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Great Car Buying Strategies to Follow in Simcoe

Great Car Buying Strategies to Follow in Simcoe

The pandemic has taken a toll on the global supply chain which has directly impacted the total number of new and used cars that are available. This is a complex situation but the primary reason for the shortages is due to limited computer chips that are needed to build new cars.

 

Our Simcoe auto loans team explains how chips impact the price you’ll pay for your car and how to find a great deal with some easy to follow car buying strategies.

 

Computer chips are used throughout modern cars to control almost everything. They are also needed to make replacement components for used cars. Both of which have led to a parts shortage.

 

While you may feel apprehensive about the limited inventory, there are opportunities to get some bargains but you have to do some leg work.

 

Get preapproved

 

The traditional way of buying a new car was to visit your local dealership, go for a test drive and then work out the financing.

 

After the test drive, you may become attached to the car and want to buy it regardless of the cost. Car dealerships are fully aware that once a person becomes emotionally attached, they will do whatever it takes to buy the vehicle.

 

Many websites provide auto financing, you should get quotes from a few of them to weigh all of your options. There is no cost or obligation for these quotes but give some thought to taking the quote that is the most competitive.

 

The lenders will need to perform a credit check and verify your income to make sure you meet their lending requirements. If you qualify, the lenders will issue a preapproval which is a commitment to provide a loan if you decide to buy a car.

 

Now that you know what is the maximum loan you qualify for, you can begin researching available cars.

 

Are you getting a new or used car? Electric, gas, or hybrid? There are many options to choose from so you should set aside some time for some research.

 

With gas prices on the rise, you could think about getting a hybrid or electric car. All the big automakers are rolling out electric cars so you’re getting more choice as time goes on.

 

Visiting your local dealership

 

Once you have figured out what type of car you want to buy, it is time to head over to your local dealership and go for a test drive.

 

When greeted by the salesperson, they may ask what your budget is or how much per month are you looking to spend? You don’t have to tell them precisely, just say you want to go for a test drive.

 

If you tell the salesperson that you have financing in place, they will be less likely to give you a competitive price on the actual car. You are not being deceptive by not telling the salesperson up front, you first want to find a car you like, more being tactical in how you approach the sale.

 

When you have found the car that you want to buy, the salesperson will offer you financing. This would be an ideal time to show your preapproval letter and ask if they match or beat the offer.

 

The dealership is under no obligation to match or beat your financing offer but giving them the option will show you are willing to work with them.

 

All of the car buying strategies that we outlined may seem complex but trust us, you will end up saving money and still get the car that you want.

 

If you need help or advice on anything to do with auto loans in Simcoe, contact Car Nation Canada today, we can help!

 

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