If you own a vehicle, even though you may not shopping to buy one there is always some interest in what are the steps to ensure you get a good deal.  On You Tube there are many videos offering advice and one of them offered 6 steps in buying a vehicle.

1. Before you go to the dealership, go to the bank to gain financing. The auto companies will finance you, but if you go to the bank prior to going to the dealership you will know if what they are offering is good and you can go with the least expensive to you.
2. Use the internet to do your homework about the vehicles you are interested in. What is a good price? If you are fortunate enough to be near two dealerships of the same vehicle ask them both to see what they will do for you.
3. All dealerships have the monthly or weekly payment for you. As a consumer you want the lowest payment possible, however as the payment goes lower the length of the contract goes longer and you pay more in interest. You always want to negotiate on price not payment.
4. If you have a trade in, bring it in last. Talk about a second vehicle – you are not interested in trading it in yet. The reason is the dealer should have a reasonable idea what he can sell your vehicle for. In the discussions they can discount one and increase the price of the other – you think you are getting a deal but it is not. If you have locked in the price of the new, then you talk about the trade in and there are many websites which give you approximate value of your vehicle.
5. The dealership has a number of methods of making additional money from you, 99% of the time, you can get it done if you really want it done less expensively some where else. Leave the add ons till later.
6. Another method the dealer can make money is by offering warranties which you pay for. Do you really need them? The answer is generally no.

Linking to dividend paying stocks, car and truck dealerships have a variety of methods to make money from the purchaser. They are not all meant to be money grabs but the necessity of them can be limited, if you understand how the dealership makes its money. Ideally you want them to make something to stay in business, but not at your expense. When you are investing in a company, try to understand how the company makes its revenues and then you can tell whether it is doing ok or really well. Processes count.

There are more questions than answers, till the next time – to raising questions.