Buying a new car is a personal and a financial decision of great importance. A new car is something you will likely be paying off for a few years, so it is a good idea to have a few purchasing tricks and knowledge under your belt before stepping foot onto a car lot.
The Right Car for You
Before going to the car dealership, research the cars available this year and decide what is best for your needs. Ask yourself how much room you need in the car, what kind of gas mileage you want, where you will be driving the car and whether the car is needed for heavy labor. Decide what price you want to pay for the car, how much interest you wish to pay and how much you can pay a month.
Incentives and Rebates
Look around for incentives. Incentives are rewards you are given for going to a specific dealership or going with a specific brand. Incentives generally come in the form of a low annual percentage rate on the car (how much interest you incur during a year for the loan you are using to pay off the car) and a manufacturer's rebate. A manufacturer's rebate is when the maker of the car offers to give the customer money for buying its vehicle. This is taken off the final price of the car. You can also receive rebates for trading in old vehicles in the form of money off the final price of your new vehicle.
Pricing on the Lot
When you are buying your car and have an idea of the exact model and type you wish to buy, find the True Market Value (TMV) of the car. This is provided through the Edmunds car service and the Kelley Blue Book (see "Resources"). TMV is the actual price the vehicle is selling for based upon what the average buyer is paying on the car. This is usually lower than the sticker price you see on the car lot.
When you finally decide on the car, make sure that when the car is delivered or when you pick it up from the lot, you are paying exactly what was agreed upon when you decided to buy the vehicle. Look at the car to ensure it is the same car you looked at during your previous visit and not another model.
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