There are many suggestions out there about how to buy a car. The focus can often be on test driving the vehicle or about negotiating the price. Other times, the focus is on financing and interest rates. However, there seems to be some points missing. We will try to point out to three of those missing tips.
The first tip is about the effect of car options on the price tag. Car companies have managed to produce cars with the least possible features to be able to reduce the advertised price for their vehicles. This way they can claim that they can make elaborate cars as well as offer cheap cars. Many customers walk in to the dealerships, thinking that they would get the elaborate cars for the cheap price. Their hopes are quickly shattered when they realize that having the nice features can often double the cars’ price tag, so they either get the nice features or the. Some examples of these expensive nice features are remote keyless entry, sunroof, GPS navigation system, side airbags, and power steering. Customers need to distinguish between their need for these features versus their desire so that they can weigh in their cost on their wallets.
The second tip is about considering how fast the car in question will depreciate in price over time. So if the car has an expected depreciation rate that is faster than the payments made on it, then if the customer needs to trade it in or sell it later, he would lose on it greatly. So if the customer is the type that does not keep their car till it is paid off, it is highly suggested to only buy cars that maintain their price with little depreciation over time.
The third tip, which is often overlooked but is also important, is to evaluate the service department. It is a wise idea for the customers to tour the dealership that they will buy their car from and ask to see the service department before buying a car. It is normal for cars to need maintenance work and having the work done at the dealership that the car was bought from is often the best way to get the vehicle in its best working condition. So having a service department that cares well for their clients is essential. Customers need to ask if they provide car replacements or shuttle busses for their clients while their cars are being taken care of. Asking the customers in the waiting room of the service department can also help get a better perspective of the quality of the services offered. Also, the general look of the department should not feel like a junk shop but should show that the representatives care about the look and feel of the place because that would mean that they would hopefully care about the look and feel of the vehicles being serviced.
If you got denied for a loan with a traditional dealer, just remember that Buy Here Pay Here Financing car lots can still easily approve all credit scores.