At some point or another, we all face the fact we have to lay out cold hard cash on a new vehicle. It could be your first car, or it could be your last car just could not continue anymore with the rusted through the passenger door and the constant squealing coming from who knows where. Either way, buying a new car is both euphoric and the worst experience at the same time. Being prepared for this experience is one of the ways to make it more enjoyable rather than stressful. After all, a new car should feel good, have that fresh car smell and be a great experience as you see the odometer tick to 2 miles as you pull out of the dealership. Taking the time to follow these six steps can significantly affect how your car purchase goes.
- Start Saving
One rule is you should walk in with a down payment. Some dealerships can sell you a car without a down payment, but you will end up paying more overall. A larger down payment can mean a better monthly payment. Sure, you can probably get a car with no money down, but your fee may be a quarter more than it could be. - Buy at the Right Time
Understanding when to buy your vehicle can determine how much you will pay. Think of it like this, the time to buy water is not during the drought but the rainy season. If you decide to buy your car during the drought, you will pay much more than if you time your purchase right. - Research
Make sure you research the car you are going to buy. There could be rebates or loyalty programs you were not aware of. Also, knowing the car you buy may end up costing you more in gas, or there are known issues that could have you sinking money into it that you did not expect, this would be valuable to know. - Choose Wisely
Knowing your budget and driving habits are necessary to purchase a vehicle. If you drive a lot, maybe buying the gas-guzzling SUV might not be the right choice. On the other hand, if you need to haul stuff regularly, a car with no truck bed might not be the best option. Know what you want, but also what you need. If you get all you want but not what you need, you may find yourself unhappy with your decision. - Take Your Time
Simply put, make sure you do not jump into a buying decision without thinking it through. Impulse buying will have you wishing you took your time when you find out the car cost too much or that you had better options available to you.
Know Your Financing Options:
There is nothing worse than walking into a dealership and not knowing your financing options. Blindly accepting the rate, term and institution may put you in the hole. Consider seeing if your bank or credit union will finance you before you sign on the dotted line. Knowing your options can put you in a better position. Paying 1% more in rate can mean a difference of thousands of dollars throughout your loan or lease.
