What You Must Know When Buying a Vehicle

In this market it's important to consider all aspects of a vehicle purchase. Here are a few of the really important ones:

The Dealership

How long has the dealership been in business? It might seem unimportant but there are so many benefits to working with a company or dealership that has been in business for many years. The longer the better, and private ownership is always a plus.

Location

The proximity to your residence and work place is very important, mainly as it relates to servicing your vehicle. For convenience before, during and after the sale it is definitely a benefit to consider.

Pricing

There is so much more to pricing than just the sale price of the vehicle. You should consider looking at all aspects of your purchasing transaction such as:

• Price
• Trade value
• Finance and lease options
• Ownership benefits - this is really important!
• Does the dealership provide rental cars for their customers free of charge?
• Are there parts and service discounts for individuals who have purchased their vehicle from the dealership?
• Do they offer free oil changes to their customers?
• Is there a free shuttle service provided?

All of these benefits can save you thousands of dollars over the ownership of your vehicle. Often people will buy a car for a few hundred dollars less and unknowingly receive a lower trade value, costly finance terms and no exclusive ownership benefits. Unfortunately they end up costing themselves more in the long run than the small amount of savings they received at the time of purchase. Always make sure to review all aspects of the transaction before signing the final documents.

Trade Value

Normally dealerships that sell larger volumes of pre-owned vehicles are very aggressive and generous with their trade evaluations. Because the dealership sells more, they are in need of more pre-owned inventory. This usually means a higher trade value for your vehicle. Be sure that your car is presentable when it is evaluated. It can make a big difference!

Financing

Quite often large volume dealerships send a large amount of their loans to their "Captive" lender. This is usually the lender associated to the make they are selling. An example would be a Honda dealership using American Honda Finance Company. The more loans they send, the more accommodating the lender will usually be. Some may dispute this fact but is in truth a reality. Sometimes you can benefit as a customer by receiving a better rate or term because of this leverage. That can make a significant difference in your monthly payments.

Selection

A large selection of vehicles is a convenience. You may not know this, but the more vehicles a dealership sells, the more they are allocated by the manufacturer. Almost all manufacturers provide inventory to dealers on a "turn and earn" basis. If you turn more inventory, you earn more vehicles — it’s just that simple. A larger inventory means you can usually find the car you want the first time you visit the dealer, thus saving yourself valuable time and money.

Hopefully this information will help you find the right vehicle and the right dealership. Now more than ever, the dealership that you choose to do business with is as important as the car you choose.

Good luck, and we hope you consider Parkway for your next new or pre-owned vehicle!