When planning to buy new car, we should assume that we will pay more than just the original price. We also need to pay add-on fees, hidden costs and various charges. Also, if we apply for car loan; we would need to spend thousands of dollars on loan interest. Considering this fact, it is better to sit with the salesperson on how to reduce the overall costs. We should figure out charges, interest rate and our monthly payment. This is an important thing to do before we sign the dotted line.
It is also important to scrutinize the fine print, as we may find additional charges and fees. Extra costs may find their way into the contract and salespeople don’t always explain it to us. We should ask the salespeople to stop using industry or legal terms that we don’t understand. Salespeople may expect that we will get saturated with the process that we want to get it over with by signing the document. It’s quite amazing to see how average consumer can be so trusting. This could be the first time for buyers to buy the car. Even if it’s their second or third car, it’s probably about five years ago. Some unscrupulous salespeople may have come up with new tactics to mislead buyers.
We should be careful if the salesperson seems to add something to the contract. Undisclosed charges can bring huge mark ups to their overall profits. It is important that there’s no blank space on the contract. We should ask the salespeople to put “$0” on any of them. We should know about typical extras that can be added to our contract. Before buying a car, we should know about its standard features. It means that we won’t be charged for something that is already included in the basic model.
Extras that can be included in the contract are extended warranty, rust proofing, car alarm, fabric protector, insurance, paint sealant, windows etching and GAP. Whether each of these components are needed could depend on our preferences and situations. When we purchase the basic model of the car, it is quite likely that the salespeople would try to sell us some or even all the extras. If the salespeople seem to pressure us, it’s probably a good idea to choose other dealerships. Adding extras to our car contracts could mean that we need to pay more than $2,000 above the standard price for the basic model of the car. It doesn’t mean that we should avoid buying extras, but they should be essential and won’t add significantly to the basic price.
We should watch for any hidden cost when we purchase a car. We may need to pay for insurance, taxes, tags, registration, engine oil and half tank of fuel. We should always look for ways to pay less up front. When buying a new car model, we should know that things shouldn’t be too expensive during the first year. This is different with used cars. As these vehicles enter their third year, some components will need to replaced or repaired. This is an added factor that we should know when buying used cars.