Purchasing a new car is indeed a very expensive proposition and thus extra protection should be maintained while buying one. While purchasing a new car, it is very obvious that you make a smart deal. The following information and tips would enable you to make a smart decision.
Purchasing a new car
First of all it is necessary to think about the model and the options you want and how much of budget that you really have for the purchasing of the car. For this, it would be wise to conduct some research from trusted sources. You should be less likely to feel the pressure into making a hasty or expensive decision at the showroom. Here are a few suggestions to be followed:
- It is always wise to go through the latest publications and the various car focused websites in order to check the car features and the prices. These mediums are trust-worthy sources to gather information on specific options and models of the cars.
- It is also wise to shop around for the best possible pricing by comparing the models and the prices in the ads and at the dealer showrooms. You may also probably contact a car-purchasing services or broker services in order to make proper comparisons.
- Planning to negotiate on price is also to be considered. Dealers are always in the position to negotiate on their profit margin by 10 to 20 percentage. This is the difference between the manufacturer’s suggested retail price and the invoice price.
Financing your new car
If you are willing to finance your car, then you must be aware that the financing is obtained by the dealer even If the dealer contacts lenders on your behalf. So, it would be safer to contact the lenders directly instead through the dealers. Also is it wise to compare the financing schemes that the various institutions offer and then choose the one which seems to be more profitable. Offers may vary and so it is suggested to shop around for the best deal by comparing the annual percentage rate (APR). The overall amount that you pay very much depends on the price of the car that you negotiate, the APR and also the tenure of the loan that is opted for.
Sometimes dealers offer very low financing rates for various car models but not at all willing to negotiate on the same. In order to qualify for the special rates, a large down payment is being demanded from the buyer.
Optimize the insurance of the car
This is exceedingly necessary to optimize the insurance of your car by opting for a GAP insurance which is actually a top up on the primary insurance. If any particular loss occurs during the initial phase of buying a car, the GAP car insurance will ideally pay the difference between the Actual Cash Value (ACV) of the concerned vehicle and the current outstanding balance on the loan or lease taken. GAP insurance also sometimes pay off your regular insurance that is deductible.
If your car has been totaled by a covered peril, theft, fire, accident, tornado, hurricane or vandalism, your insurance company would be in terms to pay you the actual value for your car if you have a completely comprehensive and collision insurance. This particular amount many a times is lesser than the actual amount which you still owe to the bank or financial institution.