Frequently Asked Questions.How much can I expect to save with your car buying service?
Depending on the vehicle and trade-in involved, our customers save an average of $500 - $2,000 vs a deal they negotiate on their own. This usually equates to $5,000-$12,000 off MSRP! How long does the process takes? Usually the process takes about a week. However, we work at your pace. If you tell us you need a car today, we do deals in as fast as a day. We want to ensure that we're getting you the exact car you want and at the best price, so generally a week is the best time frame. |
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Why should I use a car buying service like Cahpow?
With over 15 years of experience working at car dealerships we know every aspect of the business. Our deal will not be beat. We will also save you time and aggravation in the process. The savings we get for our customers far supersede our fees. We will negotiate the sale price, rate, warranties and everything else you need to get the best possible deal. We don't just negotiate a great sale price with a bunch of add-ons you end up overpaying for.
How are we different then some of the car buying programs out there?
Before you go through a program like TRUECar, American Express, USAA, BJ's, Cars.com, Edmunds, Auto Trader or any other buying program you have to understand how it works.
A dealer signs up to be on their dealer network and pays these companies to be a part of their program. The fee's the dealer pays are on a monthly, per sale or per lead basis. These companies then take your information and sell it to the dealers.
If a lead provider is not profitable for the dealership then they simply won't use them. So do the math, how good a of a deal are you really getting? Do these "Car Buying Services" have your best interest in mind, or the dealerships?
By hiring a professional car buying service, like Cahpow, we work for you not the dealership. With you paying us directly our interest is only in you getting the absolute best possible deal. We only have your interest in mind and not the dealerships. If you're considering any other broker service, ask them this, do you get paid by the dealership as well?
How does trading in a vehicle work if I still have a payoff on my car?
If you still owe money on your vehicle and are looking to trade it in, the current loan will have to be paid off in full. The reason for this is that the dealer will need to obtain the title to the vehicle in order to resell it after it is traded in. The way that a trade-in works with a payoff is you take the trade-in value, subtract your current payoff and you get your equity amount that can be applied towards the new vehicle. If owe more on the vehicle than it's worth, you will be in a negative equity position, and that amount will be added towards the new loan. If you owe less than the vehicle is worth, you can either get a check back for that amount or simply use that money as the down payment for the new vehicle. Don't fall for the "We'll pay off your vehicle no matter how much you owe." line. The money you owe doesn't simply go away.
I'm in a lease now, can I get out of it early?
The direct answer is yes, however it's a real bad idea. When you lease a vehicle about 99% of the time you are in a negative equity position in your vehicle when you go to trade it in. When you try and turn in the vehicle early there are a couple ways that can play out.
The first option is trading in the vehicle. How this works it the dealership will have to pay off the vehicle in order to receive the title. Your payoff will entail your current lease end buy out plus your remaining payments. 9 out of 10 times your buyout will be more then what your trade-in vehicle is worth. Leases are structured to be finished out.
The second option would be to turn it in to the dealership where they don't keep the vehicle and turn it back into the manufacturer. In this case you are always upside down by your remaining payments. When you turn a vehicle back into the manufacturer you can walk away from the car, if you still have payments remaining when you turn the vehicle in, those payments are still owed to the bank. You will always be upside down in your car by your payments. Don't fall for the "We'll take care of those last few payments for you." line from your dealer. The ONLY way this will happen is if there is a true early buyout program available from the manufacturer where they will waive your last payments. If there isn't, they are simply taking those last payments and rolling them into your new loan.
What is a dealer demo?
A dealer demo is a brand new vehicle that has been driven by the dealership. Generally the vehicle will have anywhere between 3,000-6,000 miles on it. It is still considered a brand new car since it has never been titled. If you are purchasing a Demo vehicle you can expect an additional discount of $0.20-$0.30 per mile vs a brand new car. Since it is still a brand new vehicle you will be the first owner of the vehicle and it will also still qualify for all of the manufacturer incentives. Your warranty also starts from the time you take delivery of the vehicle.
Should I order a car or take one in stock?
This tends to be a loaded question. Most people don't realize this but you can get the same deal on an order as you can on an in stock vehicle. It all comes down to time and inventory. If the dealership has the car you want, you can negotiate a great price and take the car home the same day. If you are very specific on the model and options you are looking for, you may end up having to order the vehicle. Usually it will take 6-8 weeks and you can still negotiate the price just like the car was on the lot. Since the vehicle is already sold before it gets to the lot, most dealers will match any deal they can do on an in stock vehicle.
What is a dealer locate?
When a dealership doesn't have the car in stock they will sometimes offer to locate you a vehicle. Most new car dealers are on a network and can bring in inventory from other lots. The down side to working on a locate vehicle is that the dealership will have additional costs for bringing in the vehicle. The dealership that is locating the vehicle also does not get holdback so it will drive up your price. If they don't have what you want, try and find the car yourself or order the exact vehicle you want in order to get the best deals.
