when an auto maker has a car dealer financing special that has 0% car dealer loans they also have a rebate for the car buyer that does not use the financing. If they advertise a 0% for 60 months special then they also have a $1000 instant rebate. The $1000 is roughly the amount that it would cost the lender to provide you with a car buying loan versus a standard rate loan, providing you have good credit.

Which is the Best Loan for Buying a Car?

There are many variables that come into play when you ask that question. Everyone is different and has different financial situations. So the best auto buying loan is the one that works for you and needs your needs. Before I buy a car I always go to Lending Tree….Click Here NOW!… and get 3 or 4 quotes from different lenders before I go to the car dealer and get a car buying loan. That way I always have several lenders competing for my business, which always provides me with a selection of different loans and then I can pick the best one for me. I can then compare those to any car dealer loan that they may offer. If I don’t choose a loan from the dealer I then get to deduct the rebate (when applicable) and avoid the extra expense that the middle man gets paid. Check it out and get the best car buy loan by Clicking Here!

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Go through these car buy tips before you visit the car dealer and you will be miles ahead of most people that buy cars and overspend by hundreds or thousands of dollars. Take some time now and you will save a lot of money, time and aggravation later.

Car Buy Tips and Information

As you read through these buying a car tips you will see links that will take you to posts for a more thorough and complete explanation.

1. Being prepared before you make a trip to the car dealership is your best defense. Whether you have your eye on a certain make and model of car or not you should start by spending some time online researching and doing your homework according to these car buy tips.

2. The auto dealer and car salesman use a car buying process to move you through the steps of selling you a car. These steps are designed to make the process smooth and natural, but each step has a purpose and that purpose to get you to buy a car today. (Don’t forget about When to Buy a Car)

3. Get some prices before going to the car lot. You can get new car prices from 3 or 4 dealers in your area at one time for free and without any obligation. I recommend you click here (new window) Yahoo! Autos and get your Free quotes sent to your email.

These quotes are very competitive and an important part of the car buy tips because you have up to 4 dealers competing for you business without even talking to them. Get your Free Quotes NOW!…Yahoo! Autos and save time and money by not having to spend hours negotiating.

4. Whenever you buy a car there are always extra car dealer fees that most people don’t realize until they are in the middle of buying a car. These car buy tips are about being prepared so make sure you are aware of the tax, title, license, documentation fee and dealer prep fee. These can wreak havoc on your budget if you are not prepared.

5. If you have a trade-in be sure and do some research about the true value of your old vehicle. This is one of easiest ways for the dealership to make an extra profit and it could amount as much as a thousand dollars or more depending on your trade in.

6. During your time at the car lot and especially during negotiations and the paperwork you may have auto buying questions. There are several questions to ask when buying a car. Be sure to click on the link for the questions you have and what you must know before you have any decisions you will regret.

7. If you are financing you new car this is one of the most important of the car buy tips. The dealer can make more money on your financing and car payment than they do on the vehicle itself. Hard to believe, but it is true. This is one of the most common car dealer scams and there are many so make sure you see the link for more car buying scams.

8. If you want a step by step plan for buying a new car you can see the steps to buying a car which will help you move through the car buying experience without a scratch.

9. You should also be aware of the car dealer tricks that are used to make more profit. Car buy tips can really help you avoid overspending, but you should know about the possible tricks and techniques. You will want to check out: Do I Buy Extended Car Warranty.

10. Make absolutely sure that you know what you are signing because you can’t return a car if you change your mind. There are no take backs. At this point in the car buy tips you should be armed with all information you need to buy a vehicle and avoid any car scams (if you read the buying a car tips linked posts).

Buying a car is not to be taken lightly, it is a legal contract and an obligation. Do your research and be prepared and you will be fine after going through these car buy tips. If you want more information you can get the Car Buying Scams Information Package here which contains a book and audios.

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Don’t forget about the Questions to Ask When Buying a Car!

The numbers will dictate the pay, commissions and bonuses of the sales manager, sales people and the finance managers. A good sales staff is motivated to sell a car at all times and they will usually give you reason why you should buy now, but there are some times that are better than others of when to buy a car.

