It can be very stressful when buying a new car. This car could be new or second hand car. Like any business the car dealers want to make as much profit as they can and they are likely to play all tricks to get the best profit out of you.
I thought these tips; some from my personal experience will help you on your next buy or your first buy.
1. First decide on your needs and then decide the type of the car you need to buy according to those needs. For example, take into account the size of your family or desired size of your family, your type of work, the distance between your work place and where you stay as this has implication of gas/petrol cost.
2. After deciding on the type of the car, do some window shopping among different dealers. Compare prices while doing some tricks on them indirectly. Show them that you are going to other dealers .e.g. get your note book where you have listed other prices. It is better to do this in the first three weeks of the month.
3. When you going to trade in. Do the same by visiting different car dealers and comparing prices. You need to be patient as this is the first rule of the game .At this stage do not mention to them that you are going to buy a new car.
4. Do not concentrate on monthly installment but total cost of the car.
5. Monthly installments can be achieved according to your monthly budget by increasing payment period which increases your interest drastically.Be aware of this trick.
6. Know that a vehicle is not an investment .Its value depreciates in two years from about 20% to 45%.You could also consider a very good second hand car of about two years instead of a new one.
7. Meanwhile shop around for your own financing .Compare interest rates.
8. After doing those preparations and by this time you know the most reasonable car dealer you are going to buy your car, it is better to go for the final deal in the last week of the month .Salesmen are chasing for their monthly quota so they are likely to give you a very good deal. For those who are trading in, negotiate the final deal first and after that tell them that you are now going to buy a car. This can be tricky and it depends on where you live. Your car might be very old and can be rejected by most car dealers unless when they know that you are going to buy another car from them. You can gauge that as you are shopping around .Remember, patience is the first rule of buying a car.
9. Bargaining a car on internet is cheaper and you can show up during test driving.
10. Timing is very important as I have already mentioned that it is best to buy a car in the last week of the month but it is also the best to buy a car in December, around Christmas time as most show rooms are not busy. Most people are busy spending on Christmas. It is also important to note when the new cars have arrived .Salesmen tend to give better prices when introducing new cars on market and they also sell demo-cars which have run few kilometers/miles very cheaply.
11. Avoid dealer adds-on as they are not very useful and they increase the price of the car drastically e.g. extended warranty ,over the top-alarm systems ,extended service contracts ,rust proofing.
12. Be aware and do not trust car dealers. One time I was going to pay far more on the car when the salesman told me that the car was going to be more expensive as it was going to be ordered in the factory. I found out this late as I was shopping around with another car dealer.
13. Do not sign the contract without noting the above mentioned adds-on costs and the price should include fees and charges. Remember the car insurance costs.
14. Pay as much as you can on deposit. Cash is the best but in most cases it is impossible to buy car cash.
I hope that some of those tips will help someone.
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