What You Need To Know About Buying A New Car Off The Lot

While buying a used car can save you money, many people prefer to buy brand new cars. The reality is that, while you pay more for the vehicle, it comes with a warranty, service plan, and zero mileage. It is likely to last you longer and save you money on repairs in the long run.

When choosing to buy a new car right off the lot, there are some basics you need to know. It’s not as simple as filling in a form and driving away. Here are some things you should consider.

Get Insurance Immediately

One thing that should give you pause is insurance. It does not have to be too long a pause, with newcomer to car insurance Lemonade offering quick and easy signup online. However, it should be something you take care of before leaving the lot.

The reality is that you are as much at risk of a collision on the day you buy your car as you will be a year into the future. You could drive the car off the lot and be involved in an accident minutes later. If you don’t have insurance at that point, you’ve just spent a lot of money (or committed to a loan) for a car that may be totaled.

It’s not as exciting as taking a photo with your brand new car, fresh with a ribbon, before driving away. But it can save you a lot of heartbreak and financial strife.

Ask About a Demo (But Be Skeptical)

Over the years, people have become wise to what is considered a huge opportunity. Car dealerships have demo cars, which they showcase on the floor and use for test drives. These cars are in perfect condition and have barely any mileage on the clock. However, once a new year starts, they are considered a year old. Cars quickly depreciate in value, and dealerships therefore sell their demos at a discount.

When shopping for a new car at the dealership, you should definitely ask if they have any demos available. Find out what the going price on these cars is. But don’t simply buy the demo because it comes at a cheaper price. There are disadvantages to demo cars.

The biggest disadvantage is that it really does have a lower value – and that affects its resale value. Dealerships may seem to be giving you a discounted price, but it may be more than what the car is actually worth.

Another disadvantage is that the warranty may last for a shorter period of time and the service plan may be impacted by the mileage on the clock. Paying less now may cost you in the future.

You Can Negotiate

When buying a second-hand car, you can negotiate the price. After all, there is no foolproof way of assessing the value of a car that has been driven regularly by someone else. But did you know you can negotiate the price of a new car as well?

Since you’re buying from a dealership, the price they give you is, of course, marked up from the manufacturer’s price. You can get an idea of how much the cost price of the car is from some online research. Having this information at hand when you go into the negotiation gives you a good advantage.

Nonetheless, it is important to understand that you need to be reasonable with your offer. The dealership will only sell cars at a profit that is good for their bottom line. No matter how much they want your business, they won’t sell you a car if it doesn’t benefit them.

Keep in mind that negotiating does not necessarily mean getting a lower price on the car. Rather, you can ask for features that would usually cost extra to be bundled in.

Buying a new car off the lot is an exciting process. Make sure you come prepared with all the information you need so that you get the best deal.