Arizona Tribune - OneMain Financial: 5 Tips to Buy a New Car

1) Research the market

Car prices can vary significantly from dealership to dealership. Some will mark their prices as high as possible, hoping to maximize profits, while others will price the cars to move. This is why it's important to browse ahead of time online to get a feel for what the actual price may be. By knowing this information before going to the dealership, the customer will be in a much better position to negotiate and get a better price.

Additionally, doing a little research before hitting the lots can help shoppers make more informed decisions overall. They can check important stats like government safety rankings and IIHS Top Pick awards. They can also check with their insurance provider to see which models currently have better rates than others.

2) Set a price limit

Often, when someone visits a dealership lot and begins talking to a car salesperson, their perception of how much they can spend can change quickly. Salespeople are great at making it seem like expensive cars are more affordable than they are through longer-term financing options like six- or seven-year loans. However, prospective car buyers should ignore these pitches and stick to a price that meets their budget.

That's why it's important to have a pre-determined price limit in mind before beginning this process. By having a number in mind, the shopper will be better prepared to stay beneath it and make better financial decisions they won't regret later.

3) Get pre-approved ahead of time

Even though nearly all dealerships offer some form of financing, prospective car buyers can usually get a much better deal if they can secure a lender themselves. The best way to do this is to find a reputable financial institution and inquire about getting pre-approved.

Pre-approval means that the lender has reviewed the applicant's financial information and agrees to give them a personal loan to buy a car whenever they're ready to move forward. Lenders such as OneMain Financial make this process easy by having a link on their website where shoppers can find out in minutes if they qualify.

4) Skip the dealership add-ons

During the vehicle closing, many dealerships will try to up-sell the customer on various add-on products such as car accessories, extended warranties, or gap insurance. In most situations, buyers don't need these products and will be better off saving their money or finding them cheaper elsewhere.

5) Don't let emotions take-over

Ever since the COVID pandemic, vehicles have been in short supply and auto dealerships have been using this fact to their advantage. There are many stories of salespeople coercing shoppers into making on-the-spot decisions, often saying they have multiple offers from other potential buyers.

Shoppers need to remember that even though one dealership may be low on inventory, there are plenty of other ones out there. Therefore, it's best not to let emotion take over since there will always be another opportunity.

The Bottom Line

There are many steps that prospective car buyers can take to get a great deal. Doing a little research, setting a price limit, and getting pre-approved are all great ways to start. However, as the shopper gets closer to making a purchase, saying "no thank you" to the dealership add-ons and not giving in to pressure will help them to make much better decisions.

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About OneMain Financial

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OneMain Financial is the leader in offering nonprime customers responsible access to credit and is dedicated to improving the financial well-being of hardworking Americans.

CONTACT:

Sonakshi Murze
Manager
[email protected]

SOURCE: OneMain Financial

View the original press release on ACCESS Newswire

N.Mitchell--AT