Buying a new car is no easy task. It’s a big-ticket item that requires thorough research, negotiation technique, and, commonly, a hefty loan.
The first step is thorough research. Research helps consumers find out the exact value of what they are buying. Often, businesses mark up their goods, which is great for them, but not so great for the customer. Not only can research inform you how much you should be paying, but it can make you aware of other important things to look out for in the buying process.
How does one get a new car? Check out the guide below.
1. Do Your Research
There’s no bigger sucker than a customer who does not know what they want or what they are looking for. Make sure to do your research about the car you want, but also about the car-buying process in general.
For example, dealerships often charge a dealership fee which may cost you thousands of dollars extra in the long run. Research will make you aware of these fees and help you avoid them.
2. Shop Around for Loans
Getting pre-approved for a loan before you talk to a dealer is smart. It helps you focus on how much you can afford, which should be less than 20% of your net monthly income.
It will also restrict you from falling for a dealer’s attempt to have you overspend. You can’t spend what you don’t have. Make sure they are aware of that.
3. Focus on the Price
Don’t let the salesperson lead you into talking about a trade-in. Don’t even say, “I want to junk my car.” Don’t give them too much information to work with on the floor. Simply focus on seeing a firm sales price within your target.
Be aware that salespeople often try psychological techniques like foot-in-the-door to push a commitment, or create a scarce commodity by claiming the car will sell quickly. Again, just focus on the price.
4. Keep It Simple
Virtually every car salesperson will try to sell you some add-ons.
This may include something like gap insurance, warranties, or protection plans. You have no way of knowing the true market value of these things in their office, so you have no way of knowing how fair the cost is.
5. Consider Buying Used
Considering that most new cars lose over 30% of their initial value within the first year of ownership, it is a pretty good idea to buy a used car.
Cars that are practically new, but coming off a recent, short-term lease can be a good investment. Make sure to purchase a make and model with a good reliability rating.
How to Get a New Car?
Figuring out how to get a new car takes a bit of time, effort, and diligence. Make sure to exercise patience and resolution when visiting car lots. Remember that car salespeople live off commission, and their salary depends upon upselling the customer. Of course, no one is out to get you, but this is just how businesses work.
For more savvy business tips, make sure to check out our page.
