Buying a car involves considerable money and is enough reason to tread carefully when taking a decision and converting it into reality. You will have to invest both time and money to get the car of your choice at the most preferred price and terms. The time you spend in knowing the trade and the market to understand its intricacies can contribute significantly in making a good purchase.
Therefore, instead of being impulsive and being driven by whims, take time to research and then strike the right deal so that you do not have to regret later about the car not performing to your expectations or that it has become a burden for you to maintain the car. Gather and analyse information about the style of the car, model, make and price as well as other information about insurance cost and financing options to take the most rational decision. Start with research and then follow the other steps in sequence
Gain Knowledge
The process of buying a car is similar to writing an exam as both requires knowledge to succeed. Having shortlisted a few brands or models of cars, research about it to know it inside out. Online resources have now made it easy to gain knowledge on anything and everything. Be equipped to counter the over bearing salesman and stick to your choices. The research will also help you to negotiate better price and terms.
Go Shopping
Dealerships do not necessarily mean that you get the same price from all dealers. It is worth to shop around and negotiate with different dealers, often declining their offers outright as a tactical measure to extract the rock bottom offer. Vehicles are priced according to the location of dealers, so searching far and wide can land you with the best price that you are looking for.
Financing Options
Car dealerships have single window financing options that might appear convenient but may not be competitive. Financing options from dealers usually carry higher interest rates than what you can get from credit unions and banks. Moreover, your relationship with banks and credit unions can be used to your advantage to obtain better rates in the form of relationship discounts. Weigh your options well in choosing the financing scheme.
Bargain Hard
Remember that you have no obligations to any dealership and should be free to walk out any time. This should be the spirit of negotiations that should be done in a hard hitting manner. Have your negotiating strategy in place and work strictly in adherence, never to allow the salesman get the better of you. The importance of a car purchase is only second to a home purchase. So, set out on the job with all guns blazing.
Focus on Base Price
Keep away from hard selling talks that focus on monthly payments and evaluate on the basis of the base price of the vehicle. The excess payments of interest lay hidden deep inside monthly payments and the tenure of repayment. Being lured by it could land you up in paying much more than the base price.