CHAPTER 4:

Signing on the dotted line

eets your a vehicle that m anaged to find e to start Once youve m alership, its tim about a trustworthy de needs at the salesperson u should chat to financial negotiating. Yo to protect your e plans in order rvic per work warranty and se to get all the pa tshell, you need interest. In a nu in order.

We all know that youre dying to get behind the wheel and head out on the road but its very important to focus on all the details. Knowledge is power First things first: you need to agree on a price. The more you know, the more you

can save. If you learn how much others are paying for the car you want, youll know immediately if the price youre being quoted is competitive. Do your research, recommends Joseph Cueter, operations manager for Fords Customer Service Division, Asia Pacific and Africa. By visiting chat rooms and reading

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u are s and blogs, yo online car forum paying t people are going to see wha ice range. and find a pr sticker y stressed, the As weve alread e window of ning th price thats ador be negotiable. om vehicles may showro s hat sort of sale Depending on w e anufacturers ar m incentives auto t bonuses alers, and wha offering their de eir sales ay be offering th the dealers m be willing to erson may staff, the salesp cessories. price or add ac lower the always have s staff Remember, sale to achieve and that they need targets e t to achieve thos they will do a lo targets.

$5,000
The amount you should budget for car maintenance over five years of ownership (if you wont have a service or maintenance plan).

Ask what kind of wiggle room is available, Cueter advises. Ask the dealer: What can you do today to make me buy this vehicle? Keep in mind that car sales operate in cycles: there are high and low seasons. When sales in your market traditionally drop off, such as during the Lunar Festival in China and Taiwan, Christmas in Australia and Tet in Vietnam, dealers may be even more motivated than usual to make a sale. There are other times when sales staff might be more willing to give customers a better deal. For example, at the end of the month, when dealerships are trying to meet sales quotas and companies are eager to post record monthly sales figures, you may have more leverage to negotiate. If you see lots of promotions and rebates being offered for a particular

model, thats a good indication that the salesperson might accept a lower price. Likewise, when car companies roll out new models, dealers will often be motivated to clear out existing inventory to make room for the latest product line-up. As Jill discovered when she went car shopping, there is nothing wrong with buying what is known as a previous generation model, especially if you can get it at a great price. When car companies launch so-called new models, they are generally one of two things: a completely new car boasting all sorts of fabulous new features known as a new generation model or a face-lifted model, which has had moderate changes. In the case of the latter, they do not offer huge benefits over the models they are replacing (much like many movie stars,

Fast facts
Do your research For more bargaining power, buy at the end of the year or month Read the fine print: dont pay for accessories or services you dont need Make sure there are no out-ofpocket expenses for warrantycovered repairs Compare the warranties offered with different models

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and tell you the repair is free of charge? Or when you go in, do you have to fill out a pile of paperwork, pay for the repair out of your own pocket and then submit a claim to be reimbursed under the warranty? Some companies out there make you do that, explains Cueter. When you bring your vehicle into a Ford dealership for a warranty-covered repair and provided the component youre after is covered, you dont have to pay anything up front and you dont have to fill out lots of paperwork to get the service youre entitled to. The warranty period can be extended for an additional fee. Warranty extensions do not have to be bought at the time of they have just had a nip and a tuck here and there). Jill opted for an older model when she decided to invest in a nippy hatchback because it had all the safety and technology benefits of the face-lifted model, but the exterior and interior styling was slightly different. However, this did not bother Jill one iota when she discovered that she could knock 10 percent off the sticker price. If you want to be the first one in your town to drive a new model, you will pay for the privilege, and Jill decided that this simply was not worthwhile. So, do as Jill did, and buy a previous generation car. After youve agreed on a price with the salesperson, check the invoice carefully for hidden fees. Make sure youre not paying for accessories or additional services that you dont want, need or order. Dont be afraid to query any items on the invoice. Remember: you are the one with the power! protect your investment Now that youve successfully negotiated a purchase price, its time to think about how best to protect your investment. All reputable manufacturers offer a warranty with new car purchases. A good warranty offers complete coverage and easy repairs at any dealership with no out-of-pocket expenses for warranty-covered repairs. Read the fine print carefully, as you would with any warranty, to understand the terms and conditions exactly. When you take your vehicle in for a warranty repair, will the dealer just hand you an invoice explaining what was fixed

purchase but, in most markets, you must purchase the extension before the initial time period runs out. The terms and prices of the warranty agreements generally cannot be negotiated. But you can shop around and compare the different warranty options offered for a variety of new vehicles. Consider the following example: one vehicle has a sticker price of USD 10,000, and comes with a one-year bumper-tobumper manufacturers warranty. The dealership will sell a three-year warranty extension for USD 3,000. Another vehicle has a sticker price of USD 12,500. It comes with a five-year warranty. Even though the

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The sticker price thats adorning the window of showroom vehicles may be negotiable.

first car boasts a cheaper purchase price, the second vehicle may be a better value for money proposition when you factor in the warranty coverage. So weigh up all these factors before deciding which vehicle to buy. Remember, for your warranty to remain valid, you must maintain your vehicle and adhere to the servicing recommendations of the manufacturer. For instance, the oil must be changed regularly, and all hoses, belts and filters must be replaced on

schedule. You dont need to fret about this; just take your car to a franchised dealer when its service is due the professionals in the workshop will know precisely what to do. The only snag, of course, is that it can be expensive to service a car. One way to negate this expense is to sign up for a maintenance or service plan that will ensure that all the necessary work is performed at a manufacturer-authorised dealership free of charge.

This really is a great way of ensuring that your car is constantly in tip-top condition while never having to stress about breaking the bank or cutting back on your entertainment budget. Its just like buying insurance, Cueter says. Pay a little today to avoid a big hurt later on. In addition to meeting warranty requirements, there are other benefits to buying a service plan up front. For instance, you can avoid future price increases in parts and lubricants.

If you buy a new car and intend to keep it for five years, you can buy a scheduled maintenance plan and lock in service at todays prices for parts and labour. This protects you from fluctuations in the cost of oil and raw materials that could drive up the price of components, explains Cueter.

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