things to know when buying a car

When it comes to buying a car we can freeze up with the thought of what kind of car should I get, am I getting a good deal, should I lease or buy, or should I get the basic or all the bells and whistles. For some they know what make and model they are shopping for and have an idea as to what is the price range. But for the rest of us keep these things in mind when you research or go to the dealership. First, what size is right for me. Keep in mind how much luggage room and whether or not you need a back seat. If you are a soccer mom, think about how many people will be riding with you and how often. Think carefully, this is a major purchase you are going to make. Second, think about how much your current car is worth. If you plan to sell or trade it, this can be a big factor in your decision. Take your car and get it assessed for how much the dealership will give you for it and look online for the amount your make and model is going for there. Selling directly to someone may yield a larger amount than the dealership, but can be a bit time consuming.

Third, are you going to buy new or used? Will you get a better deal buying used or new? Some dealerships offer a rebate, cost break, or have a special going on that is trying to push certain older or newer models. Do the math, it can go either way. Fourth, does buying or leasing make a difference in price? Typically leasing yields a lower monthly payments than buying on auto loans. If you trade in your car every 2-3 years or don’t have a down payment, a lease could be good for you. Fifth, research and set your price range. Look up online the dealer’s cost for each car you are looking at and all their options. Having prior knowledge about the car and what your options are helps you get the best possible deal. Sixth, look into loans before you go car shopping. If you are getting a loan go to your credit union or bank and get a quote to find the lowest rates. Doing this and getting pre-approved for a loan will give you an idea how much you have to work with and adds confidence in negotiating.

Seventh, negotiate your lease. In the world of car sales the dealer will always have the upper hand until you learn the jargon and how to negotiate the many segments of a lease deal. Research is and always be your best friend in this. Eighth, negotiate your final price. For those who are going it alone, get several bids from different dealers and keep the focus on the dealer’s invoice price (you will know this from your research). Sometimes you can get bids without ever going to the dealership, call them up. Ninth, if you don’t like to haggle try utilizing a car-shopping service. There are several out there from Web sites or discount clubs, they make the buying process easier with pretty good no-haggle prices. The only down side is that they only get you quotes from a single dealer. Try a service that offers quotes from multiple dealers near you for better prices. Tenth, do not let the dealer cut you out of your savings. The finance manager isn’t just there for paperwork. They want to sell you the highest possible profit mechanical and financial add-ons, which are rarely worth the extra money. Keep in mind that they work off of commission.

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