When buying a car, the first things people often consider
are its appearance and model. However, there are more
important factors that you should prioritize before
thinking about the looks of a car, especially if budget is
a concern. Here are several handy tips to help you save
money and avoid the common pitfalls associated with
purchasing a vehicle.
Get pre-approved.
Setting up a loan in advance is an important step in the
car-buying process. It helps to get pre-approved for a loan
first, to know what interest rates you qualify for and
discover any issues with your credit history. In many
cases, an unusually high interest rate results from credit
history problems that have to be resolved before getting a
loan.
Pre-approval means faster negotiations at dealerships, and
it also considerably reduces the stress involved in buying
a car. While you can choose to accept dealership financing,
pre-approval serves as your bargaining chip to get the best
interest rate. Find out out the usual interest rates in a
specific area, and check with banks and lending
institutions to compare rates. Additionally, call
dealerships to know which ones offer the best rates
Look for special offers.
It's a good idea to visit the websites of vehicle
manufacturers and check for special financing rates. If
there are special low-interest rates on offer, call the
dealership to find out if you qualify. Special incentives
are usually available to buyers with good credit scores.
Knowing that a high credit score is advantageous, be sure
to know where you stand by getting your credit re port. It's
always a good habit to maintain a high credit score, as it
allows you to obtain loans with excellent payment terms and
interest rates
Do some research on the average prices of cars
Research is a critical step in making any substantial
purchase. To negotiate the best price for a car, search
online and find out about the average price buyers
generally pay for cars in your location. Also, try to
request price quotes from several local dealers. It's a
smart move to take the lowest price and ask other
dealerships if they can beat the price. Most dealerships
usually offer a better price to attract customers You may
also want to visit showrooms to take a good look of your
desired vehicles When opting for this traditional way of
buying a car, assess the car sales person and determine if
he's trustworthy and comfortable to work with before moving
forward with your transaction.
Be aware of the financing terms.
Many car buyers tend to neglect the financing terms when
getting a loan, resulting in higher payments. Pay attention
to the annual percentage rate, and go for a shorter loan
length with an affordable monthly payment, if possible. For
example, a four-year loan is a lot less expensive overall
than a five-year loan with the same interest rate.
Know the fees involved in a car purchase.
In addition to the cost of a car, you need to pay registry
fees, ales tax, and a documentation fee. To find out the
approximate overall cost of owning a car, use an online
monthly loan payment calculator that's designed to estimate
extra costs related to a car purchase. Many people overlook
additional fees and get surprised with the total cost of
buying a car, so it's important to review the figures
carefully before signing any contract.
Double-check the contract.
After you review all of the fees and costs involved in the
loan or dealership financing, the next step is to sign the
paperwork at home if the dealership will deliver the
vehicle or at the dealership if you prefer to pick up the
car. Read the contract thoroughly, make sure the numbers
match the worksheet, and check for any extra charges or
fees that may have been added.
Ensure the vehicle is free of scratches and damage.
As a last precautionary measure, check the wheels and
entire body of the car for dents or scratches. Moreover,
make sure all necessary equipment and paperwork are
included. Missing equipment or damaged parts call for a due
bill, which must be put in writing. Finally, it helps to
have the sales person show you how to use the safety devices
and other features, including how to connect a smartphone
to the vehicle's Bluetooth system. Ask for a demonstration
when signing the contract, or visit the dealership later
for a full demonstration of the correct use of the car's
features.
These steps will help you prepare for a car purchase,
compare rates and costs, and negotiate car prices to buy
the car you want at the best price possible. With due
diligence and extensive research, you can make significant
savings on your new car and experience a faster, easier,
and more enjoyable car-buying process.
