WHERE TO BUY YOUR CAR

Where to buy your car

New Car Dealers -- Most likely you've already passed on the new car dealers. Generally this is the most expensive option, but on the plus side you will have minimal repairs. If you decide to go with this option, we highly recommend you read all the information in these car buying tips--it can save you thousands of dollars, especially when it comes to financing. Remember, you can go into a new car dealership with your own financing pre-arranged and negotiate a better price.

New Car Dealer-Selling Used Cars -- You've probably noticed that most new car dealers also sell used cars. You can find cars very similar to those that used car superstores sell--just without as much selection.

Used Car Superstores -- AutoNation has closed most of its dealerships, but Car Max and others are hanging in there. These dealers offer a large selection, but prices are high. Generally you won't find bargains here. If you are in the market for a new car, you may want to consider a car from these dealerships since they specialize in selling almost new cars at almost new prices.

Used Car Dealers -- Not all independent used car dealers are alike. Cars can run the gamut from almost new to the should-be-scrapped. The integrity of the salesmen can have just as wide of a spread. Go with your instinct. Be wary of dealers who specialize in high credit risk customers. Generally, these dealers don't operate service garages because they don't want to deal with the problems they’re selling. DO NOT GET STUCK IN A HIGH APR, LONG-TERM LOAN, WITH A CAR THAT WILL NEED REPAIRS IMMEDIATELY. Read the topic on Dealer Scams below for an in-depth look at the many ways dealers try to take advantage of buyers.

At Contemporary Automotive we understand that used car dealerships have a bad reputation. And we strive every day to be the exception to this rule. Many of our customers have come to us after having bad experiences with car buying or auto repairs. Take a look at our Customer Testimonials and see what makes us different from other used car dealerships.

Service Stations -- Some service stations have a sideline business selling used cars. The selection of cars is usually extremely small. Often the people running these businesses are very busy servicing cars. Make sure you get enough help buying your car.

Private Owners -- Wow! You thought there was a wide range of used car dealers. Private owners offer you the biggest risk. Unless you know the previous owner, you might be buying from a swindler. Even if you trust the seller, he or she might not know the true state of the car. At a minimum, insist on taking the car to a mechanic for an opinion before you buy.

AVOIDING DEALER SCAMS

The Shell Game -- Most people have some idea how the shell game works. But we've seen time and time again how even informed people can fall victim. Simply put, a car dealer makes profit on many areas of the business. They mark-up the price of the car, mark-up financing, mark-up extended warranties and "cash back" programs. They know you are looking for a deal so they artificially inflate the price and then give you an artificial discount. You may feel like you’re getting a deal on price or financing, but what they don't tell you is that you just paid more in other areas. This is called a “shell game.” Almost all car dealers operate this way. When a dealer is playing a shell game the buyer can easily get taken. Buyers generally concentrate on car price. After all, you're buying a car right? But by focusing solely on car price, you'll lose big time in other areas.

Keep in mind how a traditional dealer works. They label the car with a sticker price that is thousands above street value. They provide "cash back" which only reduces that over inflated sticker price. A deadline for this cash-back savings introduces a sense of urgency. Then they mix in financing.

Whether or not you buy from us, remember dealer financing is always optional. It is always best to obtain financing through your own source.

Now, we started by telling you that even people who understand the game get taken. It's because some dealers, especially new car dealers, have become very good at it. Their tactics are sophisticated and difficult to avoid—even if you educate yourself. In our opinion this is why survey after survey tells us that people do not like shopping for new cars. It's easy to see why people get anxious at just the thought of it. It's also the reason that new car dealerships are the most profitable and therefore cost you the most.

0% and low APR's From New Car Dealers -- So how can a new car dealership offer you such great financing? The truth is they can't. The adage holds true: if it sounds too good to be true, it is. They will make up the money they’re losing on financing by jacking up the price of the car. See how it works? The truth is if you have great credit, a lender other than the dealer (such as banks, credit unions and auto lenders) will give you the best rates without exception.

High Mileage Junkers -- You never thought this was possible. Many people who don't have great credit fall victim to these tactics. The dealer knows the buyer's back is against the wall, so they sell you a car on, "how it looks" not on how well it runs. They will stock some real heaps, over-price them and self-finance the car at astronomically high interest rates—just below illegal loan sharking rates--over 23% APR. As an example, when you add this 23% interest, to a car priced at $7500 your final cost will be $13,000! The moral is: be aware of your credit. Know your options. Stay within your budget. Don't get taken.

Roll Backs, Stolen Cars and Flood-Damaged Cars -- So far we talked about "above board" car selling tactics. While aggressive and unfair to buyers, they aren't illegal. Rolling back an odometer, selling flood damaged cars without disclosure and stolen cars are the illegal actions that have given the used car business a tarnished name.

Contemporary Automotive 5020 Cook Road Beltsville, MD 20705 Phone 301-937-4541 Fax 301-937-4495

email: salvage04@aol.com