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Buying A Car Doesn't Have To Be Hard. Read These 9 Tips

Your search for a new or used car is about to begin.

Motorists are, by nature, a cautious sort. Or at least they should be. That's why they'll be doing some serious homework before buying a car. And that's why we've put together a list of 9 things you need to know before buying a car. Long story short, you need to get some quotes. That way, you can find out how much your dream car will cost you with and without insurance. As luck would have it, we've got some tips on that as well.

Budget First - Decide how much money you can commit to your search. It helps to work backwards here: Are you a cash-in-hand kind of guy or gal, or do you need financing? Working through this step will help keep your options open.

It's not your money

It is essential to understand that the price of the vehicle is not set in stone. Often, it is negotiable, especially if you are financing or leasing the car. This means that you can take the initial offer and go back and try to negotiate a better price. Your ability to negotiate will depend on your credit standing, the incentives being offered by the manufacturer and others.

Whatever you've been told will be a lie!

Car dealers are crooks. The stereotype is that used-car salesmen are all slimy, lying, cheating criminals. And your friends are right: They probably are, at least some of them. For example, in 2010, the Federal Trade Commission received over 15,000 complaints about car dealerships, and the Better Business Bureau collected over 30,000 complaints about car salespeople in 2015 alone. They're not all bad, but you need to know how to deal with them to get the best deal — and avoid getting ripped off.No matter what the salesman may tell you, he doesn't have access to a magical machine that can give him more cash if you hand him a bunch of cheques or credit cards instead of cold hard cash.No matter who you ask, the answer you'll get will be some sort of sales pitch. That's what makes buying a car so confusing. With all of the different numbers and terms to remember, you need a cheat sheet to ensure you get what you pay for.

You'll pay more for lemon.

First and foremost, make sure you don't buy a lemon car.

Lemon cars have had significant problems with their parts within the first two years of ownership. These problems were discovered during the manufacturer's warranty period but reappear after the warranty expires. Lemon cars are sold as a "certified pre-owned" vehicle, which may seem like a good deal for drivers who want a used car with some guarantees.

Lemon cars are sold to the masses as high-quality vehicles and thus are backed by the manufacturer's warranty. The cars are sold online and in used car dealerships, often at a

significant discount. However, once the warranty expires, the cars experience problems related to their previous manufacturing defects. The used car dealership will be powerless to fix these problems because they cannot repair these vehicles.

By purchasing a lemon car, you're rolling the dice with your money and your safety. You'll pay more for lemon than for the reliable car of your dreams — and the seller has no obligation to resolve the problem for you.

Interest Rates: Low market interest rates are great news for those who have good credit and can afford large down payments, but that doesn't mean it's a great time to buy. The average interest rate on a new car loan was 5.5 per cent this past August, according to Edmunds. That's nearly double what it was ten years ago.

Shop around

Why shop around for a car? Well, let me count the ways...

1. You can't kick the tires

2. No test drive

3. No haggling on the price

4. You can't go over vehicles with a fine-tooth comb looking for defects

5. Most importantly, if you buy brand new, you aren't ever going to be able to buy it at a used car price...even if you only drive it for a year or two. Lastly, buying from an independent auto dealer is suitable for local businesses and also for our environment.

Insurance costs

You will need to purchase auto insurance if you are financing a vehicle purchase. It's tough to get an auto loan without coverage. This is true no matter how much money you have saved for the down payment or how much you have for a cash reserve in your savings account. "Deductibles" are also essential to consider. This is the amount you will pay before your insurance kicks in. The lower your deductible, the higher your premiums. It doesnt hurt to compare car insurance on before settling on one. Most auto insurers offer quotes on their websites and are available to answer your questions over the phone or by writing.

Maintenance Costs: The cost of maintenance on a new vehicle can vary greatly and depend on the vehicle make and model you choose. For example, cars with V6 engines tend to have higher maintenance costs than four-cylinder vehicles.

Avoid Add Ons

While you're at the dealership doing deal-related stuff, don't sign anything that isn't a purchase agreement. If you decide to purchase an add-on like a service contract or GAP insurance, do that first and then have the dealership deduct the add-on price from your down payment. You want to leave with a simple purchase agreement, not a receipt for an option package that you might not like. There are many extras offered at dealerships, and you're going to be tempted by many of them. But here's what you need to keep in mind:

Don't buy any add-ons at the dealership. While it might make sense to purchase an extended warranty or a service plan, there's no need to buy one from the dealership. You can get them for cheaper online or through third parties who may provide better coverage.


There are lots of things to consider before buying a car. Do not rush into buying a car before you do proper research. Investigate dealerships' service departments and find out how long they have been there. Ask friends in your area for good dealerships and mechanics.

If you intend to buy a used car, try to get the VIN number and call the DMV to see if the vehicle is clean. Try to negotiate the price. If the price is too high, try to walk away and see if the dealer will lower it.

This article does not necessarily reflect the opinions of the editors or the management of EconoTimes

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