Over 70 million cars are sold every year around the world. This is a lot of car buying going on!
Are you looking for a new car? You know that there are some things you need to do before signing on the dotted line, but what?
It can be hard to figure out where to start when it comes to car buying, whether you’re in the market for a new car or want tips on how to save money while car shopping.
New Car Buying Tips and Tricks
We have compiled 13 new car buying tips and and tricks that will help save money and get the best deal possible.
1. Learn To Negotiate
- Car dealerships are businesses, which means that car salesmen and women want to make money. They don’t work for free!
- If you go in knowing how much the car is worth (by doing some research), there’s no reason why you should pay more than the car is worth. You can start this process by using an online calculator like KBB or NADA. It will give you a good idea of your car’s cost based on its model year, mileage, etc.
- When it comes time to negotiate with a dealership, do not be afraid to walk away if they won’t budge on their price.
- Negotiating is the art of bartering. It is likely that the car salesman will not be able to meet your price, but if you give them a number they can work with, there’s no reason why this process won’t work in your favor.
2. Compare Various Dealerships
- Be smart about this process rather than just going to the car dealership closest to your house and purchasing a car.
- Do research online and see which dealerships in your area sell what you’re looking for at the price you want it at. Then make an informed decision as to where you’d like to buy your car from.
- You can even go as far as comparing prices on different cars if there’s more than one car that interests you. This will help ensure that no matter what car dealer you choose, it is guaranteed that they have something within your budget range.
- Don’t limit yourself geographically, either. If there aren’t any local options that fit your car needs, you can always look into options that are hundreds of miles away. Just beware of additional costs like shipping or car inspections before buying the car.
3. Get a Car Inspection
- A car inspection is a good idea before you purchase a car. This way, if there are any issues with the car that need to be fixed, you know about it beforehand.
- The car inspection will show up in your potential car’s history report and can give insight into what might potentially go wrong with the car in the future. That way, you’re not caught unaware when buying a used car.
- In most cases, this process costs $200 or less and could save you thousands of dollars if you had no idea about car malfunctions.
- Car inspections are a must before buying a car, but they come with a bonus: they can help lower the price of the car.
- If your car inspector tells the dealership that there are problems with the car, chances are they will either lower their sale price or give you free repairs to make up for those issues.
4. Buy a Car at the End of the Month
- Buying a car can be tricky. You’ll want to get the best deal possible, but it’s hard to know how long you should wait for that perfect price.
- There is one solid tip we have: buy at the end of the month.
- This is because dealerships are often more willing to negotiate and lower their sale prices as they meet quotas at the end of each month.
- If you can purchase your car toward the very last days of every month, there will likely be better deals on cars.
- Car salespersons understand that if they don’t meet the quota, then management may fire them. So why not make some extra money on the side by lowering their sale price?
- This is a perfect opportunity for buyers to get better deals. Rather than waiting around and hoping that you’ll get lucky, wait until the end month so that your chances of scoring an awesome deal are much higher.
5. Do Your Research
- This one is simple: do your research. The more you know about what you’re looking for, the better off you’ll be when making a purchase decision on a car.
- Do some online and offline research by reviewing different sites. This will help ensure that once it’s time to buy, there are no surprises or hidden fees involved.
- Research isn’t only limited to finding out information about prices either. Doing additional research can also give insight into how reliable certain models of cars may be and their safety ratings (which could impact resale value).
6. Test Drive the Car
- Not sure if you really want to buy a specific car? Then take it for a test drive. This will give you an idea of what driving the car is like and whether it’s worth buying.
- Driving a new car can help make you feel better about spending money on that model, especially after learning more information from your online research.
- Remember, just because the car has features that sound good on paper doesn’t necessarily mean they’ll be useful to you in real life. A test drive can show what each feature is like when put into action.
- Test-driving new cars before buying them is always recommended. It will allow for more confident decision-making on which model best suits your lifestyle needs/budget range.
7. Consult Your Loved Ones
- If you have friends or family who are car experts, now might be the time to consult them. If they work in a dealership, then that’s even better.
- Not only can this help save a lot of money, but it will also mean less hassle for you. Getting their word on which cars to buy and avoid can really ease up your buying experience.
- This is especially helpful if you don’t know much about cars yourself. Or aren’t confident enough to make an informed decision on one by yourself.
8. Pay in Cash
- It’s not uncommon for people to use loans or leases when buying a car. However, if you’re able to pay in cash, then that’s definitely the better option.
- Paying with cash means there will be no interest fees and no monthly payments after paying off the vehicle’s initial price.
Paying in cash also means that there’s minimal paperwork and hassle involved.
- In contrast, if you were to go through with a loan or lease, there will be monthly payments and more documentation required.
- Paying in cash may seem like it’s not the most ideal financial situation, but that depends on what kind of deal is being offered at the dealership. If buying with a car loan means spending double for the same model, going all-cash might actually save money in the long run.
9. Choosing New vs Used Cars
- New cars lose a lot of their value the moment they’re driven off the dealership lot. On average, a new vehicle can depreciate by 30% once you drive it off.
- Choosing used over new means that you will be able to get more bang for your buck. It also means lower insurance premiums and less risk involved with possible repair costs if anything happens after purchase (ex: scratches or dents).
- If there’s no need for a brand-new model, then going with a slightly older version may actually save money.
- Even if you have enough saved up, using some extra cash on repairs/insurance wouldn’t hurt either.
10. Use Trade-In
- If you happen to have an old car that’s still in good condition, then consider using its trade-in value. This could help lower the cost of your new vehicle purchase even further.
- Many people don’t think about this option, but it’s definitely something that can save you money.
11. Read the Fine Print
- It’s a good idea to bring a magnifying glass and flashlight with you when going through the paperwork. This will help make sure that all of the fine print is read over carefully, so nothing slips by unnoticed.
- Reading every word of what’s included in your purchase can save money on customizations, additional fees for services not needed, etc. It’ll also give insight into any warranties or return policies should something go wrong after buying the car.
12. Don’t Buy Extras You Won’t Need
- Car dealerships often offer extras like additional accessories, extended warranty plans, rustproofing/undercoating protection packages, etc. Please don’t fall for them unless they’re necessary or wanted.
- These extras may seem like a good idea, but they’re not worth it if you don’t need them.
13. How To Buy a Car: Get a Low-Rate Car Loan
- Before going to the dealership, take time to get a low-interest car loan.
- It’s important not to neglect this part of the process because it can save you big bucks in interest fees over time. There are plenty of places where you can find cheap auto loans, so there’s no need to get ripped off by dealerships with super high rates and fees.
- If you need financing to buy a car, consider a car loan from Plenti.
New Car Buying Tips You Need
When it comes to buying a car, many different options can help save money in the long run. Using these 13 new car buying tips and and tricks will definitely make your next purchase easier and more affordable for you.
We hope this blog post has been helpful, and we wish you the best of luck when buying your next car. For more informative content, make sure to check out our other articles.