Going vehicle shopping? Simply having a budget in mind and finding the nearest dealership is not the best way to get your hands on a new or used vehicle. Since buying a vehicle, be it for personal or commercial use, is a significant investment, there are many points to consider before signing the contract. Here are eight useful vehicle shopping tips and ideas for negotiating the best price on your next purchase.

Find out your vehicle’s current value
Knowing how much you have invested in the current vehicle will be crucial in managing finances for your next purchase. For example, if you have paid off the current vehicle in cash and have no dues pending, there is extra purchasing power in hand. But if the current automobile is a lease or was purchased with a tenured auto loan, then there might still be interest and installments payments to foreclose the purchase. This greatly affects your purchasing power as it limits how much you can spend on the new car.

Decided on how much to spend
New car loans and leasing options have tempted consumers to go overboard with their budgets. The installments may seem harmless at the time of acquisition. But once the payments start to pile up, you will notice a significant chunk of your earnings and savings going into repaying the value of the car even as it depreciates year on year. So, always have a budget in mind and stick to it, irrespective of how you plan to pay off your new car. Experts suggest spending no more than 20% of the total income on vehicle shopping.

Consider both new and used deals
Used or certified preowned vehicles are a decent purchase if you don’t plan to drive the same make and model for the next few years. It’ll be cheaper to buy a used car and more accessible to flip it after a couple of years of use to upgrade to a better model. You can even spend the leftover money from the budget on whatever you like. However, if your intention is to hold on to the purchase for the foreseeable future, then buying a new factory-shipped car is a better option.

Know the actual cost of ownership
Knowing the fair price value will give you a good starting point to carry forward the negotiations thereon. Also, you need to be aware of the actual cost of the vehicle and not just the MSRP. It includes registration fees, documentation fees, and sales tax which are charged above the price of the car. In addition, it is better to get an idea of the insurance costs, repairs, maintenance estimates, and on-road value of the vehicle once it starts depreciating. Understand that these cost factors will vary depending on the make and model of the vehicle.

Don’t make an impulse purchase
Firstly, take a test drive. Even if you have researched the vehicle, go for a long drive to get a feel of its performance and comfort. Check out the features and list the ones you want and the ones that are just premium luxuries you can do without daily. Secondly, don’t say yes to everything the salesperson offers, including extended warranties, extra accessories, and exclusive deals. These are unnecessary and only add to the price of the vehicle. If you are buying a used car, hire a professional technician to inspect vital components and assess the vehicle’s present condition.

Ask the experts
If you know someone among your friends, family, and colleagues who regularly buy and sell cars, have a word with them. You may gain valuable insights on how to research the best deals and understand some negotiating tips or tricks before going vehicle shopping. It’s also a good idea to go online and read consumer reviews posted on mainstream car blogs, check out buying guides, and even watch auto expert reviews to make an informed decision.

Keep trade-in values a secret
Never reveal your old vehicle’s trade-in value till the end of the negotiations. The reason: you’ll get a better price on the quote after the seller has negotiated first. For example, if the seller has settled for a value of $22,00 and starts offering the paperwork, reveal then that you also have a trade-in estimate based on market research. To make the sale, the seller will have to deduct the trade-in value and revise the offer. You get a better price on the same car with this simple information-sharing delay.

Reviewing all the paperwork
Checking and verifying all the paperwork and documentation as required by the state mandate is a crucial final step in the vehicle shopping process. The terms of the purchase contract are binding and can be legally enforced. So, ensure everything is in order before driving out of the dealership.