"Everything about this website was fantastic. I would definitely recommend sellmyauto4free to anyone I know!" - Not every website is out to make a quick buck off those trying to trade a car. - Katherine H.    Miami, FL

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Optional Extras
If you fall asleep at the wheel now, you'll lose another $3500, which is icing for the dealer. You'll drive home not knowing you bought these extras. Some dealers sneak them onto your contract or bury them in your monthly payments. If you are a payment buyer, you won't notice them. On a 36 month loan, the extras below will cost an additional $97 plus interest per month. Here are some extras they may "offer" you:

The dealer will give you $1500 less than market value for your trade-in. Then he'll sell it for $1500 above market value. If he sold you a $25000 car, he could profit $4000 on the car, another $3000 on your trade-in, and $3499 on the extras. Total Profit: $10499! He deserves to profit, but not that much!

Don't buy the rust proofing from the dealer.
This is pure profit for them. They charge $800 and up for it, and how do you know if it's even on the car? Most cars have 6 year/100000 mile rust warranties, so you don't need rust protection. I've have a 1988 Trans AM GTA with no sign of rust. Tell them you don't want it, and if they say it's already on the car, tell them you're not paying for it. Wash and wax your car, you'll be fine. The salesman at Pontiac told me:

"But, you know the manufacturers just coat the underneath of the car with a quick worthless spray.
You really need our extra rust proofing which is much more thorough if you want effective protection"

Ah, the impending doom sales tactic. I told him that if GM does such a lousy job like that, I don't want the car now, at any price. I'm sure GM would be interested to know that stupid uninformed salesman are sabotaging their credibility. How can the squirt job that the dealer gives you be better than the factory's?

Don't even THINK about buying the car alarm from the dealer!
If you do buy their alarm get all features in writing. Is it wired to the trunk, sunroof hood and all 4 doors? My friend found the alarm for his new 1997 Mazda 626 was not connected to the trunk or hood. When he went back to complain, Mr. Plaid told him "Oh, that's extra". If I buy a car alarm for $400, am I wrong to assume it's connected to the doors, hood, and trunk? That's what I get if I buy it at a stereo shop for $199 and have them install it. Why spend $400 on an alarm with 2 stupid wires?

Ever been at a mall, and heard an alarm go off? You know the one, its the same alarm everywhere. This worthless alarm is installed on zillions of cars, and you hear it going off everywhere for no reason at all, on a clear sunny day. Also, stay away from alarms that talk to you. "Danger. You are too close to the vehicle. Back off now". Drive by one of these cars, and it sets off. Let's add this to the alarm: "Danger, you are wasting your money. Back out of the deal now!"

Dealers use Code Alarm, Excalibur, and Viper. Code Alarms are typically refurbished and repackaged, often unknown to the dealer. Dealers pay $100 - $150 for Code Alarms. There is even one made by Micro for $38!! They pay maybe $50 and sell them for $400 and up, that's why it is a worthless add on. What makes these cheap alarms trigger all the time? Cheap, improperly placed sensors, thermal sensitivity, parts out of spec, and poor wiring. You get what you pay for, nothing better, and usually worse. Dealers use outside installers to install the alarm. Clifford alarms are OK, but are too temperamental and trigger easily. Do yourself a favor, go spend the $300-500 at a reputable Hi-Fi shop for a real car alarm instead. Don't go for the cheap deal du jour stores like the window tint shops that sell $99 alarms, do it right or don't do it. One brand I recommend is VSE, starting at about $400 installed. They are reliable, sensors are stable, false alarms are rare, they have zoned outputs, allowing you to determine where the trigger came from. Another decent brand is Delta, with an installed cost from $100-$400. Buy a model in between, as the $100 install is bare bones. Have them wire your alarm to lock the doors and roll up the windows. This may cost more, but it's so cool, I have it on my GTA. But don't buy it from the dealer, or your life will be hell. If they force it on you, or tell you it's already on the car, have them remove it, or don't buy the car. It should be easy for them to remove since it's not wired to the hood or trunk, right? "That's Extra".

