Useful Tips On Buying A New Or Used Car

by John Mussi

Buying A New Car:

A new car is second only to a home as the most expensive purchase many consumers make.

That’s why it’s important to know how to make a smart deal.

Think about what car model and options you want and how much you’re willing to spend. Do some research.

You’ll be less likely to feel pressured into making a hasty or expensive decision at the showroom and more likely to get a better deal.

Consider these suggestions:

Check publications at a library or bookshop, or on the Internet that discuss new car features and prices.

These may provide information on the dealer’s costs for specific models and options.

Shop around to get the best possible price by comparing models and prices in ads and at dealer showrooms.

You also may want to contact car-buying services and broker-buying services to make comparisons.

Plan to negotiate on price.

Dealers may be willing to bargain on their profit margin.

Usually, this is the difference between the manufacturer’s suggested retail price (MSRP) and the invoice price.

Because the price is a factor in the dealer’s calculations regardless of whether you pay cash or finance your car — and also affects your monthly payments — negotiating the price can save you money.

Consider ordering your new car if you don’t see what you want on the dealer’s lot. This may involve a delay, but cars on the lot may have options you don’t want — and that can raise the price.

However, dealers often want to sell their current inventory quickly, so you may be able to negotiate a good deal if an in-stock car meets your needs.

Trading in Your Old Car:

Discuss the possibility of a trade-in only after you’ve negotiated the best possible price for your new car and after you’ve researched the value of your old car.

Check the library for reference books or magazines that can tell you how much it is worth. This information may help you get a better price from the dealer.

Though it may take longer to sell your car yourself, you generally will get more money than if you trade it in.

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Buying A Used Car:

Before you start shopping for a used car, do some homework.

It may save you serious money. Consider driving habits, what the car will be used for, and your budget.

Research models, options, costs, repair records, safety tests, and mileage through libraries, book stores, and web sites.