Buying a car is the second most expensive purchases one does after a house. Making this purchase needs a lot of research and planning. Impulsive buying over a weekend can never be a good option. Here are some tips that you should consider before purchasing a car.
Type of Car
First off, you need to figure out the type of car that you need to buy. There are a lot of factors that you need to consider while buying a new car. Decide what car would suit your status and lifestyle. Since you will be using the same car for numerous years you need to anticipate the future requisites and the lifestyle changes. As of date you may prefer purchasing a mid-sized car according to your current requirement and since these cars are available at good deals. Short listing your dream car may seem difficult with so many factors to be taken into consideration hence, in such circumstances word of mouth is the best option to gather ample information about the reliability and quirks of make and model of the car. So talk to your friends and acquaintances that have been driving similar cars.
You have numerous options to choose from such as sedan, Coupe, Hybrid, Convertible, SUV, hatchback, sports car or a luxury car. You also need to pay special attention to the make of the car since you have numerous options out there as well such as Audi, Bentley, BMW, Chevrolet, Ferrari, Fort, GMC, Honda, Jaguar, Land rover, Mercedes-Benz, Nissan, Rolls-Royce, Subaru, Toyota, Volkswagen and many more.
Research & Avoid impulse buying
The most crucial thing before buying a car is doing the appropriate research. It is extremely important to gain knowledge about the product before purchasing it. Research as much as you can and avoid impulse buying since it is risky and you may end up losing the entire amount you have invested in buying the new car.
When it comes to buying a car you have varied options not only in the make and model of the car but also you need to decide whether you wish to buy a new car or used car. This is the most important decision as it will affect your finances for next few years. You can easily find all this information about your dream car along with video reviews on cars.com.
New, Certified Pre-Owned or Used Car
New, Certified Pre-Owned and Used cars have their own advantages and disadvantages and you need to consider all those before going ahead with the decision of buying the car. Earlier people preferred buying a used car since the new car depreciates in the first 2-3 years and in turn you can also save some money. You also have the option to review the consumer reports about the performance of the model. Also, the insurance cost would be considerably low when compared with insurance for a new car. It also has some disadvantages to it such as reliability and the number of times that you may need to repair it. You might have to compromise on the colour of the car.
While on the other hand new car comes with a warranty and you only need to pay attention to the maintenance since the first few services are provided for free. New car has latest technology and it will provide good gas mileage and lower emission. The dealer may also provide better financing offers. The bad part about buying a new car is that it starts depreciating within the first few years. Also, when you buy a new car you are not sure about the make and model when they switch engines and alter the design thus, leading to issues with that year’s production.
Now that you have shortlisted your dream car, you need to think about the finances. Many prefer obtaining finances through car dealerships, but you need to keep in mind that car dealership rates are always greater than loan rates provided by banks and credit unions. While considering finances it is always a good option to first approach your bank or credit union before directly going ahead with the dealer for finances. Cars.com comes in handy while doing such research as it provides you updated information about car loans including side by side comparison and payment calculators.
Check various options in the nearby vicinity
Now that you are sorted with the finances you need to walk into few dealerships in order to find out the best price that they are offering you. The prices also depend upon the location so you should consider checking out dealerships in different vicinity too.
Since you will be investing a big amount in this car and now that you are ready with the best prices offered to you, you need to start negotiating as much as you can. Do not let the sales person convince you for his price rather you need to convince him for your price. If he cannot offer you the price that you are looking for do not feel bad to walk away, end of the day its your hard earned money and only you have the right to decide where you should invest it,
Decide on the basis of purchase price & not monthly installments
Car dealers often provide ‘attractive monthly instalment’ options. Beware, that’s not the best price he is offering you. Always negotiate depending on the purchase price and not the monthly installment. Also, make sure to gain information about any extra charges, hidden costs, delivery charges, dealership costs, etc. Hence, it is very important to know the total price of the car. Consider Insurance Cost as well since it is an important factor in the overall price of the car. Obtain insurance premium quotes online by inputting the car’s make and model number along with your personal information.
Never mention your trade-in unless you are ready for the deal
Never mention your trade-in price until the end process of buying as the sales person can use this information against you. First obtain the best offer price for the deal and then work on your trade-in price.
Add-ons & extended warranty
You do not require all the add-ons that the sales person is convincing you buy. A portable GPS navigation unit can be purchased online at a much cheaper rate. Also, you need not buy the extended warranty as it has very limited coverage. It does not cover various mechanical failure in new or used cars. New cars come with manufacturer warranty while many used cars also have their valid manufacturer warranty. Extended warranty is financed as a part of car loan and hence it is best to avoid it.
Take your time with Test Drive
Always go for test drives and ensure that you are comfortable with the make and model of the car. If you are not sure about it go for several test drives until you certain. Also take your family along for the test drive as they will also provide their honest opinions about the car. It will help you with your decision.
Tag along a mechanic when buying a used Car
When buying a used car ensure to get it examined by a mechanic. He can find any unusual signs of wear and tear of the car. He can also guide you about the maintenance and mechanical issues and whether it will be a good deal. It will also help you in deciding the appropriate purchase price of the used car.
Buying a car is an important decision hence do the right research and consider minute aspects. Gather ample information and try to obtain the best possible deal.
Hope, that the above mentioned tips will help you obtain the best deal on your next car.
Pic Courtesy: Cars.com