How to buy a car from a dealer? : Here is the answer. Deciding what kind of car suits our lifestyle and our needs is a tough task. Moreover, buying and selling the used cars are more complicated . When you are buying a new car you’re not only buying a car but also a satisfactory and a relaxing life because you don’t have to look for someone when you are going out. You have your own vehicle and you can go with utmost freed.
Buying a new car is beneficial than buying an old car as you invest your money as well save it. While when you buy an old car, there will be some repairing required as more often used cars are damaged. So don’t worry even if you are going to buy a new car. You need to take care of your budget, set price and choose a specific car.
How to buy a car from a dealer?
Read the below mentioned steps to know how to buy a car from a dealer.
1. Make an assignment
1) Choose a car
While going ahead, the first step in your assignment will decide what kind of a car do you want. You should outline what sort of car best suits your needs. It can be a four seater or a six seater car. Decide what you really want in a car, it can be about your comfort, safety, reliability, durability, efficiency of its engine and fuel and many more things which should be decided carefully.
2) Used or a new car
It totally depends on you to buy a used car or a new car. If you are learner, I would suggest you to buy a used car because practice more on that and when you become a perfectionist buy a new car. Moreover, buying a used car is a tangled task as compared to a new one. You have no idea about how the car was treated earlier, it may require some repair work, you may not get the color of your choice, it has lower trade value and you can’t even negotiate in the financing of the car.
While when you go for buying a new car, you have plenty options to choose the car as per your preference. Benefits of buying a new car, you receive reliable warranty period, you have no worry about the history of the car, color preference and easy to finance.
Click Here: Used Cars for Sale
3) Decide your Budget
You cannot make budget if you don’t know how much you can spend. And for summing up your budget, you need to add up your income and expenses. You need to make a balanced budget to cooperate with the loan payments and your other life expenses.
4) Choose a model which suits to your budget
Looking for a cool model that acquires all the features you want in a car and that even suits your budget. You can discuss it with your friends, who have good knowledge in this field. Before going to the dealer, be aware of the price, quality, efficiency of the engine, fuel tank and many more basic necessities. Otherwise they’ll try to fool you and will charge more amount of money from you.
2. Discover the market
1) Check reliability
Make sure you choose a reliable model. Some cars are cheap to buy but they cost high in the long run like insurance, maintenance, repairs and may have lower trade-in-value. Also check the cost of ownership. The cost of ownership includes the key component that is acquisition cost, operating cost and personal cost.
2) Research about the cars
You need to do a deep search for the best car that suits you. Shop around the market and discover different models of the car. You can either search on the websites that will offer you best new cars as well as used cars. Look for the safety options in the car like air bags and anti-lock braking system. You should check which features are available in which model. Compare the cars with their unique features and then decide.
3) Go to the dealer with no intents to make a deal
Just like we do window shopping, the same way you have to do this with the dealer. Go to the dealer, with zero interest to buy a car. Get the information from him about the price, model, quality of the engine, fuel requirement. Talk about the finance, cost of ownership and more that sums you up.
4) Compare price
Before going to the dealer, this step is must to do. You should compare the price of the car in the market and the price that the dealer is offering you. There are various websites and apps where you can check the price of the car like Truecar will help you in searching the price of any model. Sometimes, dealing with the dealers makes our budget drop off, they charge more from us as compared to the market price. So comparing price and making a research from different sources is necessary to do.
5) Avoid unauthorized dealerships
An unauthorised dealer does not have legal rights to sell the merchandise and they sell the advertising offering at very low price. And furthermore you have to suffer in the long run. You will have to spend you money in its repairs and maintenance in the long run.
3. Dealing in Finance
1) Credit score
Keeping a track of your credit score is beneficial if you are going to get a car loan or any type of loan. Your credit score will help you in paying the amount of loan. A good credit score means that you have money in your pocket after taking the loan.
Your credit scores determines more than the amount of loan you get and the interest rates you pay. To grow your credit score, pay your bills on time and use your credit accounts on a regular basis.
Click Here: How to improve credit score?
2) Compare interest rates
Interest rate is the amount of interest due per period, which is to be lent or borrowed. While taking a car loan, you should compare the interest rates of different banks. Usually public banks offer lower interest rates.
The lesser the interest rate, the lower amount of EMI you have to pay monthly. Like “HDFC bank” provides interest rate 8.50%- 11.25%, so if you have loan of Rs 1 lakh for 7 years so you need to pay around Rs 1500- 1800 monthly. Low interest rates gives you long term effect.
Click Here: How to get a car loan?
3) Buy Insurance yourself
Dealers make a huge benefit in making your insurance. They receive a good commission from the local insurance companies, the number of insurance policy they sell, the more amount of commission they receive. Try to finalize your insurance policy by the registered insurance company.
4. Seal the Deal
1) Do not consider leasing
Leasing the car will benefit the dealer by higher cost and there is a risk of obsolescence in leasing. And when you do deal the lease with the dealer, the dealer is not the owner of the asset or the car, so he is not responsible for the changes or the alterations to be made in the car. All that have to be made by the lessor.
2) Test drive
Whenever you go for buying a car, always go for test drive. Make a ride, just to feel the comfort and the working of the car. Test drive will make you stick to that particular car and sometimes not. But you have to make your mind about dealing the car. By a test drive, you’ll come to know about the interior and exterior of the car, check the leg space in front seats as well in the backseats. The main point is you should be comfortable while driving. Try driving on a twisty and a snaky road.
3) Look at the car history
Before finalizing the deal of the used car, check the history of the car. See whether the car was indulged in some illegal work like robbery vans, should not be a stolen car. You need to verify the car properly and check the history of the car to be safe in the future. You can also visit the CARFAX.com, they’ll tell you the history of the car from its first purchase to the last purchase.
4) Make it in a written document
It is very often that some dealers forget about the negotiable amount you dealt with them. So its better to have a record in the written document.
And also the document that they give you about the car papers and register documents, thoroughly read them and then mark your signature on them.
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