If you’re considering buying a new car in the near future, you might benefit from a few new car buying tips that will enable you to avoid being misled and Skup samochodów Katowice deceived by over-ambitious car salespeople and thereby make the new car buying experience enjoyable safer and more comfortable.

Good car dealers

How to distinguish the good car dealers from the less scrupulous? The truth is that for many reasons it is impossible to tell them apart. The only way to protect yourself is to gather as much information about what you intend to buy and what dealers are doing to make you spend more than you need to.

Time of purchase

Let’s start at the point of purchase. You must be prepared to make multiple trips to as many dealerships as possible. The best time to go is when there aren’t many other buyers around, this is usually mid-week, things are slow and the sales teams are very keen to strike a deal. The other optimal time to visit
new car dealerships is when dealerships are trying to meet their monthly sales quotas, which is usually towards the end of the month.

Never be fooled into answering the question, “How much can you afford in monthly repayments?” This is a classic trick where the dealer can make a few extra thousand if you fall for it. If you are sensible, you have made all financial arrangements before heading to the car park. Make sure you hit the
final street price before moving on to anything else.

Do not sign any papers that the seller may show you before the deal is closed. Likewise, you should not leave any documents with the dealer during a test drive. This is not required.

Loan or car purchase plan?

I’m thinking about buying a car soon, not a brand new car but one that might be a few years old. So given the current financial situation, should I take out a personal loan to finance the car, or should I go for a newer car and car buying plan, or should I be sensible and save for my new car!?

Let’s look at the difference between these 3 options and what each route means to me. First, a personal loan or unsecured loan. I don’t want a secured loan because it would be secured by the equity in my home and with 2 kids to support I think my home is more important than a nice new car! Let’s say I’m looking for £10,000 over 4 years that’s around £310 a month and over 3 years it would be around £240 a month. All in all, not too bad, but still a pretty hefty amount to find each month. At least I know the car is mine and I can trade it in and use it as collateral for another vehicle if I want.

My second option would

My second option would be a car purchase plan and these are usually only available on brand new cars. You pay a starting amount that is deducted from the total price of the car. The remaining amount is divided by the length of time you want your contract to run, plus typically 8 to 10 percent APR. An optional final payment must then be made at the end of the contract period. You can choose not to make this payment but you must return the car then I would be back where I started ie no car! The other option is to pay the balance and then I can keep the car. Or I could get another auto skup katowice brand new car once I settle the current contract. My problem with these systems is that the car prices are pretty high. For example, a car I looked at has a list price of £21,000, but you could buy the same car second-hand privately with 8,000-12,000km for around £17,000-18,000. So £4,000 depreciation over the first few thousand miles. That’s why I can’t bring myself to buy a new car.

My other option, of course, is to go the old-fashioned route and save the money. I thought it would be a good idea to save 50 percent of the cost and then I could try to get an unsecured loan for the other 50 percent. That way, if for some reason I couldn’t make the repayments, I could sell the car and then pay off the balance of the loan. Then I could use the amount I have left over to buy another car, either straight away a cheap used car or use the money as a down payment on another car that costs less.

This is all based on what I can repay each month in terms of both what I can afford and what I feel is reasonable paying for a car each month.

0