Always get the blue book rating for your new car. Trading in a vehicle can take some money off the final price, but that’s only if you know how much it’s worth. If the dealer is trying to low ball your trade-in, your knowledge will give you a better edge to negotiate.
As far as CARFAX is concerned, for 40 dollars you can get unlimited reports on as many cars as you like. This is an inexpensive deal when you are shopping for a car. A car is a major purchase, and as in most major purchases a little advance research, and money spent before the purchase will make for better sleeping after the purchase.
As the loan is secured on the car, if you have difficulties with the repayments the car will be repossessed. This can happen after as little as two missed payments. The finance company will then sell the car cheaply at auction in order to recover some of the debt quickly. You will still have to pay the difference between the price the company gets for the car and the amount outstanding on the loan. There will also be some costs to pay.
Car Hire Purchase. Here you pay a deposit which can be many thousands and then pay the balance by instalments. This deal will be offered by banks and automotive seo combined. This is an easy way to buy a car and is readily available from many outlets. There is a problem with it in that the vehicle does not belong to you until you have paid off the finance. You need permission of the lender to sell it. Also if you fall behind with payments the car can be repossessed and sold leaving you to pay the balance not collected plus costs.
One good thing about live vehicle auctions is that if you arrive well in advance of the start time, you may be able to inspect vehicles of interest and make sure that you really are interested in them. You may even be able to hear the car run, but most likely will be unable to drive it. A car is a major purchase so being able to view the car in person can be a great benefit since you can simply pass up vehicles that you do not like the look of.
One of the most important factors you should consider is how you carry yourself as a prospective buyer. You should look and feel self-assured. The sales staff would know if you’re not. Another aspect is to be firm in making a choice. Otherwise, you might be swayed with your decision as these salespersons offer deals that they say “are worth checking out”, but which you can do without as you come to your senses. Remember to buy only what you need. If you prefer a car just because it’s cheaper, you might suffer the real pain from the decision you made once you realize that you don’t need the car after all.
If you decide to pay the set ‘balloon’ payment you keep the car. Alternatively, if you have kept the car in good condition and stayed within set mileage limits, you can return the car and the deal is closed. None of you deposit or payments will be refunded but the advantage is you will not have to make up the shortfall if the car is worth less than the GMFV. Finally you can use the difference between the balloon figure and the value of the car as a deposit on a new car. This is only possible if the car is worth more than the balloon payment. Although this is usually the case you should be aware that it is not guaranteed.
Personal Contract Purchase. Here a deposit of usually 20-25% is paid followed by a low monthly rental type payment. At then end of the agreed term usually 36 months, a final or balloon payment is made to make the vehicle yours. This is known as the Guaranteed Minimum Future Value. If you choose not to make this payment, you hand the car back with no extra payments, but you don’t get back your deposit. If you wish to part exchange the car for something else, it is valued by the garage and if it is worth more than the GMFV that is the deposit on the new car, if it is worth less, you will not have to make up any shortfall. This is a convenient way to fund a car every two to three years of so if you can get together the deposit.