Buying a new car is a daunting task with the huge selection available in Canada and the US. With the increase of fuel prices, many car owners are downsizing or keeping their older cars. Some education about what is available in the vehicle market will make your new car purchase a more enjoyable experience.
Car Research
Before you enter a car dealership, research the type of vehicles you would like and the approximate amount of money to be spent and the gadgets that are a must for your car.
Example:
- Vehicle large enough for 5, safe, storage, good fuel consumption, and power windows.
- Priced between $25 and $30,000 dollars.
The example above shows what the customer wants but gives flexibility for other options. Customers should look at several options of one model and the different prices. Sometimes it is better to spend an extra thousand for more options.
Education is key when purchasing a new vehicle, as it allows you to ask the right questions. Car salespeople are very knowledgeable about their product and are more than willing to answer your questions. It is important to ask the right questions and have some of the answers, to ensure you are receiving honest and correct information.
Price Negotiation
Bottom Line is the question. Now with 0 down, 0%, and monthly payments, often they do not give you the cost of the new car. As a customer, ask the cash price for the vehicle including shipping, freight and all other additional costs.
After they give you a number, ask if there are anymore hidden costs. Often you pay a few dollars for changing your license and other incidentals. Always bring a pen and paper to write the costs and notes in regards to the car. As well, go online and research the cost of the vehicle to give you a general idea of the new car price and compare with the offer from the car dealershiop.
After you are given a price, walk away for a minimum of 24 hours to decide if the car package is going to meet your needs. Too often, car customers get excited with the thought of the new car and buy on the spot, not a good idea for the customer but it is what the sales personnel wants.
After you have a price, check out more dealerships in the area or call on the phone to ask the price of the new vehicle. Now the customer is able to give the specifics of the car and compare their asking price with the previous price.
Extended Warranty on New Cars
Most new cars come with a one year bumper to bumper warranty. After the year, warranties vary depending on the car manufacturer. Be weary of the car dealer warranty's they strongly suggest you purchase the day you pick up the car for peace of mind. Car dealers' tactic is to have the customer stress that the car will break down and the warranty will be less expensive than the future repairs.
Do your homework, there are independent car warranty companies, many offer similar options at a reduce rate. Car dealerships want you to spend the most money at once because purchasing the warranty tomorrow is highly unlikely.
Research is the key to be successful in purchasing a new car in meeting your financial and lifestyle needs. Ask questions and ask some more, no question is dumb. It is dumb to assume the car has good mileage because it is small, some small cars have high energy consumption as it is dependent on the engine. Education is the key to getting a fair price for your new car.
