(1) Plan for Eight, Hope for Two

Many people claim to be able to be in and out of a car dealership in less than an hour. Other people claim to have been abducted by aliens. They may be the same people.

Set aside the whole day. If you wrap it up in 2 hours, go show your new ride to friends and family. If it turns into an 8-hour day, at least you were prepared for it.

It happens daily. Someone goes to a dealership, finds a car, negotiates, but has to leave before finishing the deal. The next day, the car is gone. They get mad, but the reality is that people often promise to be back the next day and never show. Unless they put a cash deposit down, most vehicles cannot be held.

(2) Have an Inside Man (or woman)

Most receptionists at car dealerships know more about salespeople than anyone. They are the least biased employees because it doesn’t matter to them whether you buy or not.

Call ahead and ask point blank, “I really want an honest, pleasant salesperson to work with me. If you were me, who would you buy a car from?”

Not very many will answer, but it’s worth a shot. If you can get a response, it will most likely be a useful one.

(3) Leave the Kids and Eliminate Distractions

If at all possible, do not bring kids to the dealership unless everything is already set up to be finalized. Buying a car can be long, strenuous, and overall unpleasant. Don’t make it worse by bringing kids.

Set your phone to silent. If you can’t, make sure the office and everyone else knows to only call for emergencies. Treat buying a car as if it is something important. That shouldn’t be hard – it IS important.

(4) Bring Donuts

Believe it or not, car salespeople are human. Even most sales managers are human.

Bringing donuts sets the tone. You will be instantly liked, not only by your salesperson, but everyone who indulges in your treats. It sounds insane, but when it comes down to those final negotiating dollars and cents, a considerate customer will receive more consideration from the dealership.

If they like you and want you to be their customer, there is a decent chance they will step out a little further to earn your business. If it saves you $50, $100, or $500, why wouldn’t you want to spend $10 on a couple of boxes of donuts?

(5) Eat First

The last thing you want to hear when in the heat of an important negotiation is your stomach. It has been scientifically proven that hunger can cloud our judgment and negatively affect our state of mind.

Eat. A car deal can take a long time to complete. Even those who pride themselves on being able to get in and out of a dealership can often run into the unforeseeable roadblock of waiting to get into finance to finalize the deal. A pleasant meal before embarking can eliminate a potentially unpleasant factor in the process.

(6) Use a Lifeline

Phone a Friend. On Who Wants to be a Millionaire, it’s the most important lifeline. On Who Wants a Good Deal on a Car, it is possibly more important.

Have someone available by a computer to look up anything you need to know. For used vehicles, have your lifeline compare prices of the one you are considering to local cars that are similar by checking sites such as San Diego Used Cars or other local internet dealer listings.

The information you find may help in negotiations. They can also maybe steer you to a different dealership. If this is the case, you’ll need to buy more donuts.

For new cars, you should know all of the information before going to the dealership because you…

(7) Work the Internet First

Especially for new cars, it is important to get a quote online from the internet departments of good dealerships. Check with Edmunds for new car values, then compare your findings with actual dealer inventories.

For many dealers, the internet department is comprised of salespeople only. Others, such as Ford in Oklahoma City, have customer service people handling their internet leads.

You have an opportunity to cut through much of the red tape and get straight to the price with a true internet coordinator. If they are commissioned salespeople, then you might as well refer back to “Ask the Receptionist” before deciding to work with them or not.

(8) Drive Baby, Drive

When you narrow it down to a vehicle that truly piques your interest, ask to take an extended test drive without a salesperson. With most state laws regarding insurance, your full coverage should cover it. Any dealership who won’t allow it is one that doesn’t like losing control of a customer, and thus probably isn’t the right place to do business.

Drive it on the highway. Find an empty parking lot if possible and test the feel of the brakes (without putting yourself in danger). Spend some time with your favorite station/cd/mp3 playing. Spend some time with the stereo off.

