If you don’t plan to buy a house, then it is possible that buying a car will be the biggest thing that you’ll ever spend on. And just for the sake of middle class people like us, lets think that you should not be spending more than you need to. Because ultimately you will still be spending years paying back for the car that you purchase.
And like every expensive purchase, proper planning is important to make sure that you are not making any crucial mistakes that will leave you regretting for the years to come. Common sense is essential, because there are no magic pills that will suddenly unlock the power of making the best decisions in your life. And there is no magic formula that I will be mentioning further, but there are some common sense tips that will help you get the best car deal possible without driving yourself to bankruptcy.
Planning – Planning is always good for everything. Whether you’re using it to have a perfect date, or purchasing a car. But one thing you need to remember, is that you should keep everything in mind while planning.
You should plan at least six months ahead of purchasing your car, and things like deciding the cash flow sources and tax returns should be on top of the list. Because these are some of the hidden expenses while you purchase a car.
The Best Time To Buy – Many of you might not know, but there is a best time of the year to purchase a new car. Early fall is the best time, because that’s when most companies roll out their new models, and the dealers need to clear up their space for new inventory. This will be the time when they will agree to sell their cars at rock bottom prices, and in some cases, they will even sell at a price you would not get on Black Friday. But it depends on how good of a bargainer you are.
September or October is the best time, because most companies will be rolling our their new models in the summer. And if there is a particular car that you want, and that company is starting their new model year. Then this will be the best time for you to make the move.
Your Budget Is Crucial – I have seen many people regretting when they think that they can repay any amount. Make sure that you’re not one of them. You should be knowing how much money you could easily keep aside for repaying your car every month without cutting corners.
Remember, you don’t need to live on the extreme edge for this. You are purchasing a car for your luxury. Also, if you are planning to get a loan on a used car, then good luck with that mate, because that will require some hard grinding work. Getting loan approval on a new car is much easier than that.
Be An Informed Buyer – You should be thorough with the information about your desired car, and your needs. Make sure that you know how each car stands in competition with others, and how well they’re selling for the dealers versus who is offering you the best price.
Once you get to the dealer’s place, the salesperson will show you the car on which they will be having the highest profit. This is the reason you should know exactly what you want, and which car would fulfill your needs/wants. The best information you can have, is the cost that the dealer is paying for the car. This will let you know if you are paying too much, or whether you are getting an appropriate deal. Once you bargain with this information, your dealer will immediately know that you have that information.
You don’t want to insult the dealer by telling them that they should sell you the car at a loss.
Warranties – The dealer might tempt you to purchase that extended warranty to ensure the safe journey, but that is definitely not a good idea. You can always purchase warranties at a later date from that dealer. And most of the time, dealers do provide a return period of 7 days to their customers, which is more than enough to know whether there are any serious problems with the car, or whether it is worth purchasing or not.
And if you are unsure about these two things, then there is only one decision that you will have to make. Whether you purchase that warranty or not.