Buying a new car is probably one of the biggest financial decisions we make in our lives. It’s also one of the most stressful and daunting, not to mention time-consuming. And let’s face it, if you’re on a tight budget, this can be a bit of a depressing task. The good news is that buying a new car doesn’t have to be unpleasant anymore. If you’re well prepared, armed with the right information, and follow our five simple rules, buying your next car can actually be a pleasant experience. Keep these 5 things in mind when buying your next new car and it won’t just save you money but time too!
1. The car’s sticker price is negotiable
The sticker price on the side of a new car doesn’t mean much. Nearly every dealership will be willing to negotiate or work with you in some shape or form when buying your next new car. This may not be true for luxury brands, but for mainstream manufacturers it certainly is! Dealerships make their profits on the financing and not the selling price of the car. The more popular cars are, like say a Ford Focus or Toyota Corolla, put extra pressure on dealerships to sell as many new cars as they can because all of them want to keep up with market demand. This means that they’re willing to deal if you are.
2. Focus on the total cost of your new car (not just the monthly payments)
When buying a new car, it’s not always about how much you can finance your new ride for; rather than it is about how much it will cost you in the long run and how quickly that initial investment will depreciate. So, when you’re negotiating the sale of your new car, focus on how much it’s going to cost you in total. For example, if you finance a small amount but have a high monthly repayment because of it, or if you purchase an extended warranty that will add years onto the life of the car and lessen future maintenance costs, this is what you should be looking at when buying your next new car.
3. Always negotiate your trade-in value
When you’re buying a new car, always negotiate the price of your current vehicle that you are trading in, not just its worth or what the dealership is willing to pay for it. The only exception here is if you have an old clunker that’s not worth very much at all. At the end of the day, dealerships make their money on both new and used car sales so it doesn’t really matter to them if you sell your trade-in privately or buy another car from them with it. The more cars they sell, the better chance they’ll have at making money. So, it’s always a good idea to negotiate this value with the dealership.
4. Evaluate all your finance options
Buying a new car doesn’t necessarily have to cost a lot of money. In fact, you don’t even need to pay cash for your next new ride if you don’t want to. You can always apply for a loan or take out a personal loan from the bank and use that money instead. Be smart about it though and make sure you look at all your cheap finance options online before you go out and buy your next car. If you’re after a low personalized rate, you can compare car loans with Drive.