07 Jul How to Buy a Car
How to Buy a Car
There will always be a few concrete steps to take when buying a car. Here are some of the most important ones.
Always do your research thoroughly beforehand
One of the most important ones is to, in the beginning, always do your research thoroughly beforehand. People who skip this step heighten the chances of ending up with a vehicle that they are not completely satisfied with. In most instances, if they had previously taken the time to look up a little bit of the history of that particular vehicle (along with the performance track record of that make and model of vehicle), then they would have ended up with a much more enjoyable ride.
Consider any and all of your pre-financing options
Another step to take when buying a car would be to consider any and all of your pre-financing options. There are many folks out there who will choose to finance their vehicle through the dealership, but sometimes this can be a mistake. What makes that decision somewhat irresponsible is the fact that many dealerships’ interest rates are much higher than those you would pay from a bank loan. In addition to that, sometimes, if you’ve been with that bank or credit union for a while, then you may qualify for extended relationship discounts that you could never get if you had financed the vehicle at a dealership.
Always shop around
Also, as with any major purchase, when buying a car you should always shop around. It’s easy to get excited about a car purchase, especially if it’s your very first one as a high school or college student. These young buyers may sometimes want the first thing they see, which is almost never a good decision. Even if you know the exact make and model of the vehicle that you want, the smartest route to take will be to visit multiple dealers and sellers to search out the best price.
Negotiate when buying a car
It’s also very important to negotiate when buying a car. One method you could use would be to start with a buying price that’s completely ridiculous, one that you know the seller will refuse. For example, let’s say you consider buying one used car you noticed at the lot for $5,000. You can tell the dealer all you have is $3,000. They’ll see that you’re trying to make a deal and maybe drop it to $4,700. Then you can inch up the price a little, saying that you’ll pay $3,500. The dealer may then say $4,400, and you may respond with $3,800, then they could say $4,200, but that that’s the lowest they can go.
Never ever mention your trade in before figuring out the dealers’ lowest price
What you’ve just done is you’ve found out the lowest price that the car dealer will sell the vehicle for without a trade in, which brings us to the next step in buying a car, which is to never ever mention your trade in before figuring out the dealers’ lowest price by negotiating first. The dealer will never tell you this in the beginning, how low he or she’s willing to sell it for. It’s up to you to put a price out there and go back and forth a little. Then, once you get to that lowest price, tell them you have a trade-in, and figure and out how much more you can get knocked off the price with it!
Consider both new and used ones
It’s also a good idea when buying a car to consider both new and used ones. At first thought, many people may think that they automatically won’t be able to purchase a new car, because initially they may feel they simply don’t have enough funds for it. But, the truth is that nowadays people are keeping their cars for a lot longer, meaning that the price for many used cars in the market are actually pretty high. In many cases, the price of a used car may almost match up with the price of a new one that you may be considering. If this is your situation, then you may actually be able to afford a brand new vehicle.
You should be basing your purchase on what the actual full price of that vehicle is
Also, when buying a car, don’t get caught up initially about how much your monthly payments will be. Instead, you should be basing your purchase on what the actual full price of that vehicle is. Car salesman have a way of making car buyers fall for payments that stretch out for many months longer than they probably originally expected. That lower amount of cash paid monthly seems more attractive at the sale, but if those payments are stretched out for over 70 months, then you could be paying way too much for that car, truck or SUV.
Utilize the internet
Another step you should take when buying a car is to utilize the internet. It should obviously be used for research, such as looking up the history of a car, visiting Kelley Blue Book, or reading up on reviews for the specific type of vehicle that you want. But, when compared to buying a car from a dealership showroom, you could end up getting a better much better deal online. This is because most showroom salesman depend on their commissions from sales, which is a percentage of the total price of the vehicle. This means they may try to sell you that car for as high a price as they can! If you were to buy your car on the internet, those sales managers’ salaries are usually set, and they have less of a reason to try to manipulate you to pay more than you’re supposed to.
Add in how much your insurance is going to be
Be sure to add in how much your insurance is going to be when buying a car. When compared to conventional ones, sports cars generally have higher insurance rates. You should also avoid buying any vehicle on impulse. This is to avoid instances such as driving away with a bad warranty that doesn’t cover any immediate problems, which is more money out of your pocket.
Sacrifice all those add-ons that you really don’t need
You should also sacrifice all those add-ons that you really don’t need. For example, let’s say you see a vehicle that you want, but it doesn’t have a built-in GPS system. Vehicles with built-in ones will normally cost more, so you might opt to buy a cheaper GPS on your own, and go ahead and buy the car that doesn’t have the included system. Letting go of these unnecessary add-ons (such as heated seats) could end up saving you hundreds and hundreds of dollars on your purchase.
Always test drive
Always test drive when buying a car, and listen to the engine while driving to see it’s running smoothly. Make sure all the mirrors and other controls work, make sure the handling of the car is good, and test the brakes during the test drive. In addition to that, make sure you take the car to a trusted mechanic to check for unseen problems before the final purchase is made. If you follow these steps, then you’ll end up buying a vehicle that you’ll love for years and years to come.