A used car can be a wise, affordable purchase. As with any major purchase, it’s essential to do your research before you start shopping for a vehicle. One of the ways you can save money is by avoiding high-pressure tactics from salespeople and dealerships. For example, most dealerships will try to sell you an extended warranty for the first two years that the vehicle is out on the lot. But here’s how you can save big by doing some homework before heading out to look at cars:
If you’re buying used cars in montclair from a private seller, they may not even know that a factory warranty still covers the vehicle.
Shop around for an extended warranty that covers out-of-warranty repairs and matches the coverage period of your vehicle’s factory warranty. You should also check to see if the plan has an authorized repair facility close to you. A good rule of thumb is to read the fine print carefully before signing any paperwork. Some extended warranties leave out major expenses and coverage restrictions. If you have questions about how it works, ask your dealer or manufacturer’s service center for more information.
Many people overlook their financing options when trying to buy a reliable used car on a budget. There are a few choices that you should look into when buying used. One of the best options is to contact your local credit union or bank. A car loan from your bank will be much lower than a loan from a dealership and won’t involve the need for additional fees for dealer preparation or other add-ons.
If you use an auto loan calculator, you’ll see that those fees can add up quickly! Not only will you get a lower interest rate on your auto loan, but it’ll also increase your buying power considerably. Some banks will offer cash back incentives if you open up a new checking account with them.
You should also consider an auto lease-purchase agreement. This option is a hybrid between a loan and a lease agreement. You’ll be able to drive the vehicle off the lot with minimal maintenance cost. You can trade or return it at the end of the term, just like any other lease agreement. However, you can sell or give away your vehicle to someone else at any time during the contract period with no penalties or fees involved.