Buying a car on a budget: How to get the best deal?

According to Mike Hale Acura, 80 percent of people use the internet to look for cars when planning to buy a new vehicle.

It is true, like any other industry, the car buying process is constantly evolving. It is because of the new technologies, changing marketing dynamics, and consumer tastes and preferences.

According to the 2016 Beepi Consumer Automotive Index, 87 percent of Americans dislike something about car shopping at dealerships. On the other hand, 61 percent feel that they are taken advantage of while being there.

Buying a car is a long process. It requires detailed research and extensive information. Amid all this, things become even tougher if you are on a budget and want to finance a car. How can you land the best deal on a vehicle that is perfect for all your needs?

Don’t worry, we’ve got you covered! Here is the ultimate guide for you to get the best car deal when on a budget.

1.      Conduct Extensive Research

Whether you’re planning on buying a new or used car, conducting thorough research is one of the most integral steps of the car buying process.

According to a study conducted by Auto Trader, car buyers spend 59 percent of their time in researching online. Similarly, another research shows that car shoppers spend around 108 days in the market before they make the final purchase.

It is because studying the market helps you make the best car purchase at a reasonable price. If you are not sure how to go about it then here are some useful tips that can help you understand all the important details regarding the car of your choice:

  • While conducting your research, rely on credible sources of information.
  • Try to gain information regarding the most suitable cars that are falling in your budget.
  • Ensure that the car of your choice is reliable.

2.     Check Out the Pre-Financing Options

The price of the car is a critical factor that influences our car-buying decision.  It is because buying a car involves a substantial amount of money. Today, automobile dealers offer different financing options that can help you arrange money easily.

These plans are customized to your needs to make the purchase easier for you. Some of the known pre-financing options include:

  • Leasing

If you want to buy a car but don’t have the money to pay for it upfront, then you can buy it on lease. This process involves making a down payment in the first instance, and you can then pay the remaining amount in monthly installments.

However, the only limitation of this financing option is that the lessor might put some restrictions, such as you cannot make any changes to the car. So, to get a good lease offer, you might have to negotiate with the lessor.

  • Bank Loan

Another popular method to finance an automobile is through a car loan. Many banks offer loans to finance a car at different interest rates. These loans can be repaid in small monthly payments.

  • Cash

The good thing about buying a car by paying cash upfront is that you can easily get the car rights. However, for that, you need to arrange a huge amount of cash to pay upfront.

3.     Consider Both Options – New and Used Car

While buying a car, it isn’t necessary to always buy a new one. It is best to consider both – new and used car – options to get the best deal.

According to a study conducted by McKinsey, it is estimated that Americans buy 39.4 million used cars each year, and this number is expected to grow in the coming years.

However, it is important to note that finding a used car in optimum condition is not a piece of cake. So, if you are buying a secondhand car, make sure to get it inspected by a trusted mechanic. He will identify all the faults in the vehicle and also advise you if you are paying the right amount or not.

4.     Don’t Forget to Shop Around

You don’t buy a car very often, therefore to make the best purchase, the key is to shop around and study the market.

A research conducted by Automotive revealed that from research to the final purchase, a car shopper would spend, on average, 96 days in the car buying process. It is done to ensure that you’re getting the best return on your car investment.

To help you, we have mentioned a few tips to shop around for the car of your choice:

  • Find the best cars available by doing extensive market visits.
  • Don’t hesitate to negotiate a lower price with the dealer.
  • Ask relevant questions, like will after-sales service be included in the package, etc.

5.     Test Drive the Car

Taking a test drive allows you to ensure whether the car that you’re buying is up to the mark or not. A survey conducted by Auto Trader identified that, on a scale of 1-10, 81 percent of car buyers gave the test-driving process an 8-10 rating.

Looking to buy a car, and want to ensure a proper test drive? Here a few things you must check during the test drive:

  • When you enter the car, take your time in adjusting the seat, and looking around for features, like seat adjustments.
  • Don’t forget to check the back seats to see if they are comfortable and have enough room.
  • Test out the electronics of the car, including the iPod jack, Bluetooth, etc.
  • While driving the vehicle, it is essential to note whether the drive was smooth or rough.

Final Words

In a nutshell, it is critical to note that every aspect of the car buying process requires attention, be it documentation, or assessing the car’s condition.

Therefore, if you’re planning to buy a car, it is advised to invest a considerable amount of time and effort into the research. Besides this, you can ensure that you’re getting the best car deal by following the tips and tricks mentioned above.

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