Buying a car is not as easy as shopping for grocery, there are many things that you must consider. You may have to choose from different models of car available depending on your need. Also, you have to decide whether you want to buy a used car or a new car. A new car may be enticing but there are some disadvantages to buying a new car especially when it comes to saving money.
A new car can lose about 20 to 30% of its purchase value after 1 year. That means a car of $30,000 may not worth more than $21,000 after the first year. That means that if you are buying a used car, you may be able to sell it for almost the same price you bought it. Another advantage of buying a used car is that it is easier to save the money to finances it since it is cheaper than a new car. Also, the insurance rate of a used car would be lower and you may be able to save more money.
Now that you know some of the advantages of buying a used car, let us consider the best way to buy a used car.
Even if you are buying a used car, it is important to have a budget so that you don’t end up spending more than you can afford on a car. If you are buying a car with a loan, your monthly payment should not be more than 20% of your income so that you would have money to do other things.
Another cost that most people do not consider in their budget is the monthly running cost of a car. These costs include the cost of fuel, insurance, maintenance and repairs. All these factors will help you determine the right type of car for you.
Before you go to a dealer’s shop, always ensure to check the prices of the car that you want so that you can negotiate better. You can ask what other people are paying for the same type of car or simply go online and research how much you should pay. By having this information, you would know if a dealer is trying to cheat you and make more money from you.
You can start by searching online for local car dealers in your location. Find dealers that have the type of car that you want and schedule a meeting with them. To get the best deal, always have more than one dealer so that you can compare their prices and choose the best one.
Don’t forget that you are buying a used car and you want to be sure that the previous owner maintained it properly. Always request for the vehicle’s history report and check how often the car was serviced and if it has a bad report. If possible, have the car inspected by your mechanic before you buy it. A professional mechanic would be able to detect if there is a problem with the car and tell you what you need to do.
The best way to know the car you want to buy is by test driving it. You can read as much as you want or check the vehicle’s history, but a test-drive is a better way to know if the car is in a good condition. Check if the driving position is comfortable for you. Check if the seats are adjustable and how easy is it for you to enter and get out of the car. Use this time to inspect the car inside and outside before you make your final decision.
This is where most people find it difficult because they are not comfortable with negotiating price. The dealers usually expect the buyers to negotiate the price, therefore, they usually don’t call the exact price. Remember that you have to give it your best because the dealers are expert and they have a lot of experiences when it comes to negotiating price.
To make the process easy for you, do your research before time to know the exact cost of the type of car that you want to buy. Knowing how much you are willing to pay will make you appear more confident and get a good deal. Try as much as possible not mention a price. Wait for the seller to give you a price and try to reduce it.
An important tip that will help you: sellers will always start with the highest price they want to sell the car, therefore, you should start with the lowest price you want to buy the car. At the end of the day, the two of you would reach an agreement at a middle price. Get all the necessary paper works done, close the deal, and enjoy your new car.