Countless decisions need to be made when buying or leasing a new car.Here we try to guide you through those tough choices and aim to take some of the mystery and fear out of the process... all in an effort to help you get the best deal possible on a new car.Remember, knowledge is power.
Five Steps to a Sweet Deal
Selecting your dream machine is the fun part of buying a new car.Scrounging around for the money, enduring overzealous sales folk and possibly incurring large amounts of debt is the difficult part. But follow these five simple steps to a sweet deal, and you will undoubtedly find the experience far less tedious, far less of a hassle, and at times even fun.
Step 1 - Fix a Price
Car prices are moving targets, as short-lived as tomorrow's classified ads.Everybody knows that the window sticker is merely a suggestion. But the car buyer's new best friend, the Internet - the information super highway - is an invaluable tool to help you get a fix on the price you're going to have to pay. Of course the price depends on how much car you want to buy.Your First stop on the information highway should be the automaker's websites where you'll probably find a feature that allows you to build your dream car from a list of options - everything from colour combinations to wheels and tires. Don't be afraid to click on some other Makes and check out their offerings. Being close-minded on what you want will not give you the leverage to get the best deal possible.
Step 2 - Round up the Dollars
You now have an idea of what your dream car is going to cost.So how will you pay? Your options are cash, loan or lease.Cash can be the cheapest way to go because it carries no interest charges.However if you have a better investment for your available cash - you may be smarter to take out a car loan or lease. Most buyers however do not come close to having the tens of thousands of dollars necessary to purchase a car with cash.As a result borrowing is usually a necessity.If you must borrow to buy plan on making a decent down payment and take a shorter-term loan -no more than 36 to 48 months- on the new car.A good idea is to obtain loan approval from your bank or an online lender before you go to the dealer to buy.You can then see if the dealer will beat the loan terms you've already arranged. Another option is Leasing.While on the upswing, keep in mind that it is costly to terminate a lease early.If leasing appeals to you keep your lease to no more than 48 months in case your circumstances change.
Step 3 - Find Your Car
Dealers want to sell the cars in their inventory, they're paying big bucks in interest and other costs while these new cars sit on their lots.Locate a dealer with the exact model you want, including options and colour combination, and you will have more negotiation leverage than if the dealer has to obtain the car from the factory or another dealer.At MonsterAuto.ca we allow New Car Dealers to post classified ads for all new cars held in inventory.Use the New car Search tool on the site to find dealers in your area with the exact car you are looking for.Once located call or e-mail the dealers that have the car you want in stock, set up a time and take a look at the car in person.
Step 4 - Negotiate
Studies have shown that buyers willing to haggle get the best price.With luck using the Internet, you've located a car you'd like at more than one dealership.If you prefer to haggle in person visit both dealers and see which one offers the best deal.A better option would be to contact both dealers online and ask them to e-mail you the deals they're offering.Compare them to each other and you will be in a better bargaining position. Now with the e-mail in hand head down to the dealership, the transaction should go quickly and smoothly.However keep in mind that a new car sale is rarely a simple transaction. Besides the sale of the car it can involve your used car as a trade-in, financing charges, and extras such as extended warrantees.Its best to negotiate each aspect of the sale separately, remember what the dealer gives with one hand he can take back with the other.For example a dealer may offer a lower price on the new car but give you less in trade on your old car.
Step 5 - Close the Deal
After you have agreed to the terms for the new car and perhaps your trade-in and a loan or lease this isn't the end of the process.At some point you will have to sign more documents usually in the business managers office. Remember there is no cooling off period when it comes to car sales, once you sign the deal is done in most cases. Dealerships usually allow you to change your mind if you have good reason and you ask to cancel the purchase within the stated period of time. Always ask their policy before signing. Before you drive off the lot with your new dream machine, inspect it carefully.If there are any dings, dents or scratches, or if anything is missing, get it in writing.This gives you the right to return to the dealer later and have the issues resolved quickly.
