How to Buy a Car: 9 Tips to Read Now
Buying a car is exciting, but you should be ready for the process. We can help with that. Read these nine tips that will tell you how to buy a car.
1. Be serious about your research.
Ask yourself what you want in terms of safety, fuel efficiency, reliability, performance, comfort, appearance, mileage, resale value, etc. Write it down, in order of priority and don’t compromise on your requirements.
2. Keep your options open: look at new, used and demo cars.
Make a list of pros and cons for each. Think about what’s best of your budget now (new car: more expensive; potentially less problems) and in the future (used car: more affordable; might need repairs in the future).
3. Take your time to shop around.
Don’t feel bad about shopping around before you buy. If you’re not happy with an offer, simply walk out. You have nothing to lose, but will potentially “gain” a dropped price that might suit your budget.
4. The internet is your friend – use it.
Learn all about the specifications and features of the car you’re interested in, read reviews, watch videos – find out everything you need to know before you even meet a car salesman or showroom manager.
5. Think about car insurance, future services and maintenance costs.
Whether you buy new or used, you should consider the monthly insurance costs. You can get a quote online or talk to your broker. Also look into a service/maintenance plan if you’re buying a used car or revisit your budget to determine if you should start saving for unexpected repair costs in the future.
6. Start thinking about car financing early.
Before you step into a dealership it’s a good idea to know your credit score and shop around for loans. You don’t have to get finance through the dealer. Speak to someone you trust to ask for advice or get in touch with your financial advisor for assistance.
7. Prepare to negotiate.
Once you’re ready to talk numbers, you better be prepared to negotiate. Read up on negotiation skills and what NOT to fall for.
8. Look at the purchase price, not the monthly instalment.
If a monthly payment sounds too good to be true, it probably comes with some hectic terms, e.g. a large deposit and/or balloon payment. For this reason, it’s better to negotiate on purchase price and work out a payment plan from there that works for you.
9. If you want to trade in, only disclose this information later.
Wait until you have the best possible deal before you mention your trade-in to ensure the dealer doesn’t use this information against you.
That’s it. You’re ready to begin your journey. Happy researching!