Buying a new car should not be stressful.
After all, you’ve made the awesome decision that you are in the personal and financial position to afford a brand new ride.
All too often people leave car dealerships wondering if they got the best deal they could.
Here’s how to buy the best car for the lowest amount possible.
Know Your Vehicle
Use a tool like AutoTrader to look up the value of the makes and models of cars you are interested in so you walk into the dealership with a basic understanding of how much cars you are interested in are worth.
Also, some simple google searches online like, “fair price for a 2018 BMW 3 Series” can yield insightful results.
Know Your Car Dealership
Always double check auto dealerships reviews online. This is a quick and easy way to find dealerships to start with, and dealerships to avoid.
Check out several local dealerships online to see if certain dealerships are offering better or worse deals.
Pay attention to the level of service when you enter the dealership.
A professional dealership will have sales representatives that greet you almost immediately when you walk inside and of course, will treat you with respect and kindness.
Noting how you are treated when you first enter the dealership is often a sure sign of how the rest of the car buying experience will go.
Know A Car Broker
Unless you or a friend are an experienced mechanic, car buff or car salesmen, strongly consider working with an auto broker.
We interviewed an auto broker named Lance from Opulent Auto in Montreal.
“People can save thousands of dollars when they work with an auto broker who has established relationships directly with car manufacturers and dealerships,” he says.
Best of all, professional auto brokers like Lance offer their services for free.
Car brokers make money directly from car manufacturers and make their living by getting their clients the best deals possible.
Know Your Purchase Options
When it comes to buying a new vehicle you have three options: buying it outright, leasing or financing.
Buying a car outright requires a lump sum payment and leaves you as the sole owner of the car and can often get you the lowest price. Paying in cash can get you an even lower price than using a check or paying on credit.
Leasing a car is a good option for those who want to get a new car every couple of years. It also has the advantage that since the car dealership still owns the car repairs are covered by the car dealership assuming that they are not your fault. Lease payments are more expensive over time than buying a car outright but can be a better option if you want to switch vehicles every few years.
Financing your car is similar to leasing a car but you own the vehicle at the end of your financing period. Your rates for financing and leasing depend on your credit score and as with leasing, you will pay more in the long term that buying your car outright. The advantage with financing over leasing is that if you are looking to purchase a car for the long term, you can finance a vehicle and own it after a few years.
Auto brokers can also help you negotiate the best leasing and financing terms from car dealerships.