Besides a home, buying a new car is one of the first major purchases many young adults make. If you are a novice to the concept of credit and auto financing, check out some of our top 5 tips for new car buyers.
Steer Clear of Leases
Car dealerships can seem like a dreamland of options and variety. The salesman will probably give you a tour of all their latest models that are well out of your price range. Often times, it is because they are trying to get customers to lease newer and more expensive cars.
Although leases may sound ideal, they are actually much more expensive in the long run than buying a car. You will be required to pay for maintenance, damage, and fees for excess mileage. At the end of the lease, you will not have anything to show for the thousands of dollars you spent.
Everybody loves the “new car smell”, but the moment you drive a car off the lot, it can lose 10-25% of its total value. New cars will depreciate rapidly over the first few years of ownership. If you buy a 5-year-old used car, it will still have all the features and comforts you need at a much lower price.
If you have expressed serious interest in purchasing a vehicle, have the car inspected by a trusted mechanic. If a car dealer does not allow mechanics to check on their cars, this should be a signal to run. You could potentially save thousands of dollars in costly repairs down the road.
Don’t Hold Back
Dealerships and their salesmen are notorious for high-pressure selling and closing tactics. Whether or not you’ve ever negotiated the price of an item before, today may be your first day. Do not be afraid to ask for a few thousand dollars off the price tag. You may have to spend well over 2 hours negotiating with the dealership to get a great deal on a car.
When you purchase a car, you are entering a legal agreement with the dealer or seller. These contracts are binding and you cannot “return” a car to a seller once the paperwork has been completed. Be sure to take a moment to read each and every single document.
If you are looking to buy a new car but are in need of financing, CrediReady can help. Our nationwide network of trusted dealers and verified lenders work with buyers in all credit situations. Take a moment to fill out our free no-obligation loan inquiry form and start shopping for your dream car today!