There comes that time when you find that you need to get a new vehicle. Of course, the trick is to save money buying a car – which can be difficult.
Sometimes, the salespeople can be extremely intimidating. Before you know it they are throwing all of these numbers at you and you end more confused than ever. When you get home, you really look and it wasn’t the deal you thought you were getting. Enter – buyer’s remorse.
Outside of your home, a car is one of the biggest purchases you will make. It is important that you walk in educated and ready to work a deal that actually is a deal. We’ve got some tried and true tips that you can use yourself to make sure that you get the right price, right vehicle and best loan for you!!
1. Know a fair price. Before you head out, do your research. Find the type of vehicle(s) you want and then find out what the average price is close to where you live. You can use online tools such as TrueCar, AutoTrader, Cars.com or Edmunds to find out prices close to where you live. Keep in mind that prices actually vary and you may be more (or less) depending upon where you live.
If the option is available for you to drive a different city where the prices are lower, you might take that into consideration and plan a road trip to look at that vehicle. Doing so really could save you hundreds, possibly thousands, on that next car.
This not only applies to the vehicle you plan to buy but also the trade-in value of your vehicle. You certainly do not want the dealership to give you less than what your old car is worth – as you will end up paying more.
2. Shop at the end of the month. Salespersons at dealerships have monthly quotas. When the end of the month comes, they are more willing to negotiate the rates in order to make the sale and try to reach those monthly goals. Try to shop within the last seven days of the month and you may get a better deal.
3. Do not buy brand new. Many millionaires will admit that they do not own brand new vehicles. They are smart and purchase ones that are at least one, two or even three years old. This not only saves you the initial depreciation costs when you drive it off of the lot, but will also save on insurance and personal property taxes (as applicable).
4. Check insurance before you shop. There is nothing worse than purchasing a vehicle to find out that your insurance premiums are very costly. Contact them before you head out with the types you have in mind so that they can provide you with an accurate quote. This may actually sway your decision when shopping for one vehicle over another.
5. Skip the add ons. Sales people will always try to sell you on the extended warranty or upgraded “gadget”. Always say no. These are not worth the cost in most instances and is just a way for you to pay more than you really need to.
6. Pre-arrange financing. Talk to your bank or credit union before you head out and find out if they would be able to provide your financing. You may find that you can score a better rate than what is provided by the dealership. Of course, if you are able to, paying cash for your vehicle is the best option – as you never have to pay a penny in interest.
7. Watch for rebates. If you are opting for a brand new vehicle, check for the rebates. A great resource for finding out the best rebates and offers on vehicles is Edmunds. You never know what you will find!
8. Know how to negotiate. Salespeople do not speak in vehicle pricing, but rather monthly payments. They will say things like “this car is just $350 per month!!” — but they fail to share that you will pay that for seven years! That also does not take into consideration your credit rating or even your trade in value (be it negative) — which will absolutely affect your monthly payment.
They may also throw in the rebate or cash back offer into the price, so make sure you do the math and check it out before you visit the dealership. You do not want to overpay for a car — ever!
Now that you have these tips in your back pocket, hopefully your next car buying experience is a good one…..and you get the deal you deserve!!