10 Steps to Buying a New or Used Car

Buying a new car is a major purchase to some people and can be a overwhelming task, but to convert that overwhelming task to an easy task you should learn some essential car buying tips. When deciding on what you exactly want and what you are willing to pay ahead of time will save you more money and make you avoid a lot of hassle and common pitfalls. 

Follow this 10 step strategy to get a better car deal with the most appropriate price:

1. Have a budget:  Setting a budget is the first crucial step.

Having a budget will let you choose only the cars that you can afford, so stick to your budget and choose only the cars that you can afford.

2. Buy at the right time: At certain times of the year there will be a huge car inventory at car dealerships.

At those times you can usually find competitive prices, more incentives and better deals. Best time could be the beginning of the year and from July to October. So it is much better to look for the most. The best time could be at the beginning of the year and from July to October.  So it is much better to look during those times.

3. Research pricing:  If you are wanting to save as much money as possible when buying a car, research car prices.

Try to research car prices that are within your budget by visiting online websites such as Edmunds.com, Kelly Blue Book and NADA to research the prices of those cars. The most important thing is to research as many car prices as you can so you can get an average price for each car you are interested in. Keep in mind that cars have many different prices; however, the invoice price is the most important thing to know when starting the negotiation process.

4. Make two lists: One for new cars and one for used, cars have advantages and disadvantages.

For example, new stocked cars will have new features, but as soon as you buy it, there will be a 11% to 15% depreciation in price. On the other hand, used cars are considered as the best deals with good prices, depending on the condition, but they may cost you more if you finance them and may cost you much more for the maintenance.

So consider making two lists one containing the cars you are interested in buying along with their corresponding average prices.

5. Choose car model and requirements: Now that you have two car lists, try to organize each list in terms of requirements and model.

For example, which car features do you need the most? Does your car need to have a towing package? Do you need a big car for your family? Do you want a fuel-efficient car?

6. Payment options to consider: There are two ways of paying, you can either pay by cash or you can finance the car.

By financing the car, you will pay a down payment, then you pay a monthly payment until you finish the total price of the car. If you can afford to pay cash that is great, but many people choose the financing option. If you are going to finance, try to make the down payment as high as you can.

Some people select a financial plan at dealerships, but it is not recommended because you can find better finance options with a good interest rate at banks, Credit Unions or online by visiting websites such as E-loan and Lending Tree.

7. Consider warranty and insurance premiums: Insurance is always a major factor in the overall price of the car.

Keep in mind that if you buy a sports car or a luxury car, the insurance premiums will be higher than the conventional cars. Having a warranty is something that will guarantee maintenance for your car if something wrong was ever happened.

Before buying a new or used car, make sure that it has the manufacturer warranty, so you do not have to pay extra money for the extended warranty.

8. You must test drive and inspect the car before you buy it.

If you are considering buying a used car, have it inspected by a trusted mechanic to disclose any potential problems the car may have. Furthermore, you should have a vehicle history report to detect any major problems the car may have to check whether it has salvaged, stolen or has been involved in an accident.

When you are test driving the car, be sure to spend enough time on it and focus on the driving experience and whether it will suit you in the future or not. If you have a bad feeling, leave it and try another car.

Do not be impulsive instead, remain calm and focused and do not let the dealer or the salesperson sway you to another choice. You did your homework on how to shop for cars, and you must stick to it to get the best deal.

9. Price negotiating: Depending on the two lists you made and your research, you can negotiate with confidence. Now you have loan rates and price quotes and to help you with negotiation.

If you will be buying a new car, make sure you are aware of the “invoice price” so you will be in a better position when you negotiate. On the other hand, if the car you are buying is used, make sure that you know the recent resale price for that car.

10. Think carefully before you sign: Finally, if you have decided on which care you want to buy, rethink before you sign.

Make sure not to sign a “as is” agreement until you have thoroughly inspected the car and checked its performance and comfort level. Read the fine print carefully and do not sign until you know all the contract details. Do not let the car dealer or the person who sells you any car make you sign quickly instead, take your time to read each clause in the contract better yet, take an attorney with you to finalize the paperwork for you.

As you can see, if you want to find the best deal when buying new or used car, there are a lot of things that are taken into consideration.

It is always best when you know what you want and how much you are wanting to pay before you buy. So do your homework ahead of time to enjoy your favorite car.

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