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The pressure from car sales dealers at the point of purchase can be overwhelming. They just want you to take the car and be on your way. While the sale can be exciting, if you are not prepared, you may leave with a car you won’t like in a few weeks.
Any venture that involves you parting with a sizable amount of your money, be it investing in real estate, starting a forex trading career, or as in this case, buying a car, it is only normal for you to be sure you are making the right decision. For this reason, it’s important you have all the information you need about the car of choice and your budget. Armed with information, the negotiation process will be smoother and you are less likely to make the wrong choice.
When considering purchasing a new vehicle, here are six important points to have in mind.
Do Your Research
Knowledge is power when buying a car. It’s a mistake to get to a car lot without first looking up the car you want to buy. With the internet, you can find out just about anything you want to know about a car.
Doing some extra research on the dealership is never a bad idea too. The reputation of the dealership, warranties offered and finance options are all important things to know.
To reduce the risk of buying a trouble-prone vehicle, identify models that tend to be reliable before you start shopping around. This is especially true if you are looking at older models that may have done significant mileage.
If your favorite dealership doesn’t have the exact car you want, they may be able to locate one and trade it (trade one of their cars for the one you want with another dealer) at no additional cost to you, so don’t rule them out if you don’t see a particular car on their website.
Weigh Your Pockets
Before you step on to any car stand, whether it’s to buy a new or used car, it’s always a good idea to take a long look at your finances. The state of your personal finances is going to have a huge impact on what you can buy and from where.
If you don’t have much of a deposit or the amount you can afford for a monthly payment is much lower than that required for the cars you really love, you will have to compromise
Make sure that the car payment you have in mind leaves enough for running and maintenance costs. You should know how large your budget is prior to visiting the dealership. Have a concrete idea of the deposit you can afford and what monthly payment you are happy paying if taking finance. It also helps to do some research on available auto loans in order to get an idea of what you may qualify for.
Determine Your Wants and Needs
After you have figured out how much you can spend on your vehicle, it is time to assess what you want and need.
Create a list of non-negotiables such as vehicle capacity, safety features, fuel efficiency, and transmission.
Then consider what you would like, your wants. This may include color-choices, type of stereo, and 5-second 0-60 acceleration. Keep the list in mind when researching different cars and make sure you don’t get sold on a car based on a want at the expense of a need.
Test Drive! Test Drive! Test Drive!
Even if you are buying a new car you should always test drive and make sure that it is right for you. The road test will be the decisive factor in whether or not you will purchase the vehicle or keep looking. If you are familiar with a particular make and model, you may be tempted to pass on the test drive but we advise you to always go for the drive.
It’s a smart idea to check the vehicle and give it a decent test drive to make sure it functions and there are no obvious squeaks, rattles, or shimmies that could cause you headaches down the line.
Find Out the Cost of Ownership
This is a vital parameter to consider. Have a good heart-to-heart discussion with dealers, and specifically ask for all additional costs that you may have to bear. Your car insurance is one of the most significant expenses. It’s worth getting a quote from a company like state.co.nz, confused.com, geico.com, or another leading car insurance provider service your location.
Ask About Warranties
If your car is brand new, immediate maintenance and car service concerns are likely to be minimal. However, new or old, it certainly helps to have the best warranty on your car parts. Check with your dealer because most manufacturers have jumped on the trend of providing guarantees of up to five years to set a quality benchmark.
You will need to check whether the warranty depends on the number of years or kilometers you drive, as well as whether extended warranties are available. There might also be some initial service deals thrown in by the dealer. So, don’t hesitate to ask them.
Buying a new car is an exciting experience. Whether it’s your first car or an upgrade it can be easy to get caught up in the excitement and lose sight of the basics. These tips should help you stay grounded and make sure you make the best decisions.
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This content is brought to you by Shahbez Ahmed.
Photo: Shutterstock
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