Whatever you do, don’t make a large purchase like buying a vehicle without an extended test drive first.

(9) Trust Your Gut

The human instinct is normally very trustworthy. If you feel that you have found a good car at a good price, you probably have. If you aren’t sure, keep working.

If you have a strong negative feeling about the car deal, chances are you haven’t found the right vehicle, haven’t gotten the best deal, or didn’t bring enough donuts.

(10) Enjoy the Experience

In The Princess Bride, Billy Crystal’s character says, “Have fun storming the castle!”

The line is nearly as ridiculous as someone saying, “Have fun buying a car!” Still, I will say it with feeling.

It doesn’t have to be bad. The dark ages of car buying (1978-1997) are all but gone, thanks tremendously to the internet. Many of the sleazy salesmen of yore have withered to selling furniture, vacuum cleaners, or real estate. Those who are left have been reprimanded often enough by an informed public and therefore have reluctantly adapted.

There are still bad ones out there, but not nearly in the bulk that existed before. An old- line salespeople used to use when getting caught asking for full sticker on a vehicle went like this:

“I didn’t think you were a fool, but if you were, I didn’t want to miss you!”

Thanks to the internet, many dealers start off discounting a car before the customer asks for it. The old line has been replaced by one that is more relevant in today’s competitive car market:

“You may not have checked it out online, but if you did, I didn’t want to insult you.”

I hope it helps.

After 14 years on and off in the car business, J.D. Rucker has grown to love and despise it as whole. Now with Ford in Oklahoma City and San Diego Used Cars, J.D. has finally found places where his honesty and integrity are considered positive character traits.

His experience is expressed in this and other Car Buying Tips articles.

Hope they help.

Article Source: http://EzineArticles.com/?expert=J.D._Rucker
http://EzineArticles.com/?Car-Buying-Tips—10-Tactics-from-Outside-of-the-Box&id=495416

Credit And Income Requirements

Loans imply harsher credit and income requirements mainly because the monthly payments on loans are higher than on lease contracts. In order to obtain a motor vehicle loan you need to show proof that you have a steady income fit to afford the monthly payments without having to make sacrifices and though the same goes to leasing, the amounts you’ll need to show you can cope with are smaller.

Leasing has less requirements because the motor vehicle remains property of the financial institution and if anything happens with the vehicle the insurance for which you’ll pay a monthly premium will cover for the loses. Thus, there is little risk for the financial institution which allows them to provide you with the motor vehicle without many requirements.

Leasing Explained

When leasing a motor vehicle, the financial institution purchases the vehicle which remains its property. The motor vehicle is handed over to the applicant who can use it in exchange for a monthly fee. After a period of time, the applicant has the option to put money down and obtain ownership of the vehicle. If so, the monthly payments are computed as part of the payment. Otherwise, they work just like a rent monthly fee.

Leasing provides a lot of flexibility: the applicant can use the vehicle just like if he owned it and the financial institution takes little risk because he retains the title of the vehicle and any damage is covered by the insurance for which the applicant has to pay a fee usually included in the monthly payments of the leasing contract.

Loan Or Lease?

Motor Vehicle loans and home equity loans can both provide you with the financing you need to purchase a motor vehicle. The latter is the best option if you are a homeowner as it provides inexpensive financing and the best loan terms. But if you can’t afford such high monthly payments or you prefer to be able to exchange the vehicle for a new one in the near future, you should go for a leasing contract that provides more flexibility and more options for you if you change your mind about the vehicle. In any case, you should ponder the costs of each transaction prior to applying to see which one best suits your needs.

—

Jessica Peterson writes finance articles for Yourloanservices.com where she shares her knowledge about how to get money for a starting-up business, consolidating any kind of debt, repairing a home even with a bad credit history and more.

