Buying a car is an important decision which, you should not rush. This is most likely the biggest purchase after purchase of housing, which you will do. It is important to know exactly what you are buying, what security features come with the car and how — and how much you will pay for it over its life. GOBankingRates offers an opportunity to learn expert tips on what questions you need to ask the dealer before you make a decision about the deal.
First ask yourself
Before heading to the dealership, it is important to have a clear idea about what kind of car you want, how much you can spend and how you plan to Finance the purchase.
Alain Nana-Sinkam, Vice President, strategic initiatives TrueCar, recommends that potential buyers ask themselves the following questions: “How long I plan to own this car? If I want to buy it and drive to wear, or I think in 3 years I’ll need a new car? What I want to see the monthly payment for the car? What is the upper limit on such payments? How am I going to use the vehicle? What is fuel consumption important to me? What are the requirements for car fuel and my daily journey?”
“If you’re honest with the answers to these questions, you will be more convenient also and ask questions,” he said.
Then prepare a list of questions for your dealer.
What you need to know about the safety of this car?
“For buyers of cars becomes more and more important to learn about the advanced systems of safety and to ensure that any vehicle they’re considering has had the technology that they want, said John Vincent, senior journalist US News Best Cars. — Different brands call system (such as automatic emergency braking) differently, which can cause confusion and lead to mistakes when you buy”.
What other functions are there?
From technical functions to the hatch on the roof, the car can have a lot of extras — things you can both want and not want. Keep in mind that these “bells and whistles” can increase the price, so make sure that they really need you.
Can I run test drive on the highway?
“When you go for a test drive, you should try driving in conditions where you usually drive, says Nana-Sinkam. — If you travel a lot by highway, you should test the car there. But if in town on a city road. Then you don’t have one day to find that you don’t like the way the transmission operates at high speed, and so forth.”
Can I test a used version of the car?
“When you go to test drive a new car, you should ask to test a used version of this machine, said Nana-Sinkam. — Each car is good when it’s new, but you want to understand what all this looks like in 2.5 years. You’ll still love this machine? Most likely, they will have about a three-year version of this car. Get behind the wheel and see whether all your auto needs.”
What are the incentives for the purchase you suggest?
Nana-Sinkam said that buyers should ask about the current incentives, about how long they are available and which ones can be combined.
“There are certain incentives that you get only in the case of a lease, and only in the case if you pass through a private Finance company of the manufacturer, he said. — Understanding the compatibility of these incentives is really important. Sometimes it can be encouraging from the factory and the dealer that are not advertised. This happens at the end of the month or if there is a model with high inventory of the items that dealers want to sell. Then they can help make the car more affordable.”
Are there any discounts from the manufacturer?
“The refund [discount], paid [to you] after the purchase of some models, — said Lev barinskiy, CEO of SmartFinancial . — Ask first to see these machines. Keep in mind that, in spite of the discount you may still pay tax on the full value of the car”.
Can you reduce the price?
“Despite the fact that the manufacturers set a suggested retail price of the manufacturer (MSRP) for each vehicle, smart buyers are planning and asked to negotiate a different amount, said Matt Smith, a senior editor at CarGurus. — Instead of MSRP, find out the purchase price is the price that the dealership likely paid for the car. Taking into account the incentives and “delay”, most dealers will be able to reduce the final cost closer to the purchase price than the sum of MSRP”.
Is there special funding?
“Find out if special interest rates or special programs of the lease, said Nana-Sinkam. — Ask what rates are available if you will Finance the purchase through their Bank, not your Bank or credit Union.”
Am I entitled to tax incentives on this car?
“All electric and plug-in hybrid cars can bring you profit 2,000 to $ 7,500 in certain areas, said barinskiy. — There are Federal tax benefits”.
What is the guarantee available?
“Ask about available warranties, says Nana-Sinkam. — You want to see what the warranty covers in the new car, except that it may break”.
If the guarantee covers any kind of service?
Nana-Sinkam recommends know whether the warranty on parts that wear out or require regular replacement, such as oil, brakes and wipers.
“This will help you to understand the real cost of owning this car, because after 2000 or 3000 miles some things will change,” he said.
What are the costs THAT can be expected after the expiration of the warranty period?
Even if maintenance is included in the guarantee, these costs can only be paid for the first two years or 20,000 miles. Ask about the typical cost of an oil change, new tires, replace brakes and other maintenance that you will need regularly to pay during the lifetime of the car.
If insurance coverage is wrap-around?
Coating wrap-around (optional insurance parts of car) is not included in the cost of the car, but can provide additional protection, which is not included in the standard warranty. This usually extends the warranty from bumper to bumper.
“You can negotiate the price of such coverage, if it is something that interests you,” said Nana-Sinkam.
How much will you pay for my old car?
If you sell the existing car and don’t want to do it yourself, you can sell it directly to the dealer. However, different dealers may offer you different prices. Use online resources to determine how much your car. You should also ask a few dealers how much they are willing to pay for the exchange.
Can I see the full purchase agreement?
Before you agree a price upfront and monthly payments, ask to see the purchase agreement for breakdown of costs, including any fees and services. If there is addition or accessory that you do not need, be sure to mark it so as not to pay for it.
What are the loan terms?
“Buyers should know the specific conditions of any loan to which they subscribe,’ said Vincent. — This includes the number of months that they will pay, the interest rate, the presence or absence of a penalty for early repayment of the loan. The best way to get a great deal on financing a car is to get pre-approved car loan before you go to the dealership. If you have no suggestions, the dealer will have an incentive to find you a better deal”.
Vincent also noted that it is important to pay attention to how long the loan is extended — the longer the term, the more interest you will pay.
“If the dealer will show you the loan terms of more than 72 months, will ask him to re-enter the numbers with a shorter period, he said. — If you can’t afford payments on a six-year or shorter loan you can’t afford a car”.
Was my loan approved?
“Before you sign any documents concerning the loan, in addition to the application for a loan, it is important to ask whether your loan is approved by lender, said Vincent. If they can’t provide evidence of this fact, do not sign the loan documents. If you leave the dealer before the loan is finalized, you will encounter fraud. For example, when a dealer calls you about a week after you took the car home to inform that your loan is overdue, and you must return to sign new papers. When you do, the amount will be much more than that which you originally agreed.”
Can I get a car in return when your leave the dealership?
Nana-Sinkam said that you should talk with the maintenance Department of the dealer to find out whether they offer any convenience to help you if you need to Park your car in the salon for repair — for example, a Shuttle or Shuttle-service.
“We’re talking about how to use the machine after purchase, he said. — If the dealer says: “I am always ready to offer you a replacement car or provide Shuttle service”, so you can buy this car in the salon and use it day-to-day.”
Can you deliver the car?
If you buy from a dealer who is far away from your home or Internet dealer, delivery of vehicle will save you from many troubles.
Can I take the time to make a decision?
“Despite the fact that the conditions of sales of new cars may seem affordable just a couple of days, in fact they are usually relevant for a whole month, Smith said. — If you are offered a deal only for a limited time, but you need a few more days to think about it, tell the seller that you will return. Most often this offer will still be available”.