Pat Goss' Tips & Expert Advice
Avoid Being Overcharged For A New Car
Once you have determined both the new car you want and the price you are willing to pay, you should be aware that the negotiation with your dealer isn't over. There are plenty of ways he or she can still make a few extra bucks at your expense. Keep in mind that your sales rep will likely want to add-on new car charges before you sign that dotted line. Also keep in mind that, when compared to a sticker price of at least $15,000, these additional charges won't seem too high as they may only range from $20 to $200 — so you should be extra careful when agreeing to them. Here are examples of extra charges:
- Dealer Prep: For an extra $100 to $200, some dealers will tell you that they can examine the vehicle front to back and determine and fix any problems. Dealers can get paid extra for this service from a manufacturer. A new car should be warrantied against such flaws so this is likely money you should keep in your pocket.
- Rust-proofing: A sales rep will most often offer this service for a couple hundred bucks. After all, you're paying $20,000 for a new car, you want the best protection you can have, right? Not necessarily. Because of fierce competition among car dealers, manufacturers have been extending warranties to cover things like premature rust and corrosion. Your new car should already be well-protected against such a defect, or you should consider another model. Also, you can buy fabric protection items at a discount store and use them on the interior of the car.
- Miscellaneous Charges: These include items like handling charges, closing costs and surcharges. Some of these items may be legitimate, but keep in mind they will be lower-price costs. Ask the dealer for a tangible benefit in writing before you agree to them.
