Thinking about purchasing a new car is very fun, but is it a good investment? It has never been owned by anyone and the salesperson talks it up quite nicely. However, you may not know that so much of your money is wasted on a new-car purchase. The truth of the matter is that a new care will lose a huge chuck of its initial value when it is driven off the sales lot. This is why going with a used car is a better way to go, when you think about how much cheaper it is to buy.
Why Buying Used is Smart
Many folks buy used cars simply for economic reasons. When you buy new, you're usually looking at ongoing payments and considerable interest. A car that is only a few years old may sell for fifty percent less than the current year's model. During the first year, a new car will lose at least twenty percent of its value, so buy smart.
The fear most have about purchasing a used car is the fact of hidden problems. Today though, dealerships calm this fear by only having Certified Used Vehicles for sale. You can trust the used car is in excellent condition, when you purchase it from a reputable dealership, because the car has gone through mechanical and physical inspections. A used car that is certified and is not that old will operate almost like a new car.
How to Make a Wise Purchase
Now that dealerships have answered the consumers' demand for higher standards, it is not as risky buying used straight from dealerships. With any big purchase, you need to do research and any car is a large, important purchase. The car may look great and the salesperson makes it appear to be a great deal, but you still need to have your own information before spending your hard-earned cash on one. Follow the below tips to know how:
1. Understand What Vehicle You Want
With a purchase this big, you can't afford to shop unprepared. Set your budget and know what you're looking for. You don't necessarily have to settle on a specific year, make and model, but knowing what style and approximate condition you're looking for can help you to narrow your search.
In fact, if you do have a specific car in mind, it's smart to broaden your horizons a bit to consider similar vehicles. There are some big names on the market, and with these big names come big price tags. If you're willing to widen your parameters a little, you may find something just as good at a far lower price. For example, you may be in the market for a Toyota Matrix; however, you might be just as happy with a Pontiac Vibe - a less-known vehicle, but one made in collaboration with Toyota, and with many of the same parts as the Matrix.
2. Research into the Cars
Never buy according to just the looks of the cars. Many cars can seem in great shape on the dealership lot, but a bit of background information may reveal some huge issues. Read some reviews about any car you have an interest in owning. No vehicle is without flaws, but learning some facts will keep from purchasing a bad car.
You should also know the approximate value for the car you want to purchase. You can find this value on KBB.com or Edmunds.com for the car in which you want to buy. If the car is priced too far off this value, do not buy the car.
3. Use Caution When Buying from an Individual
While you can find some great deals on cars by dealing with private individuals, this is an area where you must exercise extreme caution. An individual isn't operating under any regulations, so privately listed vehicles are rarely at the same level as those you would find at a dealership. That's not to say that you should avoid private sales altogether; you just need to pay greater attention to any possible problems or flaws.
4. Check Thoroughly
There is no way that you can be too thorough when you are about to purchase a new or used vehicle. Take all the time you need to examine the car. Put it through a test drive. Find out how it handles at various speeds, quick stops and even around sharp turns. Make sure engine hums and not clicks, whines or rattles. Also, check to see if the car pulls to the side as you drive it. Do not take a car you are not pleased with thinking you will be unable to find something better.
If you like how the car operates, and you are pleased with your inspection of it, then run the car's VIN through a service like CarFax. You need to discover the full history of the vehicle. Do your own check online on this, if the individual or dealership you are dealing with will not provide it. This can point out various issues with the car including accidents it has been involved in over the years.
Have a mechanic you know inspect the car for you prior to handing cash over to the individual or dealership. Explain to the mechanic the problems you have seen and ask how important these problems are. A mechanic should be able to steer you towards or away from buying the car. This is so worth the price compared to how much you will pay to buy the vehicle, so make sure to do this step.
5. Don't Be Afraid to Negotiate the Price
A few dealerships have a "one price" policy, but most are very open to negotiation - in fact, it's expected. Many used car dealerships have about a $2000 margin for profit when they set their original prices. They are entitled to make a profit but you also have $2000 worth of bargaining power; don't be afraid to use it.
