Buying a new vehicle may seem like an easy process, but you might end up paying a very steep price if your new vehicle is not purchased using the proper procedure. Luckily, there is a clear methodology you can follow to make the best of your new vehicle purchase. Here are a few simple steps for to purchasing a new or used car or truck effectively:
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1. Do your homework
Chances are that you already have a particular brand or model in mind, but doing proper research can confirm your choice or make you aware of more options. Many dealers have mobile applications and websites that provide all the relevant information you need, including on-road prices, expert reviews, user feedback, and new deals. You can compare the features and pricing, and shortlist a few vehicles that suit your needs.
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2. Get a pre-approved loan
A pre-approved loan gives you an idea of how much you need for buying a new vehicle. Banks and credit unions charge you a lower annual percentage rate of interest. On the other hand, if you want to go with a dealership loan, you will know how much you’re being overcharged and can negotiate better terms. It is recommended that the duration of the loan be limited to 60 months, or else the overall interest you ultimately pay might double. Also note that buying a new vehicle within two weeks of getting pre-approval is a good strategy, as it will reduce the amount of “hard” inquiries into your credit history.
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3. Test drive the vehicle
Now is the time to pinpoint which new vehicle you’ll buy. You can choose the vehicle on the dealer or manufacturers’ websites by looking at the features, trims, and colors you want. Confirm that the vehicle is in stock and book an appointment for a test drive. However, don’t just take it round-the-block. Instead, take the vehicle on a variety of terrains and see how easy or difficult it is to negotiate them. Also, check how comfortable you and your family feel in the vehicle.
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4. Compare prices
Once you’ve decided on the vehicle and model you want to purchase, contact the sales department of three different dealerships that have the vehicle in stock. Ask all of them for the on-road price, including the accessories that may already be installed in the vehicle. Also, ask the salespeople to give you a complete breakdown of the total price, including all taxes and other fees, and ask about the products the dealership will offer after the purchase of a new vehicle, like paint protection or an extended warranty. Then, ask the rival dealerships if they can beat the lowest price and the most benefits offered in order to get the best deal possible.
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5. Inspection upon pick up or delivery
Whether you drive your new vehicle home or have it delivered, give it a thorough going over. Ask the salesperson to take you through all the features, safety devices, and other mechanisms of the vehicle. Learn how you can synchronize your smartphone with Bluetooth and check out the other instruments that come with the deal. If you do not have time for a complete demonstration at the dealership, it might be better to have the vehicle delivered at an appointed time. That way, you will have the time to fully absorb the demonstration in relaxed surroundings.
