Are you thinking about getting a car? Then you are going to find the tips for buyers provided in this article useful. Seeing as how you will be making a large purchase, it is imperative that you are well informed, properly prepared, and adequately ready. After your home, a vehicle is usually the 2nd most expensive purchase you will make. Therefore, you need to take your time with the buying process.
Use the tips for buyers listed below to ensure that the car you get is affordable and will provide you with wonderful years of service over the long haul:
The first tip for buying cars wisely is to know everything there is for you to know. It is a huge mistake to walk or drive up to a car lot without first having a proper understanding of the car you actually want to buy.
The great thing is that the internet has just about everything information you need about the cars you are interested in. Yahoo! Autos, Kelley Blue Book, Consumer Reports, and Auto Trader are examples of places you might need to head over to when looking for information about suitable cars within your preferred price range.
Additionally, if you are thinking about getting a new car, you should find its invoice price and not its MSRP. The invoice price is that which the dealer paid the car manufacturer. This knowledge will give you an upper hand once you start negotiating the price.
However, if your plan is to get a used car, then find out everything there is to know about the resale prices for the specific car models you want. This data will provide you with bargaining power.
- Ignore Hot Cars
Dealers have a hard time keeping cars that are in great demand in stock. For these types of cars, you are not going to have as much negotiating power as you might prefer. However, some dealers will inform you that the car you desire is so hot just about everyone has paid more than the MSRP for it.
This is a trick that you should be wise enough not to fall for. Any model that is currently in stock cannot be in high demand; otherwise there would have been a long waiting list for it.
- Have Options
Unless the purchase is an emergency, it will prove useful if you could shop around. One of the handiest of these tips for buyers will have you walking out of a minimum of one car dealership while shopping.
By so doing, you will get to know the rock bottom price for the cars that are being marketed to you. This is because the car salesman will give you the price just before you leave their lot.
You might also want to check out a couple of car dealerships that are out of town. After all, most dealerships tend to price the vehicles in stock differently based on their location.
While buying a car, you will either be engaged in war or in a chess match. This is, perhaps, one of the most important of investments you will ever spend your money in. If you get financing, you will be paying off for the car for the next several years.
Therefore, you should ensure that the salespeople you deal with know that you will not tolerate being taken for a ride. Work your magic and do everything in your power to negotiate down the price of the car, as well as the car loan you will get.
Start off with a ridiculous number and work backwards from it. In case the salesperson levels an offer that comes with a monthly payment of a given amount for a 60-month loan, inform them that you should get the same payment but for a 48-month loan.
When you first walk into a dealership, ensure you look confident and unhinged. If you are not happy with the offer you get, walk away proudly. As far as possible, ensure that you have practiced your negotiation tactics and strategies in advance.
- New or Used?
Sometime back, the best option was to get a gently-used car for purposes of saving money. This is because new cars tend to depreciate fast from the moment they are out of the dealership.
However, used cars are increasingly in demand especially after most of them were ejected from the equation by the Cash for Clunkers program. Additionally, car owners are holding onto their vehicles for longer before considering a replacement.
Due to these reasons, the prices of used cars are going up steadily – making new vehicles more realistic. To this end, you should keep an open mind and consider both options. Also, run the numbers first before you make a final decision.
- Purchase Price vs Monthly Payments
Dealers have become notoriously good at offering attractive monthly payments to prospective buyers. However, this should not mislead you. If the so-called amazing payment you receive comes with a 72-month loan, it is not attractive
Instead, ensure that your negotiations are based on the car’s purchase price – and not on the monthly payments. Additionally, know the full purchase price of the car before buying it.
There are tons of extra costs that might be hidden and factored into the price – such as delivery and preparation fees, taxes, and car dealership costs that will only be revealed to you if you ask.
- Buy Online
You might also want to consider buying your can only. This way, you will avoid those annoying salespeople at the dealership. In the same way, you might end up getting some attractive price offers.
Salespeople are trained to negotiate until they get you to pay the highest price for a car. This is because their commissions are percentages of the final sale price. Sales managers on the internet, on the other hand, are typically paid a fixed salary. They only get bonuses based on the volume of sales they make.
When you buy online, you will also have a convenient time especially in comparison to having to visit many dealerships. In fact, large dealerships are increasingly listing their cars on the internet.
After you have identified a good car, take it for a test drive and get a mechanic to check it out before you commit to buying it. You certainly don’t want to sink your savings into a car with problems or issues.
So, there you have it – the best shopping tips for buyers looking to get the best car within their working budget. Use these tips the next time you are shopping for a car and you should be able to uncover a great deal in less time.