Car Insurance

Before you drive away from the dealership in your new car, take a few minutes to carefully inspect it.

* Check over the exterior of the car for any damage, such as “dings” or scratches.

* Make sure the spare tire and equipment are where they should be, and that the tire is inflated to manufacturer specifications.

* Make sure all the hubcaps and body moldings are in place.

* Make sure all electrical items function properly.

* Check the Vehicle Identification Number on the car to ensure it matches the one on the contract.

* Ask the salesperson to demonstrate each accessory — such as setting the clock or turning on the bright lights. Also ask how to check the oil, coolant, transmission fluid, and battery.

* Make sure you have the owner’s manual, warranty forms, and all legal documents.

There are different negotiating steps in the showroom: getting the best price on a particular car; selling or trading in the car you now own; considering warranties and other extras; and arranging financing. When you are in a car dealership, it is important to keep each of these stages separate. Negotiating at each stage should be done separately so you will know exactly how much the car is costing you.

Remember to take your list of comparison prices of different cars so you will know how much negotiating room you will have.

Getting the Best Price

* First, concentrate on the price of the car. Do not talk price until you are ready to buy. Tell the salesperson exactly what car and options you would like, and ask for the best price. If the salesperson starts to talk about warranties, trade-ins, or financing, tell him or her that you will discuss that later, after you have agreed on the price of the car.

* Insist on a bottom-line price for the car you would like. It is imperative to check with several dealers. Once you receive a price for the car, leave the showroom and visit another dealer. If you are unable to get a satisfactory price for your first choice of car, switch to another model.

* Prices shown on the window sticker of the car — the list prices — may be 10 to 15 percent higher than what the dealer paid. In some cases, you might be able to get a price that’s $150 to $300 over the dealer’s cost for mid-sized cars in good supply. Sometimes $500 over cost is a good deal, but you will not know until you shop around. You may be less likely to get a good price on a more popular car that is in short supply.

* You may be able to get a better deal from a car already in stock, because the longer a car sits on the lot, the more expensive it is for the dealer. These cars may have expensive options that you neither need nor want. Ask the dealer to remove the option — and reduce the cost — or sell you the car without charging for the option.

* In some cases, you might get a better deal by ordering your car. Salespersons might agree to accept a fixed amount over invoice because it is a sure sale and the dealership has not invested in the car.

* Timing may make a difference in negotiating. Try to wait at least a few months after the new models come off the assembly line. Also, the busiest car buying season is spring and summer; you might have more success getting a lower price in December or January.

Trade-ins

* Find out the value of your car by checking the National Automobile Dealers Association (NADA) “Blue Book” at your local library or your bank.
* If you do decide to trade in your car at the dealership, discuss its value after you have negotiated the best price for your new car. Keeping the process separate means that you know exactly what you paid for your new car. Otherwise, the good deal you get for your new car could be spoiled by the low price you get for your old car.

Warranties, Service Contracts, Extras, and Fees

* Warranties. Your new car comes with a warranty, which is a detailed document. Take the time to read and understand it. It is the manufacturer’s promise that the car will perform as it should. Also, check with your state attorney general’s office to find out about warranties that are implied by law.

* Service Contracts. Compare your warranty closely with the dealer’s extra-cost service contract to check for duplication. Unless the service contract offers free scheduled maintenance or other services, it may not be economical to have a service contract while the warranty is in effect.

If you decide to buy a service contract, do some comparison shopping. Buying a service contract through an insurance company, for instance, may save you up to 50 percent on the cost. Find out which company is responsible for the contract, and contact your Better Business Bureau and office of consumer affairs to check their reputation.

Make sure you know exactly what the contract covers, and the length of time it will be in effect. Also ask how the repair bills will be paid. Will the company pay the bill directly? Or will you be required to submit the bill for reimbursement? Where can the car be serviced? If you are away from home, can you take the car to any mechanic? What if you move? What other costs, such as deductibles, are to be expected?

* Extras. The dealer may offer you extras such as rustproofing, fabric protection, and paint sealant. Make sure you weigh the added expense for such items against their necessity.

* Fees. Dealer preparation fees which are fees for cleaning the car before you pick it up, may also be charged. Check the window sticker of the car. If the fine print reads, “Total vehicle price includes manufacturer’s recommended pre-delivery service,” or “Manufacturer’s suggested retail price of this model includes dealer preparation,” the preparation fees have already been charged. A document preparation fee may also be charged. Remember, this may not be a mandatory fee and may be considered part of the negotiable final price.

