Motoring – Buying a car involves a few simple steps, each one of which is important from the financial aspect. Being ignorant about the details of any one of these steps can make you fall prey to the financial institutions. The three main aspects of the purchase includes the actual car, the finance and the insurance.
While many buyers prefer to avoid the hassles of visiting a dealership, there is no way to avoid the annoying aspects completely. But, by taking care of a few points, you can make sure that you get the best deal out of the dealership, without allowing them to take advantage of your ignorance about the nitty gritty of the subject.
Let us take a look into each of these aspects along with a few tips about the same.
The car
It is important to understand what exactly you are looking for in a car. Once you have the right features that you need noted down, it will be hard for any salesperson to influence you towards unnecessary upgrading. Many models come with extras that you may not need and hence it is best to avoid them.
Judge the total cost of ownership for each model that includes maintenance expenses, insurance premium and fuel charge and stick to a realistic budget. Assess the technical aspects of the car like the engine and transmission, the superior quality of which will help you to get a better resale value in future.
Also keep in mind the after sales service provided by the brand and the ready availability of spare parts for the model. In case you are unaware of the technical details it is best to take an experienced friend along with you.
The finance
It is a prudent option never to disclose to the dealer about how much you are willing to pay for a car. Sticking to phrases like “best price” or the “lowest price” is a good choice. Start researching car loan rates from the banks and do not take offers from the dealership as they generally come with higher interest rates.
Negotiate hard with the dealer confidently for a good price and then visit a bank to negotiate for a good interest rate. If you have a good credit score, it will help you to get a better deal. Do not make the error of making a deposit at the dealer without signing the deal about the final price.
The insurance
The insurance is another aspect where you can shop around for the beat rates without sticking to what the dealer has to offer. Read through the documents and never sign for extra services like tyre insurance or scratch and dent insurance.
After buying the insurance, if you have made no claims for six months, you can always approach the company for a better premium. If they do not agree, you can always look for better options.
Last but not the least, research well before the purchase and no matter the type of deal you strike, make sure that you drive safely.
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