Whether you’re buying a used or new car, a car is probably one of the most important investments you’ll make in your life. Chances are you’re not spending tens of thousands of dollars on a single piece of furniture, a single piece of clothing, or a single interior decoration (and if that’s the case, then the price of the vehicle isn’t an important consideration for you, anyway).
You shouldn’t go cheap unless you have to. You don’t want your vehicle to break down in the middle of the highway or leak water on your head every time it rains. If you have to spend more than a thousand dollars on an item, it should serve you well and be reliable.
Here’s how to get your money’s worth when buying a car.
Most people don’t have enough money to pay for their car in full – even when buying a used car. Since a good car costs at least thousands of dollars, you need to do some good financial planning to save enough money to buy the car with cash. And that is precisely what you should be aiming for.
At a minimum, try to make a fairly large down payment on the car. If the car costs $30,000, try to make a down payment between $5,000 and $10,000. This will reduce the amount you will need to borrow from a bank or credit union. The loans are interest-bearing, so the less you borrow, the less interest you will have to pay. You can save quite a bit of money by simply saving your extra money and reducing your loan amount.
Buy a second hand
First, before buying a used car, make sure you have found a company that can buy your old one for cash like getting financing. You don’t necessarily sacrifice quality when buying a used car. There are plenty of used cars out there that are in great shape and have many more years of life if given the proper maintenance.
In principle, you would want to buy a used car that has no more than 100,000 km on it, but that depends on how much you plan to drive the car and what the exact build of the car is. It is best to avoid buying a used car that has suffered a major collision that has damaged the vehicle’s chassis. Significant structural damage is difficult to repair and can lead to catastrophic car failure after just a few months. You also don’t want to get a vehicle in which the interior seats and dashboard are damaged.
Along with thoroughly examining the car in person and taking it for a test drive, be sure to get a copy of the car’s history. These reports will give you the history of the vehicle and take note of any collisions in it.
You can always buy a used car from a private seller. But there are also many licensed used car dealerships that have a more reliable fleet of vehicles. You can find used car dealerships for almost every brand of car.
Always get financing first
It is always best to obtain financing before purchasing your vehicle. Dealerships can offer you their financing for a new or used car. But beware. Dealer loans usually have higher interest rates. You should first check with your bank or credit union to find out about their car loan offers. A car loan granted by a financial institution will allow you to obtain the best possible rate. You will get more for your money!
Don’t be afraid to bargain, especially if you’re buying a used car. Remember that dealerships are always in competition with other dealerships to get your business. Most of the time, they would rather accept a few hundred dollars less than receive nothing at all. They don’t want that to happen, so you’ll have to beat them at their own game.
A favorite strategy of car salespeople is “you have to buy the car today because there are five other interested parties.” They don’t always lie, but don’t let them fool you. A vehicle is a big investment. And you should always think about it and check your options extensively before deciding to buy. Of course, you can always use the car salesman’s strategy: “I like this car, but there are other vehicles I’m interested in at the other dealership. » . Sometimes – but not always – it might just force the seller to give you an extra discount.