CAR ARTICLE

Car Dealers - Friend or Foe?

Buying and selling a car - for most people their second biggest asset - is a very emotive experience and most of us have a story to tell about the last time we bought or sold a car.

Why is it then that Car Dealers, the very people that depend on your custom, don't do more to help? Or is this changing?

Is the picture of Boycie or Arthur Daley trying to sell you a car and rip you off on your part exchange still true today?

Motor industry commentator John Sexton writes: I'm lucky enough to be able to speak from both sides of the fence, working in the motor industry for some years and having experienced buying and selling cars as I like to change mine regularly.

Dealer showrooms and the Dealer experience have changed a great deal in the last decade. Lots of effort has been made to make the environment more family and female friendly.

However, the most notable change has been the sales processes that are used in these modern dealers. The sale is very much geared towards the finance and additional products and not the car itself.

What may surprise a lot of people is that there is usually a much smaller profit margin in the sale of the car (or the 'Tin') that there is in the finance, gap insurance (An insurance policy that covers the GAP between what an insurance company will pay out in the event of a total loss and what the car is actually deemed to be valued by the insurance company at the time of that loss), warranty and credit insurance.

With that in mind then I recommend that anyone looking to purchase a car from a dealer do their homework before they enter into the buying and negotiation stages.

These are just a few simple pointers:-

1. Know the value of your current car if it is to be considered for a part exchange. Get it valued at several dealers.

• Try dealers that have your current car manufacture and those that do not.
• If your car is more specialist don't just try a specialist dealer as another non-specialist dealer may want your old car to add some interest to their lot.
• Look in auto-trade magazines to price match.
• Use Glasses guide , this is like Parkers , as an indicator (the dealers use the same guidelines)
• At all times compare 'apples for apples' ie. like for like.
  

2. Know the value of your new car.

3. Research and understand all the finance options that are out there.

• Establish the best deals before you visit the dealer. They will at some point steer you towards their own finance or business manager to discuss their own finance options.
• Understand the interest rates and how they are calculated.
• Work out the best APR (The annual percentage rate (APR) is an interest rate that is different from the note rate. It is commonly used to compare loan programs from different lenders)
  

4. Research the additional products you are likely to want. Use the internet to price the products. Do all this again before you visit the dealer.

Hopefully you are now armed to the teeth with information and ready for action.

Remember to take control of the sales process as soon as the smiles, handshake and offers of coffee are over.

Enjoy the experience and the end result!