When you buy a car, you expect the person selling it will tell you everything you need to know upfront. But, of course, the real world doesn’t work like that. Many things go unspoken (even if they shouldn’t). That’s where this little post can help. We look at the things they will never tell you about buying a car so you can go into purchase situations feeling more informed. Here’s everything you need to know:
You Can Walk Away
Dealerships aren’t keen on the idea of you walking away from a car deal. But, of course, you can. If there’s something you don’t like about the vehicle or the contract, nothing says that you have to make the purchase. Ultimately, you don’t.
Walking away feels awkward, but sometimes it is necessary. If the vehicle isn’t right, it is much better to avoid it altogether instead of going through the motions of buying it, only to regret it later.
The Financing Office Can Be A Trap
The financing office can also be a trap whenever you purchase a vehicle, something that’s obvious when you consider all the PCP claims currently underway. Car sellers and finance companies are keen to put people on expensive tariffs that involve spending a lot of money over time, including paying commissions, which isn’t right.
As such, you’ll want to be careful before accepting any deal. Check it through and run it by a solicitor you trust if you’re in doubt.
Certified Pre-Owned Isn’t A Guarantee
Certified pre-owned seems like a guarantee, but the reality is that it isn’t. While it might not be as risky as some other ventures, it isn’t a magic bullet.
The problem with certified pre-owned is that the certification depends on the dealer’s standards. There isn’t any independently verifying body, so you’re relying on the reputation of the seller.
Granted, certified pre-owned is usually better than buying from a regular private buyer (which is why so many people use dealerships).
However, it isn’t the perfect solution. Much better to buy a car on PCP or some other lease deal, because then you know standards are being built into the contract, and you have recourse. You aren’t necessarily taking full ownership of the vehicle.
Timing Matters More Than You Think
Timing when you buy a vehicle also matters much more than you think. Many dealers have quotas that they have to meet by the end of the month or the staff may lose their bonuses. As such, buying in the first week of the month can be quite different from the last.
Fortunately, it doesn’t take long to learn the patterns. If you can network with other car buyers, you can usually figure out when the best time to go is. The end of the year often offers bumper discounts because that’s when annual bonuses are paid. Managers are keen to get as many cars off the dealership floor as they can before January 1st comes around.
If you can strike up a personal relationship with the person who runs the shop, that can help even more. Getting to know them often gives you discounts year-round or a heads-up when prices are about to crash or sales come through.
The Test Drive Is More Than Just Fun
Test-driving vehicles is more than just fun. Car dealerships don’t usually like it because it’s a chance for you to see how the car drives.
Test drives give you the opportunity to detect weird smells or funny rattling noises. Exploring these further can provide critical data on whether you should purchase the vehicle, ask for a discount, or try somewhere else.
The report and service history of the vehicle should provide the majority of this critical information. However, sometimes it doesn’t. If that happens, you may want to seek opportunities elsewhere. After purchase, simple measures like using car covers can help preserve the car’s condition and minimize exposure to weather-related wear.
During the test drive, put the vehicle through its paces. See whether the engine is purring like a new vehicle (if the dealership is saying that it is new) and if there are any issues. Also, check the warranty and see what it covers. It should allow you to bring the vehicle back to the dealership any time within the first three years or so for fixes and repairs if anything mechanical goes wrong.
Pre-Approving Finance Can Save You A Lot Of Money
They will also never tell you that pre-approving finance for your new car can save you thousands. Going to external financing providers is almost always better than working with the dealers themselves and whatever credit lender does their financing for them.
Remember, most lenders have backroom deals with credit providers where they get paid commission for signing you up. As such, you always need to be careful because lenders will often increase their rates to cover their costs.
Furthermore, on-the-spot credit usually involves fewer checks. Again, lenders may need to increase the interest rate to cover their costs.
Trade-In Value Is A Powerful Negotiation Tool
Car dealers will also never tell you what a powerful tool trade-in value can be. Many buyers assume their existing vehicle isn’t worth much to the showroom, but the reality couldn’t be further from the truth. These outlets are experts in refreshing and reselling pre-owned vehicles to customers looking for bargains.
Trading in cars is one of the most potent ways to make things happen for you on the discount side. Take whatever the showroom offers you and ask for 20% more. Even then, they should make a decent profit.
The reason you can ask for more is that most people undervalue their existing vehicles and don’t want the hassle. But dealerships know exactly what they’re worth and will sell them whenever they can.
Out-The-Door Prices Aren’t Final
Lastly, it’s worth remembering that so-called “out-the-door” prices aren’t final. While they are a guide, you may need to pay more. For example, some dealers charge fees (especially for discount vehicles) which can bump up the price. You may also need to pay taxes and registration fees. Therefore, always ask about these additions before taking the plunge.
Featured Image from Pexels – CC0 License
