Determine Whether To Buy Or Lease a New Car
Deciding whether to buy or lease a car depends largely on your own personality and financial preferences. By buying a car, you can totally own the vehicle at the completion of your monthly payment plan. Though this makes for a valuable personal asset, buying a car typically requires a large down payment during the purchasing process. This isn't always the case for leased vehicles. Also, by leasing a car you will be asked to return the vehicle after your lease expires. If you like the idea of changing cars every few years, then leasing might be the right choice for you. What's important, though, is to investigate both options fully and to evaluate the choices with all of the information in front of you. Make the decision that best suits your interests, but also make sure the decision is a financially wise one.
Negotiating a price that makes you comfortable.
Negotiating is an important part of purchasing a vehicle and could lead to a great deal of savings depending on your ability to haggle. Again, this is an area where your research will really pay off. By becoming extremely familiar with your chosen car, you can be aware of the dealer's posturing as they work to secure your sale.
When attempting to bargain, pay attention to the vehicle's invoice price. This is the amount that the dealer paid the manufacturer for the car, though it may not show any manufacturer discounts that the dealer has received. Compare this price with the MSRP (the Manufacturer's Suggested Retail Price, also known as the "sticker" price). Also, be aware of the vehicle's base price, which is the price of the car without any added factory options or taxes applied.
When beginning your negotiations, do not show too much of your cards to the dealer. Never let the dealer know the highest price you would pay for the car. Speak calmly and politely and show the salesperson that you are not easily persuaded into making emotional buys. You also want to be aware of some sales techniques designed to wear you down. Sometimes, salespeople will work in teams to try and secure your sale. This gives the dealer an advantage by wearing down the customer with multiple personalities. You also want to watch out for the representative who closes your deal. These salespeople are very skilled at talking new customers into last-minute markups or deals that will add to your total cost.
When negotiating, be firm with your decisions. You may want to begin by offering a number that is about $2,000 below the invoice price. Always be willing to walk out of the door if the dealer does not meet your needs, and don't be afraid to tell the dealer, "Thank you, but based on my financial budget, this is my highest offer." By being knowledgeable and by speaking with confidence, you can negotiate an amount that is far cheaper than the asking price.
