Black folks, beware when buying a Car!

[DBlack]

Found this Excellent article on BV.com. Once again it shows blacks getting paid when purchasing goods.....


Buying a Car? Stay in the Driver’s Seat

By Jeff Fortson, Special to AOL BlackVoices



According to Target Market News, a data mining and marketing company, African Americans spend about $47.5 billion every year purchasing cars and servicing them. As a whole, car buying is the third largest expenditure for all Americans. And every year, African Americans account for about 30 percent of all new vehicle purchases.

That's impressive. But while statistics show incredible muscle in African-American buying power, for the past four years, there have also been numerous allegations and lawsuits claiming that blacks, women and other minorities pay far more for cars than their white and male counterparts. African Americans typically also get stuck with the worst deals on interest rates. Knowing this, is there any way to ensure you'll get a fair shake when you purchase your next vehicle? While there's no fail-safe set of steps you can take to prevent getting hustled at the dealership, consider these things before you even step on the lot:

Are you a payment buyer?
Let's assume you have $300 a month allocated in your personal budget for a car payment. This means, on a weekly basis, you can comfortably afford the car payment for a $15,000 Toyota Corolla as well as the monthly rate on a lease for a $30,000 Jaguar X-Type. The difference between those options, though, is the amount of money you'll end up paying over the life of the loan or the lease. In the long run, you’re better off buying the less expensive car at the price you can afford instead of leasing the luxury car that will require you to pay much more than the cost of the car. Plus, you won’t get any collateral on the value of the vehicle. If you insist on the Jaguar anyway in spite of your "beer budget," then maybe you're better off leasing the Jag than financing it.

Don't rule out buying a new car.
According to the best-selling book, 'The Millionaire Next Door,' a number of millionaires purchase used luxury vehicles because of the cars' quick depreciation rates once they're driven off a car lot. Yes, you can save a lot of money on that next-to-new model but in light of the lowered interest rates we have enjoyed for the last four years, many people have begun to rethink that school of thought. Does it make financial sense to purchase a pre-owned vehicle without a warranty (or with a very limited warranty) at a jacked-up interest rate? Wouldn’t it be better to get a new vehicle with a full warranty at 0 percent interest and in some cases a rebate? Always work out the numbers on our car-payment calculator!

Check your credit and secure a loan before going to the dealership.
Before going to purchase your car, check your credit score and get pre-approved for a loan that makes sense for you. A 1999 study conducted by Freddie Mac indicates 34 percent of African Americans have lower than the median credit score. You stand a better chance of securing a lower interest rate if you shop around for a car loan instead of settling for one a lender affiliated with your dealer might provide. If you know how to work your deal, a low credit score doesn't necessarily mean you’ll receive higher interest rates. A high credit score, likewise, does not ensure that you'll get the low interest rate you deserve. In many cases, the interest rate is more important than pricing especially when buying limited new products such as the Acura RL, Toyota Solara Convertible or Chrysler 300C.

Check Kelley Blue Book prices. Kelley Blue Book, which lists the invoice prices on cars, will give you a sense of how much more you’re paying for the car verses its wholesale value price. You can find the book at bookstores, most car dealerships or get the information online at www.kbb.com.

Finally, get a budget and stick to it. Know what you can afford, research the vehicle you want, examine insurance rates, check maintenance costs and consider an automotive broker. It's easy to be seduced by the beauty of a car you can't afford when you walk into a dealership, so stay focused on your maximum price. Also, consider working with dealers and individuals who reinvest in the minority community, your church or organizations important to you.

With the proper planning and preparation, you can spend less time asking God (or some other higher power) to help you pay your car note every month!

About the Author
Jeff Fortson is an Atlanta-based automotive consultant who holds a car-buying workshop to aid minorities with purchasing vehicles. Visit his Web site at www.jeffcars.com.
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[Cheese Biscuit]

Great article DBlack. I have never purchased a vehicle for personal use. The oldest of my 3 brothers always does his homework before purchasing a vehicle. To my knowledge, I don't believe that he's ever been blind sided by a dealership.

[charliekilothree]

Very good post. The problem that a lot of us have when car shopping is not know how to play the game. The salespeople get trained on how to work a buyer. The first question they ask you is if you have a trade in. Always tell them no even if you do have one. Keep all transactions separate. Find out what you will pay for the new vehicle before springing the I changed my mind about a trade in. That way, you'll know how much you really get for your trade.

Don't let them know that you must have a certain car. They have you then. You'll be like putty in their hands.
Be prepared to walk away. They wil try to scare you into committing right then and there. If you don't like the price quote, walk out the door. If they really want to sell it, they will either stop you or call you at work or home to get you back to the dealership.

Be prepared to play hardball. Don't fall for all the add ons they put on the sticker. If the car has some kind of paint protection that costs $500, that's a ripoff that you should not be willing to pay for.
Once you tell the salesperson what you're willing to pay, they will play this game with you. "Let me check with my manager." Tell them they can talk until they're blue in the face but if they can't meet your price, don't bother wasting your time with the back and forth game. Onec they know how hard you are willing to negotiate, they will either respect you or lose a sale. Depending on the economy, they may have an overstock of vehicles that are slow moving. They don't want to starve in times like that so they are more willing to sell at your price.

It always helps if you do your homework on the vehicle you want to purchase ahead of time. I usually get a printout from Consumer Reports that lists all of the prices the dealer pays for the vehicle including factory invoice price. If you are armed with facts and know how to haggle, you should come out ahead of the inexperienced buyer. It does take practice to become good at it.

[JamieC]

What CK3 said is so on point. And also remember, if you sign that contract with a significant other and things go aray between the two of you, The only way you can get out of that contract is if that vehicle is re-financed. Read the fine print or leave town with the quickness!!

[HoOdPrInCe]

thanks alot for this article DBlack!