Buying a new car can be really exciting! The feel of a new car beneath your hands can be invigorating. However, purchases of this size need to be well thought out.
You want to get the car you really want for a price that you think is fair.
Furthermore, the sales people want to ensure that they make as much commission as is possible. This sort of conflicts with your plans! Buying a new car can be like a battle. So you need to prepare yourself as best as possible. This will allow you to win your fight and drive away happy.
Checking for Rebates
Rebates are one of the best ways to reduce the cost of a vehicle. The thing about rebates is that they are offered because they know that a lot of people will not cash them in. Mail in rebates can sometimes require you to jump through enough hoops to make you just not want to do it anymore.
Thankfully the internet is here to help. There are tools that track rebates being offered by car companies. Furthermore you can set alerts so that you are notified when there are rebates for the car you want. After that, you just cash in at the right moment.
Researching Dealers
Not all dealers are the same. Car purchases are one of the last places where negotiation and haggling are expected and required. Some dealerships have weaker negotiators or are willing to go down further on price. There are tools online now that will allow people to compare the prices of the same car purchased at different dealers. This can give you an idea of exactly how far you can negotiate down, and which dealership is going to be willing to go the furthest.
Even if you don’t go to that dealership, having that information can be leverage. Demonstrating the willingness of a different dealership to go down to a certain price can sometimes cause a dealership to match.
Checking your Credit History
When you’re buying a new car, you’re probably going to choose some sort of financing or lease option. Purchasing a car outright is fairly rare these days. Advertisements often show incredibly low financing or lease rates. However those rates will only apply to people with exceptional credit.
Before you begin the process of buying a new car, you need to check your credit score and know exactly where you are at. You need to be prepared in the event that your credit will not allow you to enjoy the best interest rates.
Getting Your Own Financing
If you are unhappy with the financing options available at a dealership, you can get your own financing. The first way is through a bank. However banks often offer even worse terms than a dealership.
The other alternative is through third party financing. These financing companies offer relatively bad interest rates to people with bad credit and really good rates to people with good credit. Their plan is to make money. If you have great credit and are extremely low risk, then they will make money on the interest payments. If you have bad credit, then you will either default and give them the car, or you will pay a large sum of interest. It’s important to be careful and not allow a company that features too predatory of a loan.