7 Tips For Buying a Car
Buying a car is a big step for many people, and it can be stressful. But with the right preparation, you can save time, avoid headaches and get a good deal on a vehicle that fits your needs and budget.
1. Selecting the vehicle
First, decide on a specific kind of vehicle that will meet your needs and lifestyle. Think about where you live, what you drive and how often, as well as your lifestyle’s driving conditions. Then, find out how much you can afford and what type of financing will work for you.
2. Price research
Before heading to the dealer, you should have a general idea of what you want to pay for your new vehicle. This will help you negotiate the price of your car with the dealer.
3. Obtain pricing information from multiple dealerships
Once you have a general idea of what you’re looking for, contact three dealerships that sell the make and model of the car you want. Ask each to give you the total selling price of that vehicle, including any extra accessories.
4. Test-drive the car
Before you commit to a purchase, make sure you’ve actually driven the vehicle you’re interested in. This can help you ensure that the car’s features and technology will work for your needs. It also gives you a sense of how well the car drives.
5. Negotiate the financing
Getting financing is one of the most important things you can do when buying a new car, especially because it can make or break your decision. There are several options for arranging finance, but you’ll need to know how much you can afford to spend and how long it will take you to pay off the loan.
6. Negotiate the down payment
Having a solid down payment is essential to buying a car. You may need to come up with a lump sum of cash or take out a small loan to cover the down payment and monthly payments on the vehicle you’re considering.
7. Ensure you are ready for the transaction
When you go to the dealership, be prepared to answer all of the salesperson’s questions about your credit and your financial situation. If you have any issues, such as late bills or delinquent accounts, you should resolve these before you buy a car.
8. Don’t be afraid to walk away when the salesperson isn’t negotiating your prices efficiently
The dealership can distract you with sales tactics, such as asking for your trade-in before you’ve settled on a final purchase price and then negotiating it in your negotiations. They might even try to increase the price on your trade-in by hundreds or thousands of dollars while reducing the price you’re paying for your new car, Van Alst and McParland warn.
The best way to get a feel for how much you can afford is to figure out your budget and calculate how much you can spend on a car every month. This can help you determine how much money you have left to spend on a car after you’ve paid for your down payment, insurance, taxes, fuel and maintenance.