Hopefully you now understand that a car unlike a house or precious stones is not an investment, it will lose value as soon as you drive it away from the dealer's showroom. It is consequently imperative that you get a good deal to balance things out.
Going to an auto dealer to negotiate a car purchase is viewed by many people as a hateful experience, mainly because they fear being conned. I'm not sure that "being conned" is exactly the right terminology, but it is certainly true that if you are not very well prepared when you engage with the dealer's sales team you can end up paying a vastly inflated price for your new car.
Well, now that you have steeled yourself for the cut and thrust of the negotiations, let me give you some Dos and Don'ts of the car buying process. These are very important measures to follow if you want to get a good deal when buying a new car. If anything you read in the following few lines causes you to step back and do a little more checking, then I will have done a good job.
Do ignore the ticket price, this is the manufacturer's suggested retail price (MSRP). Just a suggestion from the manufacturer, don't be fooled
Do make sure that you know the Invoice Price. This can be easily researched on the web.
Do have quotes from two or three other dealers for the same model, let them know they are in competition with each other and be prepared to
leave the sales office at any time if you do not feel comfortable with the way things are going.
Do have your finance arranged with your own bank before you go the dealer. If the bank is out of the question search on-line for the best terms.
Do take a check list to the test drive. This will help you in your thinking process afterwards.
Do Not under any circumstances buy a car on the same day as the test drive.
Do Not negotiate on what you can afford to pay in monthly repayments. If you do this and the dealer arranges the finance, you will never know
the true price of the car is and you could could be paying hundreds, even thousands more than necessary over the term of the loan.
Do Not let the dealer know that you will pay cash or that you have already arranged finance. They make extra profits on selling you finance, if
they realize that this is not possible, you won't get a good deal on the car.
Do Not mention that you have a trade-in vehicle until the final purchase price has been established. Then you can see what they offer for your
old car. If they know that you want to trade-in your old car they can manipulate the situation in their favor and you will not get a good deal.
The wisdom I want to pass on to you, comes from buying many new and used cars and vans for my own use over the years. If I'd known then how to avoid being manipulated by over predatory salesmen, I would have a lot more money in my pocket now. So here's a fantastic new set of insider revelations you will find essential reading before going out to get a good deal when buying a new car. Also for your information, here you will find some tips on buying a new car. Max Westover.
On the up side, a new car lease is almost certainly going to have lower monthly payments that a purchase, compared with the same amount of money out of pocket at the time of signing. You can usually get a good deal on a car lease for less than a couple thousand out of pocket. The monthly payment is going to be determined by what the estimated resale value of the car will be at the end of the lease. So a car with poor resale value is going to have higher monthly payments than a car with a much better average resale value.
But on the down side, you are still responsible for the maintenance of your leased car ? gas, oil changes, tires, tune-ups, insurance, and all the other things that normally accompany car ownership, but you are NOT building any equity in the car. In other words, you are in effect RENTING the car, except that you also have the responsibility for the maintenance of it.
Not all new car leases are created equally. You should definitely do your homework as far as what leasing programs are available, what they include and exclude, and most of all, what is it going to cost you. One big thing in almost all car leases is a mileage cap, where a typically mileage cap says that you will put no more than 12,000 miles a year on the car. So at the end of a three year lease, you can have no more than 36,000 miles on the car. You do not get any extra brownie points if there are fewer miles on it, but if there are MORE miles than that on it, you will pay through the nose for it, something like 30 cents per mile. So in this example, at the end of the lease you have 40,000 miles on it, it is going to cost you an additional $1200 to turn in the car. Ouch!
Over the course of a lease, you may want to terminate the lease early. If this might even be a remote possibility, know what your options are up front. In most cases, there is an early termination fee. Sometimes if you leased your car from a large dealership, they will allow an early termination fee without penalty if you are within about 6 months of the end of the lease, but only if you sign another agreement on another new car lease.
I would strongly encourage you to do a fair amount of homework before you sign on the dotted line. Even if the lease being offered by the dealership on your new car lease appears to be incredibly good, you can almost always be assured that there is a better program available. Sometimes the payments might be the same, but other programs may allow a higher mileage cap, might have lower or no early termination fees, and a variety of other subtle differences that could make a huge difference to you and your intended use of the new car.
Both Max Westover & Jon A are contributors for EditorialToday. The above articles have been edited for relevancy and timeliness. All write-ups, reviews, tips and guides published by EditorialToday.com and its partners or affiliates are for informational purposes only. They should not be used for any legal or any other type of advice. We do not endorse any author, contributor, writer or article posted by our team.
Max Westover has sinced written about articles on various topics from Cars, Online Business. Don't give the dealers more money than you have to when get detailed information on how to save the most money possible at. Max Westover's top article generates over 2400 views. to your Favourites.
Jon A has sinced written about articles on various topics from Home, Sports Car and Acid Reflux. Jon is a computer engineer who maintains web sites on a variety of topics based on his knowledge and experience. You can read more about getting new car leasing deals at his web site at. Jon A's top article generates over 40500 views. to your Favourites.