Be a Smart Car Buyer: Nail Down Your Budget First
One of the big mistakes any car buyer can do is to go to a car dealer without a budget or financing arrangement ready. It’s like going to battle without a plan and can easily result in a disaster for you. Here are several reasons why knowing how much you can spend is a powerful tool when you’re shopping for a car:
It Sets Your Limits. A car lot presents you with a range of choices and some of these choices can be very tempting. It’s hard to resist the allure of some of the fancier cars on the market, but knowing you won’t be able to buy them is a simple way to put a damper on the temptation. This lets decide rationally when buying a car.
Convenience. Once you’ve decided on what car to buy, there’s no need to scramble around for funds. With a prepared budget, you know exactly where your money for the purchase is going to come from.
It Lets You Negotiate. Knowing your spending power gives you a chance to negotiate on equal terms with a dealer. Dealers have a target price of their own, which would be in their favor. You can bargain down so that you can both be satisfied with the transaction.