The Best Car Buying Tip

The one car buying tip that will save you the most money when car shopping is your car buying folder. The simple task of arranging your car financing and credit documents, automobile prices, information on new car discounts, best dealer offers, related expenses and paperwork may knock hundreds of dollars off that sticker price.

Car dealers know that organized car buyers have done their homework, so your car buying folder gives you the edge when negotiating the best new car price. It’ll also make your car shopping experience a lot more pleasant and your decision-making process a breeze.

Here’s a list of the 10 things that absolutely need to be in your car buying folder:

1. The addresses and phone numbers of all the car dealerships in your area, including the nearest large volume dealership – Let the dealer know you are considering other options and he’ll have to compete for your business.

2. Your numbers – Figure out how much you can afford based on the purchase price, down payment, monthly payment, interest rates, length of loan and other factors related to the true cost of owning a car. Write these numbers down and look at them often. If you feel tempted by a car that’s a little over your budget, review your numbers. A car loan calculator help you estimate your budget better.

3. A copy of your free credit report – If you’re thinking about financing through the dealer you will know if you qualify for better rates based on your credit score. If not, you’ll know ahead of time so you can find a different source of financing on your own.

4. Information on manufacturer and car dealer incentives – Take into account rebates, 0% financing offers, new car discounts, etc. that may lower the price of your new car. All this information is available in the automaker and car dealer websites.

5. Offers on your trade-in – If other dealers have given you a good price on your trade in include them in your folder. That way you’ll have proof and can negotiate a better deal. You can also find the estimated trade-in value for your car before hand.

6. Worksheet – If you’re truly interested in a car, ask the salesman to give you a worksheet detailing how much and what you’re paying for. Become familiar with the numbers and terms so the final contract doesn’t take you by surprise with hidden extra costs.

7. Xerox copies of your driver’s license to leave at the dealers if you take the car for a test drive. Be sure to write "no transactions of any sort allowed" on it so the dealer can’t run a credit check without your permission.

8. Once you’ve narrowed down your search, check the VIN to make sure the car’s history is clean. You can also use a car insurance estimator to find out how much you can expect to pay for auto insurance. You’d be surprised how the price of car insurance can vary depending on the model you select.

9. Have a list of potential add-ons you’re interested in before the dealer offers them to you – Some of these extras, like an extended warranty, satellite radio, car alarm, fabric protection, or service contracts, may be of value to you, but they are generally more expensive when purchased at a car dealership. If you are interested, research what the cost may be elsewhere and include it in your car-buying folder. Use it as a bargaining tool or as a point of reference.

10. Registration, proof of insurance and checkbook – These important purchase documents show the dealer you’re ready to make a deal if the right conditions come along. That may make him give you a better offer.

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