Buying a car is a major financial decision. With the amount of money that you’re pouring into a vehicle, and something which depreciates at that, you have to be very wise in picking out your new ride. Some individuals are intimidated at the thought of picking out cars. Buying a vehicle is often seen as an overwhelming experience wherein a person, because of his or her eagerness to have the new-car smell once more, becomes exceedingly vulnerable. Before you get razzle dazzled by some smooth talking car salesman, below are some of the smart buyer’s tips that you should consider:
1. Find out what kind of Car you really want before even Heading Out of your Home.
It’s very easy for you be swept by some car salesman when you visit a dealership without being on your guard. When you’re not keen on pursuing particular types and makes, you can be swayed very easily. For this reason, it’s crucial that you make up your mind while you’re still at home. Do your research – know about aspects such as fuel economy and its resale value. There are a lot of websites which can provide you advice on which car to pick depending on your reason for having one.
2. Find out if you can afford a Car to Begin with.
Talk about falling in love with the car of your dreams and then suddenly realizing that you cannot afford it. When you set a clear budget, something which you can maintain to make payments on without sacrificing much of your other essentials, then this also narrows your selection. Be upfront with the salesman with your budget, and you will surely be ushered to vehicles with price tags that reasonably match that of your expectations. On top of the monthly payment, you’ll also have to worry about the car insurance, gas and maintenance costs. Also keep in mind those costs when you pick out a vehicle.
3. Be a bit Vague if you Have to.
It’s all about gaining the upper hand. When you stroll into a dealership and you basically tell the salesman that you’re looking for a car and you’re willing to burn cash in the process, then you aren’t exactly making it hard for him or her to make a sale. Chances are that you’re going to end up buying a vehicle with all the expensive add-ons and the not-so-practical price tag to match. However, if you want to be smart about shopping for a vehicle, don’t talk numbers right away. Don’t feel obligated to heed the salesman’s often biased advice. Have a look around and if you’ve found a car you want at a good price, keep your poker face. You want the salesman to sweeten the deal, not hand the sale over.
Nick Scali, a finance advisor, has always emphaized that knowledge about vehicles as well as other factors in purchasing one, such as car insurance and extras, will be an invaluable tool in your trip to the dealership. Know what you really want and don’t be distracted into picking something you never really intended to buy in the first place.
Kent Farell is an experienced registered financial planner and writer. He also shares his insights on investing, financial management and lease financing. His blog is full of useful tips to overcome bad debts.