The information on this page should help you with your decision on how to buy a new car. But before we get into the main issues, let me say that buying a new car from our family of dealerships would insure that you received the best treatment, fairest deal and a terrific vehicle.
CHOOSING A CAR AND THE PLACE TO BUY IT
THE TEST DRIVE
STRUCTURING THE PURCHASE
THE PURCHASE PRICE
WHAT'S IN THE PRICE?
YOUR TRADE IN
DOWN PAYMENT
MONTHLY PAYMENT
FINALIZING THE DEAL
COMPLETING THE PAPER WORK
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How To Purchase An Automobile
We have found that the process of purchasing a car is sometimes intimidating. At Sierra we want your car-purchase experience to be relaxed, confident and enjoyable-just like your experience will be when you own the vehicle. We have therefore written this booklet to explain the process we use to help you purchase the car you want. We hope that by understanding what we are doing, you will be more comfortable with us so we can work together to make you happy. Remember we want the same thing that you want from your visit to sierra. We both want to find you the best car for you at the right price. The steps outlined in this pamphlet are a proven method of accomplishing this mutual goal.
Initially, our sales person will spend a little time getting to know you, and what you are looking for in an automobile. This also gives you the opportunity to get to know the sales person. It is important that you have confidence in your sales persons knowledge as well as his integrity. By taking a little more time in the beginning you will begin to develop a sense of confidence that you will be treated fairly and with courtesy, honesty and respect both before and after you purchase your vehicle. At the same time, our sales person will be getting information from you, which will help him or her to answer your questions. Once you and your sales person have gotten to know each other, you will begin to look at some of the cars. If you have a pretty good idea of what you want, selecting the cars to look at will be simple. If you're unsure, take your time and our sales people will be happy to show you as many cars as you like.
Your sales person will present the car by showing you some of its features, having you get a feel for the interior, and providing information as applicable. We may not be able to answer every question immediately, but your sales person will know where to find the answer promptly, you can expect a quick reply. If you identify one or more cars that you think you like, your sales person will make a photocopy of your driver's license (required by our insurance company) and take your a test drive. Your only obligation is a few minutes of your time. Your sales person will drive the initial part of the test drive. He or she can demonstrate the features of the car, and you can experience the ride and comfort as a passenger. About half way through the drive, the sales person will pullover so that you can take the wheel, if you so desire, and experience the driving pleasure.
The test drive is an extremely important part of your purchase. At Sierra we try to have each customer take a test drive in the vehicle he or she is considering, even if he or she has taken a test drive in the same type of vehicle at another dealership or is inclined to purchase that car without a test drive. There are several reasons for this. Each car is slightly different, those differences are always small, but they can be significant to some customers. We want you to spend a few minutes driving your new car before you make your final decision. This insures that you can get a feel for that car's individual characteristics to be sure that it is the right car for you. After the test drive, take some time to ask your sales person any additional questions you may have. You have the right to know facts about your dealer as well as the car you intend to purchase, discuss available options and accessories. Ask about our service. Make yourself comfortable with your choice of the car. We won't hurry you. By this time you should also be comfortable with your choice of a place to buy a car. The most important decisions will thus be behind you. Now you and your sales person will work together to find the best way for you to structure your purchase.
At this point, you may want to consider whether to buy or lease your new car. Consider your driving habits, the length of time you would want to keep your car and the size of the down payment you are willing to make. For many people, direct purchase is the best option. Others may find it more beneficial to lease. Ask your sales person to help you determine what is best for you. There are basically four elements that govern the cost and payment structure for the purchase or lease of a car. Your understanding of each of them will help your sales person help you to buy the best car for you at the best price. These four elements are: (1) The purchase price; (2) The net value of your trade-in; (3) Your down payment; and (4) Your monthly obligation. Before starting the specific discussion of the four elements of your purchase, your sales person will write down certain information to ensure that you are clear about which car you are discussing, and who the principals in the transaction will be. You may be asked to fill out a credit application at this point, as your credit is an important factor in the discussion.
The first element is the market price of the car and the additional items you want on the car (for example, a sunroof or a radio or floor mats,) and any manufacturer or dealer incentives or discounts, your sales person will write down each item and its price, so you can review the information together.
Many customers have a tendency to focus on one price when shopping for a new car. However, to make a meaningful comparison, look beyond the new car purchase price include in your comparison the amount allowed for your trade in, the interest rate on your financing, the cost of accessories, and the cost of any extended warranty, alarm, chemical sealant or other extras you purchase with your car. By manipulating these elements, a dealer can "give up" hundreds of dollars in the sale price of the new car and make that up and more in the other elements of the transaction. This means that one dealer can generally "beat" another dealer's new car price by making that revenue shortfall up in another part of the transaction.
