Following 6-steps will help you in shopping for a new car.
1. Right Dealer for Test Drive
Choosing the right dealer is important; most dealers will have a single range of autos from specified auto maker. Sometimes there is good resemblance in a SUV and a Mini Van for people transportation. There is a need to know every make and model out there. But if you’re opting to buy a used vehicle then it is different strategy. Then it’s best to choose a dealer who does not specializes in one brand of vehicles but can provide more test rides from different makers inside your desired needs. And remember you will be shelling out a reasonable fee for some broker too.
2. Second Opinion that Makes Sense
After test-driving at least 3 different auto brands things will be visible that which of the three vehicles really suits your needs. Before submitting yourself to the dealer, make sure you ask for a second opinion about the vehicle you are about to sign purchase contract. The sense prevails after a new model hits the market and the resale value of second-hand does not go down for first three years.
3. Minor Changes vs Full Model Change
This is very important to understand about minor changes Vs Full model change. Minor changes in any model cannot reflect on an overall body design change. It can be Front grill, head-lights, tail lights, interior or mechanical change in oversizing or downsizing the engine. People often clean closets, change wallpaper, or rearrange and buy new furniture; for your new car also you have to set up the stage. It’s not like buying a can of soda, so that you can throw it away if it doesn’t taste good to you but most car owners get attached to their cars.
Major changes imply that the whole design + interior + Specs are changed by the automaker. Major changes in family cars happen in about 5 years, and normally between 7- 10 years in 4-runners, trucks and buses. Japanese automakers are very dynamic and the others follow them in making the changes to their line-ups.
4. Financing your new Car
Mostly the new cars are purchased via 3rd. party financing and the dealers have a financing schemes too. There is less possibility of buying on cash basis but if one can afford then nothing like it. If you are a regular changer then a lease plan is also available at most of the dealers, say 3-5 or 7 years lease plan. Please have a chat with your tax advisor as how to approach about the financing. Like the 3 above points this is also a very important one. Sometimes to promote any model the dealers introduce very low interest rates as low as 1%-2% annually. If it is 3rd. party financing, then you have to study about the pros and cons of the schemes, because sometimes you will be paying as much as 10% annual interest which might affect your budget.
5. Insurance in Detail
Recently a senate bill 1567 has taken effect about prohibition of other drivers to drive a car owned by a family. This means that the households cannot drive family car if their name is not covered by the insurance company or if they are not the policy owner.
Same rules actually apply all over the world, but look at the individual policy about car theft and damage occurred due to nature eg; floods, hurricanes etc. Look at the payment options provided by your insurance company. Also, checkout if your car claims are handled by in-house adjusters or some 3rd. party adjusters. This will save you from a great hassle and loss of time.
6. Selling your car
This is the last tip and very useful if you follow easy rules about knowing value of your pre-owned car and find the right buyer. New buyers are always prowling for clean, well-maintained and mechanical sound vehicles. If you can individually hire a good broker and explain the history of your car, they might be able to provide good advice. The high trend is selling your car at the auto auctions, mostly these auctions are not open for general public but your broker is certainly member of most of these auction sites. Be willing to be flexible after all you have to sell the vehicle. Settle on a price that you both can agree upon is best when the vehicle is auctioned.
