First Time Car Buyer Tips
As the federal government tightens regulations on lenders and mortgage brokers, some wonder if the auto industry could use similar supervision. According to recent reports, there are unscrupulous car salesmen that will encourage consumers to get higher interest loans, increasing their profit margin but cheating the consumer. Buying a car for the first time can be intimidating, but if you follow the tips in this article, the process will be much simpler.
Research the vehicle you choose. An informed buyer knows how much a car is worth. There are many sources of information, such as the Kelley Blue Book. If you don't know what car to buy, there are a lot of sources of comparisons and vehicle reviews. When doing your research, check the car's fuel mileage and maintenance cost. Keep in mind- the bigger the motor, the more you will pay for service.
Make sure to work your monthly payment into your budget. If you have to take out a loan to buy the car, make sure to pay it off on time or even early. Loan rates and terms vary depending on your credit status and the type of vehicle you select. Be careful though- some auto loans come with a prepayment penalty clause in the contract.
Get your credit checked. After all, the dealer has that information, why shouldn't you? The higher your credit score is, the more bargaining power you have. For a nominal fee, that credit report can help you save a lot over the term of your loan in fees and interest.
Look for sales. Buying from a motivated dealer will ensure that you get the best deal, and the best time to buy a car is right before the beginning of the model year (usually during the summer), or at the calendar year's end. Dealers need to clear a space for new inventory, and they want to boost their year-end figures.
Take it for a test drive. Most buyers will take a quick spin around the block. Don't quit there- take it to places you normally go. Is it comfortable? Is there a large blind spot? Will it fit into your garage, and is there enough space for the things you may want to carry? How you'll use the vehicle is a very important consideration to make.
Be on the lookout for incentives. The "cash for clunkers" credit is over with, but there are good deals still available. Oftentimes, you can get one dealer to match or beat another's offer. You can save on sales tax by offering a trade vehicle. Sales tax is only applied to the difference between the new car's cost and the trade's value.
Don't be afraid to walk away. The majority of sales people are ethical and honest, but some are not. They resort to hard-selling, high pressure tactics to make sales. There are always other dealerships to check out, and remember, if the deal seems too good to be true, it probably is.
Before you buy a car, you should do your research and do some comparison shopping. If you are buying your first car, take a more experienced person with you during negotiations. Buying a car is the second-biggest investment you will ever make, and it can be an intimidating process. Being careful will ensure that you get the vehicle you need at a price that you can live with.