The purchase of a car is a big step for anyone. As much as we wish it could be, it’s never a case of walking into the showroom, pointing at a model, and then paying upfront. For most of us, buying a vehicle involves a whole range of complexities. Depending on how we handle ourselves, we could either get the best deal possible or end up getting ripped off.
Before thinking about car finance, buyers need to sit down to think and do a little research. The first step is to think about the vehicle you’re looking to purchase.
Are you buying it out of necessity or are you buying it just for the sake of having a new car? It’s important to answer questions like this so that you can decide your course of action.
The next step is to look into your different options. It used to be that buyers would have to visit different dealerships and talk to different dealers to get the best prices. That’s an old school way of doing it. That part should come later.
Thanks to the Internet, buyers can now go online and do their research there. All vehicles will have a manufacturer’s suggested retail price (MSRP). Remember, dealerships will raise this price. The price they will charge you for the new car minus the amount they bought it for is known as the profit margin. This margin is usually set between 10% and 20%. Be prepared to bargain with your dealer regarding this. Remember that the dealer has to make a profit, too; so don’t demand to get a price too close to the MSRP.
Before you even step foot in the dealership, you need to figure out your car finance options. Do all the research you can to avoid making a big, not to mention pricy, mistake. Most people get car finance in the form of an auto loan. This loan can be provided for you either through the dealership itself or through your local bank. Read the rest of this entry »