Jean is in the market for a new car so she's called in automobile expert Art Spinella for some advice. Art, president of CNW Marketing Research Inc., gives Jean some insight on buying and leasing a new car as well as negotiating financing and dealing with your trade-in.
Before you head to the dealership, Art says you should determine whether you want to buy or lease a vehicle. "What you wind up doing is looking at what you need and how long you are going to need it," he says. For example, if your children are leaving for college in a few years and you won't need a large vehicle anymore, a two-year lease on an SUV could be a great option, Art says. "It's easy to get into and easy to get out of [a lease]," Art says. "You don't have the hassle at the end of the term … [of] trying to sell it. You don't have to worry if that particular type of vehicle is going to be popular or not in a few years."
Negotiating the cost of your lease can be done quite easily, Art says. The easiest way is to determine how much you can afford to pay each month—the dealership can usually accommodate your budget, he says.
When it comes to negotiating your financing when buying a car, Art says there is no need for you to come into the dealership with financing you've found on your own. "The chances are about 70 percent that the dealership is going to wind up being able to get you better financing than you are going to be able to get yourself," he says.
Once you decide on leasing or buying a car, Art says selling your old vehicle on your own will be more profitable than using it as a trade-in. Selling a car isn't always something people want to deal with, and Art says if your car is newer and in good shape, you can negotiate a trade-in for a fair price. "If it is five years, six years or newer, boy that is golden for the dealers right now," he says.