Presently, we all are facing a difficult time in our lives with the ongoing COVID-19 crisis. In this pandemic time, there is massive economic instability and the people should be nothing less than careful about doing expensive investments.
Also, due to the increase in the prices of motor vehicles, car insurance rates are skyrocketing every year. Certainly, the insurance rates are not coming down anytime soon, however, one can do things to minimize increases or reduce the burden on their wallets for buying a car.
After conducting a few research and surveys, we have come up with 7 smart and best tips that might help you pick the car of your choice.
- Pre Approve a loan before you enter a car dealership
Philip Reed, the autos editor at the personal finance site Nerdwallet said, “The single best advice I can give to people is to get preapproved for a car loan from your bank.”
He also said pre-approved loans also reveal the problems(if any) with your credit. So it’s always for the best if you build up your credit score and also check for any incorrect information in your credit report.
John Van Alst, a lawyer with the National Consumer Law Center, says, “People are being charged more for interest rates than they should be based upon their creditworthiness.”
He also mentioned that the dealership is allowed to increase the rate it offers to the customer above what you actually qualify for. Most buyers don’t realise this. Suppose, with your credit score you qualify for an interest rate of 6% but the dealership may not tell you the whole truth and instead they might offer you a rate of 9%.
Caution: There are numerous shady lending outfits operating online today. It is advisable to go with a reputed and reliable bank, credit union or a trustworthy lender with a good history.
- Choosing Second-hand vehicles
Buyers with a limited budget most likely would have bought used cars and not new ones, that is, before Covid happened. However, with the ongoing pandemic, it is difficult to get your hands on a good second-hand car, that too in fair condition and within your budget. Second-hand markets’ sales are off the charts.
Right now, this is an unstable world economy. However, people are avoiding public transport for the fear of catching the virus. Therefore, they are choosing to buy old cars.
It is also worth mentioning that fabrics temporarily stopped producing for new autos. One other factor that contributed to the increase in prices in the second-hand market.
Do not hurry and purchase just any previously owned car. Examine it thoroughly with any car repair service to get a good insight into your car and try not to overpay while buying it.
- Keep calm and negotiate
If you are at a dealership, buying a car, don’t reveal too much information to the salespeople. It is like a card game where you should hold your cards right and also play them right.
Surely, the concerned salesperson will want to know if you’re planning to trade in another car or whether you’re looking for a loan through the respective dealership. It is advisable to ignore such questions as they might backfire.
Remember, you’re dealing with pros here.
Suppose, you negotiate a really good purchase price on the car. They most likely will increase the interest rate to make some extra bucks on you.
Once you finalize the price, then you can talk about a trade-in(if you have one). But you have to do your homework there too. There are plenty of websites available where you can see what buyers are asking for your car.
So, if you feel the dealership is lowballing you on your deal, don’t be afraid to walk away or to buy that car at a satisfying price without the trade-in with the dealership. There are plenty of good options today.
- Going with Electric or Hybrid Cars
This goes without saying that all national governments and car manufacturers believe that electric cars are the future. Several car manufacturers already announced their plans to stop making new motor vehicles that consume diesel or gas. On the other hand, the governments updated their legislation to foster the production of eco-friendly cars and make the exploitation of older models economically unviable.
Electric cars are efficient and comfortable. They have impressive acceleration and they produce very little noise while moving. While the fuel cost is immensely low as compared to gas, the cart will need a substantial amount of time to get charged up.
Now, imagine if you’re on a highway and your battery dies. It’s a disaster. Therefore, you should buy a hybrid means of transportation.
An electric car is equipped with solely an electric motor and there is no internal combustion engine. However, for hybrid ones, the electric motor is auxiliary and the main energy comes from the internal combustion engine.
- Increasing deductibles
A deductible is the amount of money you pay before insurance picks up the tab in the event of an accident, theft or any other sorts of damage to your vehicle. While selecting car insurance, you can always choose a deductible.
Depending on your policy, deductibles normally vary from $250 to $1,000. Increasing the deductible may be an incredibly sensible move if you’re reluctant to file smaller claims to avoid the risk of pushing up your premium.
- Pros and Cons of Leasing
When you’re leasing any car, you’d usually pay less than when financing it. You would actually need to pay only towards depreciation, though not the full value of the auto.
Now, Lease contracts last for 3 years on average. After that, one can always trade their means of transport in and opt for a new one. This approach will enable them to try different models, colours and configurations.
Also, thanks to a short lease term, they will be unlikely to come across many mechanical issues that come with it. The manufacturer’s warranty should cover them even if there are some.
- Wait till End of the Year
Under normal circumstances, most dealers offer discounts in October. During December, one should be able to find the best bargain. Although, their choice of vehicles might be too limited.
Also, people who are planning to buy autos of a particular colour or a certain configuration should buy one by Autumn.
Do your research before buying a car.
Invest some time, do your research and put in some hours in calculations and you will find that sweet deal.
The bottom line is, if you want to have a new car, you can buy or lease it. There are options to choose from- a gas, diesel, electric or hybrid vehicle. Also, you can minimize insurance expenditures.
However, it is advisable to not accept 0% down payment offers.
We hope this article helps you find your dream ride and most importantly at the right price. Cheers! #KhabarLive #hydnews
(About the Author: Rintu Biswas has been working as a content marketer. He is very passionate writer. Currently, he is managing the content creation with Deutsches Auto Service Center.)