It is always exciting to purchase a new car - the "new car" aroma, getting used to the seats and position of the steering wheel, etc., and it's so shiny and clean. But before you buy, especially at this time of year, do your homework and follow some more of Jody Victor's suggestions to help you get the best deal with the least pain.
Jody Victor: Now that it's only days away from Christmas don't let the "holiday spending frenzy" push you into a vehicle purchase that's not right for you. Here are some more guidelines to prevent just that.
Waiting until you're in the dealership to think about financing. You might be a whiz at negotiating a good deal, but if you don't choose your financing just as carefully, you could lose everything you saved on the vehicle's purchase price, and more. A car shopper who hasn't researched financing terms is especially vulnerable to being manipulated by the dealership. Not only do you only have the dealership's terms from which to choose, which are often higher than elsewhere, but dealers also often mark up the interest rate of a loan over what you actually qualify for - a tactic called "interest-rate bumping." It can cost you hundreds or even thousands of dollars more over the term of the loan. That's why it's critical to comparison shop for financing terms at different financial institutions and get prequalified for an auto loan before you go to the dealership to buy the vehicle. Check interest rates at banks, credit unions, or online financial sites to see which offers you the best rate. If the dealer can offer you terms that are better than what you got elsewhere, you can always choose that deal instead.
Underestimating the value of modern safety features. Today's vehicles offer an array of advanced safety features. But many buyers don't know which are most important or what to look for when comparing vehicles. Anti-lock brake systems (ABS), electronic stability control (ESC), and head-protecting side air bags, for instance, are effective and well worth the money. Studies have shown that ESC can significantly reduce accidents and fatalities. The feature is especially important for SUVs, because it can help prevent rollovers. Side-crash tests show that head-protecting side air bags are critical in preventing fatalities in side impacts. Unfortunately, you can't always depend on a dealership's salespeople to give you accurate information or reliable guidance about these features. That's why you should thoroughly research the benefit of all available safety features and look for vehicles that have the ones that will best protect you and your family.
Thanks, Jody. We'll be sure to keep these in mind next time we are in the market for a new car!