We all have that one dream car that we wish to own one day. Often, we dwell into the idea of moving around like a breeze in a swanky new ride. Out from the reverie, one needs to learn certain valuable car buying tips that will help to save money, get the best deal available, and appreciate the end result.
In this car buying guide, we will discuss used and new car purchasing, what you need to know before you determine to buy, keep away from common pitfalls, getting the best deal and what to do if you might face a problem with your purchased car.
The vital thing you must decide before you commence your auto studies whether you want a new car or a used car. Of course, there are benefits and drawbacks on both equally sides. If you decide to buy a used car, there are many things you need to keep in mind. Here we have discussed most common 5 factors that will help you to take a strong decision.
Finding a Used Car
Car Buying and the Internet
Things to Know Before You Go Car Shopping
Purchasing a Car
Addressing Problems After a Car Purchase
When purchasing a used car, the following things need to be kept in mind to bag the best deal:
- Take a mechanic along when you go for buying an old vehicle. Have the mechanic thoroughly inspect the car for any damages in terms of accident or flood damage.
- Check the Vehicle History Report to get full information on the car used previously. It includes everything, the number of previous owners, if the car was ever stolen or salvaged, any previous failed inspections, or if odometer reading has been tampered with.
- Have the finance and loan approvals ready before you go to purchase the car.
There are several places where you can buy used car from:
- Newspaper and online classifieds
- Used car dealership
- ​Some new car dealerships also keep used cars for selling
Personal communication through people you know or via classified advertisement is better option if one wants to avoid a car dealer.
Internet has the ultimate answer for almost everything we seek. And it is no different when it comes to car purchase. Whether looking for a new car or old, internet has plethora of information ranging from car's make, model, style, functioning, performance, pricing, warranty, insurance and also reviews. With all this information handy, you'd have an added advantage to walk up to a car dealership knowing exactly what you want.
- To begin with, you can search online on the car manufacturer's website, to see the list of cars and other various options with it. Once you've narrowed down the car you intend to purchase, look at the website of local dealers to see price they are offering and do the comparison.
- You can also find financing option online to purchase the car. Car dealers mostly have steep interest rates (Use Loan EMI Calculator for counting interest rates), so you can look out for other options.
- Selecting a warranty for the car can also be done online if the car dealership is quoting high price for it. Warranty is a contract between the buyer and the company (car dealership or standalone) that guarantees maintenance in case of mechanical or other problems in the car.
- Online car reviews are the most genuine information you can gather before purchasing a car. There are websites that provide invaluable tips to potential buyers in terms of performance, average, comfort, reliability, usage, and other things. With such information, it's easier to decide and come to a conclusion.
Before buying a car, you need to have a following checklist to finish:
1. Research thoroughly: Reaching the car dealership without knowing what exactly you want is the biggest mistake. Have a clear picture in your mind about the kind of car you want - new or used, sedan or an SUV, budget for the car, etc. Take suggestions from friends who are using the cars that you wish to buy. Or you can find just about anything online regarding a car.
2. Financing options: The various options for financing the car are the car dealership, banks or online deals. Have detailed information regarding which option suits you the best with lowest interest rates.
3. Shop around: Never limit yourself to just one car dealership. Always look for an alternate dealer, as you can compare the price different between the two. Also, try exploring out of town car dealerships as the vehicle price may vary depending on the location.
4. Negotiate terms: Purchasing a car is one of the most important investments of your life, only second to buying a house. You might be paying off this car for next five to six years. Therefore, do whatever it takes to bring down the purchase price and negotiate the loan. Enter the dealership with confidence and don't hesitate to walk out on their offers if they do not suit you.
5. Avoid impulsive purchase: Buying a car on an impulse can prove to be risky. You might realise later that you are unable to afford the car's monthly installments or its performance doesn't meet your expectations. Detailed research on make, model, insurance, finance, etc would help you in appreciating your choice and enjoy it in the time to come.
6. Buy minimum accessories: Purchasing a new car is a huge investment, and with financing you'd be paying it off over the next several years. So keep the add-ons to a bare minimum. Purchase only those accessories which you need necessarily (Five car accessories that are a MUST AVOID). GPS navigation, advanced music system, heated seats, rear camera, etc can be given a miss. You can always add them to your car at a later stage, if absolutely necessary.
7. Car test drive: Always, remember always, test drive the car that you are interested in purchasing. Apart from many reasons, comfort is most important factor while driving a car. If you are not comfortable driving a car, it's worthless. In that case, move on. If you have spouse or children, get them along for the test drive to know their opinion on the same. Apart from comfort, look for the smooth functioning of the car while driving and when idle, check if the view from all the mirrors is acceptable, controls for lights and windshield etc are easy to access, and how the car responds to accelerator and brakes, amongst others.
Purchasing a car is one of the very important decisions of your life. Therefore, give it a proper thought, research extensively and be firm on what you want without compromising. Car dealerships are running a business and their aim is to sell a car to you for the maximum price. You, on the other hand, are the buyer, and your goal is to buy a car that suits your requirement for the best price. Here are a few points that you need to keep in mind before making the purchase:
1. Research properly before you step into the car dealership. Having a clear picture of what you want makes the decision easier.
2. Be confident while walking into a car dealership so that the dealer knows you are not going to be taken for a ride.
3. The best time of the year to purchase a car is December end as the car dealerships have to sell the last year models before stocking the new ones. Hence, you'll get the best price on a car at this time.
4. Compare the prices quoted by different dealerships so you know which one is giving the best deal.
5. Do not give your social security number or the license to the car dealer until the purchase is made final.
Once you have bought the car, you need to know what you have to do in case of any problem in the car. Majority of the new cars have warranty on them. At the time of purchase, you are given an option for choosing an extended warranty. You may choose to opt in or out of it, depending on what exactly the warranty is offering.
Read the document thoroughly before accepting it. If purchasing a used car, it might still be under manufacturer's warranty or you can buy an extended warranty on it. No matter what kind of warranty you have for the car, it is very important to find what is covered in it and what is not. For example, a car bumper scratched due to an accident might be repaired free of cost as it is covered under warranty, however, the auto lock of the doors being jammed might not.
If you feel there are too many mechanical and technical problems with your vehicle and it isn't performing the way it should, you may take a legal action against the car dealership under 'lemon laws' of all states pertaining to new car purchases. You can also visit Better Business Bureau Law Program which helps the duped customers in such scenarios by lawfully fighting against dealerships.
Once you have decided on shopping a new car, figure out your budget and according choose the car that would best suit your needs. Keep the above points in mind and move forward with a relaxed mind. Car shopping would certainly become an enjoyable experience.
Happy Car Shopping
