Buying a new car can be intimidating. You don’t want to overpay, but it’s hard to know whether you’ve truly found a good deal.
Plus, it’s probably no shock to you to hear that car prices are constantly on the rise. It’s becoming nearly impossible to get a car within budget anymore.
Although it looks a little hopeless at times, don’t stress! There are still ways to keep that price tag within your budget.
Get the right loan.
Car loans can be complicated. You may think you found the best loan because the interest rate is small, but there’s much more to consider. It’s important to keep some simple rules in mind.
For example, try not to finance your car loan for too long. Although you can get loan payments to stretch out to 96 months, it’s best to keep it under 60 months.
It’s also important to understand your complete financial situation so you can defend the price that you deserve. If you don’t fully know your credit score, loan history, or loan qualifications, how can you know if you’re getting what you deserve? Know your financial worth, prove it with documentation, and defend it so you can get the deal you deserve.
Another thing that you may not be aware of is the importance of getting pre-approved for your car loan. This is one of the best strategies for you to gain control of what you pay and avoid those sneaky dealership markups.
Be completely ready to buy.
This may sound silly, but making sure you’re ready is more important to dwell on than you may think. You have to be quick and confident, so if you’re not fully ready just keep doing research until you are!
Is it financially feasible to buy a car? Are you mentally and emotionally ready to give up the car you have and make payments on a new one? Are you ready to defend why you should have a lower cost based on your documented history?
You don’t want to overpay for a new car just because you hesitated or didn’t research enough. Check in on yourself to make sure you’re ready to go get that new vehicle in every way.
It’s also important to be as financially ready as possible so that you can take out the smallest loan you can. Those interest rates add up quickly. You don’t want to overpay for the car after you thought the price was fair.
You might have to travel outside of your town to find the best deal. Are you ready to travel a bit for that deal? It’s important to decide what your boundaries and limits are when it comes to cost AND distance.
Be a little flexible…while still fighting for what you really want.
Decide now what you’re willing to compromise on and what you’re not. What if you had to buy a used car? Are you willing to settle for that route if the new car route is too far out of your reach?
Or, you may find your dream car for a great price–but the wrong color. Are you okay to settle? Understand all your options before approaching the dealership and you will have all the leverage you need.
And finally, it’s important to be bold about what you want. This is a given with the car-buying process, but extremely important to remember. Think about how much you could overpay for a new car simply by not speaking up that one last time.
Anything that allows you to negotiate prices will take a little more boldness to get what you want. That’s why it’s so important to know what you want, need, and (most importantly) deserve. This way you can have the knowledge and confidence you need to approach your car salesman with boldness.