At Sierra, we work with you on the entire transaction. Although we may not always have the absolute lowest price listed as the amount you pay for the car itself, we do promise you a fair deal at competitive prices on each and every element of the transaction. You will usually find that this gives you a better overall deal than you may have gotten from someone who might beat our new car price by a few dollars. And you also have the assurance that at Sierra, we will work to get you in the new car you want with only those accessories and extras that you really want.
Throughout the many years Sierra has been selling cars we have helped thousands of customers to purchase new cars and trucks. We have done this without pressure or guile, and with the promise that as a Sierra customer you can count on us to continue to work with you after the sale and throughout your ownership experience.
TAKE THE PRICE; ADD THE OPTIONS; SUBTRACT THE TRADE-IN; ADD FINANCE CHARGES AND ADD ANY DEALER EXTRAS FOR THE FINAL COST.
The next element is your trade-in. If you plan to use your trade-in as part of the down payment, we will need to have some information on your car. We will generally pay wholesale prices for your used car if you want to trade it in. Wholesale prices reflect costs of reconditioning, warranties, sales commission and sometimes financing exposure. Whether you want to trade your car in is, of course, entirely up to you. Many people want to use their used car as a trade-in to defray part of the cost of the down payment. If you want to do this, we will have to appraise it. We always have a qualified appraiser available and the appraisal is done at no cost to you. Generally, the appraiser will have to drive your car to determine the final appraised value.
Often you could sell your own car for somewhat more than a wholesale figure. However, there are some potential pitfalls and disadvantages in doing so.
Sierra offers you two alternatives;
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We will give you our best offer immediately.
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We will pay that amount for a period of two weeks after you buy the car. So if you try to sell it on your own and fail, you know we will still be a buyer, provided the car has not been changed or damaged.
A significant part of determining the net value of your trade-in is the amount necessary to pay off any outstanding loan on your trade-in. If we are unable to verify the exact pay-off figure, we will use the information you provide us to estimate a pay-off, then adjust any difference when the pay-off can be determined exactly.
The third element is the down payment. The higher the down payment, the more likely you are to secure an attractive or competitive financing rate. Your past credit history also has an important impact on your financing rate. For your own planning purposes, you should consider that a larger down payment will mean a smaller monthly payment.
The last element is the monthly payment itself. This is determined from the first three elements, with an interest rate applied to the amount you borrow. The exact interest rates will be determined when you finalize the paperwork with the finance manager.
As you work through each element, your sales person will write down the proposal to insure that each element is clear to both of you, and to the sales manager. When all of the elements are completed, your sales person will take the proposed offer to the sales manager, who will review the offer and decide whether Sierra can agree to the deal as proposed, or must suggest changes.
It is not unusual for the sales manager to suggest changes. The sales manager's job is to find terms that are mutually agreeable. He will work with your sales person to come as close as he can to matching the terms you have proposed. Sometimes this takes a little work, but be patient. It is in our mutual interest to get you the car you want and we will do everything we can to make that happen.
When you have finalized the structure of your purchase, your sales person will introduce you to our finance manager, who is responsible for preparing the paperwork for your purchase. He will introduce you to some options, such as an extended warranty, insurance to pay off your loan in case you are injured or killed, paint and fabric sealers for your car and certain other items that you may find useful to protect you and your new car. The finance manager has a wealth of information on these items and can help you to include them in your purchase if it makes sense for you. You should expect to spend between twenty and thirty minutes with the finance manager. f you have any questions about any aspect of the transaction, he or she can provide the answers.
You may take delivery of your car immediately after completing the paperwork, or later. When you take delivery, your sales person will review all of the paperwork with you, help you organize it, and answer any questions you might have. He or she will acquaint you with your owner's manual, and review each element of the transaction. Of particular importance in the delivery of your car is the sale's person's explanation of the warranty and his or her demonstration of the features of the car. Your sales person will take you on a short orientation drive to give you another opportunity to get answers to any questions you may have.
Conclusion
When you accept delivery of your new car, we consider that point to be the beginning of our relationship. We will try to stay in touch. You should expect to hear from us several times in the first few months because we have a continuing interest in your satisfaction with your new car. We want you to count on the Sierra promise to ensure that your ownership experience is a pleasurable one.
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