Successful car-buying requires proper knowledge and preparation. Whether you’re buying a new or a used car, there is a lot to know before closing the deal. You’ll own your car for a long time, so don’t make hasty decisions. Here are some tips to help you buy a car the smart way and get value for your money.
- Understand the Car-Buying Process
Car-buying can be an intimidating process if you don’t know what you’re doing. Take time to learn car pricing terms and how to negotiate and get a good deal. Also, take advantage of online resources to learn as much as you can about your preferred car. You can also ask a mechanic questions about the vehicle you intend to buy.
Understanding the car-buying process will make you confident when you finally visit the dealership. You’ll know the right questions to ask and how to talk to the salesperson. You’ll also know the tricks dealers use on unsuspecting buyers to make them take bad deals.
- Look At Different Financing Options
Look into the available financing options. You can start by researching car loan rates by trade unions and your bank. They offer the best interest rates compared to dealerships. Get multiple quotes from different lenders and compare them.
Also, check your credit score to understand the interest rate you qualify for. Once you get preapproved for a loan by your bank or another lender, use it to negotiate a lower interest rate at the dealership.
- Shop Around
Buying a car isn’t an emergency. Take time to shop around and compare prices. Walk out from at least two dealerships. Dealers will always give you rock bottom prices just before you leave. You can also visit out-of-town dealerships and compare prices. Most dealerships price their cars according to their location.
Once you settle on a car, you can use a reliable valuation tool to get an estimate of its worth. You can use more than one valuation tool to determine how much money you should pay for the car.
- Look at Both Used and New Cars
Many dealerships today stock both used and new cars. For instance, Shelor Motor Mile stocks both and adds each car’s mileage next to the price for shoppers to view before buying. Many car experts consider slightly used cars the best option from a financial standpoint.
The value of a car starts to depreciate the minute you drive it out of a dealership, so try to get the best deal–whether you’re buying a used car or a new one. Buying a gently used car has many advantages over buying a new car. However, if your budget allows, go ahead and buy a new car.
- Negotiate the Terms
Just like buying a house, buying a car calls for good negotiation skills. Walk into a dealership with confidence and negotiate the best possible car loan terms. Avoid talking too much and let the dealer do most of the talking.
For instance, you can say that the price is too high and keep quiet to see if the salesperson is willing to go down on the price. Don’t express your love for the car openly or even mention that you’ve researched it online.