A brand new car is a big ticket item and a major purchase that can affect your personal finances for the next five to six years. Naturally, you’d want to get the best deal on the table before you commit to it. But car buying remains an uneasy experience for most people for many understandable reasons, such as pushy salespeople and the endless array of choices in the market. Luckily, it doesn’t take a great deal of effort or time to find the best deal on a new car. Armed with this six steps, you’ll be able to get a new car at the best possible price and repayment terms:
In general, the buying process for any product/service today should start online. Thanks to advances in web technology, consumers have a plethora of information about cars at their disposal. Prices, features, and financing information are all readily available in a few clicks of the mouse button. Using these online resources, you can learn about every stage of the buying experience, from trade-ins to financing. Sites, like Kelly Blue Book, also use sophisticated algorithms to rank brand new cars in the market and show you the pros and cons of each one, allowing you to make the best possible decision.
Go to More Than One Dealership
When you go to a dealership, always remember the fact that there is more than one dealer you can get your prospective car from, so you don’t have to feel coerced into signing a deal that you aren’t comfortable with. You can state right away that you are only window shopping for deals when you arrive at the dealership. Once you get a quote, thank them for their time, and then shop at another dealer. At the end of the day, you should have at least three offers to choose from. Depending on the dealership, they might have a website from which you can grab a quick quote from. Although quotes sourced from the dealer’s online sales department are not completely accurate, it gives you an idea of how much you’d be spending on the car when you visit the dealership in person.
Pay With Cash
It’s difficult, if not impossible, for many to pay for a new car with cash. But if you do have the finances, do it. Paying for a brand new car with cash means you avoid the hefty interest rates added onto your final costs when financing a vehicle. And if you’re paying interest on a liability or something that continuously loses value over time, then you are bleeding money from two different places.
Have a Good Credit Score
A good credit score is imperative if you are planning to ignore the advice above. If you have no or low credit score, which is any number below 620, the bank or private lender financing your car purchase will offer you with a higher interest rate than they would for someone with good to excellent credit scores. They will want additional compensation for the high risk that is reflected by your credit score.
Time Your Purchase
Certain times of the year lend for some great deals on certain items. For car buyers, it’s typically the first and last months of a year. For instance, January to March is usually when the new models of the year arrive at the dealership. This means they need to sell all their leftover inventory from last year to make space for the new fleet of vehicles that are coming in. Moreover, time your purchase when the dealership offers holiday or end-of-the-month deals, wherein salespeople are trying to meet quotas and are more susceptible to driving prices down.
Have Driving Experience
A commonly overlooked aspect of buying a brand new car is the insurance coverage. Regardless of what state you live in, you’ll need insurance right away when you buy a new car. If you’re a first-time driver or is younger than 25, you’ll be slapped with a higher premium on your insurance quote. To remedy this, bring someone with driving experience and have him/her apply for the insurance. The downfall is that the car will have to be financed under his/her name.
Getting the best deals shouldn’t be a time-consuming process. Use the aforementioned tips to accelerate it.