When it comes to tips for buying a car, the one tip everyone wants is how to get the most value for his or her money.  This means evaluating the purchase terms, or “deal.”  You’ll find that car buying deals are as much a function of the car that you’re looking at as the market in which you’re shopping.

When you’re evaluating a car deal, the financial aspects aren’t the place to start.  The place to start is with what you want and need the car to do.  Few people buy a car just on a whim – you buy a car because you need or want something.  For example, maybe you need a car to get back and forth to work, or you need a car that’s bigger to accommodate your growing family.  In these situations, safety and reliability are probably your overriding concerns.  Or perhaps you need a working truck to haul supplies for your business.  In this example, cargo space may be most important.

These subjective factors can’t be underestimated.  You can make the best financial deal in the world, but if you end up with a car that doesn’t meet your needs, it won’t matter.  So reconcile your needs and wants, and then determine your budget.  Then you can begin the shopping phase of the car purchase activity.

Once you’ve found a car that meets your needs and wants, see how the sticker price compares to your budgeted spending amount.  This is where things become murky.  There’s no absolute percentage difference between the amount you have budgeted and the sticker price that will help you to determine whether or not the car might be a good deal.  The subjective factors once again come in to play.  For example, if you’ve budgeted x amount to spend on your working truck, but x + $4,000 will give you increased cargo space that will ultimately allow you to increase your business profits, is it worth it to go above your budget?  Only you can be the judge of that.  A good deal is very much a subjective evaluation and will vary from person to person.

In addition, it’s important to remember that the sticker price is just an opening negotiation position.  A copy of the Kelley Blue Book can give you helpful information on the estimated price you can expect to pay for various automobiles, both new and used.  Look at how the various options affect the price of the car and know which options matter to you.  Consider whether or not purchase incentives, such as rebates, buy-back programs, or reduced loan interest rates, are offered.  Warranties and maintenance must also be included in your consideration.

Consider the purchase price of a car independent of any trade-in you may be offering.  Negotiate with several different vendors and see what different dealerships have to offer.  If negotiation isn’t your strongest talent, take someone along with you who’s good at negotiating deals.  Just don’t lose sight of the fact that it’s your car – a good deal on the wrong car isn’t a good deal at all.

Purchasing a car and getting a good deal is like building a good lasagna, with layers of different considerations that must all come together to create a good final product.  In lasagna, some people want vegetarian and some people want Italian sausage.  Some people love ricotta, but others insist that it’s the Parmesan that really makes the difference.  It’s the same with car deals.  Figure out the various layers that mean value to you and you’ll ultimately find a car deal that you’re happy with.

No Comments

No comments yet.

RSS feed for comments on this post.

Sorry, the comment form is closed at this time.