Remote ignition start is not recommended for manual transmissions! Many people leave the car in gear, so it could get up and leave you if you remote start it.

The Lowdown on Lojack
Lojack is a device police use to locate your stolen car. It costs around $600, and is installed by the car dealer. They hide Lojack in the car and don't tell you where it is. If the car is stolen, call the police, and they activate your LoJack remotely from their tower. Then cops with a specially equipped patrol car triangulate the signal and get your car back! Cops love them because where there's smoke, there's fire, and if they find one stolen car, there's usually more. My coworker's Honda Accord was stolen (who hasn't had their Accord stolen) and police activated his Lojack. They found his car in a guy's garage at home in Lauderdale Lakes. He was stripping the car, and another stolen car. Cops usually find your car within 1 hour after you report it stolen, so don't hesitate. I spoke with an FHP officer who tracks stolen cars. He tracked a stolen car to a Port of Miami warehouse, where it was already cut up into chunks and stored in cargo containers. The battery backed Lojack was still transmitting, and the thieves had no idea it was there. Don't let the dealer claim that "alarms save 50% off your auto insurance", they don't. It could save up to 10% off the theft portion of your auto insurance, about $15. Some insurance companies may even require you to have it, depending on what car you buy. My insurance would give me 5% off the $117 theft portion of my auto insurance, which is a whole $6!! I'm going to Disney World! Find out from Lojack who their authorized installers are. If you can handle $600, Lojack can be worth it. If your car is stolen, you may get it back intact, with some ignition damage. Lojack makes a car alarm that is both a standard alarm and Lojack. Some cars now have GPS (Global Positioning Satellite) capability, that can pinpoint the car's location anywhere in the world within a few feet. Check out these devices too.

Don't buy the paint protection!
Don't waste your money on this junk. My friend who worked at a Chevy dealer said it comes in a $5 bottle. It's just wax, and they make promises about it lasting for years. NO car wax lasts for years. Read the warranty book for "Autoarmor", it says the warranty is void if you don't wash & wax on a regular basis. The salesman tells you it lasts 2 years or more without waxing. It's amazing how gullible Americans are, tell them what they want to hear, and they'll believe it.

Don't buy Credit Life insurance at the dealer!
If you have bad credit, they may tell you that you MUST take this insurance. This lie is against the law. They usually do this to females, first time buyers, and people with poor credit, who don't know better. You can buy it cheaper from your insurance agent, but Credit Disability Insurance is a joke. It's supposed to make your payments if you are injured. But it does not kick in until after 15 days. If you were injured for 12 days, you get nothing, so it's a meaningless policy. Like other insurance, they sock you with pre-existing conditions like your medical and dental insurance does. Many dealers conveniently sneak/finance it into the loan, so now you pay interest on that too. Argue with them and they'll say

"But, I'm just trying to understand this. Don't you care about your family? If something happened to you, do you want them to be burdened with this? Wouldn't you want them to be cared for?"

Tell them you don't care about your family. How can answer to that one? But if you really want it, buy it from your insurance agent. Why pay 200% more at the dealer for a policy that most likely wont pay your bills? One salesman told me many dealers don't bother with this anymore because of liabilities. Customers have sued dealers and won millions for not disclosing credit life or for misleading them.

Detailing
A friend of mine installs pin striping and detailing for car dealerships. He charges $12 to pinstripe a car and they sell it for $99. He charges $2 for door edge guards, and they charge $70 - $90. Sometimes he sells them an "appearance package" with pin striping, door edge guards, and wheel trim for $30, and they sell it for $299. Some dealers act like they are giving it away by "slashing" $200 off the cost, charging $99. That's still over 3 times what they paid for it. My friend does several cars at once for them. If 20 cars on the lot have the appearance package, the dealer could bring in $6000 in detailing.

