As a strong proponent of living below your means, I recommend that you never buy a new car. However, sometimes people want the new safety features that are available for today’s models. Other times they are financially secure and can actually afford a new car.
Whatever the reason, buying a new car can be a stressful and expensive experience. Here are some ideas and tips to help you pay the lowest price for your new wheels.
#1 - Choose the time of the day carefully. The less people that are at the car dealership, the more likely the dealer will be interested in making a deal. Also, dealers are more likely to make a deal when they have to meet quotas at the end of the month/quarter. Ideally you want to be the last person of the day for the dealer.
Important times to go to the dealership:
- weekday
- late evening
- end of month
- end of quarter
If you are really serious about going when there is no foot traffic. Go in the middle of a rainstorm or snowstorm. You’ll likely be the only person there and the salesperson will be much more willing to negotiate.
#2 - Do not start your negotiations from the sticker price, aka the suggested manufactures price. Start at the invoice price of the vehicle. This is what the dealership paid for the car. You can determine the invoice price for your particular vehicle at http://www.edmunds.com or http://www.cars.com.
Once you have the invoice price make your offer the invoice price minus $500. This is the standard rule of thumb as is a good starting point.
Here are some other tips that may help you out:
- Make sure you start the bidding, don’t get anchored by their bid price.
- Do not negotiate by the new car, use the dealer’s office. They want you to fall in love with the vehicle.
- Don’t let the manufactures rebate influence the vehicle price. It’s from the manufacturer not the dealership.
- Don’t let the salesperson distract you by asking how much you want to pay per month. This is an irrelevant question in regards to the vehicle price.
- Negotiate the dealer prep fee. All they are doing is washing the car and taking the plastic out of the interior. Tell them you will wash the car and take the plastic out yourself.
- Negotiate a trade-in after you have finished with the new vehicle, it’s a different issue. Plus this is an added distraction in negotiations.
Buying a car is one of the most expensive purchases a person may make in their life. Make sure you do your homework. And most importantly, make sure you get a good deal.
Written by admin on July 6th, 2006 with no comments.
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Marriage is a serious financial commitment and you should treat it as such. It is common knowledge that money is the number one reason why couples split up. As such, it is important for you and your significant other to be on the same page on fiscal matters.
However, it starts even before then. My fiancée and I had to decide what our wedding plans were. The first issue was buying an engagement ring.
Diamond engagement rings are traditional here in the United States. But, if you have ever looked at the prices of the diamonds, you will know they are outrageously priced. This is because Debeers has a monopoly on the diamond supply.
With their monopoly they constrict supply, increasing prices and their bottom lines. There are a few alternatives to diamonds, whether you choose them for morally or financial reasons.
Some alternatives are:
- Diamond simulants
- Lab grown diamonds
- Alternative stones
The diamond simulants are basically other materials made to mimic the look of real diamonds. They are very inexpensive in price.
The ring I was considering was a 2.04 carat stimulant, which included the wedding band for only $535. Rock bottom prices like these are very tempting. However, I decided that if I wasn’t willing to pay the price for a real diamond, I should not buy a simulated one.
Lab grown diamonds are real diamonds. They have the same chemical structure as natural diamonds. The only difference is that they are grown in a lab over a year or two period instead of formed in the ground over thousands of years.
I was very interested in these lab grown diamonds. It is very cool that people can make a diamond in a lab in a fraction of the time that it would take Mother Nature to make it. As I researched the prices, I found that they were just as expensive as the natural diamonds. Prices are sure to drop in the coming years as they become more common place, but for me it was too early.
Many couples today are choosing alternative stones for their engagement rings. I have friends that decided to take this route. And many high profile people have gone this route also. Did you know that Princess Diana had an alternative stone engagement ring? It was a sapphire.
We decided to go with an alternative stone in the end also. There were a few reasons that we went this route.
- I have a major problem paying for a product in which the price has been heavily manipulated through constricting the supply
- My fiancée does not feel comfortable wearing jewelry worth thousands of dollars
- The money we saved is being put towards a down payment for a house
She has been wearing the ring for a while now and loves it. She has received many compliments on the stone and ring. What stone did we decide to go with? A topaz.
Written by admin on July 3rd, 2006 with no comments.
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