It’s an awesome feeling to sit in your own car and enjoy travelling as you can move according to your own choice. So, for that you need to buy a new or old car and the buying process is a mixture of some untrustworthy words with the actual facts. This process often can’t be correlated with the findings which you have made through research. Let’s enrich your knowledge with more detail which a car dealer never makes you aware of.
Difference in Credit score:
When you have determined to buy a car, you will definitely check your credit score and when you are going to tell that to the car dealer, you will find that they calculate it in a different way and the result is totally different from your result.
In all cases, auto dealers use a formula which is known as ‘FICO’, to check whether the credit score of the person is fraudulent or not. Many a times, they even use AUTO SCORE to measure your probability of getting a loan. The FICO formula carries a higher credit score value than the AUTO SCORE one.
Actual price and invoice price:
Very often we find the price difference of a car between the actual price which we generally get after negotiation or bargain and the invoice price which we come to know from research. The invoice price is a real beneficial tool for the dealer as they get the chance to earn more profit through various processes like ‘Dealer Holdback’. In this option a dealer gets 2-3% of MSRP or invoice price after selling a car.
Calculate the loss before buying a car:
It’s we who generally focus on monthly payments with utmost concentration rather than calculating the overall price of the car. This is a huge blunder, though we show interest to subscribe a loan for a longer period of time. The situation becomes nastiest when you tell the dealer about your affordability. This helps the dealer to play with you regarding the loan terms and sell you a car which is lower in price than they ask for. After getting the car you will find that the investment is more than the actual price and from the product life point of view the life of the car depreciates every year depending on your uses. The more you drive means more depreciation and shorter life of the car.
Market mapping:
Before buying a car, check out the market to gather information regarding the price as well as the features that are offered by the sales person. You need to make the seller understand that you are on the right track as you have gone through the market and are well informed. Now it’s your responsibility to locate such dealers who offer best price as they believe in customer delight rather than only selling and earning profit. Now the problem is how will you choose a good dealer? Go through the reviews and ratings of dealers from various websites, and make your decision accordingly.
