Buying a new car is a delight and a nightmare. The overbearing car salesmen who are way too pushy and don’t know anything about personal space give you a headache and you end up postponing your purchase. According to Mark Roemer Oakland, the following tips would allow you to get the best deal with minimal hassles while buying your next car:
Research – Knowledge is power, whether you want to ace your major or buy your next car. If you don’t arrive at a dealership armed with knowledge, you would easily fall into the traps laid out by the car salesmen. There are plenty of online resources like Kelley Blue Book and Consumer Reports that allow you to know everything about the car you want.
Even if it’s your first time buying a car you can start your research here to know about the cars that fit your budget and move ahead from there. Moreover, ignore the MSRP and find out about the “invoice” price. Your dealer acquired the car from the manufacturer at that price. This information gives you more negotiation power.
Don’t ignore pre-financing – Your dealership almost always would provide you financing options at a much higher rate than banks and credit unions. Instead, you should research the interest rates at your preferred financial institution. You may as well get a “relationship discount” that can’t be offered by dealerships. Moreover, get quotes from different financial institutions so that you can use them as leverage at the dealership. Check your credit score as well and if possible, improve it so that you can buy your new car for a cheaper price.
Look around – Unless it’s an emergency, you should never buy your car from the first dealership you visit. Make sure to walk out from a few dealerships after tough negotiations so that you can get their final and lowest quote. Don’t stick to your town’s dealerships either. Dealerships set different prices for the same cars in different locations. You may get a stellar deal a few extra miles away from the city.
Don’t go over budget – If you have a car in working condition with an outstanding loan, you should consider if you can afford another car before paying off the outstanding loan. You don’t want to be financially irresponsible and hurt your credit score. A good practice is to buy a new car after parting off the loan for the one you already own.
Be a tough negotiator – A car is a very important investment, right after your home. You may end up paying off the auto-loan for half a decade. Hence, you can’t back off from the negotiation and do everything in your capability to slap down the price. Tricks like reducing the term for the same monthly payment to starting with outrageous numbers and working your way back works as long as it works.
Mark Roemer Oakland believes that you should use all these tips and apply them to your next car purchase to get an awesome car that fits your budget and offers the best features.