One of the greatest inquiries an auto purchaser faces when looking for new auto is whether to purchase or lease. The vast majority you ask WILL have a solid opinion on the subject, and they will protect their feeling in this open deliberation as though the eventual fate of the country relied on upon it. On the off chance that you visit Craigslist Auto gathering, and ask whether you ought to rent or purchase – inside of 5 minutes your mental capacities will be addressed for considering renting, in light of the fact that as per the successive publications of that discussion – everyone ought to purchase just 10 year-old autos and pay money, the main contradiction will be whether you ought to purchase Japanese or American, which will trigger another rush of warmed exchange and ridiculing. Then again, on the off chance that you visit VWVortex or BimmerPost – the reaction will be more sensible, and you really will quit fooling around exhortation. Actually a large number of individuals lease autos consistently, a great deal of them are exceptionally shrewd and fruitful, and renting is something you ought to consider when looking for another auto, the minimum you can do is keep an open mind.
The best times to buy a new car are at the end of the month, the end of the quarter and the end of the year. Dealers and their salespeople are rewarded for meeting sales goals during those time periods, so the sale of a few more vehicles could result in their getting a huge bonus that is based on all the vehicles they sold before the end of that time period. In these situations, dealers and salespeople are so motivated to close a sale that they will let some new cars go with little-or-no profit in the deal.
A good rule to follow is to limit your car payment to 20% of the funds that you have available every month after paying for all your living expenses including rent/mortgage payment, utilities, credit card payments, insurance, food, etc. And your down payment should be at least 10% of the total purchase amount.
While some people have benefited from having an extended warranty (or service contract), for most people they do not make financial sense. In most cases, consumers will spend more money paying for the extended warranty than they will get back in benefits (paid claims), especially if they use their car loan to finance the cost of the warranty. This is why most consumer advocates and financial experts advise against buying an extended warranty or service contract. Another pitfall of buying them is that many dealers dramatically inflate the warranty prices to increase their profits, making them horrible deals. And some dealers have sold policies that were all but worthless because they were not backed by a major insurance company, so repair claims were not paid.
Trading in your old car is easier, but you will usually get more money for it if you sell it yourself. The downside is that you will have to put in some time and effort to get that extra money. If you are upside down on your old loan or lease, and you are determined to buy a new car anyway, you might be tempted to trade in your old car so the lender can add your negative equity to your new loan. This is a really bad idea; you should wait and pay down your old loan first. Adding your negative equity to your new car loan will just bury you with more debt, trapping you in the next car for a long time.
When you buy a car “as is” that means that there is no warranty on the car at all, no matter what the dealer and/or salespeople may say. If they say there really is a warranty, tell them to prove it by removing the phrase “as is” from your contract and paperwork, and putting the warranty in writing. If they refuse to do that, then you know there’s no warranty.