rare valuable cars – Buying a New Car? Valuable Tips on Your Trade and What Not to Do

Thursday, May 20th, 2010 at 6:47 am

If your in the market to buy a new or pre-owned vehicle from a dealership and have a trade, here are some important tips that will save you a lot of money and also serve as an education. First, before you go to the dealer, do the the research find out what your vehicle is worth. You can find this information on the web, by either going to KellyBlueBook.com or several other sites available. If you are using KBB, understanding the difference between wholesale and retail can cost you a lot, depending on the year, make, model and most important the condition of your trade.

A vehicle that has high mileage, body damage, older or in rough shape, will most likely end up at some auction to the highest bidder. The dealer does not want to assume any responsibility in the event of a warranty claim or spend any money to recondition the vehicle and putting it back on the lot. Therefore the vehicle will be sent to the auction and sold at cost or wholesale value. This value is determined from auction prices that Dealers receive weekly on current market conditions.

If your trade is clean, has low mileage and in good shape, chances are it will be retailed. It will be taken in trade, reconditioned, detailed and prepared for the next buyer. This will only happen if the dealer feels after all expenses he can make a healthy profit. The difference between wholesale and retail in this case can amount to several thousand dollars.

Another example of retail is the MSRP, Manufacturers Suggested Retail Price on the window sticker. Some brands mark their product up as much as $5000.00 or more.

Before going to the dealer, clean your trade inside and out, dashboards, vacuum floors, seats, trunk and get rid of any garbage or Items that doesn't belong in the vehicle. This alone will increase the value. Dealers will always pay more for vehicles that are well maintained whether old or newer.

Once you have selected the car you want to purchase, you are ready to negotiate the price. Leave your trade out. If the salesperson asks you if you are trading your vehicle in, tell him or her that you are not sure yet you might want to give to a family member.

Make the deal on the car you are buying, ask for the invoice if it's new. Work from the invoice price. Most dealers when they know you are trading your vehicle in, will start from the MSRP, and show you trade allowance. What this means is simply they will knock off a few hundred dollars or so from the mark up (the Profit) and add it to your trade. This way it looks like you are getting more. The way to get around this is to keep your trade out of the picture, make your deal then throw in your trade. You see now, there is no where to go other than Actual Cash Value, true value not the trade allowance trick. Your research now pays off.

Remember the tax benefit you will also save. For instance, if the vehicle your are trading in, is worth $10,000.00 to the dealer, taxes are calculated on the trade difference. So if the car you are buying cost $20,000.00, minus $10,000.00 for the trade you only pay tax on the difference of $10,000.00. The reason I mention this is if you are a few hundred dollars away from making a deal, and decide to sell the trade on your own because you believe your trade is worth more, you lose the tax break. Sometimes the amount is so little from your research price and what is allowed, you are better off to take the deal, the tax break will make up for it.

If for any reason you are uncomfortable with the numbers or have a problem because you don't understand the math, just get up and leave. Never feel embarrassed because you are not sure or understand. Ask for a breakdown of the numbers until it is crystal clear. I hope this information helps. Happy $avings.

These tips are just a few of many if you in the market for a new or used vehicle visit http://www.itsalluptoyoufirst.com For more follow the affiliate links the information can and will save you thousands why give it to the dealers when you can put it back in your pocket.

http://www.itsalluptoyoufirst.com go to the affiliate links this information will help you understand the car buying process and save you thousands you will use this information to buy any product. For pennies on the dollar educate yourself for ever. This information will give you the confidence to haggle with the best.

Article Source:

http://EzineArticles.com/?expert=Pierre_Bourgon