Buying a new vehicle can be very intimidating. The more work you do to prepare to make your purchase the better. By being an informed buyer it will reduce the chances of you getting taken advantage of. Do online research, in fact the more research you do the better. Research, research and more research! Remember as the buyer you are the one in control. Do not let a pushy salesperson make your decisions for you.
Tips to Consider When Buying a New Vehicle in 2016
- What is your budget? Your monthly payment should not exceed 25% of your monthly household income. Find a home budget calculator online. This will assist greatly in doing your calculations. Do not forget to figure other costs of owning a vehicle like insurance, repairs and gasoline.
- Narrow your search. Pick two or three different cars that are your favorites. Use manufacturer websites and automobile information sites to gather information from. You should target the ones that are priced at 5% less than your monthly budget. This way you will cover other expenses involved in having a car. Check local car lots when the dealership is closed. This will help you to make a decision with a salesperson bothering you.
- Do you want to buy new, used or lease a vehicle? Used cars can be very affordable. But you will have higher interest rates and a shorter warranty. If you lease a car you may be able to afford a high end vehicle. Before signing the lease read over the conditions carefully. You might have to pay penalties in certain cases. New cars come with a full warranty and can include freebies. Another option can be certified pre-owned cars. These can be cheaper and have some of the warranty left. They must meet certain standards regarding condition and reliability.
- How much will it cost? Determine what your overall costs for purchasing the vehicle will be. The typical dealer markup is two percent. Find out the invoice price of the car you want. The invoice price is what the dealership paid for the car. Dealers need to make some money on selling the car to cover their overhead costs. Websites like Edmunds.com, KBB.com and NADA.com are helpful in determining the value of the care you are interested in.
- Have your financing done before you test drive. Walk-in to the dealership with your financing already done. Talk to your bank or credit union and see what they can offer you. Check the current interest rates so you will be prepared to purchase. You can find these online at sites like Bankrate.com.
- What discounts are available? Find out what discounts you are eligible for before going to the car lot. You can find these on manufacturer websites. Depending on your situation you could save money. Discounts can be given to students, military and membership based groups among others.
- Take your time. Do not rush in to complete a test drive. Make an appointment online to test drive the car. Take some extra time to get familiar with the car. Drive it to a parking lot near the dealership during the test drive and check the vehicle out on your own. One of the best ways to test drive a vehicle is to rent the car for a couple of days. This will help you decide if you really want to purchase it or not.
- Be a smart negotiator. Know the current value of the car you want to purchase. Understand what fees are involved when you purchase the car. Most importantly just say no to add-on extras. This is how the dealer can increase the price. Look for a dealer that offers no haggle prices in your area. This means that the price listed on the sticker is what you will pay for the car. This will eliminate having to negotiate the price.
The more homework you do before going to the dealership the better. Talk to friends. Word of mouth is a great tool to use when buying a car. Collect as much information as you can online. The internet has made buying a car a much more even playing field for buyers. Remember the dealer will need to make some money in the transaction. Be an informed buyer and not a victim.
T3 Atlanta can help you make better used car buying decisions. If you are considering buying a previously owned Lexus, Infiniti, Toyota, or Nissan, we can check the auto for any hidden issues. We have 2 convenient locations to serve you in Smyrna and Decatur/Scottsdale.