Why Buying Used is Smart
Many folks buy used cars simply for economic reasons. When you buy new, you're usually looking at ongoing payments and considerable interest. A car that is only a few years old may sell for fifty percent less than the current year's model. During the first year, a new car will lose at least twenty percent of its value, so buy smart.
The fear most have about purchasing a used car is the fact of hidden problems. Today though, dealerships calm this fear by only having Certified Used Vehicles for sale. You can trust the used car is in excellent condition, when you purchase it from a reputable dealership, because the car has gone through mechanical and physical inspections. A used car that is certified and is not that old will operate almost like a new car.
How to Make a Wise Purchase
Now that dealerships have answered the consumers' demand for higher standards, it is not as risky buying used straight from dealerships. With any big purchase, you need to do research and any car is a large, important purchase. The car may look great and the salesperson makes it appear to be a great deal, but you still need to have your own information before spending your hard-earned cash on one. Follow the below tips to know how:
1. Understand What Vehicle You Want
With a purchase this big, you can't afford to shop unprepared. Set your budget and know what you're looking for. You don't necessarily have to settle on a specific year, make and model, but knowing what style and approximate condition you're looking for can help you to narrow your search.
In fact, if you do have a specific car in mind, it's smart to broaden your horizons a bit to consider similar vehicles. There are some big names on the market, and with these big names come big price tags. If you're willing to widen your parameters a little, you may find something just as good at a far lower price. For example, you may be in the market for a Toyota Matrix; however, you might be just as happy with a Pontiac Vibe - a less-known vehicle, but one made in collaboration with Toyota, and with many of the same parts as the Matrix.
2. Research into the Cars
Never buy according to just the looks of the cars. Many cars can seem in great shape on the dealership lot, but a bit of background information may reveal some huge issues. Read some reviews about any car you have an interest in owning. No vehicle is without flaws, but learning some facts will keep from purchasing a bad car.
You should also know the approximate value for the car you want to purchase. You can find this value on KBB.com or Edmunds.com for the car in which you want to buy. If the car is priced too far off this value, do not buy the car.
3. Use Caution When Buying from an Individual
While you can find some great deals on cars by dealing with private individuals, this is an area where you must exercise extreme caution. An individual isn't operating under any regulations, so privately listed vehicles are rarely at the same level as those you would find at a dealership. That's not to say that you should avoid private sales altogether; you just need to pay greater attention to any possible problems or flaws.
4. Check Thoroughly
There is no way that you can be too thorough when you are about to purchase a new or used vehicle. Take all the time you need to examine the car. Put it through a test drive. Find out how it handles at various speeds, quick stops and even around sharp turns. Make sure engine hums and not clicks, whines or rattles. Also, check to see if the car pulls to the side as you drive it. Do not take a car you are not pleased with thinking you will be unable to find something better.
If you like how the car operates, and you are pleased with your inspection of it, then run the car's VIN through a service like CarFax. You need to discover the full history of the vehicle. Do your own check online on this, if the individual or dealership you are dealing with will not provide it. This can point out various issues with the car including accidents it has been involved in over the years.
Have a mechanic you know inspect the car for you prior to handing cash over to the individual or dealership. Explain to the mechanic the problems you have seen and ask how important these problems are. A mechanic should be able to steer you towards or away from buying the car. This is so worth the price compared to how much you will pay to buy the vehicle, so make sure to do this step.
5. Don't Be Afraid to Negotiate the Price
A few dealerships have a "one price" policy, but most are very open to negotiation - in fact, it's expected. Many used car dealerships have about a $2000 margin for profit when they set their original prices. They are entitled to make a profit but you also have $2000 worth of bargaining power; don't be afraid to use it.
About the Author:
Thank you Landers McLarty Dodge (Huntsville Landers McLarty) for sharing great information on sales trends. I am not associated with Landers and they did not review or approve this article.
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