Article Source: http://EzineArticles.com/?expert=Jess_Peterson
http://EzineArticles.com/?Motor-Vehicles-Dilemma—Loan-or-Lease?&id=499706

Check your credit score
Before shopping for any loan, be sure to check your credit score and credit report, and correct any inaccuracies that may hurt your credit rating. Also, if you know well in advance that you are going to buy a car, you can take steps to improve your credit score, which should help you get a better interest rate on your loan.

Use your home equity
Tapping the equity in your home may be an advantageous way to lower your interest payments when financing a car. Both a home equity line of credit (HELOC) and a home equity loan often provide lower rates than a traditional car loan because they are secured against the value of your home. The interest on home-equity credit is also usually tax deductible if you itemize it on your federal tax return. Consult a tax advisor about your particular situation.

Of the two choices, a HELOC may offer the lowest initial interest rate but, because its rate is variable, it can leave you vulnerable to the possibility of increased payments if interest rates should rise. Therefore, it is usually more suitable for loans of 36 months or less. For loans longer than 36 months, a fixed-rate home equity loan that has a guaranteed rate for its entire term may be a better choice.

Arrange independent financing
Obtaining financing through an independent lender before you go car shopping can also provide savings. Dealer financing can be more expensive than a bank loan depending on your credit rating. In fact, sometimes auto dealers make more profit from the financing than from the actual sale of the car.

Many dealers start the negotiating process by trying to get you to tell them what monthly payment you can afford, which leaves room for them to bump the interest rate up to your monthly payment level. They can then sell the loan to a lending institution and receive a commission based on the difference between what you’re paying in interest and what the bank normally charges. This can be costly for you. For example, on a $20,000, 48-month car loan, the difference between a seven percent interest rate and a nine percent interest rate is slightly more than $900 over the term of the loan.

Be careful of zero interest loans
While no-interest loans can sound attractive, they may not be your best bet, particularly if you’re giving up a substantial rebate in return. Let’s say you’re buying a car for $16,000 and your option is to pay zero interest for 36 months through the dealer or receive a $2,000 rebate. The monthly payment on a $16,000 purchase at zero interest is $444.44. However, if you take the rebate and finance through a bank at five percent, your monthly payment is $419.59. You save $24.85 a month, or $894.60 over three years.

Request your free online credit report and score from LendingTree and for additional information about financing a car, please visit the LendingTree Smart Borrower Center.

About LendingTree, LLC
LendingTree, LLC is the nation’s number one online lending exchange, providing a marketplace that connects consumers with multiple lenders that compete for their business. Since inception, LendingTree has facilitated more than 20 million loan requests and $152 billion in closed loan transactions. LendingTree provides access to mortgages and refinance loans, home equity loans/lines of credit, auto loans, personal loans, and credit cards via http://www.lendingtree.com/ and 800-555-TREE.

Launched in 1998 with headquarters in Charlotte, North Carolina, LendingTree, LLC is part of IAC Financial Services and Real Estate, an operating business of IAC/InterActiveCorp (NASDAQ: IACI), which also owns or operates LendingTree Loans, LendingTree Settlement Services, LLC, GetSmart®, RealEstate.com®, Domania®, and iNest®.

En Espanol:
Como la mayoría de las transacciones financieras, conseguir el préstamo de coche derecho viene abajo a hacer un poco de la preparación y a hacer compras alrededor para el mejor reparto. Según Bridget Smith, el redactor en el jefe del centro elegante del prestatario de LendingTree.com, allí es varias cosas a tener presente al mirar para financiar un automóvil. Comprobar tu cuenta del crédito Antes de hacer compras para cualquier préstamo, ser seguro comprobar tu cuenta del crédito e informe de crédito, y corregir cualesquiera inexactitudes que puedan lastimar tu crédito.

