5 Bits of Advice for Buying a Car the Smart Way
What's the logic behind buying a car?
When you head to the dealer or shop online, are you just winging it? Or do you really have some sort of foolproof plan that will guarantee that you get the best bang for your buck? I want some answers Buck-o!
If you're like most people, the answer is probably a resounding "no." You probably don't have any solid plan or strategy when it comes to buying a car.
You're just kind of winging it, hoping that you'll end up with a decent car that will serve you well for the next few years. But what if I told you that there's a better way?
What if I told you that there are some simple steps you can take to make sure you're getting the best possible deal on a car? Well, we're here to tell you just that! Follow these five bits of advice and you'll be buying a car the smart way in no time.
1. Understand your Financial Health
The first step to buying a car the smart way is understanding your financial health. This means taking a close look at your income, debts, and expenses.
You need to have a clear idea of how much money you have coming in each month and where that money is going. Only then can you start to figure out how much you can realistically afford to spend on a car. This also includes:
If you're not sure where to start, there are plenty of online tools and resources that can help you get a better understanding of your finances. Mint is a great option, and it's free to use!
Once you have a good handle on your finances, you can start shopping for a car that fits your budget.
2. Research and Narrow Down Vehicle Options
Timing. That's also important to keep in mind here.
You should, ideally, give yourself one month to research and narrow down your vehicle options. This way you can take your time and find the perfect car for you without feeling rushed or pressured into making a decision.
To start your research, you can use websites like Edmunds or Kelley Blue Book. These sites will give you an idea of what different cars are worth and how they compare to each other.
You can also read online reviews from sites like Consumer Reports or Jalopnik. These reviews will give you an idea of what people who actually own and drive the cars think of them.
One last thing to keep in mind is positive and negative equity.
Positive equity is when your car is worth more than the loan you took out to buy it. Negative equity is the opposite and happens when you owe more on your loan than your car is currently worth.
If you have negative equity, you'll need to pay that off before you can trade in your car for a new one. Keep all of this in mind as you research and narrow down your vehicle options.
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3. Car Sales Person Showdown
Before you head into the dealership, print out the True Car Value so that you can use it to negotiate the price of your purchase.
While you're at the dealership, or even if you're buying a car from a third party, if anything feels off, WALK AWAY. As is the case in negotiation, walking away is your superpower, don't be afraid to use it.
Thankfully, dealership salespeople are much more transparent these days and are often willing to give you their best offer right up front. But it never hurts to try negotiating, especially if you have done your research and know what the car is actually worth.
You can also try negotiating prices over email or the phone before you visit a dealership. This can save you a lot of time and hassle. It'll also alleviate some of the pressure you might feel when you're actually at the dealership.
4. Avoiding Buyer's Remorse
Getting the specific financial details of your new purchase can be tough, but we did an article that goes more in-depth into this.
The key takeaway is to verify the key terms of the deal.
Confirm with the salesperson or the financial manager that the "Out The Door Price" for your car is inclusive of all taxes, fees and the exact trade-in value of your old ride.
If they try to upsell you on things you don't understand or don't want simply use the line, "I'm not willing to do anything that changes the 'out the door' price in any way".
5. Hold off as long as you can. Car prices are ridiculous right now
Dang, after all that and this is the final tip we leave you with?
Yes.
Because it's important.
Car prices are at an all-time high right now and some financial analysts believe it's due for a correction. But what if they're wrong? They could be.
Truth be told you should buy a car when you're ready. Nobody can predict the future: maybe car prices continue to go up, maybe they drop, maybe they stay the same.
The key is to not let FOMO (fear of missing out) drive your purchase. At the end of the day, you want to be happy with your purchase and not regretful.
Anyway, thanks for reading and if you have any questions, feel free to shoot us an email! We love hearing from our readers.
-The Leasly Team :)"