When you are in the market for a new vehicle, you have two main choices: you can buy from a private seller or head to a car dealer. There are benefits and disadvantages to both options. If you decide to work with a dealer, there are some possible challenges and pitfalls you should be aware of. Some shoppers can feel overwhelmed going here and may feel as though they will get pressure to buy a certain vehicle.
Your experience does not have to be negative. You can go to the car dealership with confidence that you will get the right price for the vehicle you want. With the right strategies and mindset, you can feel good about your purchase.
Budget First
One of the biggest mistakes you can make when shopping for a car is biting off more than you can chew. Buying a car you can’t afford can hamper you financially for months or even years. You may fall in love with a particular vehicle, but don’t let your eyes get bigger than your brain. Be sensible and wise when you shop. Before you even step foot in the dealership or shop online, look at your budget.
Evaluate your income and expenses and determine how much extra money you can afford to spend on a car each month. Save room for car maintenance and fuel, too. Once you set a price range, stick to it, no matter how enticing a higher-priced car may be.
Shop for New and Used Options
One of the biggest challenges people face when shopping for a car is figuring out whether to buy something new or used. Each has its benefits and drawbacks, but don’t limit yourself by disregarding one choice or the other.
If you plan on keeping the car for several years, a new car may be a good choice. If your budget is tight, spending less on a used car may make sense. Also, be aware that new cars depreciate quickly and rapidly. However, new cars are also more reliable and come with warranty protection for the first few years.
Take Your Time and Shop Around
In some cases, you may need to buy a car quickly. If your previous car no longer runs at all or if you were in an accident, you may need to purchase something as fast as possible so you can continue to have reliable transportation. Often, however, buying a new vehicle is not an urgent matter, so time is not critical. If possible, it’s best to spend ample time finding something that fits in your price range and has all the right features.
Don’t make the mistake of buying the first car you see or only going to one car dealership. Visit multiple dealers in the area and compare prices. You can also get a sense of the customer service different places offer and what incentives and special offers these places may have. Get as many quotes as you can before you settle on your next vehicle.
Come Prepared to Negotiate
Effective car buyers are good at negotiating. Don’t be afraid to ask the dealer about ways to lower the price of the car or to throw in add-ons or extras. When it comes to financing, you can also talk to the dealer or lender about different options.
Ask about flexibility in interest rates and terms. Changing these could save you money each month and during the life of the loan. For example, shorter loan terms might have higher payments, but your rates will be lower. Longer terms have higher rates, but you won’t be stuck with as high of payments. Talk to the dealer or lender about working out scenarios that make the most sense for your needs and budget.
Get Preapproved Before Coming to the Car Dealership
There’s no question that shopping for a vehicle can take time. Much of this time is spent talking about financing. If you choose to finance through the dealer, you’ll spend extra time waiting on a credit check and other financial matters. If you get preapproved before you shop, the process can go much more smoothly.
With preapproval, you’ll know how much you can afford and what type of vehicle you should look for. Preapproval will also reveal issues with your credit. It’s better to learn at this point that you need to make improvements than to find out at the dealership that your score is too low. You will also know what rate your loan will be for and what term make the most sense for you.
Shopping for a vehicle at a car dealership does not have to be a scary experience. With these tactics in mind, you can begin this process feeling good about your prospects. You can find the car you want at a price you know is within your budget.
