3 Tips for Buying A Car the Smart Way
Research shows that 53% of car buyers resort to using mobile devices for their research due to its convenience and the wealth of information and reviews online. Despite this, many people still make big mistakes when buying a car such as overlooking the financial terms in their financing agreements. Many people are also guilty of underestimating the overall cost of ownership when it comes to car tax, repairs, maintenance, and so on. Here are a few tips to help make the whole process easier for you.
Seek advice and get checked to know if you qualify for a loan first
It is advisable to seek approval for a car loan from your bank, an online lender, or a credit union to prevent making any mistakes. And some may use a car finance calculator for accuracy. Your bank or lender would review your current credit score to help you know the type of car you can afford by seeking advice. You may also want to consider working on building up your credit score before you begin the whole car buying process.
It is best to ask around for different interest rates in your quest for advice before picking the best out of them. This is because many dealerships tend to increase rates just to make a lot more profit, so conducting proper research may save you from being cheated. After gaining preapproval, you will get to have a fair idea of the interest rate you qualify for, and it will make it hard for dealers to try to pull a quick one on you.
Keep things simple and straight to the point when you get to the dealership
When you go to purchase a car from a dealership, it is best to have a clear head concerning the price of the vehicle you want to buy. The salesperson may ask you many questions, which may throw you off. So, try as much as possible to control the negotiation and handle things one step at a time.
Your salesperson may want to know whether you have a car that you'd want to trade-in in the initial stages. However, it is advisable to settle on a price before you make any such discussions. And if you realise that the offer for the trade-in is not suitable, you can always walk away with your new vehicle and keep your old one as well without having to compromise.
Try not to buy any additional packages while at the dealership
Usually, after settling on a price after a long back and forth, the dealership may want to sweet talk you into making some additional purchases. Some of which include tire protection plans, extended warranties, paint protection plans, and many more. The dealership may put you in a position where you end up making decisions that may not really favour you, and so it is best to note down all the extras and get back to them later. Over time, you will learn more about them and contact different dealers to know their prices so you can make comparisons and pick what best suits you.
Many people looking to purchase cars end up making a lot of mistakes that cost them. And such mistakes can make you pay more than you intended to, so take into consideration the above tips for a smoother purchase.