Quick Answer: Should You Tell Car Dealer Your Budget?

What can you do if you get scammed by a car dealership?

Contact your dealer- tell him/her that you consider him guilty of your car issues and suspect him/her of a car dealer fraud.

Provide the dealer with an opportunity to fix the problem.

It may happen that the problem was really unknown to the dealer and he/she may be willing to correct the problem..

Do Dealers prefer cash or financing?

Dealers prefer buyers who finance because they can make a profit on the loan – therefore, you should never tell them you’re paying cash. You should aim to get pricing from at least 10 dealerships. Since each dealer is selling a commodity, you want to get them in a bidding war.

What time of year is best to buy a car?

Many car-buying experts say the best day of the year for car buying is the very last day. Monthly, quarterly, and annual sales targets all converge on Dec. 31, so great deals abound. Others say New Year’s Day rivals New Year’s Eve as the best day to buy a car.

Is it better to buy from a dealership?

a dealer: the price. Buying used is obviously cheaper than buying a new car. … Dealers have more overhead costs they need to cover, so they need to make a profit on the cars they sell. Private sellers, on the other hand, are usually more willing to negotiate and get the vehicle off their hands.

Is 72 month car loan bad?

A 72-month car loan can make sense in some cases, but it typically only applies if you have good credit. When you have bad credit, a 72-month auto loan can sound appealing due to the lower monthly payment, but, in reality, you’re probably going to pay more than you bargained for.

Is it better to finance car through bank or dealership?

In some cases, however, a dealer may negotiate a higher interest rate with you than what the lender offers and take the difference as compensation for handling the financing. … In general, you can usually get lower interest rates on a new car through a dealer than on a used car.

Is it better to buy a car from a large or small dealership?

Greater Selection, More Variety If you would rather have the make and model of car you want in a less common color and a diesel engine upgrade rather than standard gasoline, you are more likely to find that specific vehicle on a lot of a large dealership rather than on the lot of a smaller dealership.

Do dealerships really lose money on cars?

There is the new car department, and as noted above, most dealers lose money in this department. However, there are also used cars, finance, service, parts, and in most cases a body shop. … So, the sale of everything except new cars is the reason that most dealerships make a profit.

What used cars NOT to buy?

30 Used Cars Consumer Reports Gave the ‘Never Buy’ LabelChrysler Town & Country. Chrysler’s new minivan will hopefully rate better than Town & Country. … BMW X5. 2012 BMW X5 | BMW. … Ford Fiesta. Compact cars by Ford had a bad run between 2011 and 2014 | Ford. … Ram 1500. 2015 Ram 1500 | Ram. … Volkswagen Jetta. VW Jetta | Volkswagen. … Cadillac Escalade. … Audi Q7. … Fiat 500.More items…•

How do I find out what a dealer paid for a used car?

Get Breaking News Delivered to Your InboxFind out the average retail price for sale by dealers by checking Kelley Blue Book and Edmunds.com. Then look up ads by dealers in your area on a site such as AutoTrader.com.Get the average trade-in value on the pricing sites. … Get the wholesale price.

What makes a good car dealership?

A good car dealer should be willing to assist you throughout the process. The staff should be friendly, approachable, and always eager to answer your questions confidently. Providing reliable services should be their primary objective. Visit different used car dealerships, Indianapolis,and observe how they talk to you.

How do you outsmart a car salesman?

20 Ways Every American Can Outsmart Their Car Salesman1 Show up with a good attitude.2 Don’t engage in the waiting game. … 3 Consider leasing before you buy. … 4 Shop for a less popular model. … 5 Try to use your banking rewards programs. … 6 Be sure to check the manufacturer’s website. … 7 It’s better to pay in cash. … More items…•

What should you not tell a car dealer?

10 Things You Should Never Say to a Car Salesman“I really love this car” You can love that car — just don’t tell the salesman. … “I don’t know that much about cars” … “My trade-in is outside” … “I don’t want to get taken to the cleaners” … “My credit isn’t that good” … “I’m paying cash” … “I need to buy a car today” … “I need a monthly payment under $350”More items…•

How much will a dealership come down on price on a used car?

According to iSeeCars.com, used car dealers cut the price on the average vehicle between one and six times over that 31.5 day listing period. The first price drop is significant — the firm says that the price drops, on average, by 5% the first time the dealer rips the old sticker off the car and pops a new on.

Why you should never pay cash for a car?

The common thinking is that buying a car with cash is better than financing because you won’t have to pay interest. … In that case, paying with cash may not be the smartest thing to do because you’ll lose very little money by financing; you get to keep your cash for other projects or investments.

Do dealerships like when you pay cash?

Paying cash will reduce your time spent in a dealership, and you can avoid interest charges if the car you are buying does not offer 0% APR financing. However, paying cash will not necessarily guarantee you a better price, and in fact, it might cause you to pay a higher price.

When should you tell a dealer you’re paying cash?

Only tell them that you plan to pay cash after you have a price negotiated and you are preparing to sign the final paperwork. Then, before you sign, read all of the fine print to ensure that your price hasn’t changed.