Why When to Buy a Car Matters

Most car dealers structure their pay plans on levels or percentages for every member of the sales team and there are times that one more car can make a difference on the pay checks of the sales managers and salesmen. This critical time of when to buy a car is usually at the end of the month. I am not talking about the last week of the month, I am talking about the last day or two of the month.

On the last couple days of the month the car salesman and sales managers know where they stand so far in the month and have a very good idea how many more cars they need to reach the next bonus level or pay level. For that very reason the car sales people and the sales managers are typically very motivated to sell some extra cars. The extra cars that they need to sell do not always need to make a handsome profit, but rather the unit count is often more important. Therefore they very often pull out all the stops to sell some extra cars and that is why it is the best time to buy a car.

I have sold and seen people buy cars with zero profit in them in order to get the car salesman and or sales manager to the next bonus level. This next level could mean an extra thousand dollars to the car sales person, so you can better understand their motivation. So you can see that when to buy a car can make a difference in the price you pay.

When to Buy a Car Exceptions

Because car salesmen and sales managers have learned to work the system the car makers will sometimes run contests and promotions that ran past the end of the month and end sometime during the month. These contests or sales events may offer the dealership owner or general manager more incentive than the sales people. However during some of these promotions the specific dealer may ran an in house program for their sales people to motivate them to sell more cars during a period that is traditionally slower than the end of the month. Those in-house programs don’t offer nearly the amount of incentives that the end of the month offers.  So overall when you ask when to buy a car the short answer is to buy a new car on the last couple days of the month.

Whether you need to buy a car now or you can wait until the end of the month the most important thing you can do is your homework. When to buy a car can make a difference, but if you follow the steps in how to buy a new car you can get a great deal at anytime.

You can learn all the Car Dealer Scams and Dirty Tricks used to get your money and avoid the hassle with the inside information by Click Here NOW! Unless you don’t mind paying too much!

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Get the Answers to the Questions to Ask When Buying a Car

The car salesman is trained to leave out some of the details because they may cause you to back out of a bad car deal and leave the car dealership in a hurry without spending a dime. The car salesman is experienced at dancing around your questions and changing the subject to keep you from getting the answers to the questions to ask when buying a car. The car dealer and the car salesman know that they must answer these questions if the car buyer insists on the answers because the details will come out sooner or later. However if they can avoid giving you these details throughout the entire car buying process which includes the spot delivery they know they will be home free because there are no returns. That’s right, you can’t return a car to the dealer after you take delivery so if you discover the answers to these questions to ask when buying a car after you get home it’s too late. You’re stuck!

5 Questions to Ask When Buying a New Car

Car Buying Question #1: What is the purchase price of the car?
The car salesman will try to turn your attention to the monthly car payment rather than the actual price of the car. The idea is to charge you list price or more for your car when they sell you on the amount of the payment. It is important question to ask when buying a car because you need to know the price of the car and negotiate that number separate from anything else. After all the rest is math and not the dealer version of car buying math.

Car Buying Question #2: What is the Interest Rate?
The interest rate is one area where the car dealer loves to make some extra money. They may try to sign you at a higher interest rate than you qualify for and then they collect the difference of the two rates as a profit. Everyone makes out except you, because you will be paying a higher monthly car payment than you should be paying. As shown in the steps to buying a car you should know your credit and the interest rate that you can get from another lender and then use that to compare the rate that the car dealer is using to finance you car. The answer to this question to ask when buying a car is critical because this car dealer scam could raise you monthly payment anywhere from $10 to $80 a month.

Car Buying Question #3: What is the term of you car dealer loan?
Not knowing the answer to this question to ask when buying a car can cause you to pay for your car for an extra 6 to 24 months if you are not aware of the car dealerships financing term. Sometimes the car dealer may try to stretch out your car dealer loan for a longer term in order to reduce your monthly auto payment without mentioning that fact. You might be expecting to finance your car for 60 months and the actual term is 72 months. You would be paying for your car for 12 months longer that you planned or expected. Not knowing the answer to this question when you buy a car can be very expensive.

