Car buying tips to keep in mind I USA

Car buying tips to keep in mind

/ 07:25 AM June 04, 2021

Admit it. Nothing beats the fresh smell of a new car. That clean and crisp aroma when you open a new car door is just mesmerizing. So naturally, you want to drive it immediately for long hours. Read on for car buying tips before you decide.

But hey, before you hit that green light on buying a car, consider which is best and practical. Is it to buy a used car or a new car instead?

Before you dive headfirst into buying a new car, consider your budget and existing car loan if there’s any. You never want to meddle your debt on the last auto loan with a new loan. That move is a poor financial tactic. You want a new car, but finances should go along well with it.

Car buying tips to keep in mind

A credible source mentioned that an average car costs $30,000 – $40,000. Approximately your monthly payment ranges from $500 – $600 on a loan term of 69 months. Many people take out loans even at high-interest rates to afford to pay for expensive cars.

Whether you are buying an average or expensive car, the car dealership you are heading to is a crucial thing to consider. Car salespeople might lure you into what you thought was a good deal. But, of course, this does involve you as a buyer, so it won’t hurt to be mindful. Here’s how car dealerships earn.

– Financing your auto loan – dealerships earn more when you process it with them. Tip: It’s best to get a pre-approved car loan from your bank or online lender before heading into a car dealer. Banks and lending companies always have a                  better offer.


– Your car trade-in – your best move is to sell your car privately instead of selling it to a dealership. You can earn more.              Sell it to car dealerships, and they will offer you less than they can sell it for.

– Incentives from car manufacturers – You can usually score a great deal if the dealership hasn’t reached its quota yet.          They can give you a price even at a loss to reach their quota.

Bonus options – This includes their added offering of upgrades and extended warranty.


What’s the smartest way to buy a car?

What's the smartest way to buy a car?

Don’t commit the same mistakes other car buyers did. For example, never put out your precious hard-earned bucks on a monthly car payment while barely making it to cover all of the other bills. To help you save money and score a great deal on your car shopping, here’s a list of car buying tips.

     1. Consider the price of the car.

Think through as to how much you can afford for a new car. Don’t hesitate to consider a used car as it can save you a lot of money. Let’s say a five-year loan can probably give you sleepless nights, save yourself from stress and get a used car instead. It is wiser and more practical to include it in your choices – to buy used cars.

If you opt for a new car, you can always look for a cheaper car with a more affordable monthly payment than your first choice. Don’t forget to compute the total cost – car price, interests, insurance, and taxes. A salesperson might give you a computation that’ll look affordable, so it’s better to know many expenses.

    2. Get ahead with your pre-financing options.

It’s crucial to know that financing from car dealerships has higher loan interest rates than banks and credit unions. However, they have lower loan rates aside from the lower interest rate. Plus, banks and credit unions can offer you relationship discounts that a dealership won’t offer.

For instance, talking to a lender is different as they will not sugarcoat the loan rates and will help you re-assess which car you can afford. You want to go to them first before a salesperson can lure you into that new model with excellent features. Remember, they have quotas to reach.

Another reason why it’s a great move to shop around on car financing is because of your credit scores. Getting pre-approved will inform you if you have any problems with your credit. You can also know all the details about your credit report.

    3. Shop around more than one car dealership

Shop around more than one car dealership

Even car dealerships now are promoting their websites with prices and all the details. It’s advisable to check car dealerships’ websites first before you go to a dealership. You can check out Kelley blue book as they have lots of info on new and used cars.

This way, you’ll be armed with the total costs, loan terms, and interest rates. It’s always easier to think on your own first than a salesperson lurking around. You might get confused.

     4. Never tell all at the dealership.

You might want to be a little bit discreet and keep it simple. Don’t tell the salespeople too much. Think as if you’re playing cards.

Keep your cards close to your chest, and don’t lay them around the table. The first thing you need to ask is the price of the car you are eyeing.

A salesperson will always initially ask if you have a trade-in car. Zip your mouth on this. They are pros, and once you spill, they can add up the interest rate to earn more from you or undervalue your trade-in car. They can play with all these factors to make more money out of your purchase.

Research on your own if you have a trade-in. Doing so can give you the specifics and the right price of your selling car. In addition, your research on car buying tips will serve as your guideline.

      5. Do negotiate

Whether you already saw a car that fits right on budget, you still need to negotiate. There are other discounts, such as car manufacturer discounts, that the salesperson might not disclose. It’s not embarrassing to haggle a bit to lessen the price.

Believe it or not, they already have their earnings on the given purchase price. You can also negotiate for your trade-in car, warranties, interest rates, and add-ons. Be confident, and don’t get intimidated by the salesperson. Stick to what you came for, ask for discounts and negotiate prices.

       6. Skip the add-ons at the dealership

Skip the add-ons at the dealership

The whole car buying process can be stressful. What, with all those computations given, the offers here and there versus your stand and research. Not to mention the haggling that happened before you have come to a settled price.

After all that, you’ll head into their office to do the paperwork then they’ll offer and sell tire protection plans, extended warranties, paint protection plans, or gap insurance. Just because you’re tired doesn’t mean you’ll say yes and agree. Car dealerships do get a lot of money on these add-ons.

      7. Be cautious of the loan term.

You never want to get stuck on a six or seven-year car loan. But, unfortunately, it’s the trend nowadays, especially with new cars. New cars can now offer loan terms longer than six years. Although it might look enticing as it offers lower monthly payments, it also means paying more interest.

The longer the car loan term, the bigger your interest is. Just the same with other loans, you’re paying a lot more for the interest than the principal in the first years.

What should we know before buying a car?

What should we know before buying a car?

If you think it’s about time to buy a new car, don’t get giddy just yet. Before locking in with the paper works after you have agreed on the price, be sure to check on these other car buying tips. You should know before buying a car.

  • The pros and cons of buying a used car
  • What factors might affect your monthly payment
  • Your credit score rating
  • Your car trade-in value
  • Car histories of used cars
  • Repair records of used cars
  • Your rights – warranty package and return policies
  • Test drive the car first

Key Takeaway

Allocating an unreasonable amount for your car loan is still your choice. You can even purchase an electric vehicle if you like. But nothing can hurt to be practical and be mindful of spending on a new or used car. Think through the car buying tips on your research.

Being knowledgeable about the right tactics is important for your car buying process. But if you have read and researched online, you can avoid paying more than you should and leaving confused.

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TAGS: buying used car California, cars, interesting topics, tips
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