Are you looking to finance or lease a new car? If you are reading this article then you are probably considering both options.
Buying a new car is always a complicated process. This requires a lot of research and negotiations with the car dealers. While some of you are excellent at negotiations part others are not.
At the end of the day what really matters is that everyone no matter who should get the car of their choice, without paying much for the car payments and drive home happy and satisfied with the deal they got.
However, buying a new car generates a lot of excitement and sensations. If you are buying a car for the first time for you and your family it is a relatively serious undertaking. The necessary information is needed to get the best car at the price you want to spend.
In this article, I have mentioned specific tips on How To Find Good Deals On New Cars? Lease and Finance deciding help, the overall size and style of the car you are looking for or which fits your budgeting needs.
Buying A New Car (Lease and Finance)
Of course, you have to be practical. Evaluate whether you want the car to carry passengers or you need something that can often carry cargo and sports equipment. Assessing your needs, you can focus and limit your search to specific car models.
Before you buy a car, you need to know which car you want to buy. It is best to start by defining your desires and desires. Make a list of what you like, what you don’t like, what you want, and what you need.
Writing these ideas on paper will help you think about what exactly you are looking for. Knowing what you want is the first step to getting the best deal possible.
Car Lease Vs. Car Finance
In this section let us discuss the Pros and Cons of Car Lease Vs. Finance and compare them both.
Let’s start with the Car Lease First.
Pros and Cons Of Car Lease:
1. Car Lease is set for a defined term. The lease period is usually for 3, 4 or 5 years and depends on the contract you’ll enter into and negotiation skills with the car dealer. Once you enter into the lease, you as the car owner and the manufacturer (BMW, Honda, Audi..) both are equally responsible in case of accidents or any claims
2. Auto Insurance policies specifically ask you if the car is leased or financed before generating the quote. So, your manufacturer name and address will always be on the insurance policy as far you are on the lease agreement
3. Once the lease term is over and provided you are within the km range as defined in your initial contract, without any major vehicle damages and cleanliness of the vehicle, you should be good to go.
4. At the end of the lease term it’s your choice to get a new vehicle or to buyout the vehicle paying off the remaining balance (the balance of the vehicle at the lease end should be mentioned on the initial lease contract – that is the amount you’ll pay)
5. With a lease, it’s low on maintenance because the car you get is brand new and by the time it starts wearing out you are returning it back to the dealer and getting a new one. So it’s a win for you.
Now, let’s look at a couple of Benefits of Car Finance.
Pros and Cons Of Car Finance
1. Fixed number of payments. 3,5, or 7 years. Even Though for the 7-year term the interest rates are maximum, it works out for most people as the biweekly or monthly costs are so much lower. Helps in budgeting and keeping room for other expenses
2. Like a lease, you can go for a $0 down and pay the rest in installments (EMI). Your car overall cost will be split across into equated monthly installments
3. Once the biweekly or monthly payments are done, the car is all yours, no need to scramble around looking for new car deals or giving it back as in a lease
4. With Car Finance, the complete car ownership is on you. So anything that goes wrong with your vehicle, you’ll need to get it fixed. The car dealer has nothing to do with it neither the Manufacturer shares any responsibility unless during the warranty period. Whereas with car lease the vehicle is under dual hold – you and the manufacturer. So it’s the responsibility of both parties to make sure the vehicle is in good shape.
5. The other important pro of car financing is – there’s no cap on the annual km limit. As in leases, if you go above your km reading, at the end of the term you’ll have to pay for that extra kms – yes every km extra you drive in a car lease, you’ll end up paying a certain $$ amount, whereas, in finance, you’re free to drive as much you want no questions asked 🙂
6. At the end of the car finance term, you’re free from the monthly payments and the car is all yours to keep till you want
Finding Where To Buy The Car With Good Deals
After choosing a model and type of car, you can find the best place to buy a car. Find the best promotional offer for your car. It doesn’t matter if the advertising dealer is too far to go shopping.
Then, starting from the nearest dealership, start calling the shops that sell cars of the same brand and ask everyone if they have reached advertising prices. One of the considerations is the price – of course, you also want to get a car for the price.
