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Mentorship June 21, 2017
Trust me, you don't want to have buyer's remorse with such a big purchase.
Buying a car can be the most exciting thing to do as an adult, but it is also very nerve-wracking.
You walk up to the dealership with a car in mind. You’ve spent some time researching the type of car you see yourself in, and you have an idea how much you want to spend — at least, I hope you’ve gotten this far.
The car looks great and it drives smoothly, but then the car salesmen tells you how much your car is going to cost you every month… gasssp! Don’t panic, we’ve got you covered.
Here are five easy, beginner’s tips to help prepare you for that sweet ride.
Buying a car will require some research so you can determine the make and model of the vehicle you want. Research the prices for the car you really like in your area.
Do not rely on the car salesman to give you all of the facts. Remember, they are there to sell you a car, not to make sure you walk out with the best deal.
Keep that in mind because car salesmen are good at what they do.
Buying a car should be one of the most exciting and responsible purchases of your life. Be smart about it.
We often fall in love with cars that are far more luxurious than we can actually afford, and that’s why sorting out your finances will help to paint the bigger picture.
It’s important to make a budget and stick with it. Ask yourself, Is this car payment going to be realistic? Am I taking into account the car insurance premium and gas prices?
It’s highly recommended that you save for a down payment before you walk into a dealership or bank. That will give you better buying power than walking in with zero money down.
Always be prepared. It’s best if you can make a twenty percent down payment on the selling ticket price for a new car, and ten percent down for a used car, according to Autotrader. If not, then consider buying a cheaper car.
Down payments of less than 20 percent put you at a greater risk of being “upside-down” on your car loan, meaning you end up owing more than what your car is actually worth.
Before you walk into a dealership, have a pre-approved loan from your bank so that the dealership does not try to stick you with a high interest rate and an unattractive loan payment.
It’s recommended that you speak to a bank expert in car loans. Often, if you have been a customer with your local bank for some time and have a good rapport with them, you may land a really great deal and give the dealer something they can compete with.
Daily News Auto explains that “dealers make lots of money by providing car buyers with financing. See if the dealership can beat your pre-approved rate. If it can, finance the new car through the dealership, but make sure the dealer’s loan rate and terms are identical to the loan for which you are pre-approved.”
You want a bank expert to tell you your approved rates before you start falling in love with a car that is realistically above your price range. And remember, car loans are approved based on your credit and your salary.
Don’t act out of desperation! Be strategic and take your time.
Desperation will be your worst enemy when walking into a car dealership. A salesperson will know you didn’t do your research and will sway you into possibly getting a car you really love with a payment that you’re truly going to hate.
Again, car buying can be the most exciting, big purchase in your life. Understand what you are getting yourself into and if you’re not sure ask the dealer to give you some time to think about it. I guarantee you that they will call you back to renegotiate the deal.
Take your time. It will put you in a better position to negotiate when you have done your research, saved money for a down payment and gotten pre-approved by your bank.
In no time, you will be driving in your new car and confident that you’ve made the best decision for you and your wallet.
