This post may earn affiliate income from links and/or review products to help support this site from the companies .
One of the most exciting, fearful and frustrating times you will ever encounter in your life is when it comes to buying a new car. In my opinion, car buying has gotten a bit easier over the years but there is still much room for improvement.
Here are a few tips to help you be armed with as much knowledge as possible to go in with confidence and make shopping smarter and smoother.
Do your homework – With the internet and all-inclusive sites like Auto.loan, there really is no excuse as to why you should be going to the dealership blindly. You should have some sort of idea what the going rate for the style car you are looking for and any sales that are going on including the dealerships competition (we saved over $8,000 by showing them a competitor’s ad).
Check your trades value before you go – It is always best to get a realistic idea of what to expect from your trade… most likely it is not as much as you are expecting and be prepared that if you owe more than you car is worth… you will need to make up the difference via cash or add to the loan. It may even be better to look at other option like CarBrain where you can get an instant offer on your car and skip the hassle.
Have a number in mind – If you are going to the dealership with partner… make sure you have both agreed upon a number and a car loan rate. Whether that number is the max on monthly payments or the max you are willing to spend total as a final price. Nothing is more uncomfortable than trying to talk money or strategy with your partner when you have a pair of eyes watching you both.
Shop at the end of the month– It is no secret that the end of the month is the golden time for quotas needing to be met, and rotation of new stock. You will find they are a little more willing to make a deals happen or give you a bit more on your trade.
Know your numbers – educate yourself on what the monthly payments would look in different scenarios. You can use a tool like Auto.loan, they have every auto loan calculator you can think of and you can really get all the answers you need to see the difference on if you went 60 months vs. 72 months or if you added that extra $1,000 down payment. The more YOU go in knowing the better.
Get pre approved– This will save you such a headache. Auto.loan, has a huge list of the best online auto loan services, plus all the pros and cons that go along with that company. You can also go to your local credit union, they usually have very low interest rates plus additional savings with auto pay. Don’t have tunnel vision though… the dealership maybe offering you a sweet deal to finance with their own lenders. They may do this by offering a rebate, or they make the first 3 payment and so on. Take advantage of these deals and if they don’t meet up to your other requirements and expectation you can easily refinance with a different lender, usually at no or low cost.
Know the lingo – Before you even look at a car they may what increase their sale. Coming from a salesman, the first thing they ask you is. “ How much are you looking to spend?” you may respond with “$16,000” he will follow that up with “And up too…?”, our natural response is to give a range, so, you might say “$18,000”… right there, he was able to increase your spending by $2,000. If you are very set on a number, be firm and let them know that that is you max budget.
Good Luck and congrats on your buying a new car journey!
