Next to your home and kid’s college, your car is a major financial investment. This is why you want to take a proactive approach to buying a new car. The more research and thought you put into the purchase, the more you’ll be able to avoid buyer’s remorse. Here is a good approach to take:
Trade In or Sell Your Old Car
What is your current car worth? The Kelly Blue Book is probably the best source. They rate a car for its trade-in value or if you plan on selling it yourself. You might find that selling it on your own could get you more money but there is no guarantee it will sell. Still, it might be worth the effort to list it on Craigslist for a week to see if there are any offers. Two very important things with a private sale: Get the terms in writing and that should include the fact that this is an “as is” sale. You’re not giving any warranties or making any promises about performance. Next, don’t sell your car to a friend or family member. Too many things can go wrong.
Whatever money you make on the sale, you can still put towards the purchase of your new car. At least that way, it will take up a lot less time than having you bring the car into the dealer and getting it evaluated.
Budget Out Your Loan
You can get pre-approved for a car loan before showing up at the dealer. That means you can know exactly what you can spend. However, just because you can borrow up to a certain amount doesn’t mean you have to go that high. You should always look for ways to get your monthly payments as manageable as possible. Your budget should also include insurance and annual registration fees, all of which will go up.
New Car Pricing
As you start researching your new car, you’ll find there are two price points: The invoice price and the MSRP price. The invoice is the dealer’s cost for the vehicle. Think of this as the “wholesale price.” This is how much they bought the car for. It is good information to know because you can then be realistic with your negotiating. For instance, if the invoice price of a car is $20,000, then there is no way you’ll get it for anything less than that. The MSRP is the “sticker price.” This is the invoice price, plus all the extras the dealer has tacked on. This will be the number you can start “shaving.”
When you bring that car home, you’ll want to protect that investment. Best approach for that is to park in a garage. To get that space ready, you’ll want to bring in Junk King Hudson Valley. These are the professional junk haulers who can empty out a garage in no time at all. It only takes one junk clearing appointment with Junk King Hudson Valley to make sure your new car will have a safe place to park.