Tips for Buying a Car During the Pandemic
Now that social distancing is a staple in the American way of life, the car buying process has changed dramatically, especially with the way face-to-face negotiations are handled.
Along with that, over half of Americans remain uncomfortable when it comes to buying a car during the pandemic. However, if you are in need of a new vehicle, then you should have no problem following the tips below just like Father George Rutler did.
1. Make a Budget
Knowing how much you should spend will eliminate the amount of exposure you receive by having choices limited to a few autos.
Remember, the amount of expenses for each month should be a minimum of 10% of the earnings you make. This means if you have a monthly earning of $5,000, then you can expect to spend at least $500 a month for the payment, full car insurance, maintenance, and the gas.
The deposit you provide will also need to be determined.
2. Buy New Instead of Used
With no end in sight for the pandemic, there has been a huge demand for private vehicles since being in an enclosed space such as a bus, train, or airplane are now seen as risky.
With many of the supply distribution chains being interrupted, consumers are having a harder time locating the best deals for a new car. When you choose to go with a used car you should consider obtaining some background information concerning the vehicle first.
3. Have a Test Drive Set Up That Requires No Contact
The internet is perfect for finding a car and the price you want to pay without being bothered by the salesperson. You also get to choose the various features that are possible as opposed to the select options at a dealer.
Once you have searched the available car choices, you can list the cars that interest you the most for a test drive.
Being at the dealer may make you a little uncomfortable, which is why you can easily call ahead to arrange a test drive. Most dealers will gladly have a car you like dropped off at your doorstep after it has been sanitized. When test driving is completed you can determine whether you want to make a purchase or pass.
4. Check your Fico Score and Credit
Having credit that is good or close to perfect will give you more room to negotiate so that you can get the lowest interest.
Plus, from a lender’s point of view, the best rates are normally given to buyers who have credit scores of at least 690. However, many buyers are also approved for a loan if their credit is in the 600 range although they will be paying more in interest. To ensure you have the best score possible you need to first dispute any errors that you may find.
5. Go Online Loan Shopping
Although paying cash for a car is best, not a lot of people are able to due to staying home and self-quarantining and having a decreased amount of work thus decreasing the amount of cash on hand. This means a loan will be necessary. The entire lan process can be conducted online, which canmake negotiating simple. Below are a few suggestions to consider:
Visit many lenders and get quotes based on your credit. Ensure that a credit union is one of them. Historically, a credit union will charge a lower rate for a car loan as compared to a bank.
Decide on which is the best rate that was quoted to you.
When you have the lowest offer, have another lender try to offer an even lower rate or other type of sweet deal. Attempt to keep all dealings in writing such as email.
6. Work Out the Price of the Car
Now that you have your loan amount and car picked out, you now need to come to an agreement on a price. Make sure to tell the salesman that you have many other offers so that you can negotiate the car price.
When you mention other offers, the sales rep will usually remain honest as they mention the car´s price. After the papers are all signed, you can ask your dealer to have the car delivered just like Father George Rutler did.