Purchasing a new car can be intimidating, but with proper preparation you can find your dream vehicle at a fair price.
Make sure that when negotiating the “out-the-door” price, which includes fees or taxes, and getting a pre-purchase inspection for cars at Westminster Motors, focus more on purchasing price than on monthly payment amounts; and be ready to walk away if the deal doesn’t suit your needs.
Know Your Budget
Before embarking on your shopping spree, it is essential to determine what your budget is. This is particularly relevant if financing the purchase.
Keep in mind that owning a Land Rover comes with additional expenses such as fuel, maintenance fees, Land Rover Repair Service in Toronto, and loan interest payments. Consider using an affordability calculator to help determine your ideal price range.
Car prices can fluctuate significantly and are often higher when new, in short supply or during certain seasons. Check Kelley Blue Book to ensure the vehicle of interest is priced fairly. Also look into any manufacturer incentives which might exist such as low finance rates, zero percent deals, customer cash incentives or customer cash.
Do Your Research
An effective strategy for finding an automobile within your budget is conducting some preliminary research before going into a dealership. Doing this can help prevent becoming emotionally involved with new car models and letting their appearance influence your buying decision.
Consider what the manufacturer’s suggested retail price (MSRP) of your desired car is before visiting dealers; this number should appear on a car window sticker and most dealers should offer to sell it at that price. Keep an eye out for discounts or rebates offered during particular times of month or year when dealers may feel pressure to meet sales goals.
Know What You Want
Your upgrade may include upgraded safety features or more fuel efficient performance; but before purchasing one, be sure to understand exactly what your options are. Start your research online to identify potential vehicles by visiting car websites to evaluate each car’s specs and features.
Reducing your options requires taking into account both your lifestyle and driving needs. For instance, if you have children, they might require a vehicle large enough to accommodate everyone comfortably.
Make sure you consider all costs related to ownership, such as maintenance, gas costs and auto insurance premiums when setting a realistic budget and avoiding buyer’s remorse.
Know What You Can Afford
Consider all of your expenses associated with owning and driving the vehicle, such as fuel costs, maintenance and car insurance premiums; aim for these to account for 15% or less of your monthly take-home pay.
Once you know your budget, the next step is shopping. Independent websites such as Edmunds, KBB and Consumer Reports offer comparison tools with vehicles offering features you want – plus dealer inventory lists and manufacturer’s suggested retail prices (MSRP).
Be mindful that sales do exist, particularly around holidays or at the end of a model year. At these times, dealerships may offer additional rebates, cash back or financing terms which make the deal even more competitive.
Get Pre-Approved for Financing
Prequalifying for financing before shopping can give you more leverage at the dealership and help protect you against paying excessive interest or hidden fees on your loan.
With your preapproval letter in hand, the dealership can shop around rates with various lenders for you – they may find one offering lower interest rates or offering more attractive loan packages than originally preapproved for.
If you plan to apply for your loan yourself, make sure you do it several weeks ahead so as to limit how many hard inquiries appear on your credit report.
Make Your Offer
As this seller’s market changes your expectations of what constitutes a good deal, lowering them accordingly may require you to readjust what constitutes an excellent bargain – some may perceive even savings of hundreds off MSRP as “good deals”.
Be ready to leave if your experience in a showroom was less than satisfying, by being aware of potential pitfalls and being prepared to walk away if necessary. Preparation helps avoid surprises and ensures you secure a fair price.
Be ready to say no to extras like tire protection plans, VIN etching and infotainment upgrades; these add-ons often increase car prices without adding much value.