In purchasing a new car or a second one, you would want to consider checking for hidden costs, additional fees and other charges. The acquisition process can be quite too exciting, people tend to forget to dig deeper and think about the possibilities of spending hundreds, maybe even thousands of dollars over the lifetime of your loan.
These extra charges are also one of the basic reasons why I always suggest people to get novated car leasing instead of the usual lease or car dealerships out there. However, for people who would prefer getting a car on cash or through a car dealership, you might want to consider these tips before jumping into a decision in getting the car of your dreams.
Getting the dream car that you want should not be rushed. Most rushed decisions are failures if not carefully thought about and planed. You should sit down with your sales representative and negotiate the terms of your contracts, no matter how long it may take to be able to get all the details that you need for a wise financial investment. Do not be afraid to ask questions. This is the best time to know the basics like figuring out your interest rates, calculating for monthly payments and other big and small details.
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Do not sign on that dotted line yet, unless your done with checking out the following.
Always read the fine print
The contract may seem to be too long and grueling to read, but believe me, reading those fine prints is a must. Even though you trust your dealer completely, you should fully understand the contract that you are about to sign. Read every detail, take down notes and ask your sales representative to explain sentences or paragraphs that you do not understand.
Some sales representatives, a few of them might slide in a few additional undisclosed charges or extras to bring in huge mark-ups to their profit. Avoid this by digging into your contract carefully. If possible, ask a friend, an experienced person or an expert if possible to read the contract with you and fully understand the terms that comes with it. Check out blank spaces as well because you might need to insert a $0 or a N/A.
Most first-time car buyers are not familiar with the standard features of an automobile. Here are some of the extras you might want to check on your contract to be able to review if getting them as a bundle with your car loan or get the service, at a cheaper rate, somewhere else.
Some service extras you might want to check include rust proofing, extended warranties, fabric protectors, paint sealants, credit life insurance, car alarms and window etchings. If this is not pre-packaged with your vehicle, you might want to consider getting the service someplace else.
Documentation and administration fees
A lot of regulatory costs on local car dealerships are being implemented depending on the state and local governments governing a car dealership company. Some companies offset some of these fees and services to their clients will most likely add a documentation or administration fee to your transaction. Fees can range from $100 to $500 and may be reasonable, but an amount that you can haggle with your sales rep.
During the lifetime of your vehicle, you will be required to pay for registrations, tags, insurance, taxes, oil changes and fuel every year as well as maintenance and repairs. Full-novated leases cover such extra expenses so you might want to check this option for getting a new car instead of the usual process that people are accustomed too.
Be a wiser car owner by going through the steps of your car purchase. Prevent yourself from having to deal with unexpected expenses and fees on your car purchase or car loan by being a more keen and wise buyer.