Buying a Car? Here’s How to Not Get Screwed Over
Buying a car is exciting, but dealerships, hidden fees, and bad financing deals can leave you paying way more than you should. Whether you’re buying new or used, here’s how to get the best deal and avoid getting ripped off.
1. Set a Budget BEFORE You Shop 💰
Dealerships will always try to upsell you. To avoid overspending, figure out:
✅ How much you can afford – Use the 20/4/10 rule:
✅ Put at least 20% down (for a new car).
✅ Keep your loan under 4 years to avoid high interest.
✅ Your total car expenses (loan + insurance + gas) should be under 10% of your income.
✅ Buying vs. Leasing – Leasing might seem cheaper, but buying saves thousands in the long run.
💡 Pro Tip: Get pre-approved for a loan from a bank or credit union before visiting a dealership. This gives you negotiation power and avoids dealer markups on interest rates.
2. New vs. Used: What’s the Better Deal? 🤔
Buying New 🚘
✔ Latest features & warranty
✔ No previous damage/wear
❌ Depreciates fast (loses ~20% value in the first year!)
❌ Higher price tag & insurance
Buying Used 🚗
✔ More affordable
✔ Slower depreciation = better value
✔ Lower insurance costs
❌ Possible maintenance issues (if not inspected properly)
💡 Best Option? Certified Pre-Owned (CPO) cars offer the best of both worlds: lower price + warranty coverage.
3. Where to Find the Best Deals 📍
Not all sellers are the same. Here’s where to look:
✅ Best for New Cars: Costco Auto Program, TrueCar, local dealerships (compare prices online).
✅ Best for Used Cars: CarMax, Carvana, Craigslist, Facebook Marketplace (but watch for scams!).
✅ Best for Private Sales: Ask for maintenance records, meet in public, and use Escrow services for payment safety.
💡 Check Kelly Blue Book (KBB) or Edmunds to know the fair market price before making an offer.
4. NEVER Pay Sticker Price – Negotiate Like a Pro 💵
🚨 Rule #1: NEVER accept the first offer.
Here’s how to negotiate the best deal:
🔹 Start Low: Offer 10-15% below the asking price.
🔹 Don’t Mention Your Budget Too Soon: Let them make the first offer.
🔹 Use Competing Offers: Show quotes from other dealerships for leverage.
🔹 Be Ready to Walk Away: If they won’t budge, leave—most dealers call back with a better deal.
💡 Extra Tip: Dealers make more profit from financing than the car itself. They may lower the price but sneak in higher interest rates. Always compare rates before signing!
5. Watch Out for These Hidden Fees 🚨
Many buyers overpay because of sneaky add-ons. Look out for:
❌ Dealer Prep Fees – BS charge for “getting the car ready.”
❌ Extended Warranties – Usually overpriced; check third-party options.
❌ Rustproofing & Fabric Protection – Most modern cars don’t need this.
❌ Doc Fees – Some are legit, but anything over $100 is sketchy.
💡 Pro Tip: Ask for a “breakdown of all fees” before agreeing to anything.
6. Do a Thorough Inspection (Used Cars Only) 🔎
If you’re buying a used car, never skip the inspection!
✅ Get a Vehicle History Report (Carfax or AutoCheck) to check for accidents, title issues, or odometer fraud.
✅ Have a mechanic inspect it before buying (worth the $100-$150 fee).
✅ Test drive it: Listen for weird noises, check brakes, AC, and steering.
💡 Warning: If the seller refuses an inspection, walk away.
7. Final Steps Before You Buy ✅
Before you sign the papers, make sure you:
✔ Compare insurance quotes – Some cars cost way more to insure.
✔ Read the contract carefully – Watch for last-minute fees.
✔ Double-check financing terms – Dealers sometimes change loan terms last-minute (shady but legal).
💡 Pro Tip: If financing, use a loan calculator to check your total interest costs over time.
8. The Best Time to Buy a Car 🕰️
Car prices change based on timing. To save the most money:
✅ End of the Month/Quarter: Dealers need to hit sales quotas = better deals.
✅ December: Year-end clearance sales = massive discounts.
✅ Holiday Sales: Black Friday, Labor Day, and Memorial Day often have the best offers.
💡 Worst time to buy? Spring & early summer when demand is highest.
Final Thoughts: Don’t Let Dealers Play You 🚗
Car dealerships count on people being uninformed. But now, you know better. 💪
🚀 Steps to Avoid Overpaying:
✅ Get pre-approved for a loan before shopping.
✅ Research fair market value (KBB, Edmunds).
✅ Negotiate everything – NEVER accept the first offer.
✅ Avoid hidden fees and shady add-ons.
✅ Get a mechanic inspection before buying used.
Kind regards,
Daddy