También, si sabes bien por adelantado que vas a comprar un coche, puedes tomar medidas para mejorar tu cuenta del crédito, que debe ayudarte a conseguir un tipo de interés mejor en tu préstamo. Utilizar tu equidad casera Golpear ligeramente la equidad en tu hogar puede ser una manera ventajosa de bajar tus pagos de interés al financiar un coche. Una línea casera de la equidad del crédito (HELOC) y un préstamo casero de la equidad proporcionan a menudo tarifas más bajas que un préstamo de coche tradicional porque se aseguran contra el valor de tu hogar. El interés en crédito de la hogar-equidad es también generalmente deducible de los impuestos si lo detallas en tu declaración de impuestos federal. Consultar a consejero de impuesto sobre tu situación particular.

De las dos opciones, un HELOC puede ofrecer el tipo de interés inicial más bajo pero, porque su tarifa es variable, puede dejarte vulnerable a la posibilidad de pagos crecientes si se levantan los tipos de interés. Por lo tanto, es generalmente más conveniente para los préstamos de 36 meses o menos. Para los préstamos más de largo de 36 meses, un préstamo casero de la equidad de la tarifa fija que tiene una tarifa garantizada para su término entero puede ser una opción mejor. Arreglar el financiamiento independiente La obtención del financiamiento a través de un prestamista independiente antes de que vayas las compras del coche puede también proporcionar ahorros.

El financiamiento de distribuidor puede ser más costoso que un préstamo de banco dependiendo de tu crédito. De hecho, los distribuidores a veces auto hacen más beneficio del financiamiento que de la venta real del coche. Muchos distribuidores comienzan el proceso de negociación intentando conseguirte deciros qué cuota puedes permitirse, que sale del sitio para que topen el tipo de interés hasta tu nivel de la cuota.

Pueden después vender el préstamo a una institución de préstamos y recibir a una comisión basada en la diferencia entre lo que estás pagando en interés y lo que carga el banco normalmente. Esto puede ser costoso para ti. Por ejemplo, en $20.000, 48 préstamos de coche del mes, la diferencia entre un tipo de interés de siete por ciento y un tipo de interés de nueve por ciento es levemente más el excedente de $900 el término del préstamo. Tener cuidado de los préstamos cero del interés Mientras que los préstamos del ninguno-interés pueden sonar atractivos, pueden no ser tu mejor apuesta, particularmente si estás dando encima de una rebaja substancial en vuelta.

Digámoste están comprando un coche para $16.000 y tu opción es pagar el interés cero por 36 meses a través del distribuidor o recibir una rebaja $2.000. La cuota en una compra $16.000 en el interés cero es $444.44. Sin embargo, si tomas la rebaja y las finanzas a través de un banco en cinco por ciento, tu cuota es $419.59. Ahorras $24.85 por mes, o $894.60 sobre tres años. Solicitar tu informe de crédito en línea libre y anotarlo de LendingTree y para la información adicional sobre financiar un coche, visitar por favor el centro elegante del prestatario de LendingTree.

Sobre LendingTree, LLC
LendingTree, LLC es el intercambio en línea de préstamos del número uno de la nación, proporcionando un mercado que conecte a consumidores con los prestamistas múltiples que compiten para su negocio. Desde el inicio, LendingTree ha facilitado más de 20 millones de peticiones del préstamo y $152 mil millones en transacciones cerradas del préstamo. LendingTree proporciona el acceso a las hipotecas y financia de nuevo préstamos, los préstamos caseros de la equidad/las líneas del crédito, los préstamos auto, los préstamos personales, y las tarjetas de crédito vía http://www.lendingtree.com/ y 800-555-TREE. Lanzado en 1998 con las jefaturas en Charlotte, Carolina del Norte, LendingTree, LLC es parte de los servicios financieros y de las propiedades inmobiliarias, un negocio de funcionamiento del IAC de IAC/InterActiveCorp (Nasdaq: IACI), que también posee o funciona los préstamos de LendingTree, los servicios del establecimiento de LendingTree, el LLC, GetSmart®, ® de RealEstate.com, Domania®, y el iNest®.

