Tips on Buying Cars: new car, scum of the earth, honda fit

Question
HI,
I am planning on buying a new car. I would appreciate all the advice you could give me about the going to the dealer, making the purchase, anything to make the process easier and enjoyable. I am thinking about  buying a Toyota Matrix or a Honda Fit. Anything you could tell me about these cars would be helpful ,also.
Thanks for your help.
Pearl

Answer
Pearl,

Thanks for your question.  I appreciate the opportunity to help you out.  There are several things I would tell you.  First there is never as much profit in small cars like that as the public thinks.  I would go to edmunds.com and look up the current market value of those new cars.  Also understand that the dealership deserves to make money on the car as well.  Be reasonable with your request on the price that you want to purchase the vehicle for.  Simply walk in and tell your salesperson that you understand that they need to make a profit, you just don't want them to pay the mortgage on you and you alone.  Most of the time before incentives the amount of profit in small cars that MSRP would be anywhere for $1000 to $1400.  Now understand that Honda's typically don't have very many incentives on them, and the Matrix usually doesn't have very much.  Get preapproved by your bank or credit union before you go, and give the dealership a chance to beat your rate and earn your business, because most times they can.  Don't walk into the dealership with a chip on your shoulder, just walk in there and be happy to be getting a new car.  Do your research on what you think would be a fair price for the car, and be a little flexible on that number, but not a lot.  If you want an extended warranty get one, if you don't - don't.  Don't be pressured into anything, just relax and have some fun, and tell your salesperson that, and tell your finance manager that.  They will have fun with you, and appreciate the fact that you aren't treating them like the scum of the earth that most people treat them like - even as unfair as that is!

Hope this helps.  If you have any questions during the process, ask me and I will be more than glad to walk you thru it.

Thanks - JB