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Tips if you're thinking about a new car
Next to buying a home, buying an automobile is probably
one of the largest purchases you will make. Especially
if you’re
looking at any new luxury auto, where the price can easily
run from $50,000 to $100,000 and more.
Talk to ten different people about buying a car and you’ll
get ten different opinions. When it comes to buying a car,
there is no pat answer for everyone.
For some people a car is just a means of transportation and
as long as it is reliable, it’s fine. For others, a
car is a very personal thing, an expression of who they are.
Some people are concerned only about value and economy, others
are concerned about comfort and luxury. Most are somewhere
in between.
Wherever you stand, there are dozens of tips on the best
car-buying strategies. Here are just a few key tips you may
find helpful.
- If you’re excited about a car, don’t
let the salesperson know how you feel. The more excited
you seem to be, the weaker your negotiating position.
- Price is important, but it may be worth
paying a little more if you know you’re buying from
a dealer with a good reputation for customer service. Ask
your friends and neighbours about their experiences.
- You will obviously need service so you
may want to choose a dealer that is conveniently located,
either close to your home or office.
- Do some price research up front (the web
is easiest and fastest) so when you ask to see the "sticker
price" at the dealers, you’ll be armed with real
numbers.
- Don't settle for an around-the-block test
drive. Insist on taking the car out on the highway so you
can see how everything performs.
- No matter how much you are pressured –
and it could be a lot – do not sign a contract until
you've carefully read it. There may be quite a bit of reading
to do so don’t hesitate to take the contract home.
And if the salesperson tells you that the deal is only good
if you sign right now, all the more reason not to sign.
- If you want value, consider buying a smaller
car. Car companies tend to price them lower to sell more
cars and meet government quotas for average fuel efficiency.
Mark-up is generally much higher on full-size, sports and
luxury cars.
- Negotiate for options rather than dollars
off. Dealers usually have very high mark-ups on options
and can afford to give good deals on them.
- Keep in mind that if the smell of a new
car is not all that important, you can save many dollars
by buying a demo or used car.
- Finally, knowledge is power. The more
you know about the car you’re interested in and the
auto market in general, the more powerful you will be. So
be sure to use the web to do some research.
Important information about our financial planning services can be found at the bottom of our
homepage.
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