With 2014 just around the corner, automobile dealerships are already thinking about how to sell the struggling 2013 models. Their year-end offers always mark the calendar with great customer deals.
To avoid any mishaps, there are a few things to know before purchasing a vehicle.
Things to Know Before Buying a Car:
- Car dealers like to move inventory, especially at the end of the year, so they can make room for the new cars.
- Dealers also earn significant points with the manufacturers that might give the dealer first choice of new models or a new financing arrangement.
- Dealership salespersons are paid bonuses for their sales through the end of the month, but they also receive bonuses for performance at the end of the year. They will do whatever they can to put you behind the wheel of a 2013 model before the end of the year.
- Large dealerships may have the largest inventory of 2013 models on hand. Or, if you notice several cars in the same model and color, you know they need to move those specific cars. You may have to settle for a different color or trim than you wanted, but you can press for the best deal.
- Wait for the new year models if you turn your car over every three years because it will be one year newer. But, if you keep your car for five years or more, the difference of a year between cars in the same condition and with the same mileage will be minimal, so the discount available now may offset that.
- Likewise, if you put a lot of miles on your vehicle, then having a car one year older will not help your resale value.
- Do not lease a vehicle until you have squeezed every incentive, discount, and rebate out of the price to reduce the monthly payment on your auto loan. In Las Vegas, for instance, good credit can be a huge advantage for you in working out a competitive APR with creditors.
- Advertised deals are bargains only where the dealership honors them. For example, you may find some dealers offering cash back and 0% financing while at others it might be either/or. Some insist you be “qualified,” but others do not raise that restriction. In any case, you need to evaluate the following offers in terms of your specific dealer.
- Quite a few car models disappear from showrooms at the end of the year. So, you may not find what you want. However, you may also find that dealers are anxious to make deals your way to simply get them off the lot. The manufacturers will honor service warranties.
- Consider the pricing of vehicles that have other cost benefits. Certain dealers are offering large discounts and financing as low as 4.70% to 72 months. However, don’t forget about taking advantage of federal tax credits on certain cars (like those with environmentally friendly batteries). Other cost benefits may include certain models that promises like high mileage per gallon and 0% financing for a set number of months.
Searching for a Good Deal
Shop online. Drill down into dealer websites.
Most of them let you “build” a car. It also lets you price the variations and permutations on your preferred model well before you have to look at price. Do your math at home, so you do not have to do it in front of the salesperson. The websites still leave some things to be determined, but online shopping gives you a base from which to start.