2002 Ad

Entrepreneur, Dec, 2002 by Jill Amadio

PRECEDENT-SETTING ZERO-percent financing, or single-digit interest rates, plus almost flat sticker prices are making it less expensive than ever to supply your company with vehicles, whether you decide to buy or lease. To make sure you're aware of all the available deals, do your homework online or by telephone (see "The Search Is On" on page 50 for a comprehensive listing of manufacturer URLs), and consult with your accountant. Arming yourself with printouts of evaluations, reviews, prices and the market value of any trade-ins gives you an advantage. Then, visit several dealerships with a compilation of your target vehicles to compare prices, rebates and incentives.

When it comes to cost, don't always make a decision based on low payments. Salespeople are adept at inflating interest rates, subtracting rebates and extending terms to accommodate your desired monthly payment figure, which means you'll end up paying more over a longer period of time. When possible, arrange pre-approved financing at your bank, credit union or other lending institutions so you can easily nail down a better deal. If you have already secured financing, you can tell the salesperson you plan on paying cash so that monthly payment negotiations do not apply. That way, you can take one of the tools the dealership uses to add to its total tab off the table.

Once you have collected offers from several dealerships, decide which one is the fairest deal. In some cases, it may be better to work with a dealership you trust at slightly higher prices than to risk going with another that may have a poor reputation for servicing vehicles once they have been sold or leased. Slow service can keep your vehicles off the road unnecessarily, costing your business money.

While it is smarter to sell your old vehicles privately to get a higher price, a trade-in can provide savings on your new vehicles if you have taken the time to find out what the old vehicles are currently worth. Check out car values at the Kelly Blue Book Web site (www.kbb.com) and other automotive sites. Don't forget that dealers can make a nice profit off your trade-ins, if only for parts.