If you want to buy a car in the United States, you can check out the following guide information. In fact, buying a car in the United States is also a very troublesome matter. However, the second-hand car market in the United States is better than that in China, and you can also choose to buy a second-hand car yourself.
Car buying channels in the United States
Car brand stores
Friends who want to buy a new car must have gone to a car brand store to buy it. The advantage of going to an official store is that the vehicle is absolutely guaranteed, the quality assurance is the best, and the price is highly transparent. However, the value loss rate in the first three years is extremely high.
Used car companies
If the conditions of the car are not so harsh and it must be brand new, then you can also consider buying a second-hand car. In the United States, many international students choose to buy second-hand cars, which are cheap and many are in good condition. It is enough for your study abroad period and can be sold cheaply when not in use.
Is it better to buy a new car or a used car?
If you are very concerned about the condition of your car and will not change it for a long time, such as 6-10 years, you may wish to consider buying a new car. If you value cost-effectiveness, are able to evaluate the quality of the car, and want to change your car within a short period of time, such as 1 to 5 years, then a second-hand car is the best choice.
Considerations when buying a car in the United States
Selection of model configuration
This must be based on your own situation. You have to do your homework. What is your favorite type, what are your needs, and what configurations can the car achieve?
Budget
If you have sufficient funds, you can buy a new car without having to consider the car's history, damage, etc. However, there are many people buying used cars in the United States. The used car market in the United States is very developed, and there are great discounts when buying used cars. From the perspective of cost performance, most friends will still choose to buy second-hand cars.
And fuel consumption maintenance
From an economic point of view, Japanese cars are generally chosen because they have low fuel consumption and can withstand high mileage consumption. Secondly, European cars are very popular among international students. Although maintenance costs are relatively high, they are safe, reliable, comfortable, and suitable for friends with a loose budget. Thirdly, American cars are inferior to the former two in terms of overall performance and fuel consumption. However, since it is a local car, maintenance and repairs are very easy. Moreover, American cars have high horsepower and great appearance, and are popular among many people.
Other factors
If it is a plain area, you can choose a low-riding car. If it is a snowy mountain area, you can choose a high-riding four-wheel drive SUV
If necessary To move or transport things, you cannot buy two cars. You can choose from four vehicles.
If you are driving on the highway, you need to pay attention to the highway MPG (US fuel consumption unit, miles per gallon) and so on.
What documents are needed to buy a car in the United States?
You must have a full driving license or a learner's driving license with an instruction permit.
Payment methods for buying a car in the United States
Purchase in full.
If you have enough budget, paying in full is the easiest way. Because the car dealer wants to sell the car quickly and get the full payment, there is a lot of room for bargaining. However, Americans are not keen on paying full price for a car. Only about 10% of Americans choose to buy a car outright, and the remaining 90% prefer financing or leasing.
Purchase (finance)
Finance, that is, installment payment, will accrue interest, so your monthly payment includes principal and interest. In North America, loan terms for car loans are usually 36, 45, or 60 months, and of course, the earlier the loan is repaid, the less interest there will be. During the loan repayment period, the vehicle title remains with the bank. Only when all interest is paid off can you take ownership of the vehicle. Many times, in order to attract consumers, car dealers will offer very low finance interest rates, such as 1.9%, 0.9%, or even 0. It is very appropriate to have such discounts when buying a car.
There are two common ways to get car loans in the United States, one is with a car dealer, and the other is with a bank.
Long-term rental
In the United States, nearly 70% of people will choose to rent. The leaser can use the car for a certain period of time without paying the full price. After the expiration date, you can choose to return the car to the dealership, or you can choose to pay the remaining balance and own the car outright.
1. Preparation
Before buying a car, you must do enough homework. Every dealer in the United States has different operating conditions, performance, and inventory, and each car can be priced differently.
You can first check the price of the local dealer on the price inquiry website, and then choose the appropriate store after confirmation, which saves you the trouble of making a trip in person and saves a lot of time.
Common price comparison websites in the United States are:
Edmunds: After entering the official page, fill in the zip code, select the model, select the configuration, select whether to lend, and then enter the contact information. Edmunds will then help you send the information to the corresponding nearby dealer, who will contact you by email or phone. Now the agents are so proactive, replying at the speed of light, and even calling immediately to pay attention. They are very proactive and even tell you that you may be able to get a lower price on the car than the offer Edmunds sent you.
