Buying a new car is not only an exciting moment but is also a rare occasion. It is not an everyday purchase. You would definitely like to hold on to the car for at least a few years, if not for decades. Hence, lot of care and thought should go into the purchase of new cars. Here is a rough checklist for purchase of new cars, which might come in handy whenever you think of new cars.
1. Evaluate the purpose of the car that you plan to buy. Think over carefully whether you want a sedan or a van or an SUV. Decide whether you would require a 4-door model or a 6-door type. If your car is only for general transportation, then you might not need a luxury model like Mercedes Benz. If the car is for the entire family, then a multi utility vehicle (MUV) or a sports utility vehicle (SUV) might be ideal.
2. Once you had decided on the type of the car that you need, give a deep thought to the price of the car. The car should suit your budget and income levels. If you are planning for a refinance for the car, the repayments should be affordable for you. The ideal price of a car is considered as 50% of the annual income of a person, according to experts in the auto finance industry. For example, if your annual income is $60,000, then the value of the new car purchased by you should not exceed $30,000.
3. When the type of the car and your budget are clear, hunt carefully for all the cars of different brands that suit these criteria. If you are thinking of a Cadillac CTS, it would be prudent to take a look at similar cars like Nissan G35, Lexus IS, Acura TL and BMW3 also. Study the features of each of these models and go for a test drive of all of them before making a final decision.
4. Negotiate for the car finance, if you are opting for a car loan. Bargain with several lenders to get the lowest rates and better repayment options. Discuss with several authorized car dealers, who would be able to advise you properly on the model and type you should purchase and also help you with the lenders in car loan.
5. Consider the points like the mileage of the car, the possible future maintenance costs, the insurance costs, and warranties for the car and the parts. The same oil change might cost you $25 for a Toyota, while it might be $100 for a Mercedes Bens. These factors would affect you significantly in the long run, if you do not take them into account in the beginning itself.
These are only a few checklists provided for guidance in the purchase of new cars. If you apply your mind, you might be able to think of a few more relevant points that are applicable to you personally. Thinking deeply before the purchase of new cars is always beneficial in the long run.
How can you tell the good car dealers from the more unscrupulous ones? The truth is that for many reasons it is impossible to tell them apart. So the only way to protect yourself, is to acquire as much information about your intended purchase and the ploys the dealers use, to make you spend more than you need.
Let us start with the timing of the purchase. You must be prepared to make several trips to as many dealerships as you can. The best time to go is when there are not many other buyers around, this is usually mid week, things are slow and the sales teams are keen to make a deal. The other optimal time for visiting new car showrooms, is when the dealers are anxious to fulfill their monthly sales quotas, this usually means around the end of the month.
Never be tempted to answer the question: "How much can you afford in monthly repayments?" This is a classical ploy where the dealer can make a few extra thousands if you fall for it. If you have any sense, you will have made all the financial arrangements before you go to the car lot. Make sure that you arrive at the final on the road price before going on to anything else.
Do not sign any papers that the salesman may put in front of you before the deal is finalized. By the same token, do not leave any documents with the dealer when you go for a test drive. This is not necessary.
The wisdom I wish 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.
Both Dianne Logan & Bruno Dufeil 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.
Dianne Logan has sinced written about articles on various topics from Debts Loans, Travel and Leisure and Cooking Tips. Find useful information about and at Freecarforum. Dianne Logan's top article generates over 12100 views. to your Favourites.
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