Owning a car is great. It offers you mobility, comfort and it is not such a fancy thing nowadays, as there are so many personalized offers for everyone. But buying a new car can be a pain in the head. Now, for those who have no idea about the process of buying a new vehicle, this guideline will teach you how to do it.
Therefore, we have divided it into some easy steps, so you can make an idea and also find the information you need straight to the point. Whenever you feel overfulfilled or confused, come back to this article and get the help you need.
As for most people, cars are their biggest expense, after the housing, it is important to know how to spend money wisely. So here are the steps to keep in mind:
Tips and Tricks for Buying a Car
Read below and discover the smartest process of buying the car of your dreams.
#1 Research is the King
The most important step to take before purchasing a car is to realize that knowledge is true power. It’s a pity to buy a car just by its look, without researching its pros and cons.
There are lots of websites to look for, as well as some Consumer Reports you can actually consult. Look for reviews, some professional opinions or just ask your friends if they have the same car.
Another good thing to do is to find the “invoice” price that the car has, as it is the dealer paid the manufacturer for the car. The research you make will be a handy thing to do so you can start negotiating.
#2 Look into some pre-financing Options
Many people will get financing from a car dealership, which is not fiscally responsible. For instance, dealership interest rates are way higher than loan rates, which you would normally get from banks and credit unions.
The banks and the credit union are some of the best ways to start researching some car loan rates. If you are going to a great place, you can also get some “relationship discounts” that you wouldn’t get elsewhere.
#3 Look for the Best Price
It is so easy nowadays to find the price of the car you are looking for. Take advantage of the technology and look for the average price. Many car dealerships will have the best price transparency, but there are also some that try to push the costs, often with no reason. Now, while you will find the best and research about the money you need to pay, you can then negotiate it via phone or email.
#4 Test Drive
It’s always good to do a test drive first. Call back the next day at the dealership and negotiate a price and ask for some test driving. The dealership will probably schedule a good time for you to try the car.
#5 Negotiate Terms
Buying a car is a chasing marathon, and also a truly important investment you would make. This is why, in fact, you might be paying the price for this car for the next two, three or four years, maybe more.
The salespeople should know that you would do everything for a better price, wouldn’t you? So negotiate, without any fear, and knock the purchase prices as down as you can.
You can start with a ridiculous number, and then work with it backward. Also, walk in the dealership with confidence, stick to your ideas and your plan, and don’t you ever feel sorry and shy. You can plan your tactic of negotiation from home.
#6 Look at both new and used cars
In the past, people used to buy used cars, in order to save money. And another big reason for this logic was that the new cars were depreciating big time at the moment when they were taken home.
Now, the supply of used cars has decreased a lot, because of the programs such as “Cash for Clunkers”. Therefore, the prices for used cars have decreased a lot, although the cars are very good. So, if you want to pay less, then why not looking at the websites with these second-hand vehicles?
#7 Look for a Car Loan Calculator
Ok, you will get that car you want so bad. Then it’s time to ask yourself about the method you are going to use for paying that acquisition. What loan does it suit you? A car loan? Maybe a personal loan? And the most important thing: how much that purchase is going to cost you during the next few years?
Look for a car finance calculator and get the best results. Also, all the most important questions you would normally ask have the answers on the website.
Buying a car it’s a big deal. But following these steps will make this process easier. Ready to drive with style? Good luck with your new, beautiful car!