Smart Ways Buying a Car
The smart ways of buying a car are exciting. Of course, it also comes with lots of anxieties and possible pitfalls. Here are some good tips, whether it’s your first car or your seventh, that can help you find the right ride at the right price on the right terms for your budget.
Your Monthly Car Costs
Before you spend time looking for a car, consider your budget. Ideally, your new vehicle will be more fuel-efficient and require less upkeep. Insurance may go up, especially if you quit paying replacement insurance on your old car. With that in mind, you need to decide how much money you have for a monthly car payment.
Cash vs Financing
Most people will have to take out a loan or lease to get a new or used car. However, if you have saved enough money to purchase a car outright, that may be a good idea. When you purchase a car for cash, you will save quite a bit of money in the long run.
If you have less than $15,000, you should consider putting that money down on a new or good used car and getting more for your money. Your loan can be shorter, your interest rate should be lower, and the overall cost of purchase should be lower.
Financing is convenient, and few of us can do without it. However, it will increase what you pay for the vehicle. You’ll want to ask a lender how much the vehicle actually costs when the loan is paid off.
Down Payment Amount
Ideally, you will be able to make a down payment for a vehicle. Perhaps your old car will fetch a nice price to help with that. Of course, many people don’t have much money for a down payment. The lack of a down payment increases your loan and drives up your interest rate. That’s a double whammy that ensures you are paying more for the car in the long run.
Buying a Car – Interest Rates
When it comes to interest rates, a new car generally has lower rates than a used one. It’s unfair but true! Furthermore, your loan rate will be tied directly to your credit score. Before you go shopping, there are free ways to find out your score. If it is in the medium to the superior range, you are in good shape. If it is low, you should seek out a reputable dealership where you can get a bad credit car loan.
Leasing vs. Buying a Car
Some people choose to lease a new vehicle because the initial costs are often cheaper than a new car. However, you should proceed with caution. When you are leasing, you will be making monthly payments just as if they were new. But, when the lease is up, you will return the car and be left with nothing.
Get to Know Prices When Buying a Car
If you can slow down for just a week or so, you can get to know what your favorite car models should cost. It’s easy these days to google a new or used vehicle. Then you compare what different dealerships are asking. You’ve also got free access to Kelley Blue Book and many other automotive journalism sites.
Buying a Car from a Private Seller
There are so many ways to find a car for sale these days. Private sellers can advertise on social media and trading post-style websites. The first rule of thumb is if the seller wants you to buy it before you see it, it’s a bad deal. Or, worse, it’s a con. So be careful if the price seems out of line with the marketplace.
That said, there are plenty of honest sellers out there. Still, the car’s general condition and long-term viability must be good enough to warrant the price. You can pay your mechanic to check the car over before you buy it.
Buying a Car from a dealership
If you buy from a reputable new car dealer, you are driving away with a new car warranty. The typically limited warranty is basically three years while the typical powertrain warranty is five years. There’s usually a mileage limit that goes with that. If you can find a better warranty, that’s definitely adding some value.
However, warranties are rarely offered with used cars at dealerships of any type. You need to find out if any guarantees are included Furthermore, you need to ask: does the dealership have a service department, and did that service department do anything to restore the car’s viability? A certified pre-owned car comes with some warranty, but not always as much as people expect.
Some used car dealers offer a seven-day or 10-day window where you can return the car and get something else. However, few of them have warranties that will protect you if the car breaks down. Finally, the cost shown online may not include a hefty dealership fee. Be sure to ask in advance if the dealership charges fees and how much they are.
Lifestyle Check When Buying a Car
Many people want something fun that really doesn’t fit their lifestyle. If this is your first car, put aside thoughts of a convertible, a luxury car, or a pickup truck. Furthermore, you shouldn’t pick the highest trim level. Instead, compare trim levels in different cars and try to find the best deal. Some entry-level trim levels have all of the latest technology while other brands reserve it for a higher trim. Furthermore, if you have long commutes ahead, you don’t want a gas guzzler. If you are constantly in busy traffic and crowded streets, a smaller vehicle is easier to maneuver and park.
Take Your Time
Before you go to a dealership, do lots of window shopping. And be Smart ways buying a car. You can shop a dealership inventory, looking at the cars that fit your price profile. Make sure you test drive more than one car! This cannot be stressed enough.
Too many shoppers test drive one car and agree to buy it. However, this is not playing it smart Ways Buying a Car. You want to test drive at least three new cars of different brands and preferably five or six used cars before making a decision! – Remember you don’t have to buy any car just because you took a test drive. Just say you have to go to an appointment and walk away. You can always come back. Take your time and get all of the facts before you hand over cash or sign a loan.