A car is a big investment, and many times something you will use daily for years and years to come. The stress of this knowledge can make buying a car a very nerve-wracking experience.
When you don’t know much about car shopping, you can dread the very thought of it. You can also dread car-buying if you previously got the short end of the stick the last time you went to buy a car, and are afraid of it happening again. The good thing is you can do something about all of this fear by using the following tips so that car shopping becomes easier for you.
1. Overall Price
It’s easy to focus on how much you’re going to pay monthly. Most of the time, dealerships get you to feel good about a purchase by telling you that you won’t be paying much each month. This may feel good, but it’s just a short-term benefit.
The reality is some deals can cost more if you have to pay for a longer period of time. You want to focus on how much the car is going to be rather than the monthly payments. Ask for the overall price including the additional costs. You want to know how much the car is going to be as you drive off the lot.
There are also a lot of hidden things dealers don’t have to mention that can affect the price of the car after you take it home. Will this car need any parts replaced? Are the tires going bald, causing you to drop another couple hundred on new tires a week later? Have a lengthy discussion about the actual state of the car before agreeing. This should make it easier to know which deal is the right one for you based on your budget.
2. Check the Facts
Another thing you can do is pay attention to the facts about each car. Not all vehicles are created equal. Some are safer than others. Try to compare and contrast some of your favorite vehicle models.
Now, there’s no way you’ll be able to compare and contrast every vehicle. Just stick to the models that suit your needs, and focus on those. Check for safety, consumer satisfaction, gas economy, and tech features. You’ll be surprised how helpful these facts will be like the fact that, depending on your choice, car insurance in Montreal could be cheaper because you’re buying a car that has a higher safety rating.
3. Say No to Extras
Car dealerships want to sell you extras. They may say something will only cost $20 more a month. This may sound reasonable to you at the moment, especially in the way it was presented to you, but you have to do the math. This package they’re offering is going to cost you $20 more every month for years.
That little bit of money will add up and is the reason you should say no. You need to reject most packages. One thing you might want to consider is driver-assist tech. This technology can detect people in your blind spot and tell you if you’re drifting into another lane. That is worth the extra bit of cash.
4. Be Prepared
If you’re going to be getting a loan, then bring your preapproval with you. Many financial institutions offer car loans, including ones you already have a relationship with. Find out how much you can get approved for and bring that preapproval with you.
This ensures that you stick to your budget, and it gives you the power to negotiate. The car dealership could offer you a better financing deal if they want, or you can stick to what you’ve been approved for. You can also ask the dealership to make a vehicle work within your loan parameters even if the car you want costs a little bit more.
5. Do the Research
A car dealership is going to try to make a profit off of your purchase. Ideally, the dealership is trying to make a profit of 10 percent. If you want to get a good deal, it’s important to find out how much the dealer paid for the vehicle.
To do this, you want to look for the factory invoice price for your specific vehicle. If you’re able to find it, you can use that price to negotiate with. The dealership won’t want to go any lower than that because that means they’re losing money, but you can get them close to that number as you negotiate. Now, if you want to get this right, be sure you’re willing to walk away and be genuine about it.
You’ve got all the tools in your arsenal now. You know how to make this experience easier. Use all of these tips, and you’ll see that you’ll be able to get a good deal on your new car.