NEVER Answer These Questions When Buying a Car | Say THIS Instead

Step-by-Step Tutorial: How to Navigate the Car Buying Process Like a Pro

1. Setting the Budget

   • When asked about your monthly budget, focus on the out-the-door price instead.
   • Emphasize that you want to concentrate on the total cost rather than monthly payments.
   • Avoid disclosing how much cash you plan to put down initially.

2. Negotiating Monthly Payments

   • If a salesperson suggests a monthly payment slightly above your desired amount, consider negotiating in increments of $25.
   • Prioritize establishing the out-the-door number before discussing monthly payments.
   • Understand that having more cash down might lead to better deals but keep the focus on the total cost.

3. Trade-In Consideration

   • Treat the trade-in and car purchase as separate transactions.
   • Avoid discussing the trade-in until the out-the-door price is determined.
   • Keep the focus on the final price and payment rather than the trade-in value.

4. Loan Term and Financing

   • Have a clear understanding of your desired loan term and payment range.
   • Consider pre-approval from your credit union to leverage better rates.
   • Be open to financing through the dealership if they can offer a more competitive rate.

5. Additional Products and Services

   • When presented with options for extended warranties or add-ons, ask for a breakdown of each item's cost.
   • Inquire about the base payment without any additional products added on.
   • Evaluate the value of the products and ensure they align with your needs and budget.

6. Prepayment Penalties

   • Inquire about prepayment penalties on the finance loan offered by the dealership.
   • Knowing about prepayment penalties allows you to consider refinancing options in the future if needed.

7. Utilizing Cheat Sheets

   • Visit carhedge.com to access free cheat sheets with word tracks and responses for common car buying scenarios.
   • Print out the cheat sheet and bring it with you to the dealership for reference during negotiations.

By following these steps and strategies, you can navigate the car buying process confidently and effectively, ensuring you make informed decisions and secure the best deal possible.