Tuesday, 11 October 2011

Get your finances in order

So you have decided which car you want to buy, next comes the buying process.

I can't stress enough how important it is to have your finances in order prior to buying a car from a dealer or a private seller. Once you know your budget, then you are in a position to negotiate a purchase price on your terms.

The cheapest way to buy a car is paying by cash. You pay no establishment, ongoing or early loan repayment fees unlike with finance from a loan provider.

The next best option is to use a loan with low fees and a low interest rate. Get prior approval for whatever budget you have in mind before ever contacting or visiting a seller.

Buyers who go to sellers (especially car dealers) unprepared are making the buying experience difficult for themselves.

NEVER approach a dealer unprepared.

They will pressure buyers to buy on the spot, fish finance details out of you, sell you on their finance and products that you do not really need for your car with sky high profit margins.

What this means is the price of a car varies from person to person even if the car has exactly the same features and specs.

How can this be you ask?

Because dealers make their income based on targets, commissions and getting the most money out of every buyer. They have daily, weekly, monthy, yearly financial targets to meet.

Shop around for the lowest interest rates and fees. I always tell the credit providers I am considering that I am shopping for the best deal and ask each one what they can do for me.

With an offer from a credit provider, I will go to their competitor and ask if they can offer me a better deal. Don't be afraid to make a counter offer and negotiate on terms you are happy with.

Once I have finance approved, I will contact the sellers by email and hopefully get a reply within a business day.

1 comment:

  1. Put an email address in your blooger profile, or on your blog if you are going to ask questions in comments.
    You just linked me to this post of yours after reading my post about buying a car, and your questions are answered thusly, I did not go over the contract, I refuse to sign a contract to get a car to a dealership. I figure I made that very clear in the 2 posts I wrote about the idiot dealership.
    Could they get the car? They could not even contact the dealership in the network that had the car, it was either not answering the phone, or closed at the time. It is in Palm Springs, and I'm 3 hours away, so I told them to get the car, or I will. I'll drive there and buy it. No problem to me. Offer to take deposit? No. They dropped the ball and irritated me, and I'll buy it in Palm Springs, or from one of the 5 other Hyundai dealerships here in San DIego. the one I called is already getting it delivered, and without any fuss at all.
    Add your email so poeple you contact, can contact you back