In the driving seat
Reto recommends using both facts and feelings when it comes to buying cars
‘Buy in haste, repent at leisure.’ It’s an old saying that might sum-up the experience of many when it comes to car purchases.
We may start with best intentions in mind. Yet cool-headedness often evaporates with every step inside the gleaming showroom. Our emotional heart swiftly takes control, overwhelming the intentions of our logical head.
I came, I saw, I must have!
Without too much thought, we pay the asking price – or something close – accept the trade-in deal, blithely sign-up to the finance arrangements on offer.
Brakes on. It doesn’t have to be this way. A wind of change is driving through the motor trade industry when it comes to our purchase options. And a helping hand is on offer when it comes to obtaining the right price.
‘The internet, or more specifically online car dealers, is increasingly becoming an option for purchasing new and used vehicles,’ expands Adam Dawson, CEO of local motor loan experts Reto Finance. ‘Potential buyers provide requirements to specialist broker sites, which search through multiple dealerships to find a matching vehicle, at the most competitive price. It’s a very transactional approach compared with traditional local dealerships, but likely to become the route of choice for many of us in the future.’
In the meantime, however, local dealerships remain the choice route for most. And many potential buyers continue being led through this approach by their heart, rather than head.
‘It’s not that buying a car should be an emotionless process,’ continues Adam, ‘but when it comes to money, a level head will put you in the driving seat – along with key financial facts. This is where independent loan companies like Reto can play an important role.’
So, when it comes to money, there are three key factors in play.
First is the price you should be paying for the new car. Every vehicle has an ‘established’ value based on factors such as make and model, year of manufacture and so forth. And it’s derived from real-time transactions collated from nationwide data on car sales.
Second is the money a dealer should offer for your existing vehicle – if trading in. Again, the established value of a second-hand car comes from a centrally managed system, based on actual transaction data.
Third is the cost of finance, if a buyer is not paying cash. Most dealerships will offer a loan or hire purchase arrangements to cover the cost of vehicle purchase. Yet in some cases, the interest rate may rise depending on profit earned on the sale or trade-in price.
‘No one is saying car dealers shouldn’t make a living,’ elaborates Adam. ‘They must invest in showrooms, after all, stock, staff and after-sale services. But emotionally-led purchases may lead to buyers paying more – sometimes far more – than strictly necessary. The counter is a logically-led solution. And specialist finance companies like Reto are perfectly placed to offer one.’
To provide car loans, Reto needs access to the same vehicle valuation information as car dealers. Yet rather than access this at end of the purchase process, why not obtain near the start. This can help ensure buyers get the best possible purchase price, trade-in value and interest rate.
‘Once you have set your heart on a vehicle,’ concludes Adam, ‘get it in your head to contact a company like Reto Finance. We will happily share information about the established value of cars with potential buyers before they settle on a price with the dealer. A little less haste and a few important facts can help put you firmly in the driving seat. From there, it should be a straight road ahead.’