Most households would consider a car as a necessity. With a car, people can go anywhere and anytime without depending on the schedule of public transportation. A car can also be very convenient especially if you love taking long trips. However, a lot of people still don’t own a car for one particular reason – the price. Depending on the brand, make, and model, buying a car can cause you to break the bank. You’ll have to shell out a large amount of money, which can compromise the budget you’ve allocated for other things. But don’t lose hope – with the right techniques, you can still buy a car evenwhen you have a low budget.
The maxim “If there’s a will, there’s a way” applies when you’rebuying a car. There might be a lot of factors to consider, but if you’re really determined to buy a car, you’ll find ways. For you to successfully do this, make use of the following tips:
1. A little research can go a long way.
Deciding that you want to buy a car is easy; determining what kind of car to buy can be a struggle. As a car enthusiast, you might be overwhelmed by the number of options to choose from. You can narrow down your list by doing a simple research on the cars you’re eyeing to buy. The Internet is a goldmine of information for car specs and reviews, so make sure that you take advantage of these resources. Along with your up-to-date knowledge of cars and the information you can get from the Internet, don’t forget to use the following tips whenever you’re researching:
- Your social circle, such as your friends and family, can also help you decide on what kind of car to buy. If one of your friends own the same car you’d like to buy, ask about the performance, mileage, and maintenance of the car. Their comments can help you decide whether or not a particular car model meets your expectations.
- If you’re planning to buy a brand new car, research on the “invoice” price of the car and not the MSRP. The invoice price is the price dictated by the manufacturer once a car is sent to a dealer. The car invoice prices can help you determine the lowest price a dealer can sell a car and still make a profit from it.
- On the other side of the coin, if you’re troubled on how to buy a car after bankruptcy or if you’ve recently been through a financial setback, buying a used car may be your best move. If you’re leaning towards this direction, research on two important things – the recent resale price of the car model you want to buy and the value of your current vehicle (for trade-in transactions). It’ll be easy to bargain for the price of a car once you’re equipped with this information.
- If your budget is a little tight, trying to get the most cash for your car as possible before looking to buy a new one can help a lot. Selling your old car or giving it away in exchange for a new one can drastically reduce the purchase price of your next vehicle.
2. Take some time to shop around and scout for options.
There are a lot of car dealers operating today. No matter where you’re living, you’ll have access to a handful of car dealers. Although it can be tempting to immediately buy a car from the first dealer you come across with, don’t do it. Limiting your options can likely lead to unmet expectations and disappointments. If you want to get the best deal from your car purchase, take time to shop and scout for options. Here’s how you can do it:
- Set
a timeline as to when you’re going to buy a car. Never make any
hasty decisions or buy impulsively. Do your own window shopping and
look around car dealers within your area. You should have at least
three options and compare their prices.
- Most people would also follow one rule whenever they’re shopping for a car: walkout from at least one dealership. When you do this, you’ll know a dealer’s lowest price for a car. They’ll usually chase after you and offer you the cheapest deal just so they can get a sale from you.
- If
your time and budget allow it, consider going out of town to look
for other car dealerships. The price of a car significantly varies
on the location it’s sold.
3. There’s nothing wrong in negotiating prices and terms.
Buying a car isn’t as simple as buying a new pair of shoes. Next to buying a property, buying a new car is one of the most significant investments you’ll make in your life. More often than not, you’ll spend the next six years paying for the full amount of your car. To ensure that you’ll be able to buy a car with the best terms, gather your confidence and negotiate terms with the dealer. If you’re doing this for the first time, the following tips might come in handy:
- Once you’ve selected which car you want to buy, do everything to negotiate a car loan to lower its purchase price. This might seem like out of the norm for many, but you’ll never know unless you try, right? If you want your negotiation to end with positive results, start bargaining with a ridiculous price and then work your way backward. If you’re determined enough, you and the dealer can meet at a price point which is amenable to both parties.
- In case there are no spare keys coming with the car you are trying to buy, better than asking for it as a part of the deal, you can use it as another point in your favor to negotiate a lower price. These days, it’s quite easy to buy car keys online and program them so you can just buy one for cheap later and save more money on your car right now
- Aside from the price of the car, you should also try to negotiate for the payment terms. For example, if the dealer starts to discuss the amount you’re going to pay based on a 60-month loan, inquire if you can have the same payment scheme on a 48-month loan.
- So before you walk into a car dealership, research and practice your negotiation tactics. Pair that up with your confidence so you’ll have better chances of buying a car for a lesser price.
4. Car extras are not necessities.
When you’re buying a new car for the first time, adding in a few extras on top of your purchase can be very tempting. This is especially true if you’ve been a car enthusiast all your life. You may consider buying bigger wheels, a sub, or a set of dropped coils. While these upgrades can make your car stand out, it doesn’t do anything to its value. In fact, these upgrades will depreciate with time, and you won’t get your money back once you decide to sell or trade-in your car. Additionally, you should cross off buying any extras for your car because of the following reasons:
- All of your efforts to negotiate the price of a car will be worthless if you end up buying car extras. These extras may seem like they’re “nice to have,” but actually these aren’t necessary. You can still drive your car safely even without these extras. You won’t look as cool, sure, but, you know… being cool is so overrated anyway…
- Buying
any extras will only cause the initial price of your car to
increase. So, instead of stepping out from a car dealership with the
best-priced car, you’ll end up buying more than what you’ve
budgeted.
Look at the Bigger Picture
A car is a costly purchase. Probably it took you years to save that money aside in the bank (and a lot of determination and discipline so that it stays in the bank) just so you can afford to buy one. If you want to buy a car that can provide the best bang for your buck, don’t immediately pick the cheapest car you can find either. Price is a deciding factor, but buying a cheap car doesn’t guarantee that you got yourself a bargain. Look into the details of a car and scout for options. These considerations, along with the tips from this article, can help you find the right car for your needs and budget!
