CAR BUYING EDGE FAQ

Answers to some of the common questions you might have that you won't find anywhere else.

1. How do I read a factory invoice?
   Nine times out of ten, you'll never see the correct invoice at a dealer. The most important thing listed on an invoice is the "holdback" amount and the dealer is going to white out that part of the invoice before he shows it to you. Also, every single manufacturer has a totally different invoice layout...if you follow my advice to the tee, you'll get the best deal regardless if you see an invoice or not.
   
   
2. What do I do if the dealer wants to wholesale my car?
   Basically, you neither win nor lose whether the dealer wholesales your car or not. The dealer is going to give you the same amount of money for your trade-in whether it goes to the wholesaler or not. If the dealer wholesales the trade-in, you don't need to do anything.
   
   
3. How do I calculate taxes, licensing, and fees?
   Taxes, licensing, and fees are different in all 50 states. Each state has different formulas and ways to figure these fees and taxes...also, some fees differ from county to county within the state. Take out the paperwork, which you've prepared by reading all the topics here at Car Buying Edge and break out your calculator.
   
   
4. Does my warranty have a $100 deductible?
   Read your warranty before you buy it! Pay special attention to the deductible and you'll answer your own question.
   
   
5. What you can do if you can't get financing.
   This is tough — if you can't get financing you're pretty much out of luck unless you have lots of cash. There really is nothing you can do. You could go to a "buy here pay here" lot, but by going to those kinds of dealers, it doesn't really help you build your credit back. Few, if any of those dealers report to the credit bureaus. But it is better than a bus pass or calling cabs.
   
   Alternatively, you might find someone to co-sign a traditional loan for you.
   
   
6. Do I need full coverage insurance?
   Anytime you finance or lease a car, you have to get full coverage insurance...The only time you can go without full coverage is when you write a check for the car and you own it outright.
   
   
7. Will an anti-theft device lower my insurance rates?
   Yes, in most cases, you will be able to get a reduction in your insurance rates by installing an anti-theft device.
   
   
8. Can I get an extended warranty on my used car?
   In most cases, you can get an extended warranty on a used car. No reputable company will write an extended warranty policy on used cars over ten years old. If you find a company that will cover a 10-year old car, run, do not walk, as fast as you can from that company.
   
   
9. Can I avoid the dealer's Finance Manager
   Not completey, but you sure can reduce the pain. Just bring a wad of cash to the dealership when you purchase your car. Seriously, if you pay cash, your exposure to the Finance Manager will be minimal. Another trick for avoiding the Finance Manager is to listen to him and every time he asks you to purchase an additional add-on for your car, just tell him that you have already made arrangements through a reputable, independent third-party. The Finance Manager can be your worst nightmare come true or an amusing part of closing the deal - but only if you come prepared and you buy NOTHING from him.
   
   
10. Is it true that a new car loses 75% of its value when I drive it off the showroom floor?
    Unfortunately, yes! You might be better off buying a late-model, certified pre-owned car. Some cars hold their value more than others. It's a simple matter of supply and demand, but we'll show you how to dig up new and used car prices and where to find the very best deal on your dream car. Of course, the more flexible you remain in your car search, the better the deal you can negotiate. You're in full charge, especially armed with the information available here at Car Buying Edge.
    
    
11. Can I get the real skinny on a used car or do I just have to take the dealer's word for the state of the car?
    You can find out all sorts of things about a used car. You can find out if the car is legitimate or stolen, if it's classified as a lemon, if it's been in an accident, it's full history, what repairs generally run for any specific car in your region of the country and much, much more.
    
    
12. What's the major advantage of purchasing a used car?
    If you do your homework, you can buy a late-model used car with similar features to a new car for far less. Manufacturers make significant changes to each model every few years. What that means is that no one but you will really know that a used car in superior condition is not brand new if you buy last year's model that looks like this year's model. You'll drive a new-like car for a used-car price.