It is suggested that if you are looking for a car, select a registered car dealer. Car dealers offer good prices and conditions in their vehicles, and many of them offer excellent after-sales service. Investing in a car through a private dealer can be frustrating, and it could even be a car theft, which is the biggest challenge.
Take Into Account Your Monthly Budget
You can also narrow down your budget choice to a new car, depending on the type of car you choose. You should also consider the monthly payment if you are buying a rental car.
If you show that you do not know what you want, or are open to everything that they have, you are doomed. Ask the seller who will immediately contact you about the colours he will bring with the XYZ car (indicate the make, year of manufacture, model, and other items that you want to add).
Organize Your Car Financing Yourself
Do not let the dealer take over. It is advisable to take car loans from banks or other lenders, and not take loans from dealers.
The zero-interest financing options that dealers usually announce are not for everyone. They meet many conditions as an acceptance criterion. Be careful. It is always better to arrange car financing in advance. Allowing a dealer to fund a car usually costs more.
The seller will also recommend that you purchase an extended car warranty. Decide the payment options for your car. Be it cash or leasing This is almost always beneficial to the dealer, not the buyer.
Don’t Settle For The First Numbers You Get
After presenting the price of the vehicle, you should know if this price is compatible with other car dealers. If it is more, then negotiate the best price. If the dealer cannot offer the best price, get ready to move to another dealer. After completing the tests, he went to the dealer to buy a car, negotiated a price. Buy a car from a seller at the best price.
Get offers from as many dealers as possible.
Also, remember that the price of the sticker is not the purchase price.
A dealer gets a car at a much lower cost.
The seller’s invoice price is indicated on many sites and price directories. But the invoice price is not necessarily what the dealer paid. It gets a lot cheaper. He receives additional discounts, incentives for dealers, and much more. Keep this in mind when negotiating prices.
Choose The Right Time Of The Year To Buy A New Car
Many consumer analysts recommend that December is the best time to buy a new car. Usually, people do not buy at this time of the year. Usually, a dealer rightfully offers almost all sales growth commissions.
As a result, you can make a very good offer. But if you want to buy a new model as soon as it enters the market, the best time is from July to August.
However, the price of the old model is low. A car dealer must sell as many cars as possible to prepare for the latest editions of his car dealership. Now you can get the best car for the price you want to spend.
Always Remember To Negotiate With A Car Dealer To Get A Great Deal
It is advisable to communicate with different dealers.
Find out which company offers the maximum incentive to buy, such as discounts or cash compensation. Be sure and insist on negotiations with the seller.
A highly qualified sales manager will help you negotiate a higher price than planned.
Beware Of Car Dealer’s Extras
Do not be saddled with things you don’t need in the car, such as extra towing, rust protection or burglary. These items can be added to the car to increase dealer profit. Additional advertising and marketing fees may apply. Do not forget to read all the little things and know what you pay for.
Car dealer operations can be difficult, but if you are knowledgeable about the process of buying a car and a vehicle that you have forgotten, you may not have to pay more than you should have in your car. When you have the right information and focus on your goal, you can be sure that you will get the best value for your money.
After carefully examining and checking the car you want to buy, find out how you can pay for the car you want to buy.
Also, do not forget to know your rights to be a good guide when buying a car.
Remember that you should feel confident when shopping. Take time and gain knowledge that will help you make decisions. This is a big one that will cost you a lot of money. Think about it, practice saying no, and know what you are looking for. Good luck
There you go, that was my personal view for anyone looking out to buy a new car or switch from one.
If you prefer to lease or finance, that’s a personal choice so I’ll not be making any recommendation. Please do your budget calculations, set an amount for the new purchase and find the right product/choice.
All the best with your car hunting! 🙂
If you liked the content of this article, do share it on social media. Also, please let me know your thoughts and comments below.
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Sagar Sridhar is a personal finance blogger from Canada. His genuine passion for personal finance coupled with his unique style of writing is what stands out. Professionally, he is a computer engineer, agile certified and has a master’s degree in Project Management. His writing has been featured or quoted in the leading Canadian publications such as Credit Canada and many other personal finance publications. While he is juggling between his day job and blogging, he is the main author on this blog and has miles to go before making the final pit stop.