Whether you’re looking to buy a new or used, a car is a big purchase, and you need to be very smart about buying one. It doesn’t matter whether you’re planning to use the car for your commute or on the weekends; it will be with you for a long time. Therefore, it should meet your current and future needs.
Buying a car means having to find not only a suitable ride but also get a good deal. That’s where many people have trouble; they overpay for their cars because they are not prepared for the purchase. No matter where you are struggling in the purchasing process, the following tips can help you out.
Know Your Budget
Before you look at cars or financing options, you need to know how much you can spend on the vehicle.
A good rule is not to go over 20% of the money you take home every month. That means you shouldn’t spend more than 20% of your monthly income on lease payments, fuel, insurance, and other car expenses combined. Therefore, the car payments should come to roughly 10% -15% of your income.
While many people go above this and get a nice car, why not save or invest that money instead?
Get Pre-Approved for Financing
Knowing the maximum amount of payments you can make every month, you can go to a lender and look at your financing options.
Many people consider getting financing options directly from dealers, as it seems easier. But that is usually a trap. They try to get you in for a longer financing option, and you drive off in a more expensive car.
By getting pre-approved, you make up your mind before setting foot at a dealership and have the upper hand.
Remember, your car financing should be less than 5 years long. Anything longer is a bad deal, and you will end up paying too much over the price of the car.
Do Your Research
Before going to a dealer, you need to look at your options online. If you’re looking at new cars, you can look into a new Dodge vehicle dealership to find out what your options are and how much they cost. Some research will allow you to negotiate better for your new ride and get a better deal.
Keep in mind there is a lot of range these days. You can also easily find used wheelchair vans for sale or other vehicles that better meet your needs and the needs of your family.
Another great advantage of researching your options online is that you can find a good deal on the internet and negotiate on the phone, which is much less intimidating.
Keep It Simple at The Dealership
If you find yourself at the dealership, your goal needs to be to keep things as simple as possible.
Buying a car at a dealership is like playing a game. You should give them the least amount of information upfront and try to negotiate the final price of the car first. They will ask you if you’re planning to sell your old car, get financing from them, what your budget is, and a lot of other stuff. Don’t let them know your situation. Once you finalize a good deal for your car, you can discuss exchanging your old car.
Also, keep in mind that the add-ons are mostly not worth the cost, and you should avoid them.
