Avoid Paying Too Much for a Vehicle

Buying a car is one of the biggest purchases most people make, so it's important to be a smart shopper to avoid overpaying. Here are some tips for getting the best deal whether you buy from a dealership or at auction.

Buying from Dealerships

While dealerships offer convenience and flexibility, the prices are generally higher than other outlets. Do extensive research ahead of time using pricing guides like Edmunds, Kelley Blue Book and NADA to understand the fair market value for the specific make, model, trim level and options you want. Having this data will allow you to identify a good deal and push back if the dealer is overcharging.

Don't get swayed by pushy sales tactics or agree to overpriced add-ons and extended warranties until you've carefully calculated whether they make financial sense. Dealers often try to squeeze extra profit from these packages.  It's also wise to have a pre-approved loan lined up from your bank or credit union, as this gives you more negotiating leverage at the dealer.

Buying at Auction

While auctions require more preparation and research, they offer opportunities to score significantly below-market pricing on quality used vehicles if you follow some basic principles:

• Inspection: Thoroughly inspect any vehicles you're considering both mechanically and for bodywork issues. Consider hiring a mechanic pre-purchase inspection, as most auctions are as-is sales with minimal recourse.
• Research: Look up vehicle history reports, completed auction pricing data, transportation/shipping fees, taxes and other associated costs. Factor these into your maximum bid price.

Auction Types: Learn the specific rules for different auction formats like online/live, private seller vs dealer, etc. Some auctions sell with liens or reserve minimums, so understand the terms. Dealer auctions typically have more inventory but higher prices.

Permits/Registration: Depending on the auction, you may need certain documentation like a permit from the auction house, business license if buying for commercial purposes, etc. Good auction houses will have clear guidelines on their websites.

One highly reputable source for dealer auctions is Auction Permit LLC. I recently purchased a very clean, low mileage Honda Civic at one of their events for nearly $4,000 under market value based on Kelley Blue Book pricing. Their online inventory was transparent showing vehicle history, condition reports and past pricing. The bidding process was simple and straightforward.

Auction Permit's team was extremely responsive in answering all my questions about transportation, registration and other logistics. I also appreciated their secure online payment system and prompt delivery of my new ride. Overall, it was the most seamless and hassle-free auction experience I could've asked for. Check out their current inventory and upcoming events at http://www.auctionpermit.com.

Whether buying from a dealer or at auction, being an informed shopper is crucial to avoid overpaying for your new car. Arming yourself with data on market pricing as well as details on auction processes and pitfalls will allow you to walk away a winner with money saved.

For more car buying tips, auto reviews and advice, be sure to visit amulyascarreview.blogspot.com. Safe driving!