Signing The Papers
Always check their numbers carefully. Don't sign until you are sure. Check the payments against the final cost of the car to make sure they didn't sneak anything in. You borrow $20,000 for a car at 8% for 4 years. If you are smart and have a loan calculator, you'll see that your monthly payments will be $488.26. And the total of your loan is $23, 436.48. You can see the total loan interest is $3436.41 But let's say the dealer's figure is $504, a small difference. Their total is 504*48=24192. They are ripping you off by $755.52! Where did it come from? Maybe he slid some extras in or he "forgot" to mention you also bought credit life insurance. Just because they do everything on the computer, does not mean it's correct. My friend had the finance manager compare his deal for leasing or buying and the dealer made it look like leasing was cheaper, which is a lie. When confronted, he came up with some excuse like "maybe I entered a parameter wrong", or "the machine's been acting up today". The only one acting up is them. If their payment calculations differ more than a dollar from yours, question them. They may say "It's only $9 per month, you must have made a mistake." But on a 4 year loan this translates into 48*9 = $432. Once you sign the contract, you effectively agree that you "read and understand" all the numbers. The total of all your monthly payments that you calculate should match theirs to within a few dollars. The lookup tables in all the books are accurate, and don't let them tell you otherwise.

With auto loans you pay nearly all interest in the first year, and little principal. That's why impulse buyers like my sister end up "in the bucket" after a year if they decide to sell the car. You buy a Saturn for $13000 and a year later decide to trade it in for a Toyota Celica. The Saturn is now worth $10000, the new Celica costs $12000, and you have NO equity in the Saturn, because you have only been paying back interest for one year, and very little principal. So now you are upside down $3000 on your Saturn and you are at the mercy of the dealer if you want that Celica. How do you get out of this? Don't get into it in the first place. When you buy a car always put down 20%, then you will have equity in the car. Dealers push "0 money down" to sell the car. They don't care if you're upside down, or if you get repossessed. They never tell you that you are paying mostly interest the first year and building little equity. Ask them to print out an interest and principal table for your payments and see. Another reason to put 20% down: If you buy a $20000 car today, and it gets stolen today, your insurance company will only pay you fair market value of the car, which is $3000-$4000 less. So now you have a check for $16000, but you still owe the bank $4000. You may want to purchase gap insurance if you don't put down 20%. Put down as much as you can, for as short a loan term as you can afford. Your interest rate is lower with short term loans.

What If I'm Upside Down On My Loan?
Many people email me to ask what to do if they are upside down. I always tell them, don't buy a new car. Send in extra principal payments until you are no longer upside down, then buy a car. A person who is upside down on a loan and wants a new car is a victim.
Here's what happens: You want a $14000 car, and you owe $12000 on your current car.

You see an ad saying they'll pay off your current loan no matter how much you still owe. If you trade in your car, the dealer will offer you $8000, the wholesale value. They'll never give you market value for your trade-in. If he does, he'll get you on the back end by charging MSRP, or adding more options. If the dealer gives you $8000 (wholesale) for the trade-in, you still owe $4000 to the bank. He'll payoff your loan of $12000 to the bank for your car, now he owns it. But you now owe $4000 to the dealer, which is folded into the new loan for the $14000 car you are buying. You are thus taking out a new loan for $18000. The dealer makes you think he's giving you something for your trade-in, but you don't own the car, the bank does. In fact, you're getting nothing from the dealer, they just moved your loan balance to the new car. Not only did the dealer sell you a car at MSRP making probably $2000, he inherits the balance you owe the bank with the interest, and he in turn sells your trade-in for maybe $10000, profiting $2000 on the trade-in as well. Now the dealer made $4000, plus interest from the $4000 you carried forward from the old loan. When you are upside on a loan, dealers reap huge rewards, because you are desperate to get out of the current loan, and you make things worse for yourself by becoming MORE upside down. This can be even worse on a lease because the dealer will make you pay the $4000 as a cap cost reduction, and he'll pad it by a few hundred dollars. They'll ask you for $4350 as a down payment.

