The Top Car Buying Questions Asked and Answered
Regardless of whether you are buying a new or a used car, you understandably want to make the best buying decision possible. Many people have lost a considerable amount of money in the past by making poor decisions about vehicle purchases or financing. The last thing that you want is to find out after the fact that you purchased the wrong car, got a bad deal on it or got robbed with your financing. With this in mind, it makes sense to learn more about some of the more common questions that car buyers have.
Why Does a Car’s History Matter?
If you are buying a pre-owned car, it is essential that you review the car’s history. Most dealerships that sell certified pre-owned cars will review the history for you and will not certify a car that has previously been in an accident or that has had a water damage claim on it. However, you should not assume this, and you should always review the car’s history report yourself. Remember that this is increasingly important when buying directly from the owner or from a smaller car lot. The car’s history can affect its resale value, and there may also be hidden damage that you cannot see.
What Should You Do to Check the Car’s Condition?
In most cases, you can assume that a brand new car under a manufacturer’s warranty is in good condition and that the manufacturer will address any issues the develop within the first few years of ownership. When buying a used car, the question of a vehicle’s condition is more significant. The vehicle may still be under a manufacturer’s warranty for a short period of time, but you need to ensure that the car is in overall good condition nonetheless. The best way to determine condition is to have a mechanic inspect the vehicle. You also should thoroughly inspect every inch of the car to look for signs of damage. Avoid rushing through this process even if you are pressured by the salesperson.
How Much Can You Negotiate on the Sales Price?
You can typically negotiate quite a bit when buying a new or a used car. However, before you begin negotiating, you need to understand the value of the car. Unless you are buying a used car directly from the owner, understand that the dealership needs to earn a profit as well. It has overhead associated with the sales team’s efforts, make-ready efforts, general operational costs, shipping and more. If you want to ensure that you get a great deal on the sales price, shop around extensively. In addition, avoid making an impulsive buying decision, and consider getting best-offer quotes from multiple dealerships before finalizing your purchase.
What Else Can You Negotiate?
You may not realize it, but the sales price is not the only factor that you can negotiate. Many savvy car buyers will negotiate for the dealership to throw in an extended warranty, tinted windows, leather seats or other features. If you are trading in a car, you can also negotiate the trade-in value of the vehicle. You cannot expect to ask for all of these items and get a favorable response. However, when the dealership is motivated to sell a car quickly, you may be able to get them to throw one or two of these extras into the deal.
How Do You Know If Your Car Loan Terms Are Reasonable?
Your car loan will directly affect the overall cost of ownership as well as your monthly budget. Getting a great deal on your loan is essential, but many car buyers have learned after the fact that they got a truly bad deal on auto financing. To ensure that you get reasonable terms, review your credit scores. Understand that the best rates offered are given to those who have excellent credit scores. Shop around on your own, and get a preapproval letter for the best loan terms that you can find. Ask the dealership to try to beat those terms. These steps will give you confidence when applying for a car loan.
Questions and concerns about the car buying process are common. With your improved understanding about these common questions, you can more confidently proceed with your purchase plans.
