Top 10 things to remember when buying a car

There are a ton of new car buying tips out there but as with all things, some are better than others. Most of the car buying tips you’ll find are about finding the best price possible, but really that’s just scratching the surface. After all, you want the best accessories, additions and insurance that you can find. You can find more info on car insurance coverage terms here.

So here’s the list:

  1. The first is obvious. These days you can start shopping online. Don’t visit a car dealership without prior information of average price of new or used car that you are considering. Go online and find the car you want to buy. This will save you lot of time as you will not have to go from one dealership to another. Moreover, you will not be swayed by emotions and pay far more than you could have.
  2. If you are getting car financing, you must know your credit score. This will help you find the right lender and also let you know the APR you qualify for. Some reputable websites provide new car buying tips online as well as excel sheets for calculating monthly payments on the basis of your credit score.
  3. Avoid third party loans at all costs. There is never a free lunch and if you let the salesperson arrange a car loan for you, you are going to end up paying higher monthly payments. Just as car shopping can start online you can also get a car loan approved online.
  4. Get your old car evaluated before you offer it as a trade-in. There are websites where you can get to know how much your trade is worth (like Kelly Blue Book). However, remember that all assessment of old cars is only indicative of book value and not set in stone. The actual value depends upon on how well you have maintained the car. The car dealership is buying your car for reselling and you are likely to get a lower trade-in value than if you sell it yourself.
  5. Almost all the car sales scams take place when it comes to settling payment. There are lots that the finance department will do to extract more money from your pocket. Apply your mind and decide whether you really need extended warranty, GAP insurance and other products that they are offering.
  6. Always keep affordability and cash flows in mind and never let excitement get the better of you.
  7. Get insurance quotes. Factor the insurance cost before you finalize the deal. You may not know how much your monthly payments will be until you get an insurance quote.
  8. Learn car buying negotiating tips from online sources. MSRP is only a recommendation and not necessarily the price that car dealerships will agree to sell at.
  9. One of the biggest mistakes that buyers commit is on add-ons. Use your negotiating skills here also to get the best deal on these as well.
  10. Choose add-ons that you must have and discard the ones you can do without. Add-ons are a lot cheaper in the open market.

Anything to add to the list? Have a car buying horror story? Let us know in the comments!

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