A car purchase is the second most expensive purchase one makes after buying a house. Before you set foot in a car showroom, you must have the necessary information and details about the car you are opting to buy. Let us look at some of the important tips which you need to know when you going to buy a car.
The first thing you should do is to do ample research before you buy a car. It is a mistake if you arrive at a car showroom or lot without first researching about your options. You can find almost all kinds of information online. Take a look at various car options which can fit your needs and then compare their price ranges offered by various car dealerships to get the best deal on the car of your choice. If you want to make negotiations at a price of the car, you should look online to find the invoice price of that car. The invoice price is the price a car dealer has paid for the car to its manufacturer. This little piece of information would come in very handy while doing negotiations on the price of the car with the dealer. If you are buying a used car, you should look at the current resale price for the specific car model. This information will give you a huge bargaining power.
The next big and important decision to make is deciding how you will be financing the car. There are various options available for this. Many people get financing from car dealerships themselves which is not an economically responsible decision to take because generally, their interest rates are quite high than loan rates. The loan rates obtained from credit unions or banks are comparatively lower and these are the two best choices to start researching for getting a car loan. Gather all the necessary information about what the banks and credit unions are offering and compare the prices to get the best deal.
Research doesn’t stop just yet. For example, if you go to buy a TV, you will be looking around in various shops and places. You should do the similar with the car too. Go and visit various showrooms and car dealerships and try to find their rock bottom price and explore out of city options too because prices often vary at dealerships in different localities. Shop around before making a decision.
Negotiation is a very important part of the whole process of buying a car and the core of your purchase. It’s almost like a chess match or war. There might be situations in which the salesmen would try to confuse you with numbers and you might end up paying more than you should. Be cautious of such situations and try your best to negotiate the terms and conditions in detail and come at a mutual agreement point. You should have done the necessary research and negotiate with confidence to get the best offer. It may be helpful for you to practice your negotiation tactics and strategies beforehand too.
While negotiating never mention your affordable price range or trade-in limit. Sometimes if the dealership’s rock bottom price is lower than your trade in price then the dealership won’t tell you this and take your trade in price which will make the dealership get the better deal. For example, your trade in price was $3000 while the rock bottom price of a dealership is $2800 then the dealership won’t tell you about this and they will end up getting a benefit if you buy the car for $3000.
Another important thing to consider is the additional maintenance and car insurance costs that you will have to pay for the car. When you are making monetary decisions, do consider these additional costs first and set aside some money for them as well. Don’t spend everything on just buying the car.