Now that you are ready to visit a showroom, it is time to test drive the cars that interest you.

Too many buyers forget this critical step. Only by taking a test drive can you determine if the car suits your needs and tastes and has good visibility in every direction, an important safety consideration. If your spouse or someone else will also be driving the car, take them with you to the showroom so they can do a test drive, too.

Take a test drive checklist with you to examine important characteristics of the car. Items to include on the checklist are:

* Visibility. Can you see the end of the hood and the trunk? Does any part of the car block your vision? Can you easily see all the mirrors?
* Safety features. Check for manual or automatic seat belts, air bags, anti-lock brakes, and child safety locks.
* Steering wheel placement. Are you comfortable behind the wheel? Is it easy to adjust the steering wheel, the seat, and mirrors?
* Entry/exit. Is it easy to get in and out of the car from each position?
* Seating. Does each passenger have plenty of head and leg room? Check rear seats, too. Fasten the safety belt in each position. Each belt should fit snugly across the hips; shoulder harnesses should ride comfortably across the shoulder.
* Instrument panel and controls. While driving, can you quickly and easily check the speedometer and fuel gauge? Try the windshield wipers, lights, turn signals and other functions to see how easy they are to operate. Check the climate controls.
* Trunk. Is there enough space in the trunk or cargo area? Is it easy to get to the spare tire?
* Engine. Does it accelerate smoothly? Does it have enough “passing power?” Slow down and speed up a few times to check out the responsiveness of the engine. Does the engine idle smoothly, or does it appear to race?
* Transmission. If the car has an automatic transmission, does it shift smoothly between speeds, without jolting? If it is a manual, check the feel of the clutch, and the ease of shifting gears.
* Ride. Is the ride smooth? Does it offer responsive handling that makes you feel comfortable in all road conditions?
* Parking. Does your car maneuver easily into a parking space? Does the steering wheel turn easily? Parallel park the car. Does any part of the car obstruct your view?
* Braking. Take the car out to a stretch of empty road, accelerate to about 40 mph and make an emergency stop. Does the car stop in a straight line without pulling to one side? Do the brakes lock up?
* Steering/handling. When your grip is relaxed on the steering wheel, does the car drift? At highway speeds, does the steering wheel provide a firm feel of the road? Is the car stable when you turn corners?
* Noise levels. With windows closed, listen to the noise level. Listen for engine noises when accelerating. At lower speeds, listen for road noises and tire sounds. At highway speeds, listen for wind whistling outside the windows.
* Exterior. Is the car’s finish glossy and even? Check for evenly aligned body panels and secure trim.

You can make a much wiser decision about purchasing a car if you do your homework first.

* Ask friends who have recently bought cars about their experience with local dealerships. Ask them about their impressions of the salespeople, the service department, and the management.

* Call your local Better Business Bureau and ask for a reliability report on the dealership and how many, if any, complaints have been received about the dealership and how the complaints were resolved.

* If you want to avoid the hassle of negotiating, consider a car buying service. You tell the service what model car you want, what options you want, and the service will negotiate with dealers for you. Professional car shoppers may charge a flat fee or, in some cases, charge a percentage of the money saved off the sticker price. If you choose a buying service that negotiates the price, select one that negotiates with several dealers.

Auto clubs, insurance companies, employers, or others may offer membership-based buying services, sometimes at no charge for membership. Buying services do not help you decide which car to buy; they help you get the best price they can on a car you have chosen. They do not guarantee the lowest possible price.

* To determine ahead how much negotiating room you have on basic cars and extra options, draw up a work sheet for each type of car you are considering. Using updated price lists available from a number of sources, write down the dealer’s cost and list price (also called sticker price), for the particular make, model, and trim line.

For each car, list the options you want, describing them with the invoice number. Also, write down the dealer’s cost and the list price. Look up the destination charges for the car, and include this in both the dealer’s cost and the list price, since there is no markup. The destination charge is the cost the dealer pays to get the vehicle to the dealership.

Now compare the dealer’s cost and the list price for the car. The difference is your negotiating room. Do the same thing with each of the options. You may be able to negotiate on individual options.

Do not narrow your choice to just one car — choose three or four that suit your needs and your wallet. One of the biggest mistakes new car shoppers make is being so set on buying a certain type of car that they lose the power of negotiation.

A number of cars are “twins;” they have the same engine and chassis but different names and styling. One model may be less expensive or offer more standard features than its twin. By narrowing the choice to several, you maintain your bargaining power. Thus, if you are not able to get the car you want at the right price, you can negotiate on another car.