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New car buying tips- I

CarWale टीम , 04-Aug-2007

Car Tips

Buying new cars is not an easy job but CarWale.com is committed to making car deals simplified by all means. Our goal is to make car buying a pleasant experience. By following our step-by-step process, you'll be able to buy a car you're happy with and get monthly payments that won't deplete you bank account.

Many people are intimidated by the abundance of choices and the prospect of having to deal with a salesman but if you do your homework and you prepare yourself by knowing exactly what you want and exactly what you want to spend, it's as easy as walking into a dealership and letting them know what you're there for. Not being intimidated often intimidates them. Using online quote systems are an easy way to know what's out there and how much you should be paying. Sites like Automotive.com, Autoweb.com and Autobytel.com use an easy form to let you pick out the car and options you want and to give you a good price to use for comparison. If you know you specfically want a Ford or really want to price Fords, Ford Direct.com is an excellent resource for free Ford quotes. You can also buy cars through these sites. Our guide to buying your new car will walk you through all the information you will need to know what you're looking for and how to get it.

When buying a new, recalls and defects are always a concern. What is a defect? Why did they do a recall? Where can I report a possible defect or need for a recall? These are all very important questions and can sometimes be tough to find answers to. In the section on Motor Vehicle Defects and Recall Campaigns all your questions, and even a few you didn't know you had, are answered. Understanding a recall or a defect on your car can save you a great deal of money. In the event of a recall on the part of your car, the dealership where you bought it will fix the recalled part for free. If you didn't know this, you might be lose the money that you paid to get the part fixed elsewhere. This section is very informative and helpful. You might even want to take a look at it before you buy a car so you will know what questions to ask the dealership about and recalls or defects they may have had.

Nothing beats the smell of a new car, the thrill of driving away in a car that is yours, one that's never been owned by anyone else, comes at a price in the form of depreciation. You can virtually write off 20 per cent of the purchase price the moment you drive away from the dealer because it's then a used car. Cars depreciate faster in the first two or three years of their life and the new car buyer has to cop that for the pleasure of being the first owner. By buying used it's possible to avoid the heaviest depreciation. Cars will still depreciate in their latter years, but at a lower rate.

  • New car buyers can choose the colour of their car, the trim colour, the engine, transmission and other options and accessories, but used car buyers have to take what's available.
  • New car buyers have the reassuring backup of a new car warranty so they know that if anything goes wrong they won't be up for a big repair bill. Anyone buying from a used care dealer will also have a warranty, but it won't be for as long as the new car warranty. Private buyers don't have any warranty.

Negotiating with Dealers

It's a buyers market which means you can bargain with dealers for a better deal, but you need to be prepared for the battle.

  • Do some homework on market values before you go shopping so you know the value of the car you're buying and the value of your trade-in. That way you'll be better placed to barter with the dealer.
  • Have your finance arranged before you go shopping, but don't tell the dealer. Dealers will often cut the price of a car believing they'll make money on the finance.
  • Don't settle on the first car you inspect. Visit a number of dealers and compare deals before making a commitment.
  • Look for a dealer well stocked with the car you want and he'll be more prepared to deal.
  • Shop towards the end of the month when dealers are looking to get their quotas up.

Financing your wheels

Few of us are able to hand over a wad of cash to pay for our car, we all need finance for the purchase.

  • Before you start work out how much you afford to pay, and how much you can afford to repay.
  • Don't be tempted to use your credit card to pay for your car, the interest rate on credit cards is generally very high.
  • Shop around to save money.
  • Finance through dealers is the most expensive, dealers are on-selling the finance to you and they are making a profit on the deal, so cut out the middle man and go straight to the source of the finance.
  • Banks offer finance at a cheaper rate than the dealers, but approval can take time.
  • Independent finance companies specialising in car finance often have the lowest interest rates, and some offer fast approvals with an online service.

Where to Buy

  • Buying from a dealer gives you the security of a warranty. By law dealers have to give you a warranty which gives you some recourse if something goes wrong with the car later.
  • Dealers also have to guarantee ownership of the vehicle, that there is no outstanding finance on it which might complicate matters later. They also have to guarantee the odometer reading.
  • It's possible to buy cars cheaper at auction, but there are risks. There's little chance to check a car over, there's no chance to drive it, so you take a risk on its condition. The auction environment is not one for the faint hearted, it's fast moving with lots of little nods, winks and gestures for those in the know. Spend the time to visit auctions to become familiar with them before attempting to join in the action. It's a good idea to take along someone with mechanical knowledge to help you assess the cars before the auction starts.
  • Buying privately can be a way of saving money, but it can be risky for the unwary. There is no comeback with a private purchase, once you've driven away you're on your own. 

Before you buy a car ask yourself:

  • What kind of driving do you do?
  • Off road? Around town?
  • What features matter to you?
  • Air-con? Safety? Power?
  • What's your price range?
  • Where will you be parking?
  • Do you have a garage or only street parking?
  • What kind of insurance can you afford?

Quick Research

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