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1/12/09

Tips for Buying New or Used Automobiles

Buying a car, whether it is new or used, is a game. The buyer is trying to purchase the car for the lowest price possible. The seller, on the other hand, is trying to sell his/her car for the highest price possible. Therefore, because the buyer's goals are completely at odds with the seller's, there will be some haggling and negotiations involved in the transaction.

There are many factors that are involved in a car sale that could create leverage for either the seller or the buyer. Should you be purchasing a car from a car dealership and require financing, your credit score could be a bargaining chip for you if your score is good or could be a bargaining chip for the dealership if your score is low. Additionally, depending on the age of the car and the popularity of the car in which you are interested, these factors could be bargaining chips for you or the dealership. Therefore, if you want a really good deal on a car, make sure that you have enough leverage so that you can purchase the car for the price that you want.

When you want to buy a car, you have to be realistic with your offer. Obviously, you are trying to get the car you want for the lowest price possible. However, you have to present an offer that is credible. For example, if the car is worth $40,000 and you offer $15,000, there is probably no chance that you will be able to purchase the car (absent some extremely big financial problem of the owner of the car) for such a low price. Therefore, when you are negotiating, start with an offer that is low but credible.

One of the biggest problems with buying a used car or a car from a private seller is that you will receive no warranties. Thus, unless you are a mechanic or have some education about cars, you will need to have a used car inspected before you purchase the same. The last thing that you want to do is buy a car that has no warranties and that breaks on you in a couple of weeks.

When purchasing a car, utilize the leverage that you have in order to get the best price. Make your opening offer low, but credible. And, if you are buying a used car and it has no warranties, make sure that you have the car inspected before you purchase it.

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