Mastering the Art of Buying and Selling a Car: Insights from a Dealership Veteran
Navigating the car-buying process can be daunting, especially when dealing with dealerships. Fortunately, Ray Shefska, with 43 years of experience in the automotive retail industry, offers a masterclass in understanding the ins and outs of buying and selling cars. His comprehensive guide ensures that you approach the dealership armed with knowledge and confidence.
A Shift in the Market
The landscape of car buying has changed dramatically in recent years. Ray begins by highlighting the current state of inventory. After the severe shortages during the pandemic, inventories are steadily climbing back to pre-pandemic levels, signaling a shift from a seller’s market to a buyer’s market. With more cars available, dealerships are increasing incentives to attract buyers—a prime opportunity for consumers to get better deals.
In the used car market, prices have also come down from their record highs. However, fewer lease returns and high-interest rates on pre-owned vehicles mean that certain models remain at a premium. Ray advises buyers to keep this in mind, particularly when shopping for two- to three-year-old vehicles.
Setting Your Budget
Before stepping into a dealership, it’s crucial to determine what you can afford. Ray introduces his “10% rule”: spend no more than 10% of your gross monthly income on car-related expenses, including payments, insurance, gas, and maintenance. By breaking down your budget and exploring financing options, you can identify a realistic price range that aligns with your financial goals. Tools like CarEdge’s budgeting resources can help you calculate total costs and compare vehicles.
Knowing Your Needs
One of the most overlooked yet vital steps in car buying is understanding your specific needs. Will the car be used for business or leisure? Do you need extra space for passengers or cargo? Ray emphasizes the importance of a “needs assessment” to ensure you select a vehicle that fits your lifestyle, rather than succumbing to persuasive sales tactics. For those considering electric vehicles (EVs), he suggests evaluating factors like charging availability and infrastructure before committing to a purchase.
Finding the Right Car
Once you’ve identified your needs, it’s time to search for your ideal vehicle. For new cars, Ray recommends using manufacturer websites to locate inventory nearby. For used cars, he suggests leveraging all available search tools and resources like CarEdge’s car search to access insights such as price history, time on the lot, and fair market value.
Mastering Dealer Interactions
Contacting dealerships can feel intimidating, but Ray offers practical advice to level the playing field. Focus on the “out-the-door” price—the total cost, including all fees and taxes—and avoid discussing monthly payments or down payments until later in the process. He suggests reaching out via email or phone to gather pricing information before visiting in person.
When selecting a salesperson, Ray shares a clever tip: call the dealership and ask the receptionist for a recommendation, pretending to be helping an elderly relative. This ensures you’re paired with a customer-focused salesperson rather than someone overly aggressive.
Negotiating Like a Pro
Negotiation is where preparation pays off. Ray encourages buyers to pit multiple dealerships against each other by collecting quotes and using them as leverage. By remaining respectful but firm, you can work toward a price that meets your expectations. Keep a written record of all communications, and remember that end-of-month negotiations often yield the best results, as dealers aim to hit their sales targets.
For used cars, understanding local market conditions is key. Researching price trends, vehicle age, and dealership policies can help you identify opportunities for negotiation. Don’t forget to request a pre-purchase inspection to verify the vehicle’s condition and use any findings as leverage to secure a better deal.
The Final Steps
Before finalizing your purchase, take the vehicle for a thorough test drive. Evaluate its performance on local roads and highways, and ensure it meets your expectations. When entering the finance and insurance (F&I) office, be prepared for upselling. Ray advises against making decisions based solely on how add-ons affect your monthly payment. Instead, request details on each product, including costs, coverage, and cancellation policies.
For those using outside financing or paying in cash, confirm payment details with the dealership in advance to avoid surprises.
Empowering Car Buyers
Ray’s expertise transforms the often overwhelming car-buying process into a manageable and empowering experience. His advice is tailored to ensure buyers save money, make informed decisions, and leave the dealership feeling confident.
Ready to take control of your next car purchase? Watch the full video on Ray’s CarEdge YouTube channel and explore additional resources like the FREE E-book on Deal School to become a savvy car buyer.
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