Tips For Buying A Car
Posted on: 12 July 2016
Buying your first car can be an exciting experience. Since it is your first time though, there are some steps you might miss in your quest to get a decent car at the right rate. To help ensure that your car buying experience does not turn into a nightmare, here are some tips to keep in mind.
Be Prepared to Negotiate
Car salesmen and dealers have to worry about meeting quotas each month. At the beginning of the month, salesmen and dealers might not offer the best deal on a car because they have until the end of the month to reach their sales goals.
By contrast, salesmen and dealers who have not hit their goals near the end of the month might be more willing to negotiate a deal that is fairer for the customer. In addition to getting a lower price for a car, you could possibly snag some perks, such as free oil changes for a period of time.
Negotiating with the salesmen and dealers is a must if you want a good deal. Before making an offer on a car, look up the wholesale price of a car you are considering. Your goal is to get the car for as close a price as possible. Always ask for the final sales price and do not allow the salesman to sell you the car on the monthly payments. Monthly payments add up quickly and could mean you are paying far more.
Research Lending Options
When it is time to buy your car, you have various options for car financing. For instance, some dealerships offer financing. Others require you to go to a direct lender to secure the funds that are needed to purchase the car.
If you are opting for direct lending, you can go to a bank or credit union to obtain funding. Direct lending gives you the opportunity to shop around and compare loan terms before accepting one. It is important to note that each time you complete an application with a lender, it becomes an inquiry on your credit report. Inquiries deduct points from your credit score, which can make it difficult to secure financing.
You also can finance in-house with the dealership. Before signing, you need to understand whether or not the dealership reports to the three major credit reporting bureaus, the length of the loan agreement, and the interest rate being offered. In addition to this, you need to know whether or not there is a grace period for delinquent payments and, if so, how long that grace period is.
The most important thing to remember when shopping for your first car is that you should take your time and carefully evaluate every aspect of the process.
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