Buying your first car or replacing the old one with a newer model can be an exciting process. Before a car salesperson pressures you to leave the lot with one of their vehicles, it is crucial to equip yourself with the necessary information. The advice below can come in handy if you’re trying to save money, grab better deals or just simplify the whole process.
Do Your Homework
Before walking in the lot, ensure that you do your research. Can it carry more than four people? Do you want an everyday car or a vehicle specialized for racetracks? Does the dealership you are buying from provide you with a market competitive price? An excellent way to learn more about different cars is to take them on a test drive.
Think About Financing
Prior to investing in a car, you should think about the budget. If you do not have enough savings to finance the down payment, you can consider a novated lease for the car. Your employer will be paying for the car lease and pulling the cost out of your salary package. Choose rates and terms that are suited to your needs.
Consider Buying a Used Car
While many people are under the assumption that a used car loses its value, the reality is that a car`s value is dependent on a variety of factors. Buying a used car is an excellent option if you are on a tight budget. However, it is not wise to invest in an old car from a purely financial standpoint. Consider both used and new cars when looking for a vehicle. If you can locate a deal on a new car that suits your needs, then that will likely be best.
Beware of Add-Ons
If you have ever been to a car dealership before, you know how it goes. Once you decide on a price, the dealer will take you to the manager. This is where they will try to sell you extended warranties, additional protection, paint plans, and multiple types of insurance. Dealerships make a ton of money by selling these extras that often add little to no value to your vehicle.
Always Negotiate Terms
Bargaining with the car dealer before settling on a downpayment always pays off! Remember that it is a major purchase, and you may be paying it off for the next few years. Practice your negotiating skills prior to visiting the car dealership.
Look Up Repair Records
Never invest in a car that will end up costing you significantly more than its competitors at a repair shop. Look up the repair history of the particular model you are interested in to ensure that its maintenance is not a hassle and that the parts can be easily bought off the market. Internet forums are an excellent way to engage with buyers who drive the specific model.
Always remember that you are not only investing in a car but also a better lifestyle for yourself. Ensure that you visit every dealership in your area and become familiar with the warranties and the insurance that comes with the vehicle.