If you are looking for tips on how to buy a car and save some money while you're doing it, then you have come to the right place. Whether you are a first time buyer or have gone through the process many times, there are still a number things that you should be aware of before you start shopping around. Below is a list of five tips to help with negotiating, leasing, financing, and dealing with car salespeople that should help you get a step ahead, and save you some money in the search for your next car.
- Do your homework. Walking onto a dealership lot without knowing the make and model you are looking for can be a dangerous perspective to have. It's human nature to become distracted by sports and luxury vehicles with fancy bells and whistles, but for the vast majority of us it would be an impractical purchase. Consider making a list of the most important features of the car you are looking for and try to narrow down your selection to a few makes and models.
- Finance before you shop. Financing through a dealership is typically the most convenient way to finance, but there are usually better rates available to you elsewhere. The internet is a great place to compare quotes from a multitude of companies. Also be sure to check the rates of banks and credit unions. Before signing on for a loan, check to see if there are penalties for making early payments, and what the insurance minimums are. You may also want to consider leasing a car. One big advantage of leasing a car is that you only pay for the usage of the car and there is no need for disposal. If you decide to lease a car, make sure that the warranty covers the full length of the agreement and that you can live with the mileage restrictions.
- Shop around. Similar to financing, you should check multiple resources to make sure that you don't end up paying too much for a particular make and model. Besides the dealership, you should speak with auto brokers, buyers? agents, and check online to compare the price of the car you are looking at. If you are buying a used car, the Kelley Blue Book is a great resource for price estimates.
- Know how to negotiate. The sticker price on a vehicle is the best possible outcome for the dealership. Make your first offer to a salesperson at or around the invoice price of the vehicle and tell them that you would be willing to close a deal at the offered price. Let the salesperson know that you understand how their mark ups work, and when they make a counter offer to you, only increase your offer by a small increment. As mentioned earlier, knowing your financing before walking onto the lot can be helpful, as you will be able to take a hard stand with the salesperson.
- Don't rush into things. Compare rates for vehicles and financing from multiple dealerships, and other resources as well. Read through all the paperwork carefully so you know exactly what you are getting yourself into before you sign anything. If you are buying a used car, have a vehicle history check done on the VIN, and consider bringing the car to a mechanic to run a diagnostics check.
While it can be both an exciting and quizzical process, let the tips above guide you when you want to buy a car. Being prepared when you start the process can help where it is common to overlook simplicities and it can even save you some money.