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For most people, buying a new car is a major transaction. Thousands of dollars can easily be saved or lost in the process. By following a few simple tips, the new car buying experience can be made as possible. Securing a great deal on a car is all about coming in prepared.
A lot of people enter the car buying arena financially unprepared. They may not have a good idea of what they can actually afford, and they may not understand all of the costs associated with buying a new car. Many of these people are hyper focused on the monthly payment when in fact this number is only a very small part of the picture. It is also the number most easily manipulated by the seller.
The best choice is to secure outside financing. Credit unions and even most banks sometimes offer better financing than the dealership. These institutions are also more likely to educate the borrower about what they can afford and not offer loans beyond their means. There are many parts to a financing offer beyond the monthly payment. It is important to look at interest rate and length of the term. A very long term, which is usually anything longer than 42 months, will also lower the monthly payment but at the cost of an incredibly high interest amount.
One neat trick is to save your third-party financing option until the last minute. Car salespeople usually make a good chunk of their commission off financing. This means they may offer a better overall price if they think they will make that money back on the loan. After the better price has already been set, you can let them know you will be using your own financing option.
Many people use their old car to secure the down payment or extra money they need on a new vehicle. Getting a good deal on your trade in is important. The bottom line is that going to the dealer to trade is probably going to be the fastest but also lowest earning option. Dealers are only really interested in new model cars with relatively low mileage. They offer very cut-rate deals on anything else. Selling the car privately will probably get you a lot more money for it.
Regardless of how you sell the car, it is important to get a good understanding of its value before approaching any buyers. You will also want to have needed paperwork. Most smart buyers will request recent maintenance reports and may even look up the VIN number for a full report. Be ready to explain any accidents, damage or recent repairs.
Also, be sure to keep your trade in deal separate from the new car purchase even if selling to the dealer. Preferably secure the price on the trade in before even starting to shop for the new car.
Buying a used car can be a great way to save money. Whether buying used from a dealer like Bay Ridge Nissan or a private seller, it’s important to be careful and thorough before making the final purchase. Lemon laws typically only cover dealer transactions, so buying from a private seller gives you much less legal protection should something be wrong with the car.
One of the best things to do is take the car to a trusted mechanic for an inspection. If the seller is serious about the car, then they should have no problem with this. If the mechanic finds minor problems, you may be able to negotiate a lower price. Serious problems may mean finding a different car.
In the age of online shopping, people are used to buying things without actually seeing them first. This has carried over even to major purchases like cars. A surprising number of people will do thorough online research but then also make the purchase without ever sitting down inside the vehicle.
A test drive is one of the best ways for you to assess the car. It may even help your negotiations for the price. Requesting a test drive shows the dealer you are serious about the car and allows you to spend more time on the deal. The dealer is making an investment of time and effort, which can give you a little bit of leverage when negotiating.
Most modern shoppers are not used to haggling. You go to the store, pick an item for a set price and purchase it. If you use this same approach with your car, you might spend more than you need to. Car salespeople are used to haggling over price. Go back and forth with offers a few times and try to get the lowest price the dealer will accept. If you can’t get the price you want, always use your power to walk away from the deal. You may even find the price magically gets lowered when you do this.
When all the dealing is done be sure that you thoroughly read all of the paperwork and terms of the purchase. There are lots of little extras dealerships like to include at the end. The price you pay should be the price you agreed on. If it’s not, then find why it’s higher and request the extras be taken off before you sign anything.