28 May 2014

Buying a new car is an exciting time! It’s exhilarating to know that a new car will soon be yours. But the actual process of purchasing a new car can be less than enjoyable. Car salesman can be so pushy. How do you know you’re getting a good deal?

You could use a car buying service who will deal with the dealers directly on your behalf. By hiring a company to do the dirty work of negotiating, you can limit your involvement to simply communicating what you’re looking for. At the end of the process, you simply need to go pick up your car. In some cases, the car will be delivered to you.

Let the dealerships compete for your business. After doing the obligatory test-drives and determining what you want, contact competing dealerships and ask for their best price. You can then play the dealerships against each other. If you’re patient, you’ll save a significant amount of money.

Use an individual car broker. The process is similar to the company-run car buying services. In some cases, the broker negotiates his fee and receives it from the dealership. From a practical standpoint, this allows you to finance the fee rather than paying it out of your own pocket straight away. You need to take this into account when working out your finances - you'll be paying interest on this fee for the duration of the finance period.

It’s generally accepted that car buying services will save most people about $1,000 over what they would have done on their own. However, if you’re skillful at negotiating, you may be able to do better than the buying service, especially after the fee is taken into account. How good are you at negotiating?

Buying a car can be easier and less expensive than you might think!

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