Truecar: Truecar cooperates with AmEx, MCU (Municipal Credit Union) and other institutions, and the prices given above are lower. You can also view real reviews from users who have purchased the vehicle.
KelleyBlueBook (KBB): Suitable for checking the reasonable purchase price range of vehicles and feedback from past customers.
When looking up vehicle prices online, you may find three types of prices: suggested retail price, invoice price and average market price.
MSRP: Manufacturer’s Suggested Price, the full English name is Manufacturer’s Suggested Retail Price. The price doesn't mean anything. If you can get it at this price, you're in trouble.
Invoice price: The price that the manufacturer sells to the dealer should be the lowest price. But don’t think that your purchase price must be higher than this, because car manufacturers generally give dealers a bonus of about 1% to 3% based on the invoice price, so even if the dealer sells based on the invoice price, there is still a profit.
MarkePrice: This indicator indicates the average transaction price of recently purchased cars of this type, which may be higher than the invoice price and is a very useful reference indicator.
2. Choose a dealer
Take the initiative: Use Google search to find dealers around you. Choose based on distance from home, score, number of points, and reviews. But please choose one more so that you can shop around and get the most affordable price.
Passive attack: Fill in personal information on price comparison websites such as Edmunds or Truecar, and then these websites will send your information to many dealers around you. These dealers will contact you by email and phone, and you can choose the appropriate dealer. This method is more time-saving than the proactive method, but there will be a lot of spam calls and emails, possibly dozens of calls and emails a day.
Three. Bargain
Compare the prices sent to you by different dealers, and use Edmunds, KBB, and Truecar to re-evaluate the prices based on different models and configurations to determine the target price of each vehicle. That's the price you expect.
This process is to use a large number of email negotiations and your own research to make the dealer's quotation as close as possible to your target price. At the same time, you can quickly grasp the price range of this car through a large number of emails.
Tips: Bargaining tips. When communicating with dealers, only give them email addresses, not phone numbers. Ask the dealer to email a quote for the vehicle. On the one hand, you can retain some evidence of the price through email communication to avoid breaking your promise; on the other hand, you can have enough time to think, after all, you cannot make an immediate decision on the phone.
Four. Confirm in store.
After selecting a few prices that are within your expectations, you need to visit the dealer. There may be two situations here:
Situation 1: You have finalized the final price with the dealer through email: please print out the previously negotiated price and email, confirm with the dealer for final confirmation, and complete the purchase. .
Situation 2: If the price has not been finalized with the dealer: you still need to bargain with the dealer. But now that you have a clear idea of ??the price in step three, the goal of negotiating the price is to get as close as possible to your target price.
Note: If you feel that the salesperson is deceptive or disrespectful in any way during the car purchase and price negotiation process, please leave immediately and do not pester.
Verb (abbreviation of verb) to place an order and complete the car purchase procedure.
If you don’t pay in full, then you need a car loan.
Before meeting with a dealer, you should check out the current car loan rates offered by banks so you can compare them to what the dealer is offering.
Dealers do not take advantage of the car price and will try their best to earn interest from you. Be sure to have your credit score ready in advance. Many credit card companies now offer credit scores for free. Remember to print it out and take it with you before going out. This effectively prevents dealers from deliberately lowering your credit score.
In order to encourage you to borrow money from the dealer, the dealer will give you a certain cash back as a preferential condition. Please calculate which one is more cost-effective:
If the dealer's APR is low and offers cash rebates, then you can choose the dealer's loan company;
If the dealer's APR is high, but There will be a certain amount of cash rebate, so you can consider using the dealer's loan company first, and then transfer to other loan companies after getting the cash rebate;
If the dealer's APR is not good at all, then look for a car Loan companies, such as Baoer.
Anyway, you have to figure out which one is more cost-effective. If you don’t know, don’t make a hasty decision. An appointment can be made for the next day. Study hard that night and don't dig holes easily.
: Car buying process in the United States
1. The best months to buy a car
The cheapest months to buy a car in the United States are May, September, and October In March and December, it is mainly because sales are for performance or holiday promotions. The cheapest season is December.
