Picture this: it's a perfectly fine day, you're lying on your couch and you're bored. Instead of going for a jog, you grab your phone and randomly come across an online car catalog. You promise yourself to scan the page for just five minutes, but who are you kidding? That five minutes turned to fifty. Soon enough, you find yourself seriously considering buying a new ride. However, you're a practical person who needs to handle his finances wisely. You'd want as much discount as possible when purchasing whatever it is that needs purchasing. Question is, how will you do it? How do you avoid being a prodigal son?
Getting a car is a huge responsibility. It should take more than just fifty minutes for you to decide on purchasing a new ride. Here are some tips to help you along your car buying journey.
Do your homework & choose your finance
It is best to come prepared with an idea of what you want and your budget before walking into a showroom. With today's technology, it is very easy to go on the internet and do some online window shopping. There are a lot of resources on the internet that can help you choose the best car for you and increase your knowledge about the car you are eyeing. You can look at a resource like RACV's car reviews to see the pros and cons of your dream car to make the final decision. Going into a dealership equipped with information will save you from falling into the dealer's trap.
When it comes to actually buying the car, paying in cash is normally beyond most people (but if you can, good for you). It's not surprising that the majority of car buyers opt to apply for a car loan. Car loans can be confusing and stressful, so it's worth talking to a few different banks and providers to see what your options are. Again, the internet can be your best friend, giving you access to a range of resources on how car loans work and the benefits of a car loan. For example, some companies offer flexible contract terms such as the car loans offered by stratton, which help remove that lingering fear of being locked into a short term contract, and spending most of your wage on your car. Most people look for long term flexible loans to reduce their payback amounts so they can still enjoy their regular restaurant outings or wardrobe refills.
Your car loan can be of any amount depending on where you go, but if you are on a budget, you may want to check out our article on the best cars under 50k to try and minimise the hole in your wallet. Make sure you also research on incentives and cut-rate financing beforehand, there may be special offers that you might not know of that can save you few bucks.
Once you have a clear idea of the car you want, it's time for you to set how much you are willing to spend. If you're short on money, not ready for a loan or simply cannot buy just yet, here are some tips on saving up for a car. Budget your finances wisely and make sure you stick to it. The rule is simple: either you and the dealer agree to a price range or it's a hard no. It's a game of deal or no deal. Have conviction when playing the bidding game. It's either they agree with you or you walk out.
While you're doing the pep talk that could get you a great deal, remember to be realistic when negotiating. Keep in mind that dealers also want reasonable amount of money. However, remember that they are running a business and want to make as much profit as possible. That wouldn't stop them from offering you an overpriced car so keep your eyes open.
Of course, getting the car for the price that you want isn't a piece of cake. There might be unusual moments where you catch a car that fits your budget, but most of the time, it's beyond what you expected. This is when your research comes in handy. When looking at the price, always use the invoice price that you saw online rather than what they are proposing. Don't get intimidated to go lower and keep in mind that car dealers know most people will bargain. Be mindful of what the dealer is asking you to avail. You should know that add-ons are negotiable too and if you think you don't need a certain equipment that they are selling you, say no.
Above all, have an open mind. Be familiar with the dealer's tactics and do not fall for them. It's smart to shop nearly at the end of the month because during that time, sellers need to report on their bosses and want as much closed deal as possible. Finally, before shaking your hands, make sure every deal you made is written. Inspect the car and read the contract thoroughly before signing. Check out this article about buying a car and you might pick up a thing or two that you must consider while reading the contract. You must still have a hawk-like eye and keen mind for suspicious charges while going through the agreement. Remember that everything could still be changed before you sign that paper and coming in armed with knowledge will get you a better deal.
Purchasing a car is an intimidating experience, but you have nothing to worry if you do your research. It doesn't matter if it takes you a long time to understand the whole car buying and car financing process. What does matter is that you understand everything before you make that big car purchase.