Have you ever seen a car dealership ad that has flashing, appealing prices on your t.v. set while the announcer speaks 90-to-nothin' about how much you can save? It seems more and more of car and truck commercials are heading that way during the end of the 2007 model sales. Deals are about to start popping up now that the 2008 models are beginning to roll in. Dealers entice consumers with their "spectacular" deals that "no one else" has because they are the most amazing dealership in the whole country. (Aren't you lucky you live near them?!)
Below is a list, as originally written by Eric Peters on aol.com, on what to look for when you are wanting to buy a vehicle with one of these deals. Don't forget to catalog your vehicles and any information that needs to be easily accessible to you on iTaggit.com (with your setting on private of course).
"Offer only available in FLA, GA, SC... " (and so on).
Many incentives offered by the automakers are regional -- meaning, if
you don't live in one of the areas where the deal is good, the deal is
not available to you. The same new car prices might be $1,500 less (or
more) just by crossing the state line.
"All estimates are computed on the basis of a 10 percent down payment..."
Some financing deals are contingent on things like the buyer coming up
with a predetermined cash down payment. In the example above, you'd
need $4,000 in cash at the time of sale to take advantage of the
advertised low-rate financing on vehicles with a new car prices of
$40,000. If you don't have the cash down payment, they may stick you
with a higher finance rate.
"Offer not compatible with other offers..."
This means you may not be able to get both low-rate financing and "x"
dollars cash back. You have to pick one or the other. It's important to
run the new car prices before you are in the pressure cooker of the
dealer's store, too. This way, you'll know ahead of time whether it
makes more sense for you to go with the lower-rate financing -- or the
rebate.
"Dealer participation may affect savings... "
This means the offer's contingent on the dealer's "participation" in
the program (rebate/cash back, special rate financing, etc.) being
advertised by the automaker. Remember: Dealers are independent
operations; they may sell Fords or Hondas,
etc. -- but you are not dealing with Ford or Honda, per se. Be sure the
dealer you're negotiating with is, in fact, participating in the
rebate/cash back deal you saw on TV. He may not be. Don't assume he is.
"For Bonus Cash, buyer must take retail delivery by ..."
As implied, the deal on new car prices is only good if you buy the car
before a specific date. This can put pressure on the consumer to make a
snap decision -- or purchase a car "off the lot" that may not have all
the features and equipment (or color) the buyer wanted, etc.
"Estimates do not include the cost of transportation and handling charges, dealer prep, labor..." This is a potential loophole big enough to drive a Hummer
through. The new car prices you thought you were getting could very
well turn out to be nothing like the new car prices you actually end up
getting -- if you are not very careful. Insist that every charge/fee
associated with the proposed purchase be clearly spelled out, in
writing, before you commit to buy. "Dealer prep" alone can add hundreds
to the bottom line -- negating any savings you may have expected via
the "cash back" lure that got you into the showroom.
"Not all buyers will qualify..."
Most finance offers have this little caveat somewhere in the fine
print. If you are a young/first-time buyer -- or have less than
exemplary credit -- that 1.9 (or lower) finance rate you were counting
on may be unavailable to you. It's a good idea to check alternate
sources for financing -- such as a bank or credit union -- just in case
the deal being offered by the automaker's finance arm won't be extended
to you.
"Residency and other mileage restrictions may apply..."
This means the offer might be contingent not just on where you happen
to live -- but also on how many miles you drive annually (lease
contract). It doesn't do you much good to get a great deal on a lease
if your annual mileage exceeds the maximum allowable -- at which point
you'll get whacked with additional charges. It's always best to
over-estimate your annual mileage -- just to be safe -- when it comes
to lease contracts.
"Vehicle shown may contain optional equipment available at additional cost..."
In other words, what you see (in the ad) may not be what you get (at
the dealer). Be sure the car you want -- with the equipment and new car
prices you want -- is in fact available under the terms of the offer. A
great deal on a car you don't want isn't much of a bargain.
"Bonus cash offered on eligible vehicles must be financed or leased through (the automaker's captive finance arm)"
This means that in order to get the offered cash back/rebate, you have
to finance the new car prices through the automaker's own finance
company (Ford Credit, GMAC, etc.) rather than a credit union or private
bank. You may also not be able to get the cash back if you pay cash for
the vehicle. Basically, the automaker is looking to recoup the "cash
back" by making money from you via interest payments. It may still be a
good deal for you -- or not.
The key to negotiating the fine
print with new car prices is to take the time to read and understand
every clause, caveat and potential loophole before you sign anything or
cut a check. To read more vehicle news or articles written by Eric Peters, check out AOL Autos.
