Car dealers offer incentives to sell out their cars, but how would you distinguish between a scam and a bona fide deal. Personal finance experts have suggested a few tricks with which you can save money and purchase your dream car reasonably.
Choose a car that you can afford
Choose a car that you can pay back in 3 years or less. If not, then go for a cheaper car, or start saving and buy only when you have enough money for it. Monthly installments can actually suck off your income, so they should end up as soon as possible. The installments should not be more than 20% of your monthly income, including your fuel, insurance, repair, and maintenance related expenses.
Don’t get attracted towards low financing
If your dealer is offering you 0% financing, then there probably are hidden fees. The extra cost might have been hidden in the total cost of the car, which means that you will end up paying more. The trick is to see if your loan is higher than the car’s sale price, then there are fees hidden somewhere.
Make your purchase during the off-season
A car sales season usually begins in May in most countries. If you wait to buy the car until later in the year, then it may pay you off in savings. Dealers are eager to sell their last year’s cars from November to February, and you may grab substantial discounts during these times.
Buy at month’s end
Most salespeople in car showrooms have monthly targets that they have to meet. They must have pressure to fill their quotas by the end of a month. So, they will be more flexible with negotiations in the prices, and they may throw in more options and discounts for your benefit at these times. Do your research, and make up your mind on the car you want to buy. Be ready to take advantage of the last-minute deals you may crack at the end of the month.
Bring in your own finance
Instead of financing your car from the car dealer, do some research and find a car loan plan that offers you best rates. When you go to the car showroom to buy a car, have your finance ready beforehand. By doing this, the salespeople will not be able to persuade you to finance the car from them.
By following these tips, you can actually save money while buying a car.
If you are looking to buy or lease a new car, contact a Steve Jones Chrysler Dodge Jeep finance manager, they will help you get the best loan.