By: Tyler Letson (pictured), Managing Partner, Mount Pleasant Chrysler Dodge Jeep Ram
Buying a vehicle is one of the largest financial decisions most people make, second only to a home. The car buying process can feel rushed and overwhelming. Navigating the glut of information available online and weighing conflicting advice usually leaves you wondering if you truly got a good deal.
The lowest advertised price online isn’t always the best deal, which feels counterintuitive, but it’s true. Understanding the details, what to avoid, which questions to ask and choosing where you buy can all make or break your deal.
Where Should You Start?
Today’s shoppers are more informed than ever. Manufacturers are encouraging dealers to standardize their pricing and improve their customer experience, but many dealerships are stuck in their old ways.
Before stepping foot on a lot, spend time reading reviews and talking to friends and family. Do customers mention surprise fees and pressure tactics, or do they describe a straightforward and respectful experience? Trust your instincts when you connect with a salesperson, transparency tends to reveal itself quickly through initial conversations.
Beware of Unwanted Dealer Add-Ons and Exorbitant Fees
One of the most important documents buyers often overlook is the dealer addendum. The addendum is displayed on the vehicle next to the window sticker and commonly omitted from the online list price. The addendum lists additional products that are preloaded on the vehicle such as nitrogen tire fill, door edge guards, tracking devices or vin etching.
These products are usually presented as “required” by dealers who employ old school tactics and can add thousands of dollars to the price despite adding little to no value. Buyers should always inquire about any of these charges and be empowered to decline anything they didn’t request or agree to.
Don’t Undervalue Your Future Service Department
Another often overlooked part of the buying process is a proper evaluation of the service department's staff, amenities and appointment availability. At a minimum, you’ll visit the dealership for maintenance and repairs while under factory warranty. Is the customer lounge, service drive, and repair shop clean and organized? Do they haveappointments readily available and offer express service? How about complementary services such as courtesy loaner vehicles, mobile service and recall work, and carwashes for life?
Details like these are worthwhile considerations, as they will impact your ownership experience and give insight into the way the dealer treats its customers after the excitement of the purchase wears off. Investing in the parts and service operation is a long-term strategy to build relationships that yield repeat and referral business.
Understanding the Numbers Beyond the Monthly Payment
Once you’ve narrowed down your vehicle search and landed on the one you’d like to own, take a moment to research comparable vehicles. For Used Vehicles, compare several similar vehicles for mileage, condition and options to determine the competitive set and establish a fair market value. Significant price discrepancies can reveal deeper concerns.
For New Vehicles, the MSRP (Manufacturer’s Suggested Retail Price) is clearly listed on the window sticker with an itemization of options and pricing. Rarely do vehicles transact at MSRP anymore. Rebates, dealer discounts, and incentivized finance rates can all affect the deal structure and impact the bottom line. Be sure to compare apples to apples when shopping similar vehicles between two dealerships to ensure you choose the best option for YOU.
Beyond All the Paperwork
It’s also worth considering who owns the dealership. Locally owned and operated dealers care deeply about their community and their reputation. There is added accountability when decision makers are on site, relationships are personal, and every customer interaction counts.
A vehicle purchase is often a very emotional decision, but slowing down to determine who you can count on, the true cost of ownership, and what to avoid in the fine print can alleviate a lot of unnecessary stress. The best deal should not be a battle, it should make sense today and leave you confident for years to come!