Since the pandemic, car shopping has become much more difficult, though it was never easy. There have been price increases, and fluctuating interest rates, and recently, there has even been an inordinate amount of inventory shortages. This makes the process of buying the family vehicle that you need much tougher than it has been in the immediate past.
That said, there are a few tips and tricks that you can use to aid you in the purchase of your new family vehicle. Here are just a few things that you could try.
Establish Your Financing
It is actually better to get your financing straightened out before you ever step foot into the dealership. After all, the best part about securing financing ahead of time is shopping not unlike a cash buyer, knowing exactly what you are willing and able to spend. So, before you do anything, check with your bank or credit union to see if they offer reasonable interest rates.
Of course, you can easily take the financing terms that the dealership offers you, but you may end up with a much higher rate than if you really took the time to research your financing options on your own time. You don’t want to feel pressured by the dealer to take what they are offering simply because you didn’t put in the legwork.
Trade-In Your Current Vehicle At The Same Dealership You Are Shopping At
If trading in your vehicle is a part of your financing plan, it is best to trade it in at the same dealership where you are buying your new car. This seems like common sense, but more and more buyers are selling their vehicles to one dealer for cash and then buying their new auto at a completely different dealership.
However, the best possible deals from a trade-in transaction usually occur when everything is conducted at the same place. That is because the dealership will make additional profits on your old car after you purchase your new vehicle. That said, they will probably give you a better deal on your new auto since you are essentially adding to their used car inventory.
Only Buy At A Vehicle’s MSRP Or Cheaper
Remember the good ole days, like in 2018, when salespeople and buyers could negotiate prices that fell well below the manufacturers’ asking prices? Well, those days are long gone and if you can actually get a car for the price on its sticker, you should go for it and actually consider it to be a big win.
Why is that? Well, unfortunately, many dealers are raising their prices in accordance with current market demand. You may even attempt to negotiate a marked-up price down to the original MSRP and that will still save you a bundle.
If you are unsure of the MSRP on a specific model, or you simply want to compare prices in the local market, use an aggregator site or app like Autotempest to search listings from thousands of dealers and private sellers.
Refrain From Leasing
Once upon a time, leases were made to look like a great choice because they were plied with incentives that made them appear to be a more attractive option. But, you end up paying more in the end due to depreciation and you don’t even get to keep the vehicle, after all, is said and done.
Instead, if you prefer a new vehicle every three years, it is better to finance a vehicle for that period of time, keep it pristine and in great working condition, and trade it in at the end of that term. Some makes and models may even have similar monthly payments to the monthly lease amount for the same vehicles. It is similar to building equity in a home versus simply renting an apartment each month.
In conclusion, it is important to conduct as much research ahead of time as possible if you are purchasing an automobile in 2022. Look into interest rates, trade-in values, and the best deals in your neighborhood for the vehicle of your choice. Getting a great bargain is not as easy as it once was, but it is possible if you apply these tips and tricks to your search.