Suggestions if you don't want optional extras:
If every car on the lot has $3000 worth of options, have the dealer order a car from the factory. This is how I bought my 1988 Trans AM GTA. It takes 6-12 weeks, this is a great way to buy a car with the options and colors you want. But there are caveats. Save all the paperwork. When I ordered my car through the dealer, the paperwork had a price of $18000. But when the car arrived, the dealer could not find their copy of my buyer's order, among tons of other documentation in my folder. They tried to renegotiate the deal for $21000! After I threatened to call Consumer Affairs and Channel 7 with my original carbon copy of the buyers form, they relented. But I still had to argue with them for 4 hours to get the price back down to $18000. Another caveat is sometimes you may not get the rebate because it might only be valid for vehicles in dealer stock. Lastly, if they appraise your trade-in, it could change 8 weeks later when your new car arrives. You might damage your trade-in before the new car arrives, or they'll claim you put too many miles on it, invalidating their quote.

• VERY IMPORTANT: Fill out a list of all defects you spot on the car BEFORE you leave the dealership. Make sure the business manager is with you when you fill out the form, and signs it. Don't sign the buyer's order until this is completed.

ES, LS, LX, EX, SC, GS, They All Look The Same.

• Important: When they are filling out the paperwork, make sure your car model color, doors, etc. is itemized, not just the model, but extensions too, like LS, EX, LX, etc. I saw a woman's lease from a Honda dealer and under Year/Make/Modelit said "98 Honda Civic". But there are several models of Civics. She had negotiated a Civic "EX" down from MSRP, and the dealer did not list the "EX" on the form. He just put "EJ667" under the "body/Style" heading. Who can tell what EJ667 means? I checked all Honda Civic models on Edmunds and found the EJ667 imbedded in the model number of an LX, which is cheaper. The dealer lied, telling her she was getting an EX at a reduced price, but then slipped the cheaper LX at full MSRP onto the contract. She had no way of knowing it was an LX. Don't let this happen to you! Her lease should have just clearly stated "1998 Honda Civic EX".
  
  
• Verify the VIN# of the car you bought is correctly entered on the contract. You don't want any bait and switch problems. If you're not taking delivery today, tell them not to let anyone test drive it, and write a mileage limit on the contract. Check the VIN# again when you come back to pick up the car! The VIN# is located on an engraved metal strip, usually on the dashboard against the windshield.
  
  
• If you refuse any extras, verify they didn't add slip into the contract anyway. Once you sign the contract, it's nearly impossible to get out because you are also signing off that you have read and understand everything.
  
  
• Make sure there are no blank spaces on the contract. If there are, make sure they write in a $0 or N/A.
  
  
• Don't let them charge a dealer prep. Many dealers tack on a $200-$600 dealer prep.
  
  
• Verify before you buy what your state fees are for tags and title. You don't want the dealer to charge you $350 and find out later it only costs $50 for new tags.
  
  
• Verify that all options you paid for are installed in the car, and are itemized on the contract. The window sticker is as good as a contract for describing factory installed equipment. Verify the MSRP sticker agrees with the options the dealer is charging you for. You don't want to go through the mess that our fellow buyer went through in Chapter 3. Ignore any verbal promises they make. If they won't put it in writing, it means they won't do it. Don't buy a car if it has no MSRP sticker.
  
  
• When Mr. finance writes up the SALEScontract, verify that it's not a "lease." Many people go home with the new car they "bought", only to discover they signed a lease. Some dealers don't tell you that you are leasing, and once you sign, you're stuck.
  
  
• Check their math, and don't sign until you are completely satisfied. If you don't understand something, ask them to clarify. This is your last chance to speak up. They'll make you sign forms stating you read and understand the contract. Don't let them speed sign you. Read the back of the contract and buyer's forms also. Most people don't know there is fine print on the back.

These Are Taxing Times
Many readers catch their dealer "miscalculating" sales tax in favor of the dealer. These aren't mistakes. Everything is done by computer and they know what they are doing. They were just squeaking more cash from unsuspecting buyers. Who ever questions tax? But always verify it. If your tax comes to $800, they can charge you $950, send $800 to the state and pocket the difference. If you catch them, report them to the IRS, and your state's Department of Revenue. Some states charge sales tax based on the selling price before the rebate, some do it based on net cost after trade-in. Find out how your state figures it. After you buy your car, check with the state to verify that the amount the dealer taxed you is what was sent into the state. If these numbers don't jive, get the state all over them for tax fraud.