Buying a new car is a serious investment and one of the most important purchases that a person can make. This is a purchase that needs to be well-thought-out, with numerous factors that have to be taken into consideration, and several dilemmas that car shoppers inevitably face both before and after entering a dealership.
To make an informed car-buying decision, consumers first have to determine what type of vehicle fits their needs and their budget, and they also need to have good negotiating skills, on top of deciding what financing option is best for them. Here are a few tips that can come in handy to those interested in buying a new car, that will help them avoid the most common mistakes and find the right car for them:
Figure Out What Car You Need
Once you decide you want a new car, you have to start thinking about what type of car would meet your requirements and preferences, and what car you can afford, taking into account the down payment, the monthly payments, and all costs associated with vehicle ownership, such as insurance, maintenance, and fuel costs.
The factors that have to be considered include the car’s fuel economy, insurance rates, in addition to aspects such as towing and hauling capacity, interior room, and in-vehicle technology.
Compare Prices
After you determine what vehicle you want to purchase, you can start shopping around and try to find the best deal on the car you’ve chosen. To compare prices, you can use some of the numerous car price quote sites, that will help you find out which dealer in your area offers the best deals on a particular vehicle.
Get a Loan Before Going to a Dealership
Choosing the right financing option when buying a new car is one of the most important steps of the entire process. The best option would be paying in cash, but it’s an option that not a lot of consumers can afford. The second-best option is to get a loan, but to make sure that you get the loan with the best possible terms and one that won’t put your budget under significant strain.
Although many car shoppers opt to finance their cars through a dealer, it’s recommended to avoid that option, because the rates offered by dealerships are usually higher than those offered by banks or other financial institutions. This is because dealers sell a loan that they have purchased from a financial institution, themselves, and they sell it at a substantial markup. That’s why setting up a loan in advance is recommended for all new-car buyers.
Choose the Best Time to Visit a Dealership
If you want to improve your chances of striking a good deal, you have to choose the right time to go to a dealership. There are a couple of good moments over the course of the year when it’s more likely to get a discount, such as:
- December, which is when dealers are looking to get rid of the current model year vehicles and make room on their lots for the next model year
- The end of each month, because salespeople try to meet their sales quotas, on which their salaries depend heavily, making them more willing to offer lower prices
Negotiate Politely, But Firmly
Bargaining and trying to get the salesperson to offer you a good deal is an inseparable part of the car buying process. Car dealers are well-versed negotiators and they use various tricks to get customers to spend more money than they had originally planned before setting foot in their dealership.
But, buyers just need to do their research beforehand and be familiar with the most common tricks used by dealers, and they will be able to negotiate a good deal. Consumers have to be able to negotiate in a polite manner, but stay firm throughout the process. They need to avoid negotiating about the monthly payments, but rather focus on the total car price, and they have to decline any unnecessary extras that the dealer offers, in a bid to raise the overall price of the vehicle.
Finally, car buyers have to be prepared to walk out if they don’t get the deal they want and go to a competing dealership, which is a good way to get the salesperson to bring the price further down.