3 Tips for Overcoming the Complicated Process of Car Buying
Consider this. When you buy a house, you have a mortgage. You get pre-approved at a few banks and then you make an offer when you find the house you want. The financial math is complicated but the process is fairly straightforward, not usually involving numerous factors to think about at one time.
The math involved in buying a car is just as complex and requires more variables because a dealership is going to offer you a number of add-ons. What's more, most drivers don't get pre-approved for cars. They finance after they've found the car they want, through the dealership. It all culminates in the negotiation phase of the buying process, where you have to negotiate with professional negotiators. That's why many buyers don't get great deals. Car buying is an ordeal, no matter how you look at it.
However, there are a few things you can do to decrease the quantity of information your brain has to deal with at one time. Essentially, you should isolate the variables of car buying. Here are three ways to do that.
Don't Finance at the Dealership
You're better off getting loan quotes from banks. You can probably find a deal that at least matches the dealership's deal and you won't have to settle this aspect of the purchase in the same meeting as everything else. You can visit your local banks and ask any questions you need to ask, too. Bank representatives are usually more knowledgeable about loans than car dealership representatives.
Get Car Quotes Online
This saves time and allows you to avoid being persuaded by salespeople. You can get quotes from any dealer right here at CarLeasingSecrets.com. There's a good chance doing so will help you choose a dealer to work with. If it doesn't, at least you will not have spent hours waiting, being shown cars you don't really want, and spending valuable time at dealerships.
Have a Plan and Know What You'll Offer
You want to determine the lowest price at which a dealer is likely to sell a car. This is important if you plan to purchase and also if you plan to lease. There are a number of resources online that help you determine the market value of a vehicle. Do your homework and decide what to offer. You can even determine what the dealer paid for the vehicle by taking advantages of services like this. Then you can simply make an offer just above the dealer's "invoice cost."
If you plan to lease, it's a little more complicated. Another important number in your calculations is the "residual value." Since you don't purchase the car when you lease, you're paying to use it for a portion of its life. Your monthly payment is roughly the car's sale price (plus taxes and fees) minus its residual value, divided by the number of months in the lease term. Be sure the dealer hasn't calculated your payments using unfair sale and residual prices. If you can come up with a respectable offer, it's a win for both of you, as long as it's not too low. Knowing what you're doing saves the salesperson's time and gets you a better deal.
Are you ready to get started? Click here to get your quotes for free, with no obligations. It's your starting point. The finish line is a great deal on the car you want!