Buying a new car is a great and fun thing to do. But, since most cars cost a lot of money, this purchase cannot go without stress.
There are some things you should pay attention to before signing that contract and we are going to help you get the car of your dreams without having to stress too much about it.
Here are the things you need to know so you can buy a new car easily.
Trade your old car
The easiest way to get a new car is to trade the car you already have. When you do that, be smart about it. Don’t go to the dealership and say that you have a car to trade.
Instead, find the car you want, negotiate to a price and then offer the car you already have. For example, if you have a car that’s worth $20K and you are looking at a car that’s worth $25K, first try to negotiate the price down to $22-23. Then offer your old car.
If you say you want to trade right, they will assess the used car for a lot less than it is worth, or you won’t be able to negotiate the other price down.
Do a research
First things, first – do you know what kind of car you want? Are you sure there is not a different make or model that will offer you more for less money?
Do your research and compare cars. You may find a newer model that costs about the same amount of money, but it’s better.
If you are buying a new car, look for the invoice price. That’s the price the dealership paid the manufacturer for that car. Different dealerships have different prices and they paid the same amount.
If you are buying a used car, check the resale prices for it. The more knowledge you have about the make and model, the easier it’s going to be for you to negotiate the price down.
Buy a car you can afford
Before going to the dealership set your budget. If your budget is $30K, don’t look at cars that cost more than that. It’s really easy to fall in love with a car that costs double your budget and, chances are, the people who work there will be able to sweet talk you into getting that car.
Look only for cars that are within your budget and don’t go window-shopping for things you cannot afford.
Negotiate terms
The price can always be lowered down. Always. Buying a new car is the second most important purchase after buying a new house.
Stick to your guns and use the knowledge you have from the research you’ve done. Always look for better deals and don’t be afraid to stand your ground.
Start with a ridiculous number, and work your way down. Don’t be afraid to walk away from an offer if you don’t like it. Even if you don’t get the car you want right away, your negotiating skills have gone up.
Get a loan
Buying a car is not an easy thing to afford. Most cars cost a lot more money than you have on the side. The easiest way to get a new car is to get a loan. Loans are a great way to get money fast and you can find some with an interest rate that works for your budget.
There are a lot of different types of loans, and according to an article on LoanMart, you can get a specific type of loan when buying a new car.
Remember that you can negotiate the loan as well. For example, the dealership can offer you a monthly payment rate for 60 months, you can try and negotiate the same rate, but to pay it less time.
Look at both, new and used cars
No matter what kind of car you want to get, check the same model and make for a used car and for a new car. Sometimes you can find a used car that’s in mint condition and it will cost one-fifth of the price of the same new car.
Buy based on the purchase price, not monthly payments. The price may vary depending on the area. For example, in Pensacola, Florida you can find great used cars that would cost more in a different area. Consider that before making a purchase.
Don’t just negotiate the monthly rate, ask for the full price of the car you are going to buy. When you see an offer where the monthly payment it’s extremely low, that’s usually because you will have to pay 5+ years for it.
Don’t let the “amazing” offers to fool you. Ask for any hidden expenses like delivery fees, car preparation fees, and extra taxes.
Avoid impulse buying
Impulse buying is one of the worst things we’re doing to ourselves. Impulse buying is okay when it comes to things that cost a few hundred dollars, but when it comes to buying a car, it will drown you.
Don’t buy a car before you consider every factor and before you’ve done good research. It will save you a lot of money in the long run.
Test drive the car
Always test drive the car. For used cars, you will be able to notice if something does not sound right and if it would be safe and smart for you to buy it.
Except for comfort, check the car you are test driving for the controls, the views – if the mirrors are positioned right and check if the breaks offer the stability and fast response needed.
Visit the mechanic
This is especially important if you want to buy a used car. Always take the car to a mechanic you trust before buying it.
The car may sound and look good, but the mechanic will be able to let you know if there is an issue there that cannot be noticed and that will cost you a lot of money to fix it soon after you buy the car. Don’t just trust the word of the salespeople, it’s better to be safe and know what you’re getting into.
Once you’ve done all the research needed, compared prices and negotiated the price down, you should be confident in your choice. You did the right one and now you can just sit back and enjoy your brand new vehicle.