Probably one of the biggest decisions pertaining to money is the purchase of a car. It may get frustrating and sometimes overwhelming, but when purchased correctly, one can save huge amounts. This article will outline some smart approaches to make sure that you get the best deal for your next car purchase.
Do Your Research
Do as much homework as you can before ever stepping into any dealer’s lot. Compare certain makes and models that will satisfy your needs and budget. You may use online tools for this by looking up the average prices at which the cars you are interested in sell and reading reviews about their performance and reliability. Also, think about the cost of ownership: insurance, maintenance, fuel efficiency, and depreciation..
One useful tool in your research arsenal is the ability to find license plate number by VIN. This can provide you with valuable information about the vehicle’s history, including previous ownership, accident reports, and more. Knowing this information can give you leverage when negotiating the price.
Timing is Everything
When exactly you buy a car can influence how much you end up paying. Dealerships have quotas for sales, so at times like the end of the month, quarter, or year, a salesperson will be more inclined to meet those quotas, often resulting in lower pricing. Furthermore, shopping during a holiday sales event or at the end of the model year gives a great opportunity for gargantuan savings, with dealers trying to get rid of older inventory to create space for new models.
Get Pre-Approved for Financing
Get pre-approved for your car loan before you start looking. Not only will this help you have a realistic outlook on your budgeting, but it can end up being quite the edge in any negotiation. With a pre-approval, you will know your interest rate and how much you are going to borrow, so when you are negotiating, you only have to think about the price of the car. It further saves you from being steered into mediocre financing through the dealer.
Negotiate Like a Pro
Negotiation is the integral component in purchasing a car. First, negotiate the price for the car, not the monthly payments. The dealerships will stretch the payments out over the longest time period that they can to make the deal sound better than what it actually is. Once you have established a good-enough price, then discuss trade-ins or financing options with them. Do not be afraid of having to leave if the deal doesn’t sound like a good one. Sometimes, just leaving can prompt the dealer to come back and offer you something much better.
Consider CPO Vehicles
CPO can be a great way to cut expenses yet still retain a reliable car. CPO cars are normally less than five years old, with a low mileage, and come with a manufacturer-backed warranty. They are rigorously inspected and reconditioned to provide peace of mind—like buying a new car but for much less money.
Take Advantage of Incentives and Rebates
These can help trim a good bit off the cost of a car. Some incentives and rebates may include cash back, low financing rates, or lease promotions. Always ask dealers what the current offers are for a model in question, and then make sure to review the manufacturer’s website for any additional offers.
Concluding Thoughts
As for the car purchase process—what it basically means is that it is not necessarily a financial bloodbath event. Research, timing your purchase correctly, getting pre-approved for financing, doing your best in negotiations, and considering CPO vehicles are a few ways through which you could save loads when buying your next car. In other words, the more ready you are with information, the better a deal you will get.
