• Not dealing with reputable dealers
• An aversion to negotiation or confrontation in which the buyer seems to be at a disadvantage
• Emotion overtaking logic and knowledge

The need to do business with the most reputable dealers cannot be overemphasized. A customer who is cornered by a high-pressure salesman demanding an immediate signature on a purchase contract doesn't do much to build confidence in a transaction. Conversely, the knowledgeable, helpful salesperson who seeks to meet a customer's needs can make car-buying a pleasure. ABCD is happy to refer you to quality dealers.

Understandably, the most prospective auto buyers are intimidated by negotiating in a situation where they feel the auto dealer has superior knowledge

Emotions can run high when buying a new car, supplanting reason. The size of the investment required in buying a new car is such that it is no place for pure impulse-buying. Add lack of knowledge and this compounds the problem. Unhappiness is just as likely with a good deal as a bad one, because the buyer simply doesn't understand how cars are priced.

The Auto Pricing Structure
The sticker price (Manufacturer's Suggested Retail Price or "MSRP") on a new car is a dealer's asking price, which represents a mark-up of perhaps thousands of dollars. On the other hand, the invoice price is the amount the dealer is billed for the car by the manufacturer. This price is normally before any of the "holdbacks" by the manufacturer, which constitutes a rebate to the dealer of a few hundred dollars. Purchasing a car at a modest amount over this price is usually a fair, equitable price. It is far below MSRP, but allows the overhead, and many other business related expenses.

The following are some easily remembered tips when buying a car (or truck), which if followed will assure your getting a good deal.

DO YOUR RESEARCH. Read any automotive magazine or Consumer Reports on trends in automobiles. Don't limit your possibilities by having a particular bias. Think in terms of matching your needs and brand name desires to car makes. Check with your insurance company about the costs of covering those makes and models. Obtain pricing guides or get information on invoice pricing from ABCD Buyers Club. ABCD has access to the Black Book new and used invoice guides (monthly publications) as well as The New Car Cost Guide (published six times per year). This is a free service to credit union members. Simply call 301-261-2227.

VISIT REPUTABLE DEALERSHIPS. The first visit should be to test-drive the makes and models you have chosen through your research. Try to limit this first visit to 45 minutes. Take home brochures and literature to compare various models. Although buyers usually receive better attention when well-dressed, leave your money and need to impress at home. Don't be tempted to buy a vehicle on the spot. Try to keep your emotions under control

TREAT BUYING A CAR AS A CASH PURCHASE. This eliminates added tensions and saves time at the point of sale. Getting a pre-approved loan through your credit union gives you the psychological advantage of telling the salesperson you intend to pay cash for the vehicle.

TAKE ADVANTAGE OF EXCLUSIVE AUTO SALES SPONSORED BY YOUR CREDIT UNION. Reputable car dealers commit to specific pricing for such sales, thereby giving members the opportunity to purchase an auto at a fair price without the need for extensive negotiation.

NEGOTIATING TIPS. If you are not participating in your credit union's sale, the following are guidelines in negotiating with the dealership: The dealership you select should be one where you feel comfortable with the sales person as well as the management. If you don't, walk out. Try to visit the dealership during low-volume times and certainly not when you are tired. Armed with the pricing information, ask the salesperson what his/her bottom-line price is on the model you have selected. If they dare to ask you what you are willing to pay right now to "drive the car home", respond with "The invoice price". It may be that the dealership will show you a copy of the factory invoice. A small profit over that price is customary. ABCD can provide some guidelines for you on that subject. Ask the dealership to show you the service department. Do the customers seem happy? Does it look well-run and clean? Once you have decided on price, ask the salesperson to inform the finance department that you are paying cash and you do not want after-sale marketing. This helps you avoid sales pitches on extended warranties (which we recommend you don't buy), service contracts, and the like.

TAKING DELIVERY. Don't take possession of your new car at night. Spot delivery is iffy as well. It is better to have the dealership check it over thoroughly and for you to pick up your new car in a day or so.