10 Tips That Will Save You Money When Buying A Car
By Jessica Williams
With the rapid growth of the auto industry and the sizeable government incentives that are being offered, it is now easier for buyers to make a deal. Purchasing a reliable used car once gave buyers the most bang for their buck, but today it can sometimes makes more sense to purchase a new car as the incentives being offered, in a lot of ways, are of better value. Either way, whatever you decide to purchase should fit your individual lifestyle and your budget.
Here are 10 tips that you should follow to insure that you drive away with the best deal offered.
1. Do Your Research First: It is extremely important to do your research with several different dealers instead of just handing over your money without any research being done. You should have a thorough understanding of what make and model you want, the features, upgrades, and the safety rating. Remember that you never want to make a vehicle purchase without having done the research. You don’t want to be prime bate for a salesman to take advantage of a situation by offering you a host of services and features that you will never use.
2. Shop Around to Multiple Dealers: Making large, expensive purchases should always be well-researched and thought out. Purchasing a car is no different and should never be rushed. Take the time to visit at least 3 – 4 dealerships both in person and online to make sure that you are getting the best deal possible. Keep in mind when looking around that dealerships are in competition with each other, so you are able to negotiate to get the terms that best fits your wallet.
3. Shop Around For Financing: Dealerships make more money by having you finance with them in their in-house financing programs. However before any agreement is reached take a step back and review all of your financing options. Remember that loans are cheapest at credit unions. Also don’t be afraid to contact your bank’s local branch to find out about their loans and associated interest rates. Another great way to keep your financing down is to get preapproved for an auto loan before you begin actively searching for a car.
4. Pay Attention To ALL Vehicle Costs: One of the biggest things you need to be aware of is low monthly payments that are accompanied by an extended plan. Sometimes the lowest payments are not the best for you as you have to remember to factor in all of the interests and other costs that will have accumulated by the time you have paid off the car.
5.Realize That Everything Is Negotiable: Most new car shoppers think that the pre-printed costs that are stuck on the windows of cars is set in stone and are non-negotiable. False. Everything is negotiable when it comes to making a car purchase. Preprinted numbers can be erased, crossed out, and removed from all paperwork associated with the car. Because dealers are fighting for a sale, they are willing to go as low as possible to guarantee your sale.
6. Time The Market: A lot of times you get the better purchasing price when you buy a the end of the model year. August through October is usually the best time of year to make a purchase for a current year vehicle. If you are unable to make a purchase during these months, you can also get a greater savings by making a vehicle purchase at the end of the month. You will find at the end of each month the sales teams always go a little lower to insure that they meet quota.
7. Shop Your Trade In: The dealership that is selling you your new vehicle may not always give you the best possible rate for your vehicle trade in. Take it around to at least 5 different dealers to see who can off you the best straight sale possible. Never settle.
8. Pull A Swich: If a dealer who you are interested in doing business with doesn’t have your car of choice, see if they are able to do a vehicle swap. In this buyer’s market, if find the right car and have the right dealer, they will find a way to make you happy to create a great purchase experience.
9. Get Educated: Before you spend any money, make sure you know exactly what a good deal is. Manufacturers are offering incentives on more than 2/3 of vehicles in the market. You need to be very aware of the incentives that the manufacturers are giving to both dealer and manufacturers. Sites like Edmunds.com, ConsumerReports.org, KBB.com, NADAguides.com, CarBuyingTips.com, and JDPower.com are great to find out information on the car that you are interested in purchasing. The most powerful source of information on incentives can be found on the automakers own website. Also make sure you check out the car’s safety information on sites like IIHS.org and SaferCar.gov.
10.Negotiate The Vehicle Price First: Vehicle deals have quite a bit of parts to them. The can include not only the price of the car, but also the credit received for the trade-in, incentives, and finance rate. If you remember to keep all of these parts separate in your mind, it will lead to positive spending experience.