Whether you’re shopping for a new vehicle because you want to or because you must, shop in a smart and efficient way. You want to feel good about your investment. Feel confident that you got the best deal possible and that your new vehicle will get you safely from point A to point B.
The process of buying a vehicle can be daunting because there are so many things to consider. Sometimes it’s hard enough to decide what you want, let alone the price you want to pay; but the following five important tips will help you feel more confident about the purchase you make.
Shop Around. Take time to shop around at various banks for your loan. In addition to finding the most competitive rates and fees, shopping around will give you a more balanced idea about how much of a loan you qualify for. Understanding what you can afford is a great place to start.
Completing a “prequalification” with a lender is different than a “pre-approval.” Both refer to an assessment that precedes a loan application and neither one guarantees a loan, but prequalification requires less information from you, is a fairly quick and simple process, doesn’t cost anything, and gives you a good idea of how much of a loan you will qualify for.
Research Prices. Once you know your price range, research prices on at least two different vehicles that you are interested in, considering the year and amount of mileage on the vehicle. Knowledge is power and comes in handy when you’re negotiating with the salesperson.
Read Reviews. Take time to read reviews and watch YouTube videos that evaluate the vehicles you’re considering. This will give you a better idea of what to pay attention to during your test drive and what questions to ask the salesperson.
Never Buy on Impulse. Don’t allow your emotions to cloud your decisions, especially when you see something you want. Use the strongest power you have for a great deal: the power to walk away and leave the dealership! You might be surprised at how much they are willing to negotiate when they see a sale slipping away.
Use Car-Buying Services. Take advantage of car-buying services that are offered by companies such as USAA. These can take some of the stress out of buying a car— use their corporate knowledge and experience to steer you in the right direction and give you confidence in the decision you make.