Everyone has a dream car or two. It’s just one of those things that can’t be absent from someone’s dream board. And when you finally have the financial capacity to purchase the car you’ve been vying for in the last few years, I’m sure no other feeling can compare. Achieving such a milestone will definitely become a core memory in your life.
But because it is such a crucial moment, one of the most important purchases that you will probably ever make, you know that you have to get it right. There’s definitely no room for “take backsies.” Otherwise, that moment is just ruined for you forever.
So when you are thinking about buying a new car, especially one that you really want to get your hands on, it’s important that you know your way around the industry (read more). It’s easy to go into a car dealership and just sign off on whatever paperwork they give you, but you know that there are much better ways to land your dream car and get the most bang for your buck in the process.
The market for automotives is vast and there are smarter ways to go about your vehicle purchase. One that will get you the best deals and prices. In this article, we’ll tackle some “hacks” or tips that you can follow to make sure that you don’t only get your dream car – but you also get it for the best price.
Unlocking the Secrets to Smart Car Buying
Buy Cash If You Can
Ironically, buying in cash is one of the most cost-effective ways of purchasing a new vehicle. This is because you can avoid steep interests when you buy a vehicle in cash — not to mention, most companies offer freebies or discounts for straight cash purchases. If you have enough money saved up that it won’t cause a financial disturbance to your everyday life if you splurge a little, then pay for those wheels in full.
If You Can’t, Get Pre-Approved For An Auto Loan Instead
While paying in full sounds incredible and the thought of not having to commit to monthly payments after is definitely tempting, the reality is that most of us just can’t splurge all that cash in one spend. Many of us probably don’t even have enough saved up to buy a vehicle, even if we make decent income from our jobs.
So, the next best thing is to seek out an auto loan. In fact, you should get yourself pre-approved for a loan before you even set foot in a car dealership. This way, if you happen to find a really good deal on your dream car, the paperwork won’t delay you and you already know on the spot that you can take out a loan for it.
Lower Installments Are Often A Trap
If a car loan offer sounds too good to be true, it usually is. Don’t be quick to accept deals just because they sound advantageous on the surface — one example are loans that promote super low installments with longer repayment periods.
If you add everything you pay by the end of the term, you’d be surprised to find that you’ve paid almost 3x the retail amount of your car. That being said, instead of focusing on what you pay monthly, focus on the total loan amount and make a purchase decision based on that.
Skip The Add-Ons
Stop buying everything the car dealership tries to sell you when you make your car purchase. These places are often trained to upsell clients on additional purchases such as car accessories, insurances, etc. so that they can meet their sales quota.
More often than not, those things they’re trying to sell you may be “nice-to-haves” but they are not must-haves. You can still enjoy a new car in perfect running condition without all those extras. Plus, it’s best to experience your new vehicle as is when you’ve just bought it, you can always modify it for much better prices later on.
Explore Your Options
Lastly, don’t immediately make a purchase at the first car dealership you visit unless you know for a fact that it’s a really, really good deal. It’s best to explore the market and compare prices. Find which place can offer you the best deal in your area before making a permanent buying decision.
The Roadmap: Steps to Take Before Making Your Purchase
Now that we’ve shared with you some smart buying tips for your new car purchase, next on our agenda is discussing the steps you need to take before you walk into a car dealership and seal the deal.
Check Your Credit Situation
Nothing is more frustrating than finally finding the car of your dreams and learning later on that your credit standing is nowhere near the mark to qualify for a car loan. Check your credit standing by asking for your latest credit score report. You are also advised to get yourself pre-approved for an auto loan with your local bank before striking any deal for a new vehicle.
Research The Car’s Reliability Rating
As a car buyer, it’s your responsibility to do your research. Certain car models may look incredibly cool on the outside but actually hide a lot of internal issues. Every car model that comes out is often given a “reliability rating” after the first couple years of its release. Fellow car enthusiasts take it upon themselves to inform others in the community what’s good about certain car models and what’s not. For all you know, your first choice might actually have a low reliability rating which means that it’s prone to certain issues that may inconvenience you on the road.
Buy A Car That You Can Afford – Including Its Maintenance
Lastly, when buying a car, remember that there are more costs that you will have to pay later on apart from the money you spend upfront when you buy it. We’re talking about the costs of maintaining the car after you own it. All cars require regular maintenance — oil changes, part replacements, and minor repairs every few months or so.
If you buy a high end car, expect maintenance to cost you more as well. Whereas more commercialized units are not only affordable to buy, they’re cheaper to maintain too. When buying a car, make sure you can afford it — maintenance included.
