How To Avoid Overpaying For YourNext Car

Car shopping can be exciting forsome and a bit overwhelming for others, but if there's one thing, we can allagree on, it's that buying a car is a big financial decision, and anyone wouldwant to know how to buy a car for cheap and get value for money. However, cardealers, like any business, are in it for the money and always try to get themost profit possible from a sale, even if it's at your expense. In fact, youwould be surprised at just how often even repeat buyers fall for their tricks.

But before you resign to the fateof spending more than you should when buying a car, the good news is that it'spossible to recognize such tactics and steer clear of them. In this blog, we'resharing the best ways to help you avoid overpaying for your next car, how toget the best deal from a car dealer and tips to make your buying experience smoother.

Table of contents

Howdealers make you overpay when buying a car

7 proven ways to help you avoid overpaying for yournext car

1. Set your budget before shopping

2. Evaluate financing options thoroughly

3. Read the vehicle history report

4. Always negotiate the price

5. Inspect the vehicle

6. Don't make emotional decisions

7. Work with a car price negotiator

The takeaway?

How dealers make you overpay when buying a car

Car dealers have a simple goal,and that's to maximizetheir profit. Therefore, you should expect them to use every trick in thebook to get you to overpay when buying a car, whether it's brand new orpre-owned.

Some of the most common tacticsthey use include:

• Adding market adjustments to raise the priceabove the manufacturer’s suggested retail price.
• Extra costs in the form of add-ons, documentation fees,dealer prep fees and other hidden fees.
• Pushing loans with ridiculously high interestrates or longer repayment terms that cost you more over time.
• Creating a sense of urgency to trick you intosigning deals without taking time to think through them.

If you're not prepared, itbecomes easy for them to make you spend thousands more when buying a car.Luckily for you, by knowing how to buy a car for cheap, it becomes easy to takecontrol of your car purchase.

7 proven ways to help you avoid overpaying for your next car

1. Set your budget before shopping

Before you even start looking athow to get the best deal from a car dealer or how to buy a car for cheap, takea hard look at your finances and decide how much you can actually afford. Andwe’re not just talking about the sticker price—you’ll also need to factor intaxes, insurance, and maintenance.

Dealers tend to focus on monthlypayments and stretch out loans over longer terms to make cars seem affordable.But what they don’t tell you is that you’ll most probably end up paying waymore in interest over time when buying a car. Our expert recommendation? Focuson the total cost of the car and refuse to be talked into anything beyond yourbudget.

2. Evaluate financing options thoroughly

When it comes to how to get thebest deal from a car dealer, a lot of people are quick to think that dealerfinancing is the easiest option when buying a car, and it is, but at a steepprice. That's because dealerships mark up interest rates from lenders, meaningyou could qualify for a better loan if you do a little digging.

So, before you bite the bullet,get pre-approved by a bank or credit union. This helps you understand what youcan afford while giving you an upper hand in negotiations. Still keen on dealerfinancing? Make sure you read the fine print, compare the loan cost over timeand keep an eye out for hidden fees.

3. Read the vehicle history report

If you want to buy a used car, never take the dealer’s word for it. After all, great interiors and exteriorsdon't mean a car has never had issues. That's why it'simportant to look at a vehiclehistory report as it can reveal accidents, signs of the odometer beingrolled back, flood damage and even title issues.

A dealer you can trust shouldhave no issues providing you with a history report. If they hesitate or tellyou to trust them, take that as a sign to walk away.

4. Always negotiate the price

Car prices are rarely set instone, and when a dealer offers you a price, they expect you to counter it,even if they say it's the best they can do. Therefore, when you're trying toget a grasp on how to get the best deal from a car dealer, skipping this step issimply leaving money on the table. So, before you walk into a dealership, dosome research to find out the fair market value of the car you're looking tobuy. Trading in? Expect them to lowball you by rolling in your trade-in vehicleto the deal and making it seem like you're getting a great price.

If the dealer's asking price istoo high, don't be afraid to make a counteroffer, and if you're trading in,negotiate the car price and trade-in separately. You can also ask for a costbreakdown to see if any unnecessary add-ons are inflating the price and startnegotiating dealer fees.

Most importantly, don't be afraidto walk away if you feel like you're not getting a good deal on the car priceor when negotiating dealer fees. Your best leverage as a buyer is the abilityto leave, and chances are, they'll come back to you with a better offer.

5. Inspect the vehicle

Even certified pre-owned cars canhave underlying issues that are not obvious at first glance and you can counton dealers to make a car look perfect so they can close the deal. Therefore,you should never skip a vehicle inspection when looking at how to get the bestdeal from a car dealer.

If you see a car you like, takeit to a trusted mechanic for a pre-purchase inspection. In our books, the extracost is worth the savings in potential future repairs you could end up payingdown the line.  Also pay attention to howthe car handles during your test drive, check the warning lights and keep anear out for strange noises.

6. Don't make emotional decisions

Dealers always get the most outof emotional buyers, from telling them that a car is in high demand or thatsomeone else is interested in buying it to make them act fast. However, buyinga car is a huge financial decision, not an emotional one. So, when trying tofigure out how to buy a car for cheap, never rush into a purchase because ofsales pressure and don't be afraid to sleep on it or compare it with otheroptions. If you ever feel like you're being pressured to buy something, walkaway. After all, there will always be another car.

7. Work with a car price negotiator

Negotiating dealer fees and doingthe legwork to figure out what's happening in the market and everything inbetween is not for everyone. That's why you should consider working with a carprice negotiator when thinking about how to buy a car for cheap. Car price negotiators like Negotiate Best Deal don’t just know all the tricks in the book that dealers use to maximize theirprofits but also leverage their networks to help you find and secure a good carat a fair price without overpaying on financing.

The takeaway?

It's easy to overpay for a car,but with the right tricks under your sleeve, you'll be able to identify tacticsdealers use and counter them with ease. Follow these steps and you'll be wellon your way to making buying a car with full confidence knowing that you'resecuring the best deal. Want to make your car buying experience stress-free? Connect with us and let our car price negotiators do the hard work for you.