A Guide for New Car Buyers
For the multitudes of people who decide to purchase a vehicle, the process of selecting and buying a car can be overwhelming and time-consuming. Finding the right vehicle that will meet the personal needs of a buyer and fall under the right price bracket is no simple task. Last year, over 16.5 million new vehicles were purchased in the United States alone. With an increase of 5.9 percent in sales from 2013 to 2014, automakers are hitting their profit margins, but are consumers getting the most for their money? Here are a few tips and suggestions for potential buyers to utilize to ensure they get the right vehicle and price to meet their needs.
Knowledge Is Power
Lately in the auto sales market what is trending is the emergence of the informed buyer. Over 80 percent of new car buyers have done some automotive research via online before they ever step through the doors of a car dealership. When consumers do their homework they can narrow down their choices, find what suits them best and capitalize on a payment plan that will not have them struggling to make a car payment every month. Thorough research prepares buyers to handle pushy salespeople, garnering them the upper-hand when it comes to finding the best deal possible.
Top Concerns For Buyers
- working with a salesperson
- acquiring the right car
- amount of time it takes to find and purchase a vehicle
- the financial aspects involved
The Don't(s) For Consumers
Searching for a vehicle doesn't have to be difficult as long as consumers are aware of the ins and outs of the automotive sales industry. Discovering how salespeople attain hefty profits at the hands of unsuspecting customers gives buyers a bird's eye view into "The Don't(s)" of buying a car. Here are some costly situations and pitfalls to avoid when purchasing a vehicle:
- springtime car purchases
- visiting only one car dealership
- focusing on low monthly payments rather than the sustained worth of a new vehicle
- buying hastily when a salesperson declares the deal only good for one day
- failing to find and have on hand the trade-in value of one's vehicle
Three Factors That Influence Pricing
1.) Good timing in purchasing equates to savings, and as the old adage states "time is money." Albeit cliche this adage rings true for both sellers and consumers in the auto industry. When to buy and when not to buy a car affects the type of deal a consumer receives on a new vehicle. Seasonally springtime is notorious for pinching the automotive consumers' pockets, as people tend to have more to spend (from tax refunds) and are out enjoying the mild weather. Sellers are aware of the facts and high prices on cars are commonplace during spring. The winter season is the best time to buy because meeting sales quotas are often the deciding factor in whether or not a salesperson receives an end of the year bonus.
2.) Another aspect of "timing" plays a pivotal role in determining pricing for the car consumer. Buying a car when your bank account balance is at an all-time low, or credit scores are not at their highest, creates opportunities for dealerships to skip the haggling and slap on the expensive price tag. Establishing good credit before purchasing a vehicle allows more haggling power for consumers. Negotiating is crucial to acquiring a great deal on a car, the better the credit score the less leverage salespeople wield.
3.) Impulse buying is an expensive past-time. Dealerships are known for staging. Vehicles equipped with high-tech features, lengthy guarantees and framed by glitzy show rooms favor dealership sales but come at a cost to the enticed consumer. Narrowing down vehicle options by researching online creates a durable buffer against impulse buying. Car buyers can find the pricing they want and the model that fits their lifestyle without getting taken in by glamorous surroundings and unnecessary additions. The prepared and informed consumer is the satisfied consumer.
Additional Tips For Consumers
- Make purchases at the end of the month or day.
- Negotiating troubles? Get a third party involved.
- Allow for a limited time frame for negotiation.
- Don't be afraid to walk away.
With a little extra time and energy, consumers can create their own successful buying experience.