How To Buy New Car
For many of us a used car is not something we can be satisfied with, rust, old tires, engine problems, paperwork, inspections, annoying dealers and stuff that needs to be replaced just doesn’t cut it. Credit, loan, cash, whatever it takes we just have to get ourselves a new car. No use, no problems. Now the question is: What is the best way to get it?
Most cars are purchased by buyers from specialized dealerships that usually go under a single brand, or representatives so the process of purchasing a car isn’t very complicated. Compared to the used car dealing “adventure” here you can go, pick the car you want, with the characteristics best suited for you and best of all, no hassle with hidden issues, masked problems etc.
Some dealerships may also offer aid in purchasing a new car by taking your old car and giving you a difference which goes and drops the price of the car you’re about to buy by a certain amount. This process isn’t exactly as smooth, unless you are lucky enough to be able to pay for the car in cash. Otherwise you need to find some way to finance your vehicle’s purchase. One solution is the very dealership that may offer all sorts of options, or you can go and search for financing elsewhere. Each option has its ups and downs, overall cost, monthly fees, security, flexibility and other factor you have to take into account.
The simplest way to get the car is by paying cash for it. It is also the cheapest since there are no interests, no loans and no monthly fees. This option can be tricky on a single case, since dealers much prefer leasing due to the high winning it can bring them. So the best advice is that you leave the dealer with the impression that you would like to go to finance until you establish a price, and then make up your mind and go for cash pay. This way you will get the best possible price on your car since they will happily drop the price a little since they know that a leasing contract will get them a lot more than the price asked by them in the first place.
If you don’t have the necessary cash at hand, then there are other ways to do it. One way would be the hire purchase. This option will enable you to pay only 10 % of the car’s value and after agree to pay a monthly fee plus interest. This contract can be extended from one year to five with the advantage of the joint ownership of the dealer and the lender so in case something goes wrong during that period, the dealer is forced to help the lender in fixing the problem. Despite the fact that you can choose to return the car after the payments are done, know that not paying the monthly fees on time enables to dealer to nullify your contract and repossess the car, so be careful on what fees you agree on.
Another solution would be a personal loan. Usually car dealers advertise prices more advantageous for car lease contracts that personal loans, but that isn’t always true. If you think you can get a good loan from a credit union, bank or other financing company, than you are absolved from any kind of lease or hire contract. The car will be yours money down. If you use the above technique you may even get a better price for the car.
Post tags: Tags: hire purchase, How to buy a new car, leasing contract