“A private label finance platform has been in our plans from inception,” said Greg Thibodeau, CEO of myAutoloan.com. “‘Powered by’ leverages all of myAutoloan’s life-cycle auto financing products, research tools, and services. We see the market for this product as being very large, with verticals in auto insurance, auto buying services, home equity, mortgage, general financial services, and more.”

Through the myAutoloan.com auto financing marketplace, applicants can receive up to four auto loan offers online, in real time, and can arrive at the dealership with check-in-hand, ready to buy. Consumers can also benefit from the company’s Preferred Dealersm network of participating franchised dealerships.

“Our Preferred Dealersm partners understand the needs of our customers and they fulfill the customer’s requests for online auto financing, fair pricing, and the highest levels of service,” said Dale Peterson, President of myAutoloan.com. “Our customer experience is very positive and scores high in our survey results, enhancing the ‘Powered by’ partners brand.”

Visit www.myAutoloan.com or call 866-625-2668 to:
* Get more information about “Powered by” auto financing
* Learn about how myAutoloan.com’s Preferred Dealer Program generates auto leads
* Get more information on how Preferred Placement® technology can add value to the auto financing process

About myAutoloan.com
myAutoloan.com is a subsidiary of Horizon Digital Finance, L.L.C., and a nationally-licensed direct-to-customer, Internet-based auto financing marketplace utilizing Preferred Placement technology and processes. Preferred Placement helps consumers obtain auto financing with real lenders providing real loans in real time. Preferred Placement also matches approved and qualified customers with participating qualified franchised auto dealers through their auto lead generation program called Preferred Dealer. Horizon Digital Finance and myAutoloan.com are quickly becoming recognized leaders of the online direct-to-customer lifestyle financing process by providing innovative technology-driven solutions. They are located in Irving, Texas.

“E-contracting is quickly replacing paper-based, financing processes across auto-dealers in the U.S. By 2007, it will be mainstream,” said Michael Laurie, vice president and co-founder. “Lenders need an electronic vault management solution for managing and storing the electronic contracts that are starting to appear from auto dealerships. Without such a solution, lenders will not receive full value when securitizing or selling loan portfolios containing e-contracts. Lenders need to manage the electronic vaulting of e-contracts with as much care and control as they do with their paper contracts today.”

ApproveIt Transferable Records Manager enables auto dealers, lenders, document custodians and investors to maintain an electronic financing process, while protecting the enforceability and security interest of the electronic contracts. The solution provides a secure method for registering and transferring electronic contracts between e-vaults with the assurance that they are the authoritative copies. Complying with Revised UCC Article 9, Silanis’ solution ensures that only the secured party or its designated custodian can transfer or store an authoritative copy within the system and that it remains uniquely identifiable at all times.

As an enterprise solution that is designed to support the way financial institutions operate today, ApproveIt Transferable Records Manager gives lenders the flexibility to take custody of and store electronic contracts in their own secure, electronic vault where they maintain management and control. ApproveIt Transferable Records Manager is also ideal for document custodians and auto finance aggregation platforms since its unique registry architecture allows the electronic contracts to be segregated into sub-groups and stored in their own corresponding e-vaults for management and tracking. Because the system’s multiple, distributed e-vaults are supported by a common management structure, deployment and administration costs are kept to a minimum.

“Over the last five years, Silanis has worked closely with some of the financial industry’s leading organizations to translate their requirements into enterprise solutions that support and improve upon their established business processes,” said Laurie. “ApproveIt Transferable Records Manager is the only solution on the market to deliver on all of a financial institution’s enterprise requirements.”

A founding member of the Electronic Signatures and Records Association (ESRA), Silanis also participated in the Electronic Financial Services Council “Standards and Procedures for Electronic Records and Signatures” (SPeRS) drafting committee. Silanis is also a participant in the ASC X9 sub-committee for standardization of electronic contracting for the automobile finance industry including the forthcoming standard for the transfer of location of electronic contracts. In addition, Silanis solutions have also been subject to legal review in regards to enforceability under ESIGN and UETA, as well as legal control of transferable records under Revised UCC Article 9. Silanis customers include leading service providers and lenders to both the auto finance and mortgage lending industries.

