So you have been negotiating with the car salesman and he finally offers you a price you like. He then extends his hand, asking if you two have a deal. Even if he gives you the price you want for the vehicle, postpone shaking his hand. A handshake seals the deal, and you are far from done. Before you agree to buy, ensure you are indeed getting a good deal.
We at Colorado Springs Auto Approval Center listed below four things you should ask about before you sign the contract. These will allow you to identify—and avoid—key problems regarding the purchase.
1. Additional fees
Aside from the vehicle’s price, ask about other fees related to the auto purchase. While there are legitimate fees that come with an auto purchase, others are bogus and are merely added to boost profit for dealers. Once you know that only necessary fees are included in your total car cost, you know you are getting a good deal.
One way to find out about additional fees is to inquire about the out-the-door price, or the amount you need to pay to bring the car home. When asked about the out-the-door price, the salesman should give a price inclusive of sales tax, title and registration costs, as well as documentation fee.
There is no standard amount charged for documentation. Documentation fees vary by state—some cap the doc fee, others don’t. In Colorado, there is no limit for doc fees. If you are charged a high amount, negotiate to pay less; if the dealer don’t want to negotiate, buy the car somewhere else.
2. Aftermarket options
Some options are added to the car when it is being built in the factory; others are added by dealers to increase the price of the vehicle. You need to know which add-ons were added by the dealer, if there are any, before you sign on the dotted line. Otherwise, you will pay for marked up options you may not even need. Some buyers only find out about the add-ons when they are reading the contract and is ready to sign.
If you don’t need the add-ons, don’t pay for them. Get the car without the aftermarket parts or features. If you do need them, negotiate for a better price.
Just because the car is new doesn’t mean it will only have a few miles on the odometer. You may be surprised at how many miles a new car can have, especially if it has been test driven a couple of times and/or was traded from another dealership. You should negotiate for a lower price if the car being sold to you has over 300 miles.
4. Vehicle delivery
You always have the option to wait for the car as it is being prepared for you. However, if you are after a sweeter deal, you would consider your own convenience. Ask if the dealer can deliver the car to your home or office. If they do, you need not wait a long time. You also need not endure the high-pressure sales tactics of the sales manager at the dealership’s finance and insurance office, as the contracts will be delivered to you.