KAYAM Korner

Are you a smart buyer? Are you aware of some of the tricks that are being used to lure you into a dealership? Ever seen those unusually low prices that dealers advertise? They’ll say the car was sold when you get there to see it, and try to upsell you on what else is there since you already made the trip, The idea is to quote you an unusually low price to get you into the dealership and then move to a higher price once you show up, ... What do you do when this happens? Tell the salesperson that you want the offer approved in advance by the sales manager before you leave the house, and that if the sales manager won’t do it, you’re not coming, Consider dealing with a broker, if your interested please let me know and I'll be happy to recommend some great places!

Are you a smart buyer? Timing can be crucial It should come as no surprise to you that car salesmen have targets to make each month, which means that you definitely have an opportunity to use this to your advantage. Buying your car in the last few days of the month can see you get a much better deal than if you try to buy at the beginning of that month, while they have plenty of selling days ahead and no great incentive to slash prices.... Asking for a decent discount is much more likely to be considered if a salesman is close to their target and needs to close your sale to get them over the line. If giving you a bigger discount to get the deal through unlocks a bonus for them, there is a good chance they might pull out the stops to give you what you want.

Are you a smart buyer? Budget Set a budget and do not sway from it unless you’re getting a really good deal. Though this seems like an obvious factor, many buyers do not mind splurging over a car. Keep registration, insurance costs, and maintenance and regular costs in mind, too. This might not seem like a lot at first but when compounded, they can make a huge difference in costs.

Become a 'Smarter Buyer' Thinking of financing? The most popular car payment option by far is financing because it lets you borrow the money you need to cover a vehicle’s full price. By settling for this option, you slowly pay off the amount plus interest on a monthly basis. A typical financing term lasts for about five years or 60 months, but some are known to last for up to eight years or 96 months. The longer the term, the lower the monthly payments. However, a long finan...cing term also equals to more interest and a significant loss in value by the time the payments are done. The latter is known as depreciation. So, if you decide to sell the vehicle at some point, these factors may greatly reduce your potential return. An average car depreciates about 60 per cent of its initial cost after five years. This means that by the time you are done paying off an even longer loan, the vehicle will be worth only a fraction of its cost. If you try to sell the car before the loan is finished, you may run into something called negative equity or owing more than the car is worth. It is a direct result of a loss in value, which means that longer loan terms increase the risk of its occurrence. There are two places where a car buyer can obtain vehicle financing from the dealership where the vehicle is being purchased or a financial institution like a bank or credit union. By opting for dealership financing, you can benefit from related incentives. Zero-per-cent financing is one of them, which is an offer to waive interest for a certain period of time. However, in many cases, the proposal tends to result in higher interest rates later on. Obtaining a loan from a financial institution can yield benefits of its own, such as lower interest rates and various convenience features, including the ability to check the status of your payment through an existing account. Most lenders will ask you for a down payment regardless of whether they are a dealership or a financial institution. The minimum amount tends to be 10 per cent of the purchase price, but you are allowed to increase it if you want your monthly payments to be lower or your term length shorter. The best way to determine the most viable financing option is by comparing offers from dealerships to that of a financial institution. You may even examine the offers from multiple financial institutions to increase your chances of finding the best deal.

Smart Buyers Focus on the terms and not on the monthly payments. If you get low monthly payments, but have to pay the loan back for more than 7 years, it’s probably not worth it. You want to try to find the loan that will give you the lowest interest rate and the shortest monthly payments.