Buying a car is a big purchase. And if you don’t know much about the auto industry, it can be a stressful journey as well. When you buy a car, you’re investing in your future and a vehicle that will be an important aspect of your life for years to come. That is not a decision for you to take lightly.
Don’t be bamboozled or ran around by car salesman. There can be so many hidden fees and extra expenses with buying a car that you need to be fully prepared for. Don’t feel pressured to make any quick decisions. You deserve to take the time you need to fully invest in your vehicle and make it the best purchase for your lifestyle. When starting the car buying experience, here are a few things you should know before jumping in.
Financing
Buying a car is not something most people can do outright. Chances are you’ll pay a down payment and take out a loan to pay for the rest. When you’re getting ready to buy a car, know how you want to finance it. What can you reasonably afford and how can you save on interest in the long run? You may want to check out different loan options to be sure you’re getting the best deal at the best rate. Just because you’re buying a car at the dealership, doesn’t mean you have to finance it there. Look into other loan options as well.
Credit Score
As with any big loan or purchase, dealers will have to examine your credit score before giving you your rate. So know your credit number before you go. If it’s a little low, work on your credit before you take steps to buying a car. You want to have a high number to get a lower interest rate. You can also consider finding someone to co-sign with you if you need a vehicle quickly and don’t have time to truly lower your credit score.
New vs. Used
When buying a car, one of the first questions to ask yourself is if you’re buying new or used. A new car will come with state of the art technologies and more financing options, whereas a used car will be more cost-efficient. The truth is, once you drive a new car off the lot, it immediately loses value. But used cars require inspections and reports to be sure it’s still in working condition. The year your car was made will also affect the cost of car insurance. There are pros and cons to both methods, so consider spelling out your desires for your vehicle before you decide.
The nice thing about buying used, is there are a lot of options for you. Certain sites will even salvage cars of all makes and models to sell at an extreme discount. So if you’re looking for a straight forward transaction without any extra fees for vehicles of all sorts, convenient options for you are only a click away.
Trade-In Value
When you’re buying a car, you may also be trading in your old car. Don’t rely on the salesperson to tell you what your trade-in is worth. Instead, do your research and come with a price in mind.
Price Comparison
With any big purchase, the top piece of advice is to not rush. Don’t buy the first car you see. Compare prices at different venues to be sure you’re not getting ripped off. The best tool you have is the threat of buying somewhere else, this will force dealers to give you a better deal to keep your business.
Buying vs. Leasing
Buying vs. leasing is essentially a question of owning vs. renting your car. If you want to make payments and eventually own the title, you want to commit to buying, but if you’re trying out something new for a few years, a lease may be right for you. Leasing may have mile restrictions and a commitment to keeping the car in good condition. Again, a pros and cons list can help you decide which option is best for your lifestyle.
If you want to buy a car but need some extra cash, you can look into the best car loan rates 2020 and compare prices. Remember, when looking at loans be sure to not only look at the cash amount but also the company which you are loaning from, the interest on the loan, the payment plan, as well as any potential consequences including how the loan affects your credit.
Know the History
Cars have history, and you need to be sure the car you’re buying has a positive one. Research the maintenance history, number of accidents, and miles on the car. Having a full picture of what you’re car has been through is important to know before buying.