Driving a new car can be one of the most thrilling experiences of life. But on the other hand, walking into a car dealership and buying one ranks up there with public speaking and visits to the dentist atop most people’s lists of anxiety-inducing prospects. But buying a car isn’t really that scary if you’re knowledgeable and prepared. Cognizant of that, this blog will help you give that confidence by steering you clear of some mistakes people often make when they set out to buy a new car. Keep reading to learn more!
Key Takeaways:
- When prepared, you can walk into a car dealership informed and confident.
- Getting preapproval for a car loan will give you negotiating power with the dealer.
- Deciding ahead of time if you want things like a sunroof or floor mats so that you can factor that into your budget.
- If the dealership isn’t offering you a good deal, don’t be afraid to walk away and take your business somewhere else.
Know What You’re After
Shopping for a vehicle isn’t like looking for a new pair of shoes or even a smartphone. Some car buyers often enter the car dealer with only vague ideas that they need a new car and how much they can pay per month. Unfortunately, they become ripe marks for a sales pitch that sees many people driving away in a car from the first dealership they visit.
Savvy shoppers start with hours of online research at sites where you can compare features, costs, and reviews. Knowing what car model and year you’re interested in before walking into the dealership could save you time and effort. By comparing features, price range, and availability, you can narrow down your choices so that when you visit the dealership, you’ll have an understanding of what car suits your needs best.
Understand What Extras You Want
If you’ve ever bought a car, you know the drill. You’ve been at the car dealership for hours, you’re tired, you’ve haggled over the trade-in, you’ve settled on a price, and then you get handed off to the finance manager. You’re led to the back office and that’s where they try selling extended warranties, tire protection plants, or paint protection plans. Unfortunately, these things are often very overpriced and many buyers have no idea how to figure out a fair price. As such, you should plan in advance and factor in extras in your budget to manage expectations when buying a car. Having the luxury of convenience options like a sunroof or floor mats can add functionality and value to the car, but it’s crucial to consider the overall price.
Consider Your Finances
You should know how much you can budget monthly, but you have to resist the temptation of making that the basis of the negotiation and especially don’t share it with the sales staff. Knowing your budget and sticking to it helps protect you from being pressured into spending more than you can actually afford. Instead, you should consider negotiating the actual sales price of the car first, independent of down payment, trade-in, and financing arrangements. Handy online calculators and phone apps can convert loan balances, interest rates, and terms into a monthly payment for you.
Get Preapproved for the Car Financing
Sure, the adverts may offer rates as low as zero percent, but the fine print might be saying that’s only for car buyers with top credit scores, for a few months, with a certain amount of down payment. So, it’s wise to shop for your financing before car shopping. Visit your bank or credit union and get preapproved for a car loan. Getting preapproved can make your car buying experience smoother and more cost-effective. It offers you negotiating power with the dealership when they know you’re ready to buy and have a max loan amount that you’re approved for. That also gives you peace of mind knowing what your budget is in advance. Besides, getting preapproved gives you something to compare against the dealership financing offers. Sometimes, the dealer could make you a better offer than your bank’s financing offer.
Beware of Longer-term Six- or Seven-year Car Loans
A third of car loans today are longer than six years, and that’s a really dangerous trend. A seven-year loan will mean lower monthly payments than a five-year loan. However, it’ll also mean paying a lot more money in interest. That’s because like most loans, the interest is front-loaded, and hence you’ll be paying more interest compared with the principal in the first years. Many car buyers don’t even realize that, and they don’t know why it’s dangerous.
Be Prepared to Walk Away
When it comes to car buying, preparation is key. So, do your due diligence ahead to know what options are ideal for you and be willing to walk away if the car dealer isn’t meeting your expectations. If you settle for anything less than your desired outcomes, you might end up regretting the purchase. In fact, taking time to find another dealer is better in the long run than settling for something that may not satisfy your needs and preferences. Be sure to utilize all available resources to get the best offer, including online car buying sites or speaking to family and friends who’ve had a recent experience with car purchases.
Buy A Car Today!
Buying a car is an exciting experience, but it’s crucial to research and prepare before going to the dealer. Have a budget in mind and it’s a wise idea to get a loan preapproval to finance your car purchase. Also, understand the extras you want and don’t allow any dealership to pressurize you into spending more than you can afford. Empire Hyundai of New Rochelle is a leading car dealer. We have an extensive inventory of cars and a full range of services, including sales, parts, service, and financing. Our highly skilled staff is here to offer you all the information you need to make an informed buying decision. Call us now!
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