5 Key Factors To Consider When Buying A New Car From A Dealership
Buying a new vehicle is a substantial investment, so it’s important to have all the facts before purchasing. Dealership fees such as destination, VIN etching, and gap insurance can increase quickly.
Research vehicles before you head to the dealership and leave your emotions at home. Also, be prepared to walk away if the salesperson fails to meet your expectations.
Financing
Many dealers offer their financing, and they also work with outside lenders. Getting pre-approved for your loan beforehand will help you keep your focus on the car you want.
It’ll help you compare apples to apples, more easily catch extra fees like dealer fees or taxes, and keep your attention on the total price, not just your monthly payment.
Before settling on your final vehicle choice, ask the dealer to send you a complete list of all charges, including manufacturer discounts. This is called the out-the-door price, and it will help you negotiate based on that number rather than your desired monthly payments. Some dealers also attempt to sell credit insurance, which will pay off your loan if you die or become disabled. This is not legal and should be removed from your final financing agreement.
Trade-In
When it comes to buying new Kia cars near Lebanon, (almost) everything is up for negotiation. The value of your trade-in is no exception.
Dealers may offer you more for your used vehicle if it’s in high demand and they need to bring in new stock. This can happen in the spring or summer when auto sales spike and dealers are eager to fill their inventory.
Don’t mention your trade-in once you’ve negotiated the lowest total price. Doing so could lower your bottom line. Also, get a true estimate of your vehicle’s current worth and sale value from multiple sources before heading to the dealership. Doing so will give you the confidence to negotiate the best possible deal for your new vehicle.
Inventory
Auto dealerships have varying degrees of control over the inventory of new vehicles they carry on their lots. Manufacturers often provide dealers with guidelines based on historical sales trends and market demand in their area, but dealer stock management decisions also include vehicle trims, paint colors, and options.
During vehicle production problems and parts shortages, dealers may need to have the models you’re looking for on their lot. Fortunately, you can still get the car you want by ordering it from the factory or traveling to dealerships within a few hundred miles of your home.
Before visiting a dealership, research pricing using tools like Kelly Blue Book and Edmunds. This will help you feel confident that a dealership is offering you a fair price.
Options
As you narrow down your list of vehicles, keep an eye on pricing. Dealerships often set their asking prices above what they expect to receive to leave room for negotiations.
Look for manufacturer incentives, rebates, or discounts. These can help you afford a new car without going into debt. Just be aware that they may require a specific vehicle type or certain credit score to qualify. Ask the dealer what requirements are involved and get the answers in writing.
Service
Whether buying a new car or trading in one, dealerships offer various service options. They can wash, clean, and detail your vehicle before you take it home or arrange delivery later. They can also assist with transferring your car title and provide a vehicle history report.
Remember to negotiate the price based on the total cost of the vehicle, including fees and taxes, not the monthly payment you’ll be responsible for. And feel free to walk if you feel like the dealer needs to listen or push you harder. Also, check the vehicle history report for important information like accidents and odometer readings that can reveal how well or poorly the previous owner treated the car. The report is free and available from most dealerships.