About Silanis
Founded in 1992, Silanis Technology Inc. is the largest and most experienced provider of electronic signature solutions. More than 1,100 government and commercial organizations, representing two million users, depend on Silanis’ solutions to accelerate operations, improve service, and reduce costs. The company’s solutions not only eliminate the inefficiencies of paper, they provide reliable and auditable business records needed to demonstrate compliance with applicable laws, standards, regulations and policies. www.silanis.com.

Auto Financing 101 has some good info about financing a vehicle if you’re a student. I’ve been in this situation a while back and really wish I had a little bit more information before I bought (leased) my Toyota Corolla back a few years ago.

For college and high school students thinking about buying a car or truck for the new school year, a first step should be obtaining an understanding of how the vehicle financing process
works, according to AWARE (Americans Well-informed on Automobile Retailing Economics), a national consumer education campaign sponsored by members of the vehicle finance industry.

Students may want satellite radio and a GPS system, but that’s often out of financial reach and could very well get a young automobile buyer into economic trouble
“For students who choose to finance their first vehicle, AWARE’s Web site – www.autofinacing101.org – should be ‘required reading,’ because it can help make the difference between a purchasing experience that builds upon long-term financial goals versus one that detracts from them,” said Eric Hoffman of AWARE.

To help students, and their parents navigate the auto financing landscape, AWARE urges students – and their parents – to discuss, and come to an agreement on, the following before buying a car or truck:

• Know what you can afford: Determine what type of vehicle best meets your needs, set a realistic price range, and develop a comprehensive budget for owning and operating your car or truck.

• Decide how you’re going to pay for it: Some first-time car buyers purchase a used car or truck with cash they’ve saved or borrowed from a family member. Others, however, work on their own or with their parents to finance a vehicle through a bank, credit union, or at a dealership.

• Review your credit report: To know what creditors will see, obtain a free copy of your credit report. Plus, this will allow you to correct any errors you find.

• Comparison shop: The auto financing industry is highly competitive, so use the marketplace to your advantage by comparing annual percentage rates and other financing terms from multiple sources, such as banks, credit unions, and auto dealers.

• Know Your Stuff: Make sure you are familiar with common terms you’re likely to hear or read in the course of purchasing or financing a vehicle, such as down payment, fixed- and variable-rate financing, and on- and off-site financing. Many of these terms can be found at www.autofinancing101.org/resources/glossary.asp.

• Negotiate: This finance rate you are offered is negotiable, as well as the price of the vehicle.

• Understand the value and price of optional services: Examples include credit insurance, guaranteed auto protection, and extended service contracts. If you do not want such services, do not sign for them.

• Read any contract carefully before signing it: Ask questions about anything you do not understand.

• Make your payments on time: Late or missed payments incur late fees and can even cause your vehicle to be repossessed, permanently. A bad payment record will also appear on your credit report, damaging your ability to get credit in the future.

AWARE also stresses the importance of distinguishing between wants and needs. “Students may want satellite radio and a GPS system, but that’s often out of financial reach and could very well get a young automobile buyer into economic trouble,” Hoffman said. “Instead, students
should concentrate on financing a safe, reliable car that is
economical to operate, repair, and insure. Understanding these differences is the first step to building a strong credit history for the long term.”

AWARE was formed to build a greater understanding among consumers about how auto financing works. The group aims to ensure that potential buyers of new and used autos have the tools and resources they need to successfully navigate the auto financing process. AWARE focuses exclusively on educating consumers on vehicle financing in a web environment free of advertising or lead generation sales tactics.

For a listing of AWARE’s membership, please visit www.autofinancing101.org.