5 Ways You're Buying a Car All Wrong

By not doing these things you are throwing away THOUSANDS of dollars!

It pays to be an informed consumer. Many people got out and make large purchases without doing any research at all.

What if you could be sure that you could save thousands of dollars with very minimal work?

Everybody is out for a dollar—the bank, the dealership and YOU!

They’ve done their research and you need to do yours. Never walk on a car lot unprepared again. Take a peek at the things you aren’t doing and start doing them today!

Meet the Author

My name is Keisha Stubbs. I’ve spent almost a decade selling cars and can tell you tips and tricks to make your buying experience smoother and much more enjoyable.

Buying a car should be a fun experience. Don’t let a lack of information ruin it for you.

I’ve shown countless people how to buy a car with little to no fuss and I can show you too!

Buckle up and let’s talk about the things you haven’t done, but will definitely be doing for your next vehicle purchase!

How I've Helped Others

A friend of mine lives over 1000 miles away, but wanted my help buying a car.

How am I supposed to help when I’m over 1000 miles away?

Two words: The Internet

I helped her:

• do research on the vehicle’s history

• find out the average price paid for that particular vehicle

• Find out the available interest rate for the vehicle

• Pay a great price!

Not everyone has a friend in the car business to help them through this process, but you

do—ME!

Let’s get you prepped and ready so you can stop doing the things below and start doing the opposite.

1: You shop at “buy here pay here” dealerships.

**“Buy here pay here” dealerships sell cars and effectively act as the bank by providing in-house financing, usually for buyers with bad credit. Interest rates can be higher than other lending options and customers make car payments directly to the dealership.

At some point in your life you’re going to want to have great credit history. Buying a car at a “buy here pay here” will NOT do that for you! They only report to the 3 major credit bureaus if you DON’T pay. So all those on-time payments are lost in the wind.

If you plan on financing a vehicle, buy it from a name brand dealership. They use banks that report all of your payments and increase your credit history and score with your consistent on-time payments.

Their markup and interest is astronomical! You will definitely pay more for the price ticket and overall with the high interest they offer. “Buy here pay here” dealerships are typically for people who have poor credit. If you cannot get approved through a traditional lender, I suggest you work on your credit before financing a car (blog post to come).

2: You don’t check for manufacturer rebates

Did you know rebates are posted on the manufacturer’s website? If you are shopping for a new or certified pre-owned vehicle the manufacturer always posts available rebates on their website. They also post what the customer needs in order to qualify for the rebate.

Save yourself some cash and look up rebates before stepping on the car lot.

You can also save yourself some negotiation time by knowing what discounts you qualify for right from the start.

3: You’re not looking up interest rates before you shop

Interest rates are also posted on the manufacturer’s website! It even says what credit score you’d need to have in order to get that rate! Super easy and simple to find!

If your score isn’t quite up to par ask a credit union! They will pull your credit, but it is better to know than to shop unprepared. They will tell you your credit score as well.

Credit unions usually have the lowest available interest rates (except for new cars).

Even if you don’t finance with the credit union, you can use that information to your advantage at the dealership. When they tell you what rate they can get you financed at, tell them you can get a better rate with your credit union based on your score and that if they can beat it you’ll go with them. Dealerships prefer to have you finance with them since they get a kickback from the bank. If they can beat the rate they will definitely do it!

Telling the dealer what your score is will lessen the amount of banks they submit your credit application to. You definitely don’t want your credit application sent to a million different places. It will lower your score.

***Some manufacturer rebates still apply even if you finance with your own bank. Read the fine print on the manufacturer’s website.

4: You’re not buying a car at the end of the month/year

Let me let you in on a little secret: rebates are the same on the first of the month as they are on the last day of the month.

What’s going to save you money is DEALERSHIPS HAVE A QUOTA TO HIT!

Their desperation means big savings for you!! Keep asking for discounts until they say no.

Buying at the end of any month will save you money, but buying at the end of December will save you more than you knew possible!

If you can hold out, do it. If not at least wait until the last week of the month.

***Pro tip- Shop 5 days before the last day of the month, ask for huge discounts. When they say no, go home. They’ll call you to work out a deal with you.

5: You’re Only looking at prices on the car lot

The internet is where you need to be! First, whatever car you saw on the lot most likely has a lower price on their website! Some dealerships have a “One Price Model”, meaning the lot price and internet price are the same, but most do not. Check their site.

Cross shop the vehicle you’re looking at. Be sure the equipment, mileage and condition are similar.

*** Some vehicle packages ie. sports package, can be a difference of thousands of dollars.

You can use a lower priced vehicle you found on the internet as your bargaining chip elsewhere.

Some dealerships have vehicles that are overpriced. Do not get caught out there buying a car for thousands of dollars more that you should have.

Their websites have the carfax. Do you like cars with 5 accidents and frame damage? No. Check the carfax before you head to the dealership. In some instances, damage is not reported. If all else fails, take the vehicle to a mechanic before you purchase it.

***Most reputable dealerships will not falsify vehicle history. They know it can turn into a costly lawsuit.

Have other car buying questions? Submit it here. I am happy to answer! Also, grab your copy of my book Close or be Closed. I detail even more insider sales information while incorporating my personal journey from impoverished teen mom to making more money than I thought possible.