Useful Tips on Buying a New or Used Car

People will buy a used car for very obvious reasons; it’s cheaper than a new one. Anyone who has a tight family budget appreciates the need to save a little cash wherever possible. But what about a new shiny car with no risks whatsoever? Here are some useful tips on buying a new or used car:

Buying a new car:

  A new car is second only to a home as the most expensive purchase many consumers make. That's why it's important to know how to make a smart deal. Think about what car model and options you want and how much you're willing to spend. Do some research, you'll be less likely to feel pressured into making a hasty or expensive decision at the showroom and more likely to get a better deal.

Consider these suggestions:

  Check publications at a library or on the Internet that discuss new car features and prices. These may provide information on the dealer's costs for specific models and options. Shop around to get the best possible price by comparing models and prices in ads and at dealer showrooms. You also may want to contact car-buying services and broker-buying services to make comparisons. Plan to negotiate on price. Dealers may be willing to bargain on their profit margin. Usually, this is the difference between the manufacturer's suggested retail price (MSRP) and the invoice price. Consider ordering your new car if you don't see what you want on the dealer's lot. This may involve a delay, but cars on the lot may have options you don't want — and that can raise the price.

Trading in your old car:

  Discuss the possibility of a trade-in only after you've negotiated the best possible price for your new car and after you've researched the value of your old car. Check the library for reference books or magazines that can tell you how much it is worth. This information may help you get a better price from the dealer. Though it may take longer to sell your car yourself, you generally will get more money than if you trade it in.

Buying a used car:

  Before you start shopping for a used car, do some homework. It may save you serious money. Consider driving habits, what the car will be used for, and your budget. Research models, options, costs, repair records, safety tests, and mileage through libraries, bookstores, and websites.