Purchasing a new vehicle is an exciting time for many people. It can also intimidate you into knowing what questions to ask and how to go about the process. With these five tips, you will feel more confident in your buy of a car at a dealership:
Get Multiple Price Quotes
This is an essential step in purchasing your new car at a dealership. Shop around with different dealerships to get an idea of what kind of deal you can expect. Comparing prices before making any offers will give you more bargaining power when negotiating. When you visit a dealership, they will likely offer to give you their best price once they know which car and options you want. Understanding the difference between the dealer’s invoice pricing and MSRP is essential. A good rule of thumb here: unless purchasing a popular vehicle with no special features or customizations. If possible, try not to buy your next vehicle until after December 31st each year. Many automakers release rebates during this time to encourage people to buy new cars.
Know Your Trade-in Value
Suppose you are trading in a car to buy your next vehicle. You must know the current market value of your used vehicle before going into negotiations. If possible, do not bring up this topic until they give their best price on the new automobile or truck you wish to buy from them. You might be surprised with how much more money they will offer once they see what kind of shape and condition your previous vehicle is in. When shopping around dealerships to buy a new car, keep in mind that asking prices and final negotiated numbers can vary widely depending upon which dealer we go through, even if we take our last deal over to a competing dealer. This is because car dealers make their money on the financing and add-on products they sell, not on the vehicle’s sale price.
Get the Vehicle Inspected
No matter how much you trust the dealership, it is always good to have the car or truck that you are purchasing inspected by an independent mechanic before signing any paperwork. This will help protect you if there are any undisclosed mechanical issues with the automobile. It is also important to remember that most dealerships only offer a limited warranty on their vehicles.
If you’re buying a used car, get it inspected and try to get as many guarantees in writing as possible from the seller. A pre-purchase inspection gives buyers some peace of mind that they will not end up with a money pit four months down the road.
Use a Credit Union or Bank for Financing
When purchasing a car at a dealership, it is crucial to understand that dealerships make much more money from selling add-ons and extended warranties than they do on the actual sale price of the vehicle itself. For this reason alone, many people consider using an outside lender not to have to deal with any unnecessary fees. When you work out your loan independently before ever stepping foot in the showroom, you will negotiate better terms because there are no loans involved yet. It is rarely helpful financially to use one’s banking institution for auto loans, even if we have a great relationship with our bank or credit union. The reason is that the dealer will almost always give you a much better interest rate than we can get on your own.
Consider Online Dealerships
Many people know that many online car dealerships don’t have physical showrooms. They only deal in selling their products over the internet. These auto retailers offer lower prices. Why? Because they do not have as many overhead costs – such as expensive rent or salaries. When you buy cars online in Canada, it is essential to do your research. Also, read as many customer reviews as possible before going ahead with the sale.
There is always a certain amount of risk involved when buying cars online. Be sure to ask the dealership many questions about the vehicle’s history and condition before buying. Check their return policy if you’re not satisfied with your purchase down the road.
To summarize, there are many things that you should do when purchasing a car to get the best potential deal. Car dealerships make most of their money from financing add-ons and extended warranties. Thus, try contacting an outside loan before meeting with them! Always have your vehicle looked over by independent mechanics beforehand, even if it’s for peace of mind. Consider buying your next car online instead. Why? Because they run cheaper than dealership cars, but be sure to double-check all facts about its condition first.