By David Drake
Whether it is a family SUV or a flashy convertible, shopping for a new car is an exciting event that you only get to experience a handful of times during your lifetime. That is why you should not rush this process, instead take time to evaluate all the relevant data such as your budget, dealer prices and monthly payments before you open your wallet.
In today’s world it has become far more practical to consult the online car pricing services before going door-to-door to visit your local car dealers. Obviously, the main benefit is that you can safely look for a new car without all the hassle and haggle that would normally pressure you into a quick, misguided purchase. These 5 tips will provide you with the essential details to prevent you from striking a bad deal when buying your new vehicle.
1. Never go over your budget
One of the biggest mistakes that car shoppers do is to overspend. They tend to forget the true cost of a vehicle, which is not the one the dealer showcases. Long-term maintenance, insurance and future fuel expenses are all fees that you must take into account before making your investment. Other taxes like the dealer fee, sales tax and destination fees can easily raise the final payment by a few thousand dollars. Therefore, you must have a clear outline of your budget and only apply for a reasonable price that will not fall heavy on your overall financial plan.
2. Determine the real cost of the vehicle
The real cost of the product and the price that you end up paying are two different things. When buying a new car, your goal is to get as close as possible to its initial cost.
That cost would be the invoice price, by which the dealer purchased the vehicle and then later added an extra cost that represents his profit. With the proper research, you can find the original prices paid for by the dealers, which are lower than the advertised price. Then, you can negotiate to decrease the amount you pay as much as the seller is willing to allow.
3. Get a professional review
A good knowledge and understanding of the market is the key to a successful purchase. Always consider the online evaluations of the major car pricing services before setting your target. You should also go over evaluations and reviews from car pricing services that can dismantle the dealer’s claim and save you money. These data-driven platforms are essential sources of reviews, information and analytics that tailor their offers according to the customer’s needs. In order to get the best deal, you will have to find out everything about your future car. Aside from its specifications and the pricing history, you need to know if you can trade-in your old car or whether you are eligible for a financing loan.
4. Negotiate as much as possible
The process of buying a new car should be approached with strategy and a good deal of patience. When battling out prices with your dealer, you should always keep the upper hand. Never rely only on the information the seller provides. Remember, the seller’s main goal is to close the deal at the highest possible price. What seems like an affordable supplementary option will more than likely prove useless in the long run. That is not to say his or her professional advice is not trustworthy, but doing your homework beforehand will spare you from any stressful situations in the future.
5. Keep an eye out for unexpected discounts
The usual trend for many car shoppers is to go for popular vehicles. Purchasing a high-selling car gives them a sense of assurance, integrity and confidence. The impact of this tendency on car dealers can give you the opportunity to purchase a highly valuable car for a notably lower figure. Dealers are more inclined to offer great discounts for cars that have overstayed in the showroom and have become slow sellers.
Remember that in your effort to find the best deal, time is not your enemy. You can prolong the negotiations without any costs and if, eventually, the offer is not suitable, you can always walk away from the deal and nothing will be lost.
Note: Featured Image credito to: 401kcalculator.org. via Flickr.com CC
David Drake is the Chairman of LDJ Capital, a multi-family office; Victoria Partners, a 300 family office network; LDJ Real Estate Group and Drake Hospitality Group; and The Soho Loft Media Group with divisions Victoria Global Communications,Times Impact Publications, and The Soho Loft Conferences. Reach him directly at David@LDJCapital.com.