It is easy to do your homework before purchasing a new car even in today’s information rich automobile market. When you consider a vehicle look beyond the make and model and consider what kind of fuel you want to use, the mileage a car gets, and the financing available. Get to know the dealership, too. Of course, buying online takes a lot of the hassle out of the process.
Things to consider before going new car shopping:
1. People buy cars on the Internet.
2. You can comparison shop automobiles faster and easier on the web.
3. You can look up the car dealer’s jargon at online dictionaries.
Buying a car online has real advantages besides saving you legwork. Sticker prices, interest rates, residual value, and available financing are easy to ascertain online. Today’s options include gas models, hybrid models, plug-in hybrids, and electric models. You must visit more than one source, but if you do, online buying puts you in the driver’s seat. You could complete everything on the Internet and have only one reason to go to a dealer: to pick up the vehicle.
It is fun to shop the new car lots. Many car dealers handle different makes of cars, or just one attractive make, like BMW. A dealer devoted to one make can give you better service on the model they sell. A dealer with many makes of cars offers a superior one-stop buying experience.
Do not be put off by car buying terms. It is easy to comprehend with a simple Google search. For instance, a “capital reduction loan” is a loan or lease where you bring in a capital amount at the start, and that reduces the number of payments, loan amount, and loan length.
Some dealers require a down payment and that is a good thing because it lowers your monthly payment. It also reduces the length of the loan and the amount you pay in the end. When a dealer cites a “capitalized cost,” they are referring to the list price of the vehicle, and when they mention of a “residual value,” that is the amount the car is worth down the road, after 36 months and 45,000 miles. With those numbers, a car may be worth only 50 percent of the original price.
When you discover the residual value of a car, you have found what you can expect to get for it on the used market. Keep your eye open for a car with high resale value. If you buy a car with a high residual value you can get more out of it when you put it on the second hand market.
Many auto dealer websites include calculators to figure out how much money the loan will cost. You may want to know at the start what you will pay by the end of the loan. If a dealer lists a new car for $27,500, and you finance it for four years at eight percent interest, you will have paid $32,208 for the car. The monthly payment will run just under $700.
The Test Drive
You can arrange to drop into the dealership to take a car for a spin. You may want to think twice about purchasing a car without getting behind the wheel. An attractive red sports car may disappoint once you get it on the road. A powerful looking SUV may actually have the wrong suspension.
The right car for you is out there, so take your time and you will find it!
This article was written together with Vito Sanchez, a cat enthusiast who looks forward to helping you become a better car owner! He writes this on behalf of Car-Research XRM, your number one choice when looking for the best CRM system for your auto dealership. Check out their website at www.carxrm.com/auto-dealer-crm/ for more information!