Driving home a deal
Buying a house or car are the two most expensive purchases most people make, says Bill Goldberg, president of Auto Advisors, a car information and buying service. Yet buyers make costly mistakes they could avoid. Here are his shopping tips:
Line up financing. Before you shop, get preapproved for a loan by a reputable lender or credit union. Know what you can afford, before you get bamboozled into accepting the salesperson’s financing, which nine out of ten buyers do. “A little effort and inconvenience up front, can save a lot of money,” Goldberg says.
Don’t disclose your monthly payment. That’s the kiss of death. Focus on the price. “The minute you reveal your ideal payment, they’ll work all kinds of financing tricks to back into that number and finance you into your grave.”
Get an inspection. Once you find your house or car, and agree on a price, the work isn’t done. You need to a pre-purchase an inspection from an independent, certified home inspector or mechanic. Be prepared to walk away if something big turns up.
Get it in writing. An email chain is much better than a dialogue when hammering out details and holding salespeople accountable.
Beware of upgrades. Whether granite counters or fancy wheels, you can often do better buying them yourself after the deal. Goldberg says his $89 Garmin works better than any $2,000 navigation system.
Don’t get in a pickle. Many buyers need to unload a home or car before they buy another. If you buy a home contingent on the sale of your home or depending on a trade-in, you lose some leverage. The ideal position is to buy with no baggage, so you control the timing and the shots.
Act like a parent. Because I wasn’t picturing myself driving down the road in this shiny vehicle, I could focus on what really mattered: safety, mileage, longevity and price.
