Besides your home, your car is probably the other big purchase you’re concerned about. If you’re a car fanatic, that’s great since you can spend several hours researching and determining the exact type of car you should pick, and paying for it shouldn’t be so painful.
However, if you’re not a petrolhead, spending a large sum of money on a single car can be upsetting. Below are some tips to help you purchase a suitable ride without breaking the bank.
1. Make a Budget and Stick to It
Budgeting is the wisest move, especially when making a big purchase like a vehicle. Assess your finances before going to the dealership. Look at your average monthly income and determine your gross pay.
A good rule of thumb is that you should not spend more than 15% of your monthly income on vehicle expenses. This includes car payments, maintenance, gas, and car insurance.
A vehicle salesperson might try to push you beyond your budget by recommending a model with sophisticated features. You should be assertive and stick to your initial budget. Inform the salesperson that you can only pay a specific amount and not a cent over. You should also be watchful of closing fees.
2. Determine Your Exact Requirements
First, you should figure out the exact thing you need from your automobile. There’s no point in spending all your savings on a vehicle that does more than you require just because it looks great or the car dealer persuaded you to buy it.
If you enjoy road trips, you may require a big boot. If your family is big, you may opt for a minivan. If you drive on motorways, go for a car that can handle that. If you are concerned about the environment, consider picking an electric car or vehicle that is low on fuel consumption.
3. Buy a Used Car
New vehicles are usually costlier than they’re worth. The brand new label and the security that a car has never been driven before inflates the price more than its actual value. Used vehicles are usually cheaper than the latest models.
Another advantage is that used vehicles don’t lose value as quickly as new ones. That implies that if you want to sell your vehicle after purchasing it, it’s likely that you’ll get much more of your cash back. Ensure you bring in a mechanic to look the vehicle over before purchasing to be safe. Find out more here if you want to sell your car.
4. Purchase Car Local
Local vehicle dealers who work and live in your community may cut you a deal you wouldn’t get if you drove far outside town. Additionally, smaller town dealerships usually don’t inflate prices like how other flamboyant big-city dealers do.
Local dealers also know that they’re accountable to the community. If these dealers rip somebody off, everybody in town will avoid them, and they’ll soon be out of business — this keeps them honest. Check out Prestige Cars if you are residing in Australia and find the car you are looking for.
5. Acquire External Financing
Many dealerships provide flashy deals on in-house financing that have nothing due at signing and a low initial APR. Nevertheless, this can be a trick; after you’ve signed up, you’ll find that the dealerships double your payment and increase your interest rate after six months.
Before going to a dealership, you should secure financing with a local credit union or bank. They’ll offer you a better deal and be upfront about monthly payments and interest rates. Furthermore, by acknowledging what you’re getting into and ensuring you make timely monthly payments, you can improve your credit rating with an auto loan.
6. Purchase Car at the End of the Month
A sneaky tip is to purchase your new vehicle at the end of the month. Most salespeople have to attain a specific target at the end of every month, and they’ll be eager to make sales around that time. This implies that the salespeople might be more willing to reduce the price slightly to get that last-minute sale to increase their figures.
7. Ensure You Negotiate
To crown it all, make sure you negotiate. Research before time and know what’s available. Shop around to find other available prices before you quote a figure that’s offensively low that’ll get you off the wrong foot. It’s rare to purchase a vehicle without any extra costs; however, on several occasions, you can bump it down, particularly if you clarify you are just shopping around.
Wrap Up
Second, a vehicle is the next big thing you’ll ever buy in real estate. Purchasing a car can be intimidating and can feel like you can easily go over budget.
Nevertheless, if you’re cautious, consider used vehicles, and secure external finance from a credit union or bank, a new vehicle is completely achievable. Purchasing a new vehicle doesn’t have to be overly expensive or stressful. Just remember to research first and negotiate.
