Big financial decisions can have a major impact on your life. And with higher interest rates and inflation, finding the vehicle you want could be challenging to afford. Here are three tips to help get a good deal on a new vehicle.
Know your budget:
Establish a budget to determine an affordable monthly payment. Your budget could look different depending on whether you’re buying a vehicle with cash or financing. If taking out a loan is the best option for you, consider evaluating your current monthly expenses to help set a price you’re comfortable with. Look back at previous bills, such as gas and electricity, to see how much your budget would change if expenses were to rise. If you plan to purchase with cash, you’ll avoid paying interest on a loan, but you could still see changes in gas, car insurance, and maintenance expenses each month.
Shop around and look for deals:
Due to a nationwide shortage of used cars, consider looking around for your next vehicle. Search car websites online such as CarMax or Autotrader to view vehicles for sale in your area. If you’re unable to find a vehicle that could work for you, expanding your search radius could help. Compare prices and research which dealership or seller could get you the most for your money.
When working with a seller or dealership, ask questions if you notice a change in fees, the listing price or vehicle itself. Pricing strategies may vary regarding dealership fees such as a documentation fee, advertising fee and inspection and emissions fee. Request a breakdown of all charges and ask for an “out the door” price to familiarize yourself with the details before any negotiations.
Know what to negotiate:
If you choose to negotiate, focus on parts of the deal that can be changed such as the vehicle’s price tag and dealership fees. Sales tax as well as the vehicle’s title and registration are non-negotiable since the dealership has no control over these expenses.
Value of Your trade-in:
No one knows your vehicle and its value better than you do. Trading in your used vehicle can be easier than selling it on your own, saving time and sometimes money in the process. Get an offer for your trade in, and if you’re happy with the price, it’s likely worth selling to help offset the cost for your new vehicle.
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Financing Options:
Fast Lane Auto Loan Pre-approval
Get approved for an auto loan before setting foot on the dealer’s lot. Search for a vehicle with a check in hand, ready to make a deal knowing your finances are already in place.
Flex Auto Loan
A Flex Auto Loan works like a lease except you own the vehicle. You can get the car you want with lower monthly payments and financial flexibility throughout the term. When the term ends, you can keep the car by paying or financing the remaining balance or you can turn the vehicle in.