Tips When Buying A New Car

by Clint Reedy

Buying a new car is one of the largest purchases most people make in their lives. Therefore, it is worth taking care and making sure the deal you get is the best possible.

Financing Tips

If obtaining credit to fund the purchase of a car is what you need to do, then make sure that you are aware that the financing offered by dealer is not usually the best deal that you can get. By shopping around for loans, it is possible for you to get financing at a much better rate. What you need to compare is the annual percentage rate or APR as well as the amount of monthly repayments and the length of the loan. Always look at the total amount repayable and compare this to the price of the car to see the cost of the finance.

Sometimes, dealers will offer you a very good financing rate on specific models that qualify. You should check to see if this is cheaper than buying another model that can be negotiated since it may not be possible to negotiate on the price of these models.

Before you leave the lot, make sure that you have a copy of the contract and evaluate whether the repayment terms in it are affordable. In case the dealer asks you to buy credit insurance, then what you should do is add this into the price and see if the car is still attractive. Another thing you should check is your existing insurance policies because you may already be covered under another policy.

If a trade in is what you are considering, then you should bring it up only after you have already negotiated the best possible price for the car that you desire. In order for you to find out how much your old car is worth, you should also research the value of your old car. This information will help you see what the dealer is effectively offering you for your old car and if it is a fair price.

You should be clear on what it offers if you are considering a service contract. Aside from having many exemptions, some cover from the manufacturer's warranty which is included in the cost of the car is what you will already have. You should certainly ask the following questions.

What is being offered above and over the warranty? What repairs are covered? Does it recover routine maintenance? Will they pay for parts, labor or both? Who will do the work? What are the cancellation and refund policies and how long does the contract last?

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