The experience of buying a car can easily turn into a nightmare if you don’t know how to deal with the overly pushy car salesman. It is frustrating to know that even your local dealership may not have your best interests at heart, and will readily offer you a raw deal if they realize that you aren’t familiar with car shopping. Fraudulent dealers will unapologetically swindle you thousands of dollars if you are not careful. That is why you need the following 5 tips on how to get the best deal when buying a car:
1. Search online for the estimated price of your dream car
There are two important prices that define the value of a brand new car: The manufacturer’s suggested retail price (MSRP) and the invoice price. The MSRP price tells you how much the car dealer should sell a car to you while the invoice price tells you how much the dealer paid for the car. That piece of information is invaluable when it comes to negotiating a favorable price. And because this information is available online- on Consumer Reports and Kelley Blue Book, for example, why not source for it?
Note: If you intend to buy a used car, don’t take the owner’s word for it. Ensure that you research the car’s recent resale prices beforehand.
2. Know what you want
If you don’t know what you want, you are likely to settle for any car that the salesman throws at you. Before setting foot in a car showroom, first ensure that you have a clear idea of the car model you need, the maximum budget you are willing to spend on the car, the features that are most important or relevant to you such as car warranty, looks, the performance of the car, etc. , and which between a new and a used car you want. This will help you narrow your choices, eliminating the need for the dealer’s “expert opinion”. Please note that these opinions are rarely “expert” as they are primarily tailored to convince you to purchase the car that gives the dealer the highest profits.
3. Don’t underestimate the significance of a car’s ownership costs
Besides the upfront purchasing price, every car model comes with its unique car ownership costs. These costs include but are not limited to fuel, repair & maintenance, insurance, and licensing. Understanding these costs will help you avoid cars that won’t fit into or that will probably overstretch your monthly budget. You can get this information from Kelly Blue Book and any other auto research website that you trust. These sites do not give a 100% accurate analysis of car ownership costs, mostly because they cannot accurately determine your personal situation, but they will give you a general idea of what to expect. You can always get better estimates if you could do your own calculations.
4. Determine the most favorable financing options
Your local car dealer will be happy to coordinate your auto loan, but it would be better if you handled your financing details on your own. Make a point of getting a car loan quote from your bank or whichever financial partner you trust, then compare that quote with the dealer’s financing rates. Of course, the dealership could be offering better rates than the bank, but you will never know if you are getting the best deal if you don’t compare it against other financing options. What’s more, when the dealer learns that you’ve been to the bank, he will be willing to offer you lower rates than what the bank quoted.
Note: Even if you don’t want to involve the bank in your financing deal, at least check your credit score in order to eliminate the chances of the dealer taking advantage of you. There are dealers who often exaggerate insignificant negative credit details on your report just to hike car prices.
Make sure that the car hasn’t been used in any criminal activity before buying. The lawyers of Traffic Tickets can give you expert legal advice.
5. Try different dealers
To get the absolute best deal when buying a car, you need to do your homework and do it well. Before deciding to buy your car from a given dealer, try as much as possible to visit multiple dealers within your area and listen to their offers. This is the same case as buying a new house.
Of courses, you do not settle for the first house that the real estate agent presents you, but rather, your visit multiple house and choose the one that suits you best. If need be, don’t be afraid to mention to a dealer that you were offered a better deal by a different dealer and that you will gladly take it if he sticks to his unfavorable rates.
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