Learn a Car Buying Tip or Two Before Going Car
Shopping
The best car buying tip I can give you is to learn all you can
about the car buying process before you start car shopping. A
car is one of the most expensive things you will probably ever
buy (second only to a home), and knowledge is power when
it comes to negotiating car prices, getting an auto loan and
dealing with high-pressure sales people.
Whether you are buying a new car or a used car,
learning some car buying tips now will save you money and
frustration when it comes time to go car shopping. Whether you
buy your car online, from a car dealer or from a private seller,
the more you know about car prices, auto loans, extended
warranties, car insurance and common dealer scams – the better
off you’ll be!
General Car Buying Tips
There are many car buying tips that you need to know about in
order to make sure you don’t get conned into paying too much by
slick sales people and finance managers who will make you
think they have your best interest at heart. While some
tips are specific to new cars and some to used cars, the
following auto buying tips pertain to any type of car you
purchase:
Know the price
Before even looking at a new or used car, spend some time
researching car prices first. Once you know what make and model
car you want, search local classifieds and the internet for
similar cars and find out what the average selling price is. If
buying a new car, find the dealer invoice price (what the dealer
pays for the car) at sites like
Edmunds.com . Edmunds is also a good place to research used
car prices. Having knowledge about local car pricing before you
go car shopping will give you the upper hand.
Know the price of your trade in
If you are going to be trading cars, do the same type of
research on it as you do on your prospective new car.
Edmunds.com is a great place to get your trade
in value also. You can see what the retail price is for your car
by searching local advertisements, and you can also look up the
trade in value (also known as the “wholesale price”) of
your current car. This will give you a pretty good idea what you
can get for your trade, although dealers will usually offer you
less than the trade in value you find online.
You may want to consider selling your car
yourself on a site like
Ebay Motors or
Nothing But Cars . You will get more money for your car if
you sell it yourself as opposed to trading it to a dealer for
“wholesale value”.
Car Buying Tip if Getting an Auto Loan
Know what you can afford - If you are planning on
financing your car purchase, you’ll want to be sure you know how
much car you can afford. Figure out how much you will put down
on a car, and be sure to include your trade in value if
applicable. Then go to a site like
Yahoo! Autos and use their finance calculators to determine
monthly payments. Never go car shopping until you know how much
money you can afford to spend.
Know your credit score - One important
car buying tip is to make sure you know your credit score before
talking to anyone about car financing. Car dealers make a lot of
money on loans, and will often tell you your credit rating isn’t
high enough to get the lowest interest rates. Having this
information ahead of time will stop this common financing scam
cold! You are entitled to a free credit report once every 12
months, and can get your free report at
annualcreditreport.com . Here you can get your free report
from each of the three major credit reporting agencies –
Equifax, Experian and TransUnion.
Car loans for people with bad credit or no
credit – If your credit is weak or not good, you may have a
hard time getting car financing, or may pay too much. A dealer
will take advantage of this and charge you a very high interest
rate.
You can get an auto loan online, even if your
credit is bad – usually at a better rate than you can find
locally. There are online auto finance companies that specialize
in “weak credit” or “no credit” car loans. Check
1800FreshStart.com for more information or to apply for a
loan online.
Know current car loan interest rates –
Have a look at online car loan interest rates to get an idea of
current finance rates. Check with your bank or credit union too.
By comparing rates ahead of time, you will know if the interest
rate the car dealer quotes you is a good one or not.
In many cases, you can get a car loan online for
a better rate than the local banks. You can also get
pre-approved for a car loan at several online auto finance
companies. Getting your car loan ahead of time takes a lot of
pressure off of you when car shopping, and will save you money
as well.
Know About Gap Insurance – Gap insurance
is usually a necessity when financing a car – especially a new
car or used car that you are not putting a lot of money down on.
Gap insurance covers the difference between the amount your
insurance company will pay and the amount you owe. Gap insurance
is inexpensive, and can save you thousands of dollars if your
car is stolen or “totaled”.
Dealers will sell you gap insurance (many
times they add it on to your loan without even asking) at a
huge markup. You can buy this important insurance on your
own and save hundreds of dollars – you are not required to buy
gap coverage from a dealer. Two places to get a gap insurance
quote online are
DriverSelect.com and
GapInsuranceQuotes.com.
More Helpful Tips for Car Buying
There are lots of other car buying tips that are specific to the
type of car you are buying. For more time and money saving tips
see our pages on
used car buying tips or
new car purchasing tips.
Remember: “Knowledge is Power”.
The more you know about the car buying process, the better off
you’ll be!
Recommended Reading For Anyone Getting Ready
to go Car Shopping
While doing research for this website, I
purchased an ebook called
"How to Buy a Car Without Getting Ripped Off" . This
book is written by a former car salesman, and reveals all the
sneaky tricks that car dealers pull to con you into paying more
money than you have to. This book is full of car buying tips
that will save you hundreds (if not thousands) of dollars the
next time you buy a car.
I’ve been through the car buying process so many
times that I thought I knew most of the ins and outs of
purchasing a car – until I read this book. I was a little
skeptical about paying $27 for a book about car buying, but now
that I’ve read it I figure the things I’ve learned will save me
at least $1000 the next time I buy a car – new or used!
I highly recommend this book to anyone looking
to buy a car. It is short and concise, and loaded with inside
information on the tactics that car dealers use to glean as much
money out of you as possible. Best of all, it offers car buying
tips you should know to ensure you don’t get ripped off and get
the best deal possible.
More Tips and Information Regarding Car Buying
Used Car Buying - Tips and Advice
New Car Buying - MoreTips
When is the Best Time to Buy a New Car?
When is the Best Time to Buy a Used Car?
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