What are rebates?
Rebates are money that the manufacturer offers on specific makes and models. This is not to be confused with a dealership discount as this money does not come from the dealership. There are two types of rebates, Manufacturer to Consumer and Manufacturer to Dealer.
Should I take the rebate or the low APR financing?
This is going to depend on two factors: how long you keep your vehicles and how much you're going to finance. When you take a low rate such as 0% or a 0.9% it is offered directly through the manufacturers bank. When you take the low APR financing, it is in lieu of rebates. Since you have to waive the rebates, anywhere from $1,000+, you just paid that amount more for the vehicle vs the person that took the rebate. This is where it matters how much you financed and how long you're going to keep your car. If your payments with the low APR are lower than they are with conventional financing, you should take the low APR. However, you need to keep the vehicle for the entire duration of the loan to see any benefits. If you don't pay off your vehicles in full and will try to trade the vehicle in within the next couple years, do not take the low APR financing. You will be in a more negative equity position than the person that took the rebates, since only a couple years ago you paid more for the same car.
If I buy cash will I get a better deal?
If you pay cash for a vehicle the dealership no longer has an opportunity to make money by financing. "Cash is King" no longer applies.
Should I trade my car or sell it privately?
By selling your car privately you will get more money for your vehicle. When a dealership takes a car in on trade they will then have to recondition the vehicle, advertise it, pay overhead and still make a profit. They may also choose to send it to the auction. Here, they have to pay additional fees and then another dealer needs to be willing to buy the vehicle and still be able to turn a profit on it. When you sell a car private sale, you're selling it to the end user, so naturally they will be willing to pay more because they are not looking to make money on the car.
When is the best time to buy a car?
The end of month and the end of the model year tends to work to your advantage. Dealerships operate on monthly goals from the manufacturer. Also, at the end of the model year the rebates tend to be bigger so you can get a better deal. The one thing to consider is that the cost of that vehicle is the same for the dealership on the 1st as it is on the 31st. So unless programs change and there are more rebates, you can get the same deal any time of the month. When it comes to used vehicles, you can get the same deal at any point in time.
When is your refund policy?
Since you are purchasing a service and there is no way for us to get back the time that has been invested into your search, unfortunately we do not offer any refunds, under any exception.
Before purchasing our service please be sure you know exactly what you are looking for. Each service fee only covers one Year, Make, Model and Trim Level. Please only purchase our service if you are ready to buy a car. We are here to negotiate for you on your behalf. Please make sure you have already driven a vehicle similar to the one you are interested in and know what you're looking for prior to purchasing our service.
Please have your financing in place PRIOR to purchasing our service. We are able to find you the best possible deal, but can't control your credit. Our fees are not refundable for lack of credit or ability to secure financing.
With over 15 years of experience working at car dealerships we know every aspect of the business. Our deal will not be beat. We will also save you time and aggravation in the process. The savings we get for our customers far supersede our fees. We will negotiate the sale price, rate, warranties and everything else you need to get the best possible deal. We don't just negotiate a great sale price with a bunch of add-ons you end up overpaying for.
How are we different then some of the car buying programs out there?
Before you go through a program like TRUECar, American Express, USAA, BJ's, Cars.com, Edmunds, Auto Trader or any other buying program you have to understand how it works.
A dealer signs up to be on their dealer network and pays these companies to be a part of their program. The fee's the dealer pays are on a monthly, per sale or per lead basis. These companies then take your information and sell it to the dealers.
If a lead provider is not profitable for the dealership then they simply won't use them. So do the math, how good a of a deal are you really getting? Do these "Car Buying Services" have your best interest in mind, or the dealerships?
By hiring a professional car buying service, like Cahpow, we work for you not the dealership. With you paying us directly our interest is only in you getting the absolute best possible deal. We only have your interest in mind and not the dealerships. If you're considering any other broker service, ask them this, do you get paid by the dealership as well?
How does trading in a vehicle work if I still have a payoff on my car?
If you still owe money on your vehicle and are looking to trade it in, the current loan will have to be paid off in full. The reason for this is that the dealer will need to obtain the title to the vehicle in order to resell it after it is traded in. The way that a trade-in works with a payoff is you take the trade-in value, subtract your current payoff and you get your equity amount that can be applied towards the new vehicle. If owe more on the vehicle than it's worth, you will be in a negative equity position, and that amount will be added towards the new loan. If you owe less than the vehicle is worth, you can either get a check back for that amount or simply use that money as the down payment for the new vehicle. Don't fall for the "We'll pay off your vehicle no matter how much you owe." line. The money you owe doesn't simply go away.
I'm in a lease now, can I get out of it early?
The direct answer is yes, however it's a real bad idea. When you lease a vehicle about 99% of the time you are in a negative equity position in your vehicle when you go to trade it in. When you try and turn in the vehicle early there are a couple ways that can play out.
