When it comes to buying a new car, you need to know what to look for to get the biggest bang for your buck.
Purchasing a new car is an important decision for several reasons. First of all, a car is a valuable, practical tool that costs a lot of money, but that also loses a huge portion of its value the moment you drive it off the lot. Purchasing the wrong car for you will end up costing you in the long run, as you’d have left serious money on the table on what could’ve been a great long-term investment. Thankfully, NerdWallet, MoneyCrashers, and US News & World Report have compiled some excellent advice for prospective car-buyers.
When it comes to new cars, the first thing to remember is to always do your own research and bring the right documents. You’ll need to bring proof of insurance and a check for a down payment. As for the car itself, it will always look better and shinier on the lot next to a smiling, happy salesperson, so knowing what you’re looking for is critical.
Second, remember that you can try to negotiate terms. There is no reason for you to not try to get yourself a better deal than the one that’s been given to you. To fail to negotiate is to leave money on the table.
Third, don’t start off negotiations by making it clear that you intend to pay with cash. Much of a dealership’s revenues come from financing. As such, if the dealership doesn’t believe your car loan will make them some money, you will be left in a much worse position to negotiate.
Next, factor in your budget and your credit score. Knowing what you’re bringing to the table will help you get a better deal as far as financing is concerned.
Lastly, never shy away from shopping around. You may feel pressured and time-constrained, but the purchase you are about to make is a serious one. You can try to shop around at dealerships that have fewer sales, as you can often get a better deal. It is often better to buy a pickup truck inside a city, or a hybrid from a countryside dealership, for example.