The whole car buying process of visiting car dealerships is (kind of) a pain in the @$$. Whether you're buying your first car or your tenth one, there are still things to consider. And, let's be honest, the salesperson antics haven't changed much from what they were 20 years ago. With the cost of gas, groceries, and everything going up in price, big purchases such as buying a new car must be carefully thought out.
You don't have to be fresh out of university looking to purchase a new vehicle to be a budget buyer. Whether you make minimum wage or millions each year, there should always be a strategy to ensure you get the best price when buying a car. Why would anyone want to pay more than a vehicle is worth, no matter how wealthy you are?
Car dealers can be a little (dare we say) sleazy and, at times, seem as if they make up some arbitrary car prices in their heads to see how much they can make off the sale. If you consider yourself a low-budget car buyer, we're laying out some tips to keep you within your price range and help save money.
Get Approved
If you’re looking to save money, often speaking to your bank or credit union ahead of time about getting approved for a loan can help. Yes, dealerships deal with many of the major financial institutions, but if you have a personal relationship with your bank, you may be able to get a lower interest rate. Don't be afraid to shop around to find the best interest rate based on your credit score. Knowing your credit history ahead of time can help when negotiating loan terms. By getting approved for an auto loan, you know exactly what you can afford and knowing the top range of what you can afford will keep you in check when looking at vehicles and ensure you aren't looking at ones you can't afford. Car buying tip: get approved in two minutes with FFUN Cars without impacting your credit score.
Determine your Budget
Just because you get approved for a certain amount on a car loan doesn't mean you have to use the total available. Sort out your monthly expenses and see what is most feasible for you. Yes, you want to know how much your monthly payments will be to make sure you can afford the payments each month, but when it comes to negotiating the price of the vehicle, you'll want to base it on total car price, not monthly payments. Salespeople love talking about monthly payments because it often makes the car buyer feel like they are getting a fantastic price on the car.
As part of determining your budget for your next car, consider the total cost by factoring in car insurance costs, maintenance, and the cost of fuel, which we all know isn't cheap these days. If time is on your side, and to lower your car payments, save up an upfront down payment. Or another option is to buy the vehicle outright. It may not always be the best option; it depends on your financial situation.
Don't Overcomplicate the Car Buying Process
It's not a complicated process; dealerships and car salespeople make it that way. Don't tell the salesperson too much to get the best price, no matter what the sticker price says. The more they know about you, the more they can use to manipulate you into something you may not need or want. Leave the emotions at home and keep it simple at the dealership. You are there for one thing; to buy the right car for you at the best price. If you're a first-time buyer, try not to let car dealers know; otherwise, they will go for your emotional jugular. Another option (call us biased) we think is best; shop FFUN Cars’ used car inventory. We aren't interested in emotionally manipulating you or into playing games. We want our customers to find a used vehicle that is the right car for them at a purchase price they can afford. That's it. We want you to enjoy the car buying process without the hassle. Period.
Things to Consider Avoiding
Tread very carefully when you are brought into an office and placed across the desk from the finance people. Keep your wits about you because you are about to be sold on things you probably don't need. Be careful when they try to sell you a bunch of add-ons, most of them you don't need. For this reason, do your research to know what add-ons should come standard with a vehicle and be included with the car purchase price. Another add-on that seems to get most people is the extended warranty. Don't get us wrong, it has its place, but be careful which boxes you check before signing the final papers. Check to see if the vehicle you are purchasing already has a manufacturer’s warranty. Typically, if a vehicle is five years or newer, it does, therefore there’s no need to pay extra for an additional warranty. If you are buying a used vehicle, be sure to take it in for a pre-purchase inspection and look at a car history report. Luckily when you buy your car from FFUN Cars, they all come with a free CARFAX report and have gone through a meticulous 92-point inspection.
Avoid long-term auto loans, like six or seven years. Over those extra years, the amount you pay in interest could be significant unless you are fortunate enough to find a 0% interest rate car loan - not likely, though, and if you do, that 0% interest rate is on a new vehicle and the dealership is recouping the interest by backing it onto the purchase price.
Know When to Buy a Car and What Car to Buy
We know it doesn't always work out to buy a car before you need one, but if you can, do it. By not feeling the pressure to get a new car right away, you are less likely to overspend. Don't buy what you don't need. Determine your lifestyle needs of the vehicle, and then find a car that suits those needs to keep on budget.
If you really want all the bells and whistles, but can't afford the cost of a brand-new car, look at used cars. There is a massive inventory shortage on new vehicles and some amazing car deals for used ones. Just check out FFUN Cars and see for yourself. Whether you are in the market for a Honda, Toyota, minivan, or SUV, we have options. Car shopping has never been easier. You'll find the best car for you, and the price of the car you see is the price you pay, without any hidden fees.
At the end of the day, to stay within a low budget, do your research, know what you can afford, and buy what you need. As part of your research, don't forget to see what your current vehicle is worth on a trade-in by using FFUN Cars’ fancy pants technology that will give you market value within minutes. And finally, you wouldn't buy a pair of shoes without trying them on, so don't buy a car without taking it for a test drive. Honestly, buying your next car from FFUN Cars is probably your best option, and it’s all about your convenience. You can buy online, in-store or a combination of the two. You have loads of used vehicles to choose from at the best selling price, can get approved in minutes without impacting your credit report, we don't play games, we'll take your trade-in, and you can enjoy a 24-hour test drive. The best part is you never have to deal with a pushy car salesperson because the whole car buying process is about you. So if you are on the hunt for a Nissan, Ford, Tesla, or any other vehicle, make FFUN Cars your first and only stop.
