International Business & Economy 5 Tips To Save Big On Your Next Car Purchase

5 Tips To Save Big On Your Next Car Purchase




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Learn The Best Way To Score A Better Deal At The Dealers

By: Barron Boon

Buying a car, whether used or brand new is different than buying a mobile phone or a microwave oven; you have to consider a lot of things before taking the proverbial plunge. It is a decision that you cannot easily change, once you have finalized the deal and made the payment, you simply cannot reverse your decision (unless you are ready to bear the depreciation cost). While there is little you can do to stop the depreciation cost, you can always use these tips to save a significant amount in the buying process.

1. Perform Plenty of Research

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Once you have made up your mind about the type of car you are interested in buying, it is about time that you start the legwork. There are many resources you can utilize to find all the relevant information about your dream car. You can read various automotive magazines, car owner club forums, and check motorhead websites for tips and comments.

In case you fail to find the information you are looking for, simply post a question on these platforms and pretty soon you will get answers to all your questions from current owners. Alternatively, if you happen to have a good mechanic, you can always ask him/her about his/her opinion about the car you are interested in purchasing. This way you will surely be able to get some valuable objective background information to make your buying process much easier.

Since you will be paying the monthly installments of your new car for times to come, you also need to keep the financial responsibility in your mind as well. Even though a shiny sexy looking convertible may seem like an attractive deal, you need to keep all the aspects in mind before signing on those dotted lines.

2. Determine Your Comfort Level

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Now that you have done the hard work of doing the necessary research, it is about time to sit down and do the calculations. Depending on how much hard cash you are putting down and how much loan you are getting to finance your next car, you need to be fully aware of your monthly installment payments.  Never make the assumption that it is going to be the only amount you will need each month. You also need to keep in mind the running cost and maintenance cost of your car.

Also make sure to keep in mind parking expenses, insurance cost, and any other recurring costs of owning a car in your home country. You cannot drive your car without putting fuel in it, therefore make sure to calculate the weekly/monthly/yearly fuel charges depending on your utility and prevailing petrol prices. Also keep in mind that your car will consume more petrol while driving in urban areas and comparatively less on highways. The best way to come to a safe estimate is to add 40% to the budgeted fuel amount, as most of the car owners end up driving more than they originally accounted for.

By adding all the numbers, you can get a pretty good idea about the final sum. If you feel happy and comfortable with the final amount, move to the next step.

3. Look For Finance Pre-Approval

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If you are thinking about seeking a bank loan to finance your next car, you need to look for a bank that offers you the loan you deserve at lower rates. It is a good idea to pay a visit to a few banks to check what kind of financing they can offer you. Make sure to get letters of offer from all these banks. You can show these letters of offer to the car dealers to extract a better deal from them, as these letters of offer are considered as good as cash.

Keep in mind that having several banks perform a credit check on you can adversely affect your credit rating in some countries. Therefore, make sure to check always check on the local credit bureau regulations in your country. There are some countries in which the banks or other financial institutions can perform many credit checks on you without adversely affecting your credit rating as long as they are done within a 14-day period. In case you live in a country in which consumer credit reporting system is not linked to your credit score, feel free to get as many offer letters as you want.

Now that you have all those magical offer letters in your possession, you can enjoy an upper hand dealing with a car dealership. These offer letters give you the confidence and flexibility that you are getting the best deal possible.

4. Hit The Market At The Right Time

There is always something new happening in the car market. Keep a watch on new models, improved versions of the old models, better deals, promotions, and end of the year deals.

If you do not have the patience to wait for such events to happen, you need to hit the market at the end of the month. This is the time when most of the sales persons are trying their best to make their quota for the month. More often than not, you will be able to get a better deal when you visit a car dealership at the end of the month.

5. Learn The Art Of Negotiation

Although you may be able to find “compulsory” add-on fees and prices printed on the sales contracts, making the impression that these are fixed. However, you need to keep in mind there is always room for negotiations. If you happen to face an overly pushy salesman or a bad deal, do not hesitate to walk away. Choose a sales person who is calm and composed and listens to you with full attention. It is always a good idea to take a close friend with you while shopping for your next car.

If you are thinking about trading in your car for the new purchase, make sure to take it around to get a good idea from the market. You do not have to necessarily trade it in for your new car; you can sell it to another dealership and get the cash and use this cash to buy your new car.

Once you are done purchasing your next car, it is about time you start looking for a good mechanic to keep it in a good working condition for times to come. Visit our site and read this article to find out some of the top secrets that mechanics use.  Follow us on Social Media

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