Car Buying Question #4: What are these numbers on the paperwork?
When it’s time to do your paperwork for your new car you will be signing several documents that look overwhelming because of the large amount of information they contain. It is a very common car dealer trick to include charges and car dealer fees that were never discussed during the car buying process. So the questions ask when buying a car and going over the paperwork is “what are all these numbers”. Have your Finance Manager thoroughly explain all the car fees and charges to your satisfaction before you sign anything. Here is a breakdown and explanation of all the car buying fees that are real and the ones that are imposed by the car dealer including the Dealer Prep Fee.

Car Buying Question #5: Is my trade-in getting paid off and what is the trade value?
This question to ask when buying a car is similar to question #1 in regards to breaking this item out from anything else. You want the trade-in numbers to stand on their own so you can use your car buying research and trade information to verify the true used car trade value. Car dealers are know for playing with the numbers to make it look like you are getting more for your trade-in or a bigger discount on the new car, but you are smarter than that. You want to know the answers when you ask the questions for buying a car. Besides the value of your trade-in car you also need to make sure that the amount owed on your old car (if there is any) will be paid off as a condition of your purchase agreement.  You can ask the question, but you also need to see the details of the payoff on your contract before you sign anything.

These are the most important questions to ask when buying a car to avoid a car dealer scam which can cost you a bundle. When you know the answers to these car questions you will stand a much better chance of being seen as a savvy car buyer that the car dealer and salesman will respect. If you have additional questions you can visit the Car Buying Questions page for more information because there are always questions to ask when buying a car for your own protection.

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The Car Salesman Can Screw You

The real reason why the car salesman screws you is because you let them. The car buyer lets the car salesman screw them because they buy a new car blindly. Buying a car is a major purchase and one that should not be taken lightly. When you go into the car dealer’s showroom unprepared you are asking to be taken to the cleaners. The car salesman is paid on commission so they are trained and focused to sell you a car for as much profit as possible. They are paid a percentage of the profit on your car purchase. So what would you do if you were a car salesman?

I am not defending the car salesman, I am trying to make a point. My point is that you are spending your money to buy a car and it is up to you to spend it wisely. This blog contains the information that will guide the average car buyer through the car buying steps and process plus the research and homework that you need to buy a car without becoming the victim of car dealer scams.

Pricing and the Car Salesman

The car salesman has a saying that “Sticker is Quicker” which means you will pay full price just like you do at most other retail establishments, but who wants to pay sticker. You can buy a car for the sticker price, but it does not stop there. You are also need to make decisions about car dealer financing, car window etching, car dealer fees and the list goes on with more ways to get your money. The price of the car you buy is only one aspect of buying a car. Just like most businesses today the car dealer has found ways to squeeze every penny out of every transaction.

After the Car Salesman

When you are at the car dealership you have completed negotiations with the car salesman your next step is to see the Finance Manager to complete your paperwork. The first thing the Finance Manager tells you is that you can relax now because the negotiations are over and rest is easy. Guess what, the Finance Manager is really a car salesman that is very good at what they do, but they aren’t selling you a car. They are selling you a whole menu of options, services and extras, the items I mentioned earlier that are designed to squeeze every penny out of every car sold by the car dealership. I have seen car buyers that have paid much more profit to the Finance Manager than the car salesman because they though the most important part of buying a car was the price of the car.

Protecting Yourself From the Car Salesman is Only the Beginning

Buying a car without being screwed is up to you, get to know know all of the car dealer tricks and car scams. Follow the steps to buying a car and get the answers to all your car buying questions before you make a trip to your local car dealer. The car salesman and the rest of the staff is waiting for the car buyer that is not prepared. Buying a car is a major purchase that allows you to decide how much you are willing to pay. If you are thinking of the “One Price Car Dealer” think again because the price of the car is only one area where you can be screwed when buying a car.

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Car Buying How To and The Car Buying Scams Review

Peter exposes the car dealer tricks and car salesman tactics that he not only supported as the car dealer’s General Manager, but helped fine tune and insisted that his staff used these techniques to rip-off car buyers. This Car Buying Scams Review was surprised at the wealth of information contained in this product that can actually save you a small fortune when you buy a car.

