Americans bought more than 17 million new cars and trucks in 2016. If a new set of wheels is in your future, keep these things in mind throughout the process to find a vehicle that meets your needs.
Before You Buy
When You Shop
Closing The Deal
Mixed Negotiations
Also known as the “four square” method, this sales tactic combines multiple, unrelated factors into a single transaction. The sales manager writes the price of the car, the down payment, trade-in value and the desired monthly payment into four boxes. If you want a certain trade-in price or a set monthly payment, other numbers may increase to compensate.
Shop your trade-in around multiple dealerships to get an estimate of its true value, and know not to negotiate based on your desired monthly payment.
Inflated Interest Rates
Some car dealerships may advertise a certain interest rate, then make a last-minute change to financing. Secure a car loan through a bank or other outside party and come to the dealership with pre-approval in hand. Know your credit score beforehand so you’re confident about what you can afford, and triple-check all numbers in your paperwork.
Spot Delivery
Some car buyers have driven a car off the lot without securing financing. This means that a few weeks later, the car dealership could call to say the loan application was rejected and that they need new paperwork–with a higher interest rate or down payment. Never sign a deal or drive away in your new car if you don’t see your interest rate written down.
Used Car Buying Tips
Buying a used or “previously owned” car is a great way to save money and still obtain the transportation you need for work, school, and living.
While there are many legitimate reasons for owners to sell or trade in a used car, some cars may have been in crashes and had extensive repairs, been poorly maintained, or have persistent mechanical problems.
Before you purchase a used vehicle, follow these tips to make sure you don’t end up with someone else’s problem:
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