If you're buying a new car, it's time to do
your homework. Consider what type of car you would like, how you
wish to pay for it and most importantly what you expect the car to
do. Having an idea in your mind will help keep you focused when you
start to speak with the sales people! The article below is a very
good guide for buying a new car.
Buying a New Car
Buying a new car is one of the largest purchases most people
make in their lives. Therefore, it is worth taking care and making
sure the deal you get is the best possible.
Financing
If you need to obtain credit to fund the purchase of the car,
you should be aware that the financing offered by the dealer is
often not the best deal you can get. If you shop around for loans
you may get financing at a much better rate. You should compare the
annal percentage rate (APR) as well as the length of the loan and
the amount of monthly repayments. Always look at the total amount
repayable and compare this to the price of the car to see the cost
of the finance.
Sometimes, dealers will offer you a very good financing rate on
specific models that qualify. It may not be possible to negotiate
on the price of these models and you should check to see if this is
cheaper than buying another model that can be negotiated.
Make sure you have a copy of the contract and before you leave
the lot, evaluate whether the repayment terms in it are affordable.
If the dealer asks you to buy credit insurance, you should add this
into the price and see if the car is still attractive. You should
also check your existing insurance policies as you may be covered
already under another policy.
If you are considering a trade in, bring it up only after you
have already negotiated the best possible price for the car you
want. You should also research the value of your old car so that
you know what it is worth. This information will help you see what
the dealer is effectively offering you for your old car and if it
is a fair price. If you are considering a service contract you
should be clear on what it offers. They have many exemptions and
you will already have some cover from the manufacturer's warranty
which is included in the cost of the car. You should certainly ask
the following questions:
1. What does it offer over and above the warranty?
2. What repairs are covered?
3. Is routine maintenance recovered?
4. Will they pay for parts, labor or both?
5. Who performs the work?
6. How long does the contract last and what are the cancellation
and refund policies?