Before I Buy a Car - Ten Reasons to Visit Dealers

Visit the Dealership...When You DON'T Want to Buy

 At some point in your life, you ARE going to buy a car, so do something really good for yourself...start visiting dealerships. If you never visit a dealership, how will you know where to buy your car? You are allowed going to a dealership even if you aren't going to buy a car today.

What is your dream car?

I encourage you to take it for a test drive, even if you aren't going to buy the car right now. You might decide you don't really like it as much as you thought you did. You might decide you don't like the salesperson who is working with you. Be in control. Be confident. Don't second guess your intentions.

What if you get to a dealership for the very first time and you WANT to buy a car that day, and you buy the car even though you don't feel comfortable there or it's not really the right car? I urge you to start visiting dealerships.

You don't have to be ready to buy a car to visit a dealership. I DARE you to do it! You won't get in trouble. Don't let your first day on the lot be the day you buy a car!

10 reasons for visiting new and used car dealers and test driving: 

10. Be more AWARE of the process
9. Truly KNOW the car you THINK you want
8. Build CONFIDENCE for when you are ready
7. COMPARE dealerships and how they work
6. RESEARCH brands and what they OFFER
5. Make your dream more TANGIBLE
4. Get more EXCITED about your dream...PLAN to make it happen
3. UNDERSTAND the finance process
2. Get used to ASKING questions
1. Learn how to get WHAT YOU WANT

10 things to do while your there:
1. Test drive at least one car. Go ahead and test drive two or three different body styles

2. Walk around the car, look under the hood and in the trunk
3. Read the specifics of each car you are testing - what features are on it? Does it have any awards? Does it rate well on safety? How many options are available?
4. Check out all the models available
5. Ask about sales and incentives that might not be advertised
6. Ask about warranties and service
7. Ask about financing; learn the process; have your credit checked (if you don't know it, to see where you are, and what you need to do to improve your score)
8.Get some popcorn (if you are at Golling's :)
9. Ask about accessories that might not be included (i.e.trucks rarely come with side steps, yet they are very nice to have with taller models)
10. Monitor the environment. Check the place out. What's going on? Is it a friendly place? Are the sales people on top of it?

Here is a free printable checklist you can complete before you ever go to the dealership. Have a copy with you for your big day!

We would love to hear about your experience! Stop back and tell us how it went.

Why trade in my car?

Why trade-in?

Trading in your current vehicle towards another can partially offset the cost of the new vehicle. The trade-in's net value goes towards the purchase or lease of a new car. Conditions of a trade-in vary depending on who owns the vehicle.
If you own the vehicle, trading-in means that you're selling the car to the dealer for some determined price. As a result, the price of the new car goes down.
If you are leasing a vehicle and do not own it, trading-in means that the seller of the new car agrees to pay the outstanding costs associated with the lease. Depending on the financing of the new vehicle and the outstanding balance on the old one, trading-in can either raise or lower the new car's price. 

Why is it beneficial to trade-in?

When you trade-in you don't have to worry about selling the vehicle yourself or any of the associated costs (advertising, showing the car, etc). A dealer may offer a price you could not get yourself as an incentive to purchase a new vehicle. If the trade-in has known problems that could plague you later (when the buyer returns complaining), selling the car to the dealer eliminates the bother. Trading-in a lease car may relieve you of, in the long run, monthly costs you cannot afford. Sometimes people trade in lease vehicles because of poor gas mileage or lack of practicality.

Why decide against trading-in?

If you think you can get a better price selling privately, and it's worth the time, money and effort, do not sell to the dealer. Some cars are of special interest and dealers will not always recognize those interests.

What happens to a trade-in?

Some are kept by the dealer and resold as used cars. Many are sent to auction and purchased by other dealers for resale. Dealers know that auction prices often will not match the sum credited toward a new vehicle, but they absorb the losses as sales incentives.

How much can I expect to get?

Check used car values in guides issued by organizations such as Edmunds.com or the National Automobile Dealers Association (NADA). Often both trade-in and private sale values are listed. Factors such as mileage, overall condition, damage and known mechanical problems heavily influence the trade-in value.

When you're ready to trade in, check out our new and pre-owned car inventory for your next ride.
You can also get an estimate for your trade through AutoTrader Trade-In Market Place.

How do loans and leases differ?

Is it better to lease or buy? 

When you take out a loan, all of the money used to pay it off applies to your eventual ownership of the vehicle. The initial down payment and principal on the loan cover the total cost of the purchase.

Lease payments, however, apply only to the use of the vehicle. The total sum of payments covers the vehicle's depreciation over the time you drive it and is usually less than the outright price of the vehicle.

When is ownership transferred?

When paid in full, a loan terminates and you assume ownership. Your bank sends you the title that had been held while the loan maintained an outstanding balance.

When a lease period ends you forfeit the vehicle to the lessor, unless the lessor offers to sell the vehicle afterwards. During the entire lease period the lessor maintains ownership and simply allows you to use the car. Ownership is only transferred if you chose to buy the vehicle after the lease terminates.

How are monthly lease rates determined?

In formulating a monthly payment structure, a lessor is primarily concerned with the extent to which the vehicle will depreciate throughout the lease and the cost of borrowing money to finance the car during that period.

Three key elements:

• First, the adjusted capitalized cost is determined. This figure represents the real purchase price after elements such as the down payment, incentive discount and trade-in credit are deducted from the capitalized (actual) cost, while any fees or charges (e.g. destination) are added.

• Second, the residual value, or estimated value of the vehicle at the end of the lease, is determined and then subtracted from the adjusted capitalized cost to yield a depreciation figure. The residual value depends on the length of the agreement, expected mileage and make/model of the vehicle.

• Finally, a lessor assesses the money factor, a number that correlates with the cost of borrowing money during the lease period.

While these terms may seem unfamiliar, the Federal Reserve Board now requires dealers to publicize all leases' down payment amounts, lengths, residual values and interest rates.

What factors determine the purchase price at the end of a lease?

Most leases rely exclusively on the residual value in determining the end of term purchase price. These closed-end deals require you to pay the fixed residual amount regardless of the actual market price.

Open-end leases work differently in that the actual market value helps determine the purchase price. As a customer you are responsible for any difference between the residual and actual value when buying outright.