And since we have very little experience when it comes to shopping for car, I decided to ask around and as always, did a bit of 'homework' online to see how to best shop for a car.
Below are some smart tips that I have compiled and I hope it would be useful for those of you seeking to getting another car.
Always Do Your Homework Online First
When you want to buy a car, do your research online. You can find out about all the makes and models available on the car brand's website. You can even find the dealer's site and peruse the cars on the lot. Some dealers even offer specials through their site, so check those out too.
Do a little research before you enter the showroom. When you walk into a showroom, sticker prices are usually listed right on the cars. It is important to understand that all dealerships have some wiggle room from these prices. If you do your research online first, you can gain an understanding of how much the car you want is selling for you in your area. This will help you to understand how much room there is to negotiate down from sticker price, so that you get the deal you are really looking for.
Get Familiar with Upsells
Watch out for the upsells in the car sale office. When talking to the sales agent, you will always be offered things like an extended warranty, interior protection, additional insurance and other such add-on.
Make sure that you understand these well before making a decision to purchase them. Most of these offers are NOT worth the money you will spend, and you're better off saving each month in the event that you need a repair or your interior gets a stain.
Take Your Time
When in the sales office, read your final contract thoroughly. Many dealerships will try to rush you through this step, and they may change important information or financing terms as a result. Make sure the terms are exactly what you agreed to. If they are not, ask them to make changes before you sign anything.
Do's and Don'ts
Do not try negotiating unless you see the car that you want is available. He might tell you that he can get it in for you, but you do not know if it will be the exact one you want. You do not want to waste your time negotiating for a car that you do not really want.
Do take extra care when car shopping if you are a female. The sad fact is that some salespeople believe that women are uninformed buyers and will try to take advantage. Arm yourself with research on prices ahead of time, and don't be afraid to walk away if your salesperson seems condescending.
Never give your trade-in's keys to the dealer before you've come to an agreement. The dealer could take your keys (and thus, your car) hostage and manipulate you into an unfair deal. Always hold on to your keys and if the dealer wants to take a look inside the car, open it up for them while you hold the keys.
If you're buying your vehicle through a private party, let a mechanic look at it before buying it. If the owners deny this, it should be a red flag. This could be an indication that there are hidden dangers or maintenance problems with the vehicle. Make sure that you understand this before making a purchase.
Have a friend or family member that sells cars come along with you as you search for a new car. Car salesmen can be very aggressive, but if they know that you are with a fellow salesman you will have an easier time getting the deal that you want and deserve.
If you are trying to determine your trade-in value for your current vehicle, be sure to take it to a few dealers. By going to a few different dealers, you'll be able to get a rough estimate of how much your car is actually worth. This will allow you to turn down low ball offers that someone may make for your car.
Know the Fuel Economy
Take fuel economy into account when calculating the cost of a vehicle. When you are determining your monthly car payments, figure out how much you'll end up paying for gas each month based on the fuel economy of the car. A more expensive fuel-efficient car and a less-expensive gas guzzler may end up costing you the same amount out of pocket each month after you've figured in the amount you'll spend on gas.
Know Your Trade-in Value
Before visiting a dealer, research the trade-in value of your old vehicle. When you know what you should be offered, you'll be a better negotiator.
Know Your Financial Status
Take the time to learn about the cost of ownership of the car. Research the cost of tire replacement as well as brake replacement. They are the two most common repairs that will need to be made to cars. If you cannot afford the tires, you likely cannot afford to keep the car.
Have at least a general idea of what type of car you'd like before you walk into a dealership. Look online to find what would work best for your personal situation. Going through this process will also give you insight into the cost of the type of car that you want so that you know what you should pay at the dealership.
Know your credit score before you enter the showroom. Your credit score will help to determine your financing rate, and knowing it helps you to understand how much you will have to pay for your car. The best financing rates are often reserved for those with the best credit score. Knowing yours can help you to be realistic about your chances of getting the very best deals.
Form a budget prior to heading out and looking at a car. An automobile purchase can be pricey, so make sure that you have the necessary amount of money to obtain what you want. Determine the amount you are to spend every month on a car. It may be a good idea to shop for a loan before you look at any cars.
Know What You Want First
When you are going to buy a car, you need to know ahead of time which features are essential for you in the car. Have a clear picture of what you want, so you can search for the right price as well as the right car for your needs.
Do not pay for lots of extras when you are buying a car. Sure, it would be nice to have a lot of fun features in your new car, but do you really need them? Every toy or gadget you add jacks up the price of the car considerably. Figure out what you really need, and just stick to that.
End of the Month Advantage
As a general rule, try and purchase your vehicle towards the end of the month. While most dealers are always motivated to sell you a car, they will be particularly willing to give you a deal towards the end of the month, when they have to reach their quota.
Do a Test Drive
Take a potential winning vehicle for a spin before buying! Even if you see exactly what you want at the dealership, test drive it for a few minutes. Hands-on knowledge of the car is essential. You may find that the car has a rougher ride than expected or is just not what you anticipated.
Pre-Approval for Car Loan
Visit your local bank and get pre-approved for a car loan. This one step cannot only save you a lot of time at dealership, but it will also save you money most of the time. By getting a loan at your bank, you can negotiate your interest rate more effectively; thus, lowering your overall payment.
Tips for Getting Used Car
Do not make the mistake of believing that you have to pay the full asking price for a used car. There should always be room for negotiation. if a car has been on the market for a while with no buyers, that will make the seller more likely to accept an offer of less than they are asking for.
Those of you who are in the market for a certified pre-owned vehicle would be wise to check the cars certification checklist. This will allow you to be sure that all components have been inspected and everything is in order allowing you to buy with a great deal of confidence.
If you are looking to purchase a used car, it is of the utmost importance that you get a copy of the vehicle maintenance and repair history. This will allow you to see what has been done to the car, and if it has been in any serious accidents.
While purchasing a used car often is a great deal, don't forget that it carries some real risk. While you may be happy with the $5,000, you saved, if you need to buy a new engine in 6 months, you really haven't saved anything. Always be cautious when buying used.
If you are in the market for a used car, a great way to tell if the speedometer is correct is to look at the gas and brake pedals. If someone says the car has 30,000 miles on it, and the brake and gas pedals are worn, it is a good indication the odometer was turned back.
If you're buying a used vehicle, you need to make sure you get a record of any accidents it may have had with previous owners. Just because a car looks good doesn't mean that it's in tip-top shape. The dealerships have a nasty habit of making things look better than they really are.
Getting another car need not be a stressful event if you have done your due diligence.
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