StreetSmart$ Way of Buying/Finance A Car From the Dealership

First and foremost, know your credit score!!! If you do not know your credit score, you will get rip off!!!

I'll present this in easy to follow steps

1. After you know your credit score, use websites like www.bankrate.com (feel free to use any sire you please) to see what the auto loan rates are. Do not get too excited at those rate numbers yet, these are reserved for individuals with credit scores above 740. Apply for pre-approvals or approvals during this time if you intend to purchase a vehicle in the next 30 days. I like my rates to be between 0%-4%. 

2. Use loan calculators to help you determine how much you can finance, without down payments or trades. Establish this number so you know what is your worst case scenario monthly payment is. Also another biggie is, knowing how much it cost to insure the vehicle you are planning on purchasing.

3. Look for the vehicle of your dream or what you can finance. There are many website to use so pick your favorite. I use www.carsforsale.com, www.autotrader.com and www.cars.com. I also use google maps to find local dealership near me and search through their inventory. 

4. Now here is one of the biggest secret for car dealership anyways! The price posted on dealership website is their lowest no haggle price. But if you're determined, you can negotiate down from the internet price. The window or sticker price at the dealership will be the higher price. 

5. My way of negotiating is to negotiate on the vehicle I want to buy down to the price I am willing to pay. My goal is aiming for $1,000 to $2,000 off market suggested retail price, a fair number for both sides. Keep in mind during this process you also need to account for dealer paper work markup, misc markups, etc. Then at this point you will bring up the fact you may want to consider trading your current vehicle or putting money down. Solve one problem at a time. For trading a vehicle, if you're asked how much you owe, feel free to say you don't remember or don't know and tell them you can check. Let the dealership present their offer before telling them what you owe or do not owe. Once price is settle you're headed to financing department. Hint - For a new vehicle just use the manufacture's website and build one on their website to get a MSRP delivered to you.  If you're at this point, do not forget to purchase car insurance online via your smart phone, put that phone to work. 

6. When in the financing department be nice and let the finance person do his/her presentation. Decline all that is offered, because it is their job to up sell!!! GAP coverage - decline, you can buy it from your auto insurance for cheaper and it does not get financed into the loan amount. Protective stuff for interior, exterior, etc - decline!!!

7. If it felt good walking out signing for your new vehicle, you know you got a good deal. Let the salesman take someone else's money, not yours and not today!!

I may not be the expert car buyer, but I know I do not like to get ripped off. Learn to apply your common sense, it goes a long way.

@streetsmartmoney