Studies have showed that half the people buying cars buy them using the finance deal offered by the car dealer. Even though they do not realize it, this is the biggest mistake they make!
This is because the average interest rate on dealer’s car finance is nearly 3% higher than the cheapest unsecured personal loan currently on the market which currently is 7.4%, available through ASDA. So the dealers basically dupe you to make more money! Here are a few tips on how best to pay for a new car.
Never make the mistake of taking the finance deal offered by the car dealer. The reasons are the same as stated above.
Find out from your peers what they have paid for their car, which car is it, which model how much interest on the loan etc. this will give you a basic idea as to what the average price of the car is.
Look around at the different sources of finance. Check out the best buy tables and comparison sites. Consider the pros and cons of all your options and then make your decision very carefully.
Make sure that you have your budget ready before you visit the showroom. Be prepared with your finance before you hear out the deals offered by the car dealer. This will keep you in a better position to bargain.
Bargaining! This is a must! Don’t become too shy or feel like it is portraying you as a miser. You must bargain because car dealers begin with prices that are widely off the mark. They start with their highest bid and if you haggle properly you can reduce it to almost half. However don’t go overboard. Be realistic too, after all, car salesman have kids to feed too, so they need to be making some money.
Don’t go in with the mindset that you have to come out with a car. If need be you must be able to leave. For if you don’t like a car in that showroom or if you are not getting a good enough deal there don’t forget that there are hundreds of more such showrooms! And once you begin to walk away the dealer will become that much more desperate to pull you back. Never rush into a decision which is costing you thousands.
Another good idea is to buy your car near the end of the month when the salesmen are looking more to their bonus targets than to make a profit! This will cut you a better deal too as the salesmen will be too desperate to let you go.