Buying a new car? Huge investment, isn’t it? It is important to get most things right for your new car and you may be a little lost as to where you gotta start. Don’t worry! We’ve penned down seven steps to help you get through. Just follow them and you’ll see that it’s not that difficult after all.
Step 1) Do a thorough research.
This step is the one that is going to influence most of your decisions – from the type of car you want to buy to the amount of money you want to spend. So read articles and reviews, stay up to date. It’s important for you to know what you are in for. Talk to people – friends, family, neighbors. Get their opinion. See what works out for you. It is also important that you pen down your priorities with respect to the car. Think of your budget, the number of people in the family, the purpose of buying the car. This should help you narrow down your choices. Also this will help you have an advantage over the car salesperson who is trying to sell you a car that you don’t want.
Step 2) Pricing information
The first thing you want to do is make a budget for yourself so you don’t spend too much or too little. Take a few factors into consideration like how much will you get if you sell your old car (if you have one), how much down payment can you make? the monthly installments, the duration of those installments etc. Also get familiar with various pricing terms. Here are a few to get you started.
1) Sticker price/List Price: Also known as Manufacturer’s Suggested Retail Price (MSRP) is the price that the car dealer expects or wants you to pay
2) Invoice Price: The price that the dealer paid for the car
3) True market value(TMV): The price at which you can buy the car.
There are a lot of considerations that you have to make while determining theses prices. Also there might be fluctuations in the prices due to fluctuations of certain factors in the market. So stay updated!
Step 3) Car Financing
You may or may not have cash to pay for the entire amount of the car. Hence you are going to consider getting car finance via a loan. The better your credit score, the lower are your interest rates. Also the car dealers may offer you great payment options depending upon your credit score. It is also important that you are sure of your financing options before you step into a car dealership to buy your new car. That gives you an advantage while negotiating. You might also want to consider something known as a pre-reg car that have great discounts solely because these cars have already had one owner. It’s usually the dealer who buys the car and registers it to the dealership to meet sales target. Keep the car insurance in mind while doing all of this. We all know how important an insurance is.
Step 4) Test Drive
It is very important for you to know what driving the car you choose actually feels like. Some people may take this for granted but it actually plays a very important role. You don’t want to regret the choice you make, do you? Consider a few factors like whether the seat is comfortable, are the controls easy to use and navigate, are you able to get in and out with ease. Use the lights, radio and other technologies in the car, get really comfortable. It’s a big investment so make sure you don’t settle for anything that is less than what you are paying for.
Also, take a look at the Top 10 Bad Car Driving Habits You Need To Get Rid Off Now.
Step 5) Get quotes from dealers
Make sure you call a good amount of dealers and ask them for their quotes on the car you intend to buy. Tell that you have test driven the car so that they know you are keen on buying it. Inform them about the competitors prices, they may try to beat that price which will give you a better deal. Ask them for the quote on paper via fax or email.
Step 6) Negotiate
Almost always the price the car dealer advertises is not the price you pay. Its lower. Sometimes much much lower. Start negotiating and be firm. Maintain a professional tone and intent. It is important to let the dealer know that you have done you part of research and know what price would be appropriate. But let the dealer first make deal. This will work out to your advantage. Never buy a car (or anything else for that matter) in a hurry. You may end up making a wrong choice. Take your time, be calm and get the best offer.
Step 7) Make the deal
Now that you are satisfied and comfortable with the make model and price, it’s time for you to make the deal. It is the final and important step. So make sure you are comfortable with what you are buying and what you are paying for it. Always, always read the contract before signing. If there is something you don’t understand, get them to explain it to you. Take a second look at your down payment and monthly installments and make sure it is exactly what you’ll have agreed upon.
That’s it. You can now enjoy your new car! We know it’s a lot of information to process . Just follow these steps thoroughly and you’ll be good to go.
Also, if you are debating between a new car and used car, here is an article to help you out.
Buying a car is hard. Deciding whether to buy a new car or a used car is harder. Is a used car a safe choice? Can I afford the installments of a new car? These maybe the questions that are running in your head.
Here are the advantages of buying either one. See what works best in your favor.
Advantages of a new car
Trendy features – The new cars are obviously packed with the latest features. Safety, design, comfort- everything is up-to-date. Also you have the benefit of custom ordering your new car you can order your with certain features that you like. For example you may want your car in a metallic shade.
Low Maintenance – The cost of maintaining a new car is comparatively low than that of a used car. In the first year of buying a used car itself you will incur significant maintenance charges. This is because the car has been used for a certain amount of time and is subject to depreciation. Hence, the constant maintenance. Also, few new cars come with free maintenance for sometime.
Warranty – Unlike the used car, the warranty is unused. You may have to buy a warranty for a used car but the new car comes with free warranty per se which covers car related expenses for a certain period.
Lower interest rate – New cars have lower interest rate on the financial loans than the used car. Some used cars may not even be eligible for finance. However this depends on the institution that is providing you with the car loan.
Get the best quotes for new cars right here!
Advantages of a used car
Benefit of depreciation – Every new car owner takes a depreciation hit i.e the value of the car drops by more or less 15 percent the minute he purchases it. You can avoid this when you buy a used car as the depreciation hit is borne by the initial owner of the car. So you can pay a lower price and still own a great car.
Lower price – This is the most obvious benefit of a used car. You can satisfy the sole purpose of buying a car without burning a hole in your pocket. Sure, you won’t get to enjoy that new car smell but at least your monthly installments won’t eat up all your savings.
Wider choice – The money that you will spend for a mid rage new car, with the same amount of money or lower you can purchase a luxury car. So if you have a certain dream car but can’t afford it, that’s what you do. You buy a used one.
Avoid additional new car expenses – There are so many hidden costs involved in purchasing a new car. You have to pay for state licensing fees, state and local taxes, high insurance premiums etc. You can avoid all these expenses with a used car as they are covered by the first owner of the car.
Want to get the best price for used cars? Click here.
These are a few pointers that will help you decide on your choice of car. Which one are you likely to buy and why?