How To Get A Better Deal On A Car
Posted by admin at 5 December 2017, at 00 : 19 AM
Buying a car is probably one of the biggest financial commitments you can make in your life. Apart from buying a property, a car is a purchase that can make a huge difference to your day to day life. Because of the fact that it’s such a big financial commitment, you may not actually be aware of the wide-range of ways that you can buy a car. A car purchase, just with anything else that is big, needs a lot of careful planning. You have to weigh up the pros and cons between buying a brand-new vehicle over buying a used one, and you have to make your decision based on whether you are even prepared to make such an investment.
Buying a new car that you can drive off of the lot and start over with is an adventure, as you are the person who will be stamping your mark on that vehicle. The problem is usually the cost of the car is higher, and with the purchase of a brand-new car, the insurance costs often go through the roof. Buying a used car instead of a new one is usually the way that most people go, but used car dealers have a reputation for smooth talk and even smoother tactics of negotiation. You can be easily tempted by smooth words and slick salesmen, so when you go to buy a used car, you need to be armed with as many facts as you can get hold of about how to go about buying your car.
Understanding what car finance is available to you is very important before you head to a used car lot. You can learn more about which used cars may be best in your area by going online and doing a fair bit of research before you head out to start testing cars. Car dealers will often go to very great lengths to get you driving one of their cars. It’s part of the patter of a car dealer, and the excitement of the day can cloud the facts in your head. It’s important that you are aware of the financial choices right in front of you so that when you decide to go ahead with buying your used car, you’ve made the best choice for you. Comparing your options is important, and we’ve put your options together for you below.
Going It Alone
Arranging your own finance may feel like a lengthy way to get a new or a used car, and used car dealers often have a huge range of finance on offer for their buyers. This often includes hire purchase schemes, loan schemes and personal contract plans. Dealers like to seal the deal on a car by squaring you away with one of their financial plans, but that doesn’t mean that you have to go ahead with it. Shopping around for finance yourself can mean that you find a cheaper deal and it means that you own the car at the end of the deal. This may be a shock, but there are some plans that mean you don’t end up with car ownership at the end, and that’s something that you have to watch out for.
Cash Ready
Being a cash ready buyer is an attractive quality for you as a car buyer. You won’t be able to turn up to a dealership with a suitcase full of banknotes, as many dealers won’t take a cash in hand purchase for a car. Having the money in your bank account ready to transfer over, though, is a smart thing to do and a good starting point when you want to negotiate a sales price on a vehicle. It’s always a better idea to pay with a transfer from the bank, anyway, as you then have a paper trail for your payment. The one attractive feature of paying by cash is the lack of interest that you’d have on top of the payments. The downside? Paying by cash is a big dent in your savings up front, even if it is for something as necessary as a car.
Loan
Getting a car loan is a possibility, but only if you have the credit to afford the loan. If you don’t have the upfront cost of a car in cash, a loan can ease the pressure. You may be borrowing to get the car, but for a dealer, you would still be classed as a cash buyer. Getting a loan personally means you have a good structure in place for paying for your car, and if you can put any savings toward the purchase, you can borrow a little less from the bank to pay for the remainder of the car. The extra debt may not be something that you need, but if you can afford it and it makes financial sense for you, then, you can be driving off the forecourt with your car in no time at all.
It’s important to remember that when you go ahead and buy a car on finance, that you look for the small print. Always look out for additional administration fees and extra charges and consider the overall cost that includes the APR and fees you may have to pay. If you choose to go ahead and go for finance with a dealer, you are going to be paying per month and need to be aware of every cost, even the hidden ones. Buying a used car over a new one isn’t always the decision that people want to make, but the important part is how you pay for it. Getting a good deal on a used car with a dealership is easier than negotiating buying a brand-new vehicle outright, as you can haggle and get extras thrown in. Don’t be afraid to negotiate when you go to a used car forecourt and expect to be dazzled by facts and figures. As long as you are armed with the right information and research, you cannot miss!