For as long there was trade, since the first barter happened, up to the numerous modern economic transactions that occur and are realized daily, seller and buyer are in the mind game of trying to outsmart each other… Of course, saving a few hundred bucks is something I’d never pass on, and I assume, neither would you. So, we provide you with several guidelines of how to get that best value for your money.
For as long there was trade, since the first barter happened, up to the numerous modern economic transactions that occur and are realized daily, seller and buyer are in the mind game of trying to outsmart each other. Seller is on a quest to achieve that seller surplus, and buyer also wants to be left with that buyer surplus, after buying the goods for lower price than he was prepared to pay. In fact, it was always about the amount and utility of available information, and since we live in a consumer society, this process is unlikely to ever stop. Of course, saving a few hundred bucks is something I’d never pass on, and I assume, neither would you. So, we provide you with several guidelines of how to get that best value for your money.
The price of a car is based on condition, mileage, reliability, performance, and popularity. Of course, you want a car that is reliable and has good performance. But are you sure it's smart to look for a car that is sought-after by everyone else? If the answer is yes, prepare yourself to pay extra.
What is the difference in price between popular cars and competitors that are not so popular? It is higher than you might think. This category of cars cost a few thousand dollars more than those which are not quoted high on a scale of popularity.
Many people have certain reactions to cars. You can fall in love with the car, only by the looks or its performances. Thinking about your needs will help you when choosing a car.
- Do you have children, or do you plan to expand your family soon?
- Do you need a car which you will be able to use both for private and business activities?
- Do you want to be able to pack in some friends and travel, or you rarely have passengers?
- Do you like a sports ride, or are you indifferent?
- Do you want a car that holds the price enabling you to resell it sometime down the road?
Always visit more sellers, see more vehicles, and check for vehicle reliability statistics, price information, and even customer reviews on sales outlets and dealerships.
Do your homework! Do not rely on a car dealer to tell you which car will suit your needs and remember, they are sellers. Find out about your new vehicle from commercial websites and blogs, where you can get objective information. This will help you determine which model is best for you, allowing you to compare safety, performance, and fuel consumption and total costs of a variety of possible candidates.
Your dealer may be willing to settle. Sellers have quotas. You cannot lose anything if you are negotiating the price of a vehicle, it is the concern of the sales manager, who will either approve or deny the final amount. Ask for the price you want to pay. The worst answer you can get is "No!” with everything else you can work with.
Follow these tips when negotiating the best price on a new car:
- Get into negotiations with a person who seems comfortable and approachable.
- Start with a low price, but not much lower than the one offered by the seller.
- Determine in advance, what is the maximum price you are prepared to pay, and approach that price with caution.
- Give up on negotiations on time, often, by doing this you will make them think once more.
- Be patient. Dedicate enough time to the negotiating process.
- Do not fall into the sales tricks of experienced sellers who aim to draw your attention away from the main topic.
- Always try to negotiate free stuffs! Ask the salesperson to add you winter tires, car mats, tinted windows, car cover, free satellite radio, extended warranty...
Do not lower the monthly credit payment. This is easier said than done for most, but you must keep in mind that a lower monthly payment will ultimately cost you thousands of dollars more and will prolong the lifespan of your loan.
One of the common traps is the choice of engines. A saying "from the excess head does not hurt” cannot be fully applied when choosing an engine. A larger engine is more expensive on average and more expensive for maintenance. A model with a stronger engine should cost more, and it is usually not delivered with the basic package of equipment, packing it with an additional pair of speakers, aluminum wheels, leather on the steering wheel and gearbox. It is all nice but packs a price. After all, you do not really need a more powerful engine.
Car dealers will sense despair and will use it to their own benefit. If a car dealer sees your indifference, he will be more willing to negotiate. When you receive an offer that is at your request, please request it in writing. Take a couple of days to think about it and weigh all the possibilities. Buying a car should never be an impulse purchase. Be aware of the financial risk you take on yourself by purchasing a new car and never get yourself swayed away by well-packaged offers.
At the end, what determines the best price is not always the initial price you pay for your new car, taking into the account the cost of its life cycle of exploitation. So, making a purchase paying the best price, as we previously indicated is actually getting the best value for your money, leaving you with reliable automotive machine that you love and that will be your partner on the road to higher standard of life.