One of the major purchases that people make is a car. It’s
the worst asset to purchase because unlike other assets, cars always depreciate
its value. How many of you have ever got struck into a bad car deal because you
are paying high interest or it’s not according to your use. I think that many
of you. It is very common that people purchase those cars which don’t suit
their lifestyle.
The first you should determine is what you need the car for?
Either you want a car for a reliable mode of transportation or for a status? Is
it for your work or for dropping your kids to school? Is it for long trips or
for carrying heavy groceries? These factors must be kept in mind when buying a
new car. Next is to determine whether you want a need car or a used car. As you
all know that a car depreciates 20% to 30% as it crosses the dealer’s driveway.
So it is highly advisable to buy a used car as it will give almost same driving
experience as a new car will.
Most of the dealer offers
used cars too besides new car. So just go to any dealer just to browse with no
intention to buy. The first time you go to a dealership, you shouldn’t be
looking to buy. Tell them that you are just looking around because that time
you will be under any marketing pressure. Take notes whatever you like and come
back after doing some research. There are
lots of websites on the internet that tells what the dealer paid for the car. The
figures may not be correct but it will give you an idea on how to negotiate. Most
of the dealers have a website on which they offer new and old cars. You can
easily get quotes on request. It takes around 2-3 days to get a quote. So
always get an online quote of cars that you like and wish to buy because sometimes
they give better quoting online than personally asking them. Once you know
which car you want to buy, get your all paper work ready. It includes quotes
from different websites or dealership so as to negotiate, your credit score if
you qualify for a loan and shop for interest rates too. Take quotes from
different banks and credit unions. There are very high chances of getting good
rates if you shop around. Here are some tips that the buyer should consider:
- · Don’t get into leasing. In leasing, you are just taking a car on rent. At the end of lease, you have to return the car with nothing to show for your years of payment.
- · Always discuss about one thing first i.e. price of the car. You should first settle the price of the car. Once the price is set, then talk about financing and trade-ins.
- · You should always talk about the ‘out the door’ price. Find what you have to write on check because there are many additional charges those dealers may not tell you but when you see your invoice, you see those charges.
- · The best time to buy a new is September/October. It’s the time when old model year ends and a new one begin. So dealers don’t want to keep old model cars and they sell them at a lower price.
- · Don’t buy any pointless dealership services. Most of the dealership offers you services that look useful when offered but when you actually use them, you will find them worthless.
- · Be ready to walk away in negotiation. Dealers don’t want to lose their sale only on few hundred dollars of rebate because few hundred dollars of rebate are better than dead deal. Don’t go back from your words. Just tell them what you are willing to pay and if the dealer is smart, he will come up with the negotiations and accept the deal and try to pull a fast one on the next sucker.
- · If you find yourself trapped in a bad deal, then immediately give up the deal. As you have 5-10 days to cancel your deal, you may cancel that if you are unsatisfied.
How to check a car if it's new when buying a car-->
References:
- http://www.bankapproved.ca/news/what-car-should-i-buy-how-to-choose-a-car-that-s-right-for-you/9
- http://abcnews.go.com/Business/10-car-buying-gotchas-avoid/story?id=20320840
- http://editorial.autos.msn.com/10-tips-for-regret-free-car-buying
- http://www.youtube.com/watch?v=i-SKfw7XnWY
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