How Not To Lose Your Shirt When Buying A Car
November 25th, 2009
How Not To Lose Your Shirt When Buying A Car
Many of us are alltoofamiliar with the car buying runaround. The hounding you get the minute you set foot on the premises. The hard sell tactics. The Ill check with my sales manager. The pervasive feeling that youre not getting the whole story. Undercoating.
With a little preparation you can make the process a lot less painful. Here are tips that will give you a bigger club to wield next time you go hunting for an auto.
Know Your Credit Score before Shopping
Your credit score will determine the interest rate on your car loan and thus will significantly impact not only the price of the vehicle but also the terms of payment and even whether or not you may be eligible for financing. If you have relatively bad credit less than 675 you can still qualify for a good financing. But it might help first to secure advance financing from lenders who specifically deal with bad creditor applicants. Even if youve suffered the slings and arrows of bankruptcy tax liens and terrible credit you can still qualify for certain loans as long as you have a FICO score above 525.
Research Online Extensively Before You Go To Dealerships
Often you can find amazing deals online through factory direct websites or consensus car buying sites that you could never get by going through a specific dealership.
Shop at the Right Time
There are two best times to shop for new cars: the last week in December and the late summer/early fall season.
During the end of the Christmas season consumers get wrapped up so to speak buying gifts for the holidays. Car dealers often must struggle to get any business at all. Thus they mark down their vehicles and otherwise incentivize purchases.
In the period beginning around the end of July and ending in the first week or so of October on the other hand dealerships rollout their new cars for the next year. They must thus incentivize customers to purchase the last remaining old models.
Learn about these and other various dealer incentives and you can whittle down prices even further.
Plan Ahead
Is your lease set to expire in three months? Is your current car on the verge of falling apart? If so get on the internet NOW to explore the new auto landscape and schedule time to test drive your top vehicles. If you wait until the last possible weekend to shop and test drive chances are that you will make a rushed decision and end up with a less than stellar deal.
If Possible Pay for Your Car With Cash.
On the surface the notion financing your car purchase seems more convenient and cost effective. After all if for instance you 40000.00 out of a savings account to invest in the car that is 40000.00 less cash you can earn interest on.
However statistics show that buyers who pay cash out of hand typically encounter fewer problems and save more over the longterm than do people who finance even through solid low interest APR loans.
Order from the Factory Directly If You Cant Find A Great Deal at the Dealership
Some dealers will suggest that there is no way a factory can or will beat an outlet. But provided that you give the factory enough lead time you could easily squeak out a deal.
Use a Budget to Shop Prices
Remember that your car payment is just one line item in your overall monthly budget. Figure out how much car you can comfortably afford per month before investigating options or even searching for makes and models.
Go to the Dealer Prepared
Look up quotes for car prices online and prefinance through websites. Check out model specifications and use objective consumer sites to compare. Narrow your choices down to a handful of top candidate autos before you show up. This way you won’t waste time test driving cars that are out of your price range or otherwise undesirable.
Negotiate. Negotiate. Negotiate.
The more educated you are about pricing and options the more formidable you will be at the negotiating table. Know the online consensus price for the car you want. Know what extras you would like what extras you could do without and what extras are crucial. Opt out of the dealer’s extended warranty plan and instead look for a cheaper warranty online. Finally do not make ridiculous demands. Use numbers and counter offers to back up your negotiations and dont be rude to the sales people. Never lie about your credit rating the value of your tradein car or your amount of debt or income. Not only will these tactics waste everyone’s time but they also won’t likely get you a better deal.
About the writer: The Private Plate Company is leaders of Personalised Number Plates DVLA Car Registrations. Conduct your own free search and choose from our huge selection of privatesale plates.
Related posts: