AGLS Exam 2 - FLASHCARDS - Car Buying part 2
What are the steps to buying a new car?
- Agree upon a new car price. 2. Agree upon a trade in price. 3. Select your financing
What is manufacturer suggested retail price (MSRP)?
The price set by the manufacturer. This is a “suggested” price.
What is fair purchase price?
The going market rate or price range of the car
What is invoice price?
What the dealer pays the manufacturer for the car.
What is dealer holdback?
Manufacturer pays 2-3% of the car price to Dealer after sale of car
Should you make the first offer?
No. The dealer should make the first offer
Should your first counteroffer be high or low?
Low
Who should you bring with you to help talk them down?
The hulk
Should you agree on a sales price before or after discussing rebates?
Before
What price should you ask for?
The out the door price (all costs)
What percent of the sales price is tax?
6.25%
What does a car’s title prove?
Proves legal ownership is documented with the state
What is a license?
Registration required by the state to recieve license plates
When is the best time to buy a car?
At the end of the year
What website do you use to find what your trade in is valued at?
Kelly Blue Book
Does a dealer offer less or more than a car would go for with a private seller?
Less
How do you determine your finance amount?
New car payment - trade in allowance - cash rebates = pre TT&L price + tax, title, and license - down payment = finance amount
What information does Carfax provide?
Lemon status, accident history, major repairs, lein and ownership history, warranties remaining, and mileage and miles per year
What is the vehicle identification number?
Combination of 17 characters (numbers and letters) assigned to a car during production
What are the steps to buying a used car if paying with a loan?
Get pre approved for a loan, negotiate and agree on the price, get check from lender, meet seller at DMV, trade check and title, check VIN on title, submit title registration and insurance, get a new title with lender’s name, and pay off loan and get a clean title
When will you have the most bargaining power?
At the end of the month (monthly bonuses), at the end of the year (yearly bonuses), and when the next year’s model comes out
What are ways you can fund a down payment?
Savings, trade in vehicle, family contributions, and cash rebates
What percent of a car’s price up front is a down payment?
10-20% of the car’s price up front
