Compare offers to get a loan
If you decide to get a loan to buy a car, you must quote offers. In fact, you may want to list your loans before listing your vehicle. Investigate different sources of funding including banks. Some auto dealers also offer financing. Compare the interest rates they offer. Find out what your monthly payment would be for different amounts borrowed.
Consider applying for approvals of your loan. If the loan is pre-approved, that means you can look for a vehicle in your price range with the confidence that they will give you the loan you need. The lower interest rate may not be the best deal. To learn more about this and other aspects of the loans, see the topic How to use credit in an advantageous way. Cars lined up at a car dealership.
Consider the type of vehicle that suits your transportation needs. Consider safety history, gas mileage, and maintenance and insurance costs. Use the web, consumer information magazines, auto magazines and other publications to investigate purchase possibilities.
Where to buy
Nowadays, more and more people buy vehicles on the Internet and there are many useful sites on the Internet. Even if you use the Internet, you should visit local dealerships if possible. This will give you the opportunity to see the vehicles in person, to drive them to ask questions and to evaluate parts and service departments. Depending on where you live, your local dealer may not offer you the best price.
Dealers away from large cities have lower fixed costs and can afford to offer larger discounts. Some dealers have adopted a single price policy for new vehicles, which means that every vehicle is offered at a fixed price without negotiation between the dealer and the customer. While with this system the transaction can be faster and easier keep in mind that the price you pay could be higher than if you negotiated.
Choose your vehicle
When comparing offers, be flexible in regards to make model, year and color. You may find a vehicle that you like best and that is a better deal. Reduce your choices. Decide the specific features like the color and options you want. Do not forget to take into account the resale value. If at any point you want to sell the vehicle it is convenient for the color and options to be attractive to potential buyers.
Investigate the dealer’s invoice for the vehicle you are interested. This will give you an idea of the level of discount that the dealership can offer you. Be careful with the extra options that the dealer might offer you such as the special coating on the bottom fabric protection and paint sealer. Often they are unnecessary additions whose price is quite excessive. If you are going to buy a used vehicle point out to the seller the defects or problems of the vehicle. Before you agree to purchase it have it inspected by a certified mechanic. A woman gets the keys to a new car
Plan your purchasing strategy
Think about buying during low-season sales periods for example in late December and late summer and early fall. Be patient and persistent when buying. Ideally start you are trading at least 20% below what you are willing to pay. Remember that the dealer has to make a profit and will probably make you a higher counteroffer. You should know how much money you have in hand. If you have the funds to extend a check for a large sum at the time of purchase the seller will probably pay attention to that and make it easier for you to negotiate the price.