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One of the most exciting, fearful and frustrating times you will ever encounter in your life is when it comes to buying a new car. In my opinion, car buying has gotten a bit easier over the years but there is still much room for improvement.
Photo by Sarah Brown on Unsplash
Here are a few tips to help you be armed with as much knowledge as possible to go in with confidence and make shopping smarter and smoother.
Do your homework – With the internet and all-inclusive sites like Auto Loan, there really is no excuse as to why you should be going to the dealership blindly. You should have some sort of idea what the going rate for the style car you are looking for and any sales that are going on including the dealerships competition (we saved over $8,000 by showing them a competitor’s ad).
Check your trades value before you go – It is always best to get a realistic idea of what to expect from your trade… most likely it is not as much as you are expecting and be prepared that if you owe more than your car is worth… you will need to make up the difference via cash or add to the loan. It may even be better to look at other options like Car Brain where you can get an instant offer on your car and skip the hassle.
Have a number in mind – If you are going to the dealership with a partner… make sure you have both agreed upon a number and a car loan rate. Whether that number is the max on monthly payments or the max you are willing to spend total as a final price. Nothing is more uncomfortable than trying to talk money or strategy with your partner when you have a pair of eyes watching you both.
Shop at the end of the month– It is no secret that the end of the month is the golden time for quotas needing to be met, and rotation of new stock. You will find they are a little more willing to make a deal happen, or give you a bit more on your trade.
Know your numbers – educate yourself on what the monthly payments would look in different scenarios. You can use a tool like Auto Loan – they have every auto loan calculator you can think of and you can really get all the answers you need to see the difference on if you went 60 months vs. 72 months or if you added that extra $1,000 down payment. The more YOU go in knowing the better.
Get pre-approved– This will save you such a headache. Auto Loan has a huge list of the best online auto loan services, plus all the pros and cons that go along with that company. You can also go to your local credit union, they usually have very low interest rates plus additional savings with auto pay. Don’t have tunnel vision though… the dealership may be offering you a sweet deal to finance with their own lenders. They may do this by offering a rebate, or they make the first 3 payments and so on. Take advantage of these deals and if they don’t meet up to your other requirements and expectation you can easily refinance with a different lender, usually at no or low cost.
Know the lingo – Before you even look at a car they may increase their sale. Coming from a salesman, the first thing they ask you is. “ How much are you looking to spend?” you may respond with “$16,000” he will follow that up with “And up too…?”, our natural response is to give a range, so, you might say “$18,000”… right there, he was able to increase your spending by $2,000. If you are very set on a number, be firm and let them know that is your max budget.
Pay with as much cash as you can – Obviously, paying cash for a car is extremely hard for the average person, but the more cash that you are able to put down upfront, the better off you will be because you will have less to pay off with (typically) a lot of interest tacked on to the final price tag. This is why you need to prepare in advance, instead of making a rash decision all of a sudden. Think about creative ways on how you can make extra money, so that you are able to put down more for your car. For example, Chapes-JPL is a great place that might be able to help you out, if you have valuables that you can sell. Go through your closet (valuable purses) and jewelry box (gold and other jewelry) and see what you have and what you can live without. Then, consider calling Chapes-JPL because they are a jewelry buyer in Atlanta. Chapes-JPL is the nation’s premier jewelry lender and buyer. In addition to buying valuables outright, they also provide affordable asset loans on jewelry, gold, diamonds, watches, and other valuable assets at a low rate and fair value. Having been in business for over forty years, Chapes-JPL knows the business well and has served over 18,000 customers nationwide. So, if you are looking for a quick and easy way to make extra cash so that you can put more down on the car you are wanting to buy, check out Chapes-JPL.