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This Buying Car Scams Review

Imagine the next time you go to buy a new or used car, the car dealer won’t dare try any of his mind games on you. He will realize as soon as you walk into the showroom and start talking that he should not mess with you. And if he’s bold to try (don’t be surprised he probably will) you’ll know exactly how to put the car salesman in his place. This Car Buying Scam Review has found that this product contains;

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The car buying process of any successful car dealership is one that is planned, scripted, measured and monitored. The car salesman is trained to walk their car buyer through a series of pre-determined car selling steps and processes while using carefully scripted words, phrases and questions. Every step builds on the next step with the intention of getting you to buy a car. The car salesman is well trained and armed with psychological car dealer tricks that are used make you comfortable and break down your defenses will allow them to sway you from your intended logic choices and decisions.

The Car Buying Process

The process of buying a car at your local dealership is broken into many steps that vary from dealer to dealer. The steps have been called many different things such as 10 steps to a car sale or the road to the sale. Each step of the car buying process is design to accomplish a specific objective and bring you, the car buyer closer to buying a car. To illustrate the steps of the buying a car process is as follows.

Steps of The Car Buying Process

1. Meet and Greet: This is the first step of the car buying process and the step where you meet you car salesman and they meet you. You exchange names and your car salesman’s chance to start selling himself or herself to you. They try to get to know a little about you so they can size you up and figure what kind of customer you are.

2. Determine Needs: This part of the process of buying a car is for the car salesman to determine what kind of car you may want and what you need in a vehicle. The salesman will ask you questions in an effort to determine what model car to show you along with any special requirements you may have. They will try to determine your price range, desired monthly payment and you ability to finance a car.

3. Walk Around: This part of the car buying process is to show you some cars and their features and benefits. It is also used to check you level of emotional or logical involvement in your decision making. The plan is to get you to select a car you want to buy.

4. Test Drive: This is a major part of the car buying process because some people fall in love with the idea of a new car after they drive the car and get a whiff of that new car smell. The salesman wants you to fall in love with the new car because it makes their job easier when it comes time to negotiate the car deal. The process of buying a new car at many car dealers requires the car salesman to have you drive the car so you will not want to leave the car dealer without buying a new car. During the test drive the car salesman will demonstrate the features that you seem to be interested in while pumping you for information that they will use to sell you a car.

5. After Test Drive: After you have driven the new car the salesman will have a series of questions they will ask you to make sure you like the car, are receptive to buying the car and your ability to buy the car. If this part of the car buying process has turned out favorably your car salesman will move forward to the next step in the process of buying a car.

6. Showroom: The car salesman will bring you into the showroom and you will sit down at their desk. They will be some more talk and questions to confirm that you are ready to buy a car before your car salesman moves to the next step of the car buying process.

7. Negotiation: This is the part of the car buying process that is loaded with car dealer scams and car salesman tricks. The negotiating part of the process of buying a car is something that the car dealer spends the most amounts of time and resources when training their car salesmen. The negation step involves psychological tactics and techniques that are specifically designed to get you to buy a car.

8. Making a Deal: This is when you, the car buyer and the car salesman comes to an agreement on price, terms, financing and payments. This usually called “Closing the Deal” by car salesmen. The steps 7 & 8 are sometimes considered one step of the car buying process, but some dealerships count it as two steps when it comes to intense training they use to condition their car sales people.

9. Business Office or Finance Office: The car buying process and steps that I have covered so far all comes together in the Business Office. This is where all the paperwork is signed and everything is finalized. The Finance Manager that is processing your car buying paperwork will tell you that you can relax now, but in reality the negotiation is just getting started. The Finance manager will try to sell you all sorts of things like an extended warranty, car window etching, car loan life insurance, service contracts, tire warranties, car dealer fees and any number of other things. The will roll you extra purchases into the dealership financing and sell you on the payment rather than the price. This step in the process of buying a car is where many people become the victim of car dealer scams.

10. Car Delivered: While you are in the finance office your new car is being prepped for a Spot Delivery so you can drive it home as soon as you come out of the Finance Office and complete the final step of the car buying process. One you take delivery you have completed the process of buying a car. Congratulations you bought a car, but there are no returns after you take delivery. It’s your car no matter what happens.

The car salesman has scripts and word tracks that they have memorized to move you through every step of the car buying process. Every word and action is deliberate and designed to make buying new cars seem like an effortless and natural process. Whether it be the process of buying a used car or a new car is practically the same, except that you car salesman will use slightly different tactics, terminology and techniques when you are buying a used car. Buyer Beware

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