Buying a car is one of those huge life purchases that often creates a lot of financial stress. After all, it is a really big decision that can break the bank if you haven’t done the loan process correctly.
If you are just starting with the car shopping process, there are some things that you should know now. That way, you have the necessary knowledge to save the most money and make the most financially savvy decisions.
To help you through this purchase, we have created an easy-to-follow guide of some things you can do to avoid the common pitfalls of car buying and save some extra cash in the process.
Find the Best Loan Option for You
An essential factor for any car buyer is to know what type of loan you are going to qualify for before you even apply. It would help if you made sure that you fully understand the terms that go along with the loan. Even if you qualify for a large loan, it doesn’t necessarily mean that you should sign off on it.
It would be best if you talked with a professional to understand the terms of the loan better. It will prepare you to go into the car buying process to know what you can afford and an approximate number of what you will be paying each month.
Some companies, like Credit One NZ, help you compare different types of loans from a variety of banks. With multiple lending options and finance terms laid out, you can make an educated decision with all of the facts right in front of you.
While you may have your sights set on a brand-new car, we think you should reconsider.
Gently used vehicles with under thirty-thousand miles (if well-kept by their previous owners) are practically new. And, the second you drive a brand-new vehicle off the lot, it immediately depreciates, therefore making you lose quite a bit on your investment.
If you are wary of buying used, there are some things you can do to calm your fears. When you view a used car, check the VIN check then you can hire a mechanic to come along and check out the vehicle before making any decisions. If they give you the all-clear, then you are good to go!
Do Your Research Before You Go
This advice is a biggie. Car sales associates are just that — salespersons. They want to get as much money as possible without seeming suspicious, and it can be easy to fall into their traps as they are often very good at what they do.
Your best bet to avoid these traps is to do some solid research before you go shopping. If you know what you want, it’s a lot easier to gather an idea of how much it will cost.
Look up the vehicle’s Carfax report, comparable deals from other dealerships, and insurance quotes for the vehicle. Some factors, such as crash safety ratings, can help lower monthly insurance bills.
Additionally, if you can prove the pricing you found online or elsewhere, you may be able to negotiate prices down at the moment. Believe us, doing your research can pay off and save you a lot of cash!
The Bottom Line
Buying a car is a big purchase that you want to approach with some caution. With such a significant financial investment, it is best to be careful and take these extra steps to ensure that you are making the right money moves.
We hope that these ideas will help you to get the best deal for your new vehicle and that you learned a little something about how you can save when car shopping!