Do’s and don’ts of buying a car

Buying a new or used car can be overwhelming for some people. The experience of walking into a dealership and negotiating the right price of a car is not easy by any means. But, customers can make things easy for themselves by doing their homework before they talk business with a dealer or a private vendor.
Some of the basics first: A buyer needs to identify the right car for him and his family. Does he need a sports coupe, a saloon, an SUV or a truck?
Once he is settled on the type of vehicle he needs, he should work out his budget. Buyers get the best terms if they pay in cash. They can sell their own old vehicle privately and if they need to borrow money they should go to a bank and not necessarily use a dealer’s finance package. A bank is more often cheaper than a car company’s credit.
Do some research on the price of equivalent cars and decide how much you want to pay for a certain model. In a dealership, think carefully about any extra options that may pump the price up. Also, do not accept any extended warranty which could be expensive. Research shows that most buyers do not use these extended warranties during the lifetime of the policy.
Consider several vehicles and research the accessories, features, and trim levels available on each one ahead of time, so you know what trim levels interest you, and which ones you would not want to pay extra for. Keep in mind that most vehicles are packaged according to specific trim levels, and can’t always be purchased to specific requirements without a special order. You can find the information you are looking for from print adverts or online.
If you have a small budget, do not shop for a luxury car. The rule of thumb when buying a new car is to put about 20 percent down; try not to borrow for more than four years (48 months), and keep your monthly payment lower than 10 percent of your income.
It is advised that in order to get a good deal at a showroom, dress smartly and leave your expensive accessories at home. Be prepared to walk away if you do not like the terms offered. However, customers have to be fair as dealers need to cover their costs and pay their staff.
What's surprising to many is that car dealers don't actually make much profit on the sale of new cars. In fact, many dealerships lose money on new car sales after factoring in fixed expenses such as rent, advertising, and labor costs. The bulk of a dealer's profit is made in areas such as used car sales, service, and other "back end" products such as warranties and maintenance plans.
If you are part exchanging an older car, you need to know the approximate value of your car and also try to negotiate price of the new car first before you talk of a possible part-exchange. Car shoppers who get the best deals share four traits: They take their time researching, don't show any emotion, have lots of patience, and are willing to walk away.
Always take a friend along who knows something about cars to consult with him during the negotiations. Some people resort to professional buyers to avoid the whole experience of negotiations and haggling. In the US, brokers charge $195 and pass on any discounts they can get to buyers.

Used cars
When buying used cars, the first option is to see what new car dealers have in their stock of “approved used cars.” They tend to be more expensive than used cars sold by private individuals, but are better quality and carry a warranty. Buying a second-hand car carries more risks. A buyer needs to get the car checked by a mechanic.
There are some tips for buying a used car including:

l Find a trustworthy dealer. The best option is to ask friends and family for recommendations. Also, use an experienced engineer to inspect the car for any defects.
l Test drive the car. A short drive can validate or expose condition of the engine, gearbox, brakes and lights. Listen to any strange mechanical noises and note conditions of body, seats and belts.
l Take your time to inspect the car in daylight. Note any signs of rust or damage. Check tires and windscreens. If you do not know a lot about cars, take a specialist who does.
l Make sure that the car registration (Istimarah) has the same information as the one on the seller’s driving license.
l Keep in mind that in the hot climate of Saudi Arabia, cars do not rust with age and their bodies can be shiny and new-looking. However, the heat takes its toll on the less visible parts, like gaskets, hoses and belts. Always have a mechanic check these.
l Ask to see maintenance records (Fahs). Anyone who has bought a used car knows that being able to prove that it has been well maintained is a key buying factor. A seller knows this as well. Be wary of anyone who can’t back up their claims with paperwork. Regular oil and fluid changes are essential.
l Negotiate the price in a calm way without being confrontational and if no deal is done there is always another car available to buy.