Save on Your Next Car
When to Shop For a New Car
When a car isn’t selling, manufacturers will provide incentives so they can clear out certain models. The incentives are normally in the form of a discount, rebates, cash back or a reduced interest rate. For the best deals, shop at the conclusion of the month when dealers need to meet their sales quota.
Beware the Bait and Switch
The 0% interest rates advertised on TV are usually only for people with the best credit scores, and even then, they are typically restricted to short term (24 or 36 month) loans. Manufacturers are pulling the old ‘bait and switch’ with these low APRs to get you into a dealership. Try to apply online with a lender to have your financing already taken care of before stepping foot on the dealership lot. Then you can pocket the rebate and help lower the amount you are borrowing.
Take Your Time
Do not put off car shopping until the last minute. You could make hasty choices and end up regretting them later. Car shopping should take at least a few weeks, so if your present ride isn’t too trustworthy, start doing research and getting quotes on prices and loans now. If you spend the time to have the best loan rate feasible, you’ll finish up saving yourself a great amount of money ultimately.
Lease or Buy?
Should you lease or buy? If, over the years, you always have a car payment, a lease might be better for you. Generally, the payment will be lower and you will not be stuck with a car that may lose value more than expected at the finish of your lease. If you pay off your car within a few years then have several years without a payment, buying may well be more advisable.
Special Orders are OK
If you would like a particular color or option that your dealer doesn’t happen to have on the lot, you do not have to put up with what the dealership has available. Dealerships routinely buy cars from other dealerships or order specific models from the factory. But look out if you do commit to let your dealer locate a car for you, and never sign anything until you’ve had an opportunity to personally inspect the actual car you’ll be buying. You should never pay more for a car you had special ordered than you would have if it had been sitting on the lot.
Always Test Drive
You should never buy a car without test driving it first. It sounds obvious, but many people don’t take this important step of the car buying process. Take the vehicle on the highway, around back roads and through rain and snow. See how it handles in lot of different conditions. If you have kids, bring their car seats with you to see how they fit.
Get a Carfax Report
When buying a used car, always get a Carfax report. The report will inform you if the car was ever in an accident or had flood or fire damage. If you’re buying from a private seller, have them provide you with the VIN number and order the Carfax report yourself. Dealerships have Carfax subscriptions, so if they avoid the report, they probably have something to hide.