2. The best time to buy a car this month
If you must buy a car in a certain month, then the end of the month is a good choice. The car purchase discount at the end of the month is 8% higher than usual, especially on the 30th and 31st.
3. The best time of the week to buy a car
Even in the same week, prices vary on different days. The best day of the week to buy a car is Wednesday. According to Truecar statistics, the average transaction price on Wednesday will be about $300 lower.
When is the best time to buy a car in the United States?
Vehicle inspection and test drive
1. Check the car's exterior and interior for wear, and then try to see if each device is working properly. It’s best for a new car to not have any wear and tear on it. Wear and even small scratches on a used car are normal and can be used as bargaining capital.
2. Open the engine cover and check to see if there are any traces of fluid leakage in the engine (especially second-hand cars). Turn on the fire, turn the air conditioner to the maximum, and listen to see if the engine sounds normal and if there are any abnormalities in operation. , are there any abnormal noises in the car?
3. During the test drive, remember to try acceleration, braking (flat braking and sudden braking), tire positioning (when driving straight, briefly release the steering wheel to see if there is a lot of deviation), and feel the sensitivity of the steering wheel. You can try the high speed.
Bargaining
Be sure to know something about the car before negotiating the price, and let the dealer know that you know something about the car. Edmonds has a price promise that can be used as a reference. Don't show a lot of interest in one car, tell them there are other cars under consideration. Be patient and don't act so eager. When bargaining, if the dealer says it is the best price, there is still room for leeway. If it's the best price the manager said, you can basically pay it.
Car insurance and license plate
After confirming the purchase of the vehicle, you can call the car dealer with a certified check from the bank. It's best not to pay cash. Purchasing vehicle insurance is also a necessary step in the car buying process. If you buy a new car, you will be required to purchase full coverage. Please contact the auto insurance agent in advance to quote the price to avoid getting killed by purchasing insurance through the dealer. When buying a car, the dealer will help you complete the registration of the new car and put a temporary license plate on the windshield of the new car, so that you can drive the new car on the road. The DMV will send the license plate to your home within 3 to 4 weeks.
Other things to note
The biggest concern everyone has when buying a car is being cheated. Coupled with the deception skills of the car dealer sales profession, it is easy to fall into the trap of the merchants. Here are some common traps:
1. Yo-Yo Scam Yo-Yo Scam: The dealer tricks the buyer into having a sufficient credit score to get approved for a loan and sign a contract. A few days to weeks after successfully taking the car home, he informed the buyer that the loan was rejected and asked the buyer to change the loan contract with a higher interest rate, usually 5% higher than the average loan interest rate.
2. The ultra-low price deceives you: you are attracted by the ultra-low price when making inquiries, and are falsely asked to inquire about the possibility of matching with other manufacturers.
When they arrived at the site, they used various excuses such as "the manager didn't approve" to reject the promised price. It is recommended to keep track of market prices. There is definitely a problem if it is much lower than the market price.
3. A scam is a shell game: observe what the owner cares about and what he uses. For example, when it comes to trade-in, the dealer pretends to give a good trade-in price, but increases the price of the new car. If a home buyer wants a lower monthly payment, he can achieve it by extending the loan term, but at the same time, the home buyer has to pay more interest. , which actually costs more.
4. Confusing window stickers: The price of window stickers is a big deal! These are the prices with some or no options installed, and are actually not used at all. Don’t base your decision on the price of the window sticker.
5. Paying a deposit to maintain a car is “maintaining” the vehicle: This is very common in cars with high demand and low supply. Unscrupulous dealers will require buyers to pay a deposit in advance to maintain the car.
6. Stealing rebate points: Dealers will not honestly count all the rebate points given to buyers by manufacturers. It is recommended to compare prices multiple times and ask the car dealer to list the rebates in detail.
7. The quotation is only applicable to the MSRP price: Dealers will say that the manufacturer's quotation is only applicable to the MSRP price, but in fact the manufacturer's quotation and selling price are two different things. So when bargaining, be careful not to let the dealer confuse the two.
8. Buying a car turns into a long-term car rental balloon payment: If you decide to buy a car, but cannot make the trip because the price is too high, pay attention when the dealer says that you can make a zero down payment and a low monthly payment, because He may want you to lease; and you may not even know that when you sign the contract.