The first option is trading in the vehicle. How this works it the dealership will have to pay off the vehicle in order to receive the title. Your payoff will entail your current lease end buy out plus your remaining payments. 9 out of 10 times your buyout will be more then what your trade-in vehicle is worth. Leases are structured to be finished out.
The second option would be to turn it in to the dealership where they don't keep the vehicle and turn it back into the manufacturer. In this case you are always upside down by your remaining payments. When you turn a vehicle back into the manufacturer you can walk away from the car, if you still have payments remaining when you turn the vehicle in, those payments are still owed to the bank. You will always be upside down in your car by your payments. Don't fall for the "We'll take care of those last few payments for you." line from your dealer. The ONLY way this will happen is if there is a true early buyout program available from the manufacturer where they will waive your last payments. If there isn't, they are simply taking those last payments and rolling them into your new loan.
What is a dealer demo?
A dealer demo is a brand new vehicle that has been driven by the dealership. Generally the vehicle will have anywhere between 3,000-6,000 miles on it. It is still considered a brand new car since it has never been titled. If you are purchasing a Demo vehicle you can expect an additional discount of $0.20-$0.30 per mile vs a brand new car. Since it is still a brand new vehicle you will be the first owner of the vehicle and it will also still qualify for all of the manufacturer incentives. Your warranty also starts from the time you take delivery of the vehicle.
Should I order a car or take one in stock?
This tends to be a loaded question. Most people don't realize this but you can get the same deal on an order as you can on an in stock vehicle. It all comes down to time and inventory. If the dealership has the car you want, you can negotiate a great price and take the car home the same day. If you are very specific on the model and options you are looking for, you may end up having to order the vehicle. Usually it will take 6-8 weeks and you can still negotiate the price just like the car was on the lot. Since the vehicle is already sold before it gets to the lot, most dealers will match any deal they can do on an in stock vehicle.
What is a dealer locate?
When a dealership doesn't have the car in stock they will sometimes offer to locate you a vehicle. Most new car dealers are on a network and can bring in inventory from other lots. The down side to working on a locate vehicle is that the dealership will have additional costs for bringing in the vehicle. The dealership that is locating the vehicle also does not get holdback so it will drive up your price. If they don't have what you want, try and find the car yourself or order the exact vehicle you want in order to get the best deals.
What are rebates?
Rebates are money that the manufacturer offers on specific makes and models. This is not to be confused with a dealership discount as this money does not come from the dealership. There are two types of rebates, Manufacturer to Consumer and Manufacturer to Dealer.
Should I take the rebate or the low APR financing?
This is going to depend on two factors: how long you keep your vehicles and how much you're going to finance. When you take a low rate such as 0% or a 0.9% it is offered directly through the manufacturers bank. When you take the low APR financing, it is in lieu of rebates. Since you have to waive the rebates, anywhere from $1,000+, you just paid that amount more for the vehicle vs the person that took the rebate. This is where it matters how much you financed and how long you're going to keep your car. If your payments with the low APR are lower than they are with conventional financing, you should take the low APR. However, you need to keep the vehicle for the entire duration of the loan to see any benefits. If you don't pay off your vehicles in full and will try to trade the vehicle in within the next couple years, do not take the low APR financing. You will be in a more negative equity position than the person that took the rebates, since only a couple years ago you paid more for the same car.
If I buy cash will I get a better deal?
If you pay cash for a vehicle the dealership no longer has an opportunity to make money by financing. "Cash is King" no longer applies.
Should I trade my car or sell it privately?
By selling your car privately you will get more money for your vehicle. When a dealership takes a car in on trade they will then have to recondition the vehicle, advertise it, pay overhead and still make a profit. They may also choose to send it to the auction. Here, they have to pay additional fees and then another dealer needs to be willing to buy the vehicle and still be able to turn a profit on it. When you sell a car private sale, you're selling it to the end user, so naturally they will be willing to pay more because they are not looking to make money on the car.
When is the best time to buy a car?
The end of month and the end of the model year tends to work to your advantage. Dealerships operate on monthly goals from the manufacturer. Also, at the end of the model year the rebates tend to be bigger so you can get a better deal. The one thing to consider is that the cost of that vehicle is the same for the dealership on the 1st as it is on the 31st. So unless programs change and there are more rebates, you can get the same deal any time of the month. When it comes to used vehicles, you can get the same deal at any point in time.
When is your refund policy?
Since you are purchasing a service and there is no way for us to get back the time that has been invested into your search, unfortunately we do not offer any refunds, under any exception.
Before purchasing our service please be sure you know exactly what you are looking for. Each service fee only covers one Year, Make, Model and Trim Level. Please only purchase our service if you are ready to buy a car. We are here to negotiate for you on your behalf. Please make sure you have already driven a vehicle similar to the one you are interested in and know what you're looking for prior to purchasing our service.
Please have your financing in place PRIOR to purchasing our service. We are able to find you the best possible deal, but can't control your credit. Our fees are not refundable for lack of credit or ability to secure financing.