Buying a new car can be a huge investment if you have never bought one alone. Many people tend to go into a dealership with high expectations and end up leaving with a slight case of buyers remorse and a car bill that won’t do the family budget any favors. There are, however, many ways that you can avoid leaving the car lot without a car that is not only going to satisfy your personal wants, but will meet your financial demands too. If you can follow ten easy steps while talking to your car dealer then you might find you’ll end up with a buying experience that won’t leave you feeling stressed out for years after the purchase. Now, you’ll be able to avoid all of the dealership tricks while still ending up with a vehicle that will make you proud.
1. Monthly Payments
After you’ve picked out your future car and are settling in the car dealer’s office you need to get in the appropriate mindset. A lot of car dealers will try to stress a low monthly payment, which will probably seem very ideal while you’re discussing the price. Although it sounds great, you need to keep out of the monthly mindset at first. Instead, concentrate on the interest price the dealer is trying to set up for you. A low monthly price will actually do you no good if you have you have an interest rate that is going to sky rocket your price. You should also concentrate on the full price on the car as you don’t want to buy a vehicle that isn’t in your budget. When you have both of these aspects of the deal secure then you should try to work out the monthly payment. This is incredibly important to pay attention to, because if you settle for just a low monthly payment then you might end up paying an unbelievable amount of extra money.
2. Money Down
Many car dealerships will lure potential buyers in with the idea of not having to put money down or pay finance charges for a certain amount of time. This can actually do you more harm than you think, so be leery of any deal that has you walking off the lot without a penny of down payment. When you go to buy a car you should always leave the dealership with something put down on the loan you have just taken out. This will not only help you in long run when it comes to interest, but will ensure you’re not still paying on a car that doesn’t run anymore. Typically used cars tend to last about as long as the loan does, so if you walk off the dealership without paying a cent then you’re going to have keep putting money down on a car while you’re looking for a new one. You also don’t want to pay on a car longer than you have to. If you skip out on a year’s worth of finance payments then you might find yourself paying up to five years of extra payments if you’re not careful.
3. Needs Before Wants
One of the main problems when it comes to shopping for a car is we all have the ideal car in our minds. This can cause us to buy a car that won’t actually suit our needs which can lead to more financial burdens in the future. Before you go to the dealership you should make a list of all the things you need in a vehicle. It might also help to do a little online shopping before you go in. One of the key factors to look at is how much space you actually need. If you have a larger family, or might be adding new additions to the family then you should try for a vehicle that is going to be an appropriate size for everyone. Whereas, if you are a single commuter then you might want to try for something smaller that will take up less gas mileage. You should also take into consideration your budget as there are often many different things that you can excluded from your car to help save even more money. For instance, you might not need the heated seats or in car entertainment.
4. Check Ups
Buying a used car can be trickier than a new car, especially if you don’t know much about vehicle mechanics. If you do intend on buying a new car then you should always have a mechanic purchase it before you actually make the final leap. Typically, mechanics won’t charge you a whole lot of money just to look at a car and inform you of any possible problems. This can actually save you a whole lot of money in the future as it will help you realize the actual value of the car opposed to what it is marked down as. If you know a bit about cars then you might want to write down things you notice during the test drive so you can ask your mechanic about them later on. You should also always ask about the history of the car, so you don’t have any unexpected surprises in the future. You should utilize both of these practices if you are buying a car off of Craig’s List or other personal dealer’s who might not be as honest about the car as you might think they are.
5. No Shiny
Everyone would love to be able to go out an buy their dream car without thinking about how their financial might be after the purchase. This, of course, isn’t an option for most of us. Even if you do think you have the money to pay for a car that is more shiny than anything else, you might be appalled by the charges that shortly follow. For instance, insurance on cars that are designed to look great and go fast can rage from expensive to unthinkably expensive for the household budget. It is best just to put the car dream aside for awhile and purchase something that is more economical for your needs. You might also find that your expensive car requires parts that are a whole lot pricier than the typical car’s parts, which could make getting your vehicle fixed a huge issue.
6. Trade In
Most people tend to seek out a new car in order to upgrade the current household’s home. If this is the case then you should bring in your older vehicle in order to trade it in for the new one. Sometimes, you can get a good price for your older car, but you need to make sure you know the value of what you’re bringing onto the car lot. A lot of car salesmen will give you a decent price for the old car if you use it as a trade in for the new one. This means that you get to take off the value of the old car on the new car’s loan. This can take a huge burden off of you when you it comes to paying off the new vehicle. This will also allow you to get rid of your older vehicle without having to pay a sales tax on the car. Thus, you not only get a bit of money back on your vehicle, but you also get to take the old vehicle off of the registration and insurance which will save you even more money.
7. Additional Warranties
Most car dealerships will give you a warranty whenever you purchase the car. Typically, this warranty will cover any major problems you might have with the car when you first buy it. Of course, your car insurance might also cover most of the problems you’re having. Many dealerships will try to push additional warranties onto you, but the trust is you don’t really need them. Generally, the extended warranties will add such an extra cost to your purchase that they won’t be of use to you anyway. Extended warranties work well if you don’t plan on purchasing a new vehicle any time soon, but they don’t do anything that the insurance you’re already paying for can’t. Most people tend to look into trading in their car, or purchasing a new one around the time the initial warranty is void anyway. So, by adding an additional warranty to your car you will be losing more money than you should on the vehicle.
8. Loan Shopping
One of the most important ways you can save money is to simple shop around for loans before you go shopping. This will allow you to find the best interest rate possible, so you don’t have to worry about it when you do go shopping for a car. Most people tend to wait until they’re at the dealership to worry about a loan, which typically means people only go through one financing company that might not have their financial situation in mind. This can leave buyers with a loan that is impossible to deal with for the duration of the repayment. If you can find a loan through your own bank or preferred financing company then you’ll be a lot better off financially since your chosen company will have more time to work with you for the best plan possible.
9. Hybrids
It might not seem the case, but buying a hybrid can actually save you a lot of money. Of course, if you look at the initial price of one of these vehicles then you might not believe it to be the case, but in the long run you’ll get the best car for your money through these vehicles. Hybrid cars are designed to help save you on gas and can switch to electric power in order to make your gas mileage stretch even further. In a few years time, many states will actually require these vehicles for road usage, so you might be doing yourself a favor by getting a head start on the switch. Currently, many states will actually allow you to drive in express lanes if you’re in a hybrid vehicle, which will also help you get better gas mileage and will add and extra convenience to your day. If you’re still worried about the price of the car, then check out a used hybrid that might be a great way for you to adjust the the change without forcing you to pay a lot.
10. Research
The best thing you can do before going out to buy a new vehicle is to research any car that you’re interested in. If you’re looking for a used car then try checking out some of the vehicles offered online. This will allow you to check out the car’s history, blue book value and will allow you to check out any major faults in the vehicle. The same can be said if you’re looking for something new. Doing a little research online will help you decide if the car is something that you’ll enjoy and what other people like and dislike about it. Looking online will also help you find the dealership that will offer the car to you for the best price. Knowing your future vehicles strengths and weaknesses is a simple way to help prevent future financial problems with the car, while can really help with extra spending.
Shopping for a new car is stressful, especially if you have to worry about your budget the entire time. Before you go to a dealership make sure to check out these simple steps so you can easily feel confident about your car shopping abilities. This will allow you to easily save a whole lot more money than you would simply going out and picking the vehicle that you find the most attractive. You might even end up with a car that can be passed down to the next generation.
