Purchasing a Car

Purchasing a new or used car can be a source of stress for many consumers. The amount of money we put at risk and the uncertainty of whether we will really end up with the kind of quality vehicle we want and need are all sources of strain throughout the process. Dealing with auto salespeople does not make matters any easier. They are, of course, just doing their job. And their job is to get the consumer to buy a car. Auto dealerships are businesses just like any other. They need to make money in order to keep their doors open. As such, their basic goal is to sell as many cars as possible and to make as much money on each car as they can. Salespeople make their money on a combination of the number of vehicles they sell each month and the profit on each vehicle. Generally used vehicles are more profitable to auto dealerships, so salespeople do better financially on these ones.

Good Deal on a Car

As a consumer in this same scenario, you have a job to do as well. Your job as the buyer is to get the best deal you can on a vehicle. You want the most value for every dollar you spend. So in essence, this transaction is no different than any other we make at the grocery store or the mall. Sellers want to make money and buyers want to save money. As a consumer, you want to avoid some of the common pitfalls that can occur in the process of a car purchase. Here are some things to keep in mind as you get ready to buy a vehicle. Avoiding these pitfalls can help assure that you do get a fair deal on the vehicle you end up purchasing.

Best Times to Buy Cars

There are a few different times of year when buyers generally get the best deals on cars. The first is in the period from July to October, during which time the new model year cars are rolling out and dealers are trying to clear out the previous model years to make room; and the second is during end of the year sales in the last few weeks of the calendar year when auto manufacturers slash prices to try to pump up sales for the year. For consumers, the best way to get a fair price is to know what the competition is charging. For example, if you know what make and model you want and there's only one dealer in town, call the dealer down the road a piece and ask them what kind of prices they have. Salespeople will often tell you that their prices are locked in and they cannot change them, especially in new cars, but there is only some truth to this.

Financial Advisors and Car Purchases

Working with and choosing a financial advisor is the best way to get a good sense of what you can afford and the budget you need to stick to when purchasing a car. A financial advisor can take an impartial expert look at your balance sheet and the details of your personal or family finances and give you sound advice based on income, expenditures, and other information. Work with a local financial advisor whom you trust and get a better feel for the budget you should be setting for all your expenditures and not just that new car. Then you can go to the dealer with confidence, already knowing your limits, and you'll be less likely to get talked into a high payment.

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