Car buying can be a stressful process. It’s important to get preapproved for a loan, research your favorite vehicles, and prepare to negotiate with confidence.
Some dealers will also try to sell you extras, such as rustproofing, extended warranties and paint protection plans. These items are often unnecessary and overpriced.
1. Get Preapproved for a Loan
One of the best things you can do before heading to the dealership is to get preapproved for an auto loan. This will give you a clear picture of what you can afford and puts you in a stronger negotiating position.
You can apply for a car loan with a credit union or bank. Most lenders require personal information such as your name, address, phone number and employment details. You will also need income documentation, such as paystubs or tax returns.
You should shop around to find the best lender. However, be aware that multiple hard credit inquiries will lower your score. You can minimize the impact by applying for a preapproval with several lenders within 14 days. This will allow all the requests to be treated as a single inquiry.
2. Research Your Favorite Vehicles
With so many car models on the market, it can be difficult to determine which vehicle is the best fit for your needs and budget. Thankfully, you can utilize multiple online resources to help you make an informed decision.
One of the most helpful tools is analyzing price trends for particular vehicles. By doing this, you can identify vehicles that are decreasing in price over time and may now be within your budget.
Another resource is reading expert reviews. While owners can tell you a lot about their cars, experts are paid to know everything there is to know about competing vehicles in a given segment. In addition to researching vehicles, you should also consider looking at a vehicle history report. This will give you details about the car’s maintenance, repair and accident history.
3. Visit the Dealership Prepared
When you are at the dealership, remain focused on your goal of finding a car that meets your needs. It’s easy to get caught up in the excitement of a new vehicle and let emotions guide your decisions. Having a clear understanding of your budget, financing and must-haves will help you navigate the process with confidence.
Research the make and model you are considering, understand its features and compare prices online to discover if there is room for negotiation. It’s also a good idea to bring along a friend or family member to assist you during the process and act as a buffer against pressure from salespeople. Taking these steps will transform your dealership visit from a daunting experience into an empowering one. You will be more equipped to advocate for yourself and secure a deal that you can live with for the long-term.
4. Test Drive the Car You Want
Buying a car is more than just picking a model that looks good and smells nice. It’s a major investment that you’ll live with day in and out and make payments on for years to come.
When choosing a vehicle, the test drive is crucial. Whether you’re trying to decide between two vehicles that you’ve narrowed your options down to or simply want to see how the vehicle handles on rough roads, taking a few extra steps can help ensure that you make an informed decision.
For starters, bring photocopies of your driver’s license and insurance information. This way, if the salesperson loses your driver’s license during the test drive and can’t return it to you promptly, you have an exit strategy. Moreover, you should navigate the vehicle through different road conditions, including city traffic and highway driving, and try to take it on any rough terrain that you encounter in your daily commute.
5. Negotiate With Confidence
Car dealers are in the business of selling vehicles, but they’re also in the business of making money. They do this by marking up the cost of a vehicle to make a profit. However, you can negotiate the price of a new car down to its dealer-invoice price. You can find this number by checking the car’s Monroney sticker or on websites like KBB. You can also negotiate the value of your trade-in and the price of any add-ons.
Getting a great deal on a new car requires preparation, research and the right negotiation skills. By gaining knowledge of common dealership tactics and arming yourself with bargaining power by securing outside financing, you can get the car you want at an affordable price. You might even save thousands of dollars off the sticker price.car dealers in Hamilton
