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The new car you purchase will be one of the most
expensive purchases you make so it is a good idea to invest a little
time studying before you commit to several years of car payments. Listed
here are a few suggestions to help you make better decisions when making
your new car purchase.
Think about what car model and options you want and
how much you’re willing to spend. Do some research. You’ll be less
likely to feel pressured into making a hasty or expensive decision at the
showroom and more likely to get a better deal.
Consider these suggestions:
- Check publications at a library or bookstore, or
on the Internet, that discuss new car features and prices. These may
provide information on the dealer’s costs for specific models and
options.
- Shop around to get the best possible price by
comparing models and prices in ads and at dealer showrooms. You also
may want to contact car-buying services and broker-buying services to
make comparisons.
- Plan to negotiate on price. Dealers may be
willing to bargain on their profit margin, often between 10 and 20
percent. Usually, this is the difference between the manufacturer’s
suggested retail price (MSRP) and the invoice price.
Because the price is a factor in the dealer’s
calculations regardless of whether you pay cash or finance your car —
and also affects your monthly payments — negotiating the price can
save you money.
- Consider ordering your new car if you don’t see
what you want on the dealer’s lot. This may involve a delay, but
cars on the lot may have options you don’t want — and that can
raise the price. However, dealers often want to sell their current
inventory quickly, so you may be able to negotiate a good deal if an
in-stock car meets your needs.
Read the independent car
magazines or visit the car related websites. This will help you
make decisions based on facts instead of hype.
Be sure to factor
ownership cost before committing to purchase. That good deal may not be
so good after factoring in cost such as insurance, non warranty
repairs, gas mileage, resale value.
Ask someone you know who
purchased the same or very similar model what they paid.
Know what your old car is
worth if you plan on making a trade. Even if you follow all the other
tips and get maybe a $1500 savings on your new car it's all for nothing
if you get $500 for your trade when you should have gotten $2500. Bargain
without the trade first. Then renegotiate having the knowledge of the
value of your trade-in. You will know if you are really getting a good deal.
A final tip
research then research some more. The more information you are armed
with the more comfortable you will be with walking away from a bad deal.
When you do buy it will be stress free.
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