Buying a new car can be pretty exciting but remember it’s a substantial investment. Your best bet is to plan and consider all the financial factors at play. A little research will go a long way in getting you the best deal.
After all, you don’t want to end up knee-deep in debt or pay more than you have to for your new vehicle. Before you visit a dealership, think about the cost, and financial options and learn a few negotiating tactics. You need to strike the best deal for a reasonable price and here are a few tips to help you make that happen.
Consider Your Budget
Make a realistic estimate of your finances before heading to the dealership. Depending on the vehicle you’re thinking of buying, you will need an adequate budget – not just for the purchase price but for maintenance, use, and care of the car too. This includes gas, parking, repairs, and insurance. For those considering a loan, a down payment may not be required, but it will benefit you in the long run if you decide to make one.
You won’t have to borrow a hefty amount and your monthly payments will also be lower. Not to mention the interest rate will also decrease. The bottom line is to figure out what you can afford. Experts believe you should spend no more than 15 to 20 percent of your monthly income on your car, including all expenses.
Secure a Preapproved Loan
Ditch the idea of securing a loan at the dealership. Instead, get a preapproved car loan from either your bank or an online lender. In Australia, finding online lenders who are willing to fund caravan enthusiasts is a piece of cake. The information found at caravan loans Australia will help you find the most favourable loan terms with the quickest approval. Borrowing from an outside lender will help you stay within your budget instead of getting carried away listening to the persuasive salesperson at the dealership who’s aiming to squeeze the maximum amount out of your wallet.
Online you can find amazing loans tailored to meet your requirements. Whether you want to buy a basic car or a mobile motorhome, there are various loan plans out there that will protect your credit score and get you the best interest rate.
Avoid The Dealership Add-ons
Once you’ve settled on a price, the finance manager will take you to his office to try and sell you add-ons like extended warranties, protection plans, and gap insurance. Believe it or not, dealerships make tons of money by overpricing this stuff.
They will try hiking costs as much as possible by telling you that it’s just a bit more money. But remember, these bits tend to add up really quickly. The best policy when buying a new car is to say no to all of these add-ons. You can always get these later if you need them. And, in the case of insurance, it’s always better to obtain it from your regular, and trusted insurance company.
Driving off in your new car feels amazing, but knowing that you got the best deal, makes it even better. So make sure you go in prepared to negotiate an affordable rate. Prioritize the upgrades you’re interested in instead of letting the salesperson take the lead. Ultimately, if you stick to your budget and rely on the few tried and tested financial tips, no one can keep you from buying the car of your dreams at an exceptional price.