Buying a new car is an investment. Therefore it’s important that you consider few important things while choosing the car to buy. In today’s world, car market is overflowing with different choices. If you are looking to buy a new car, the two important questions you need to ask is what car and can you afford it.
What do you need for transportation now? What will you need few years from now? Do you need something just for yourself or will you also need to transport children and pets? A minivan with a lot of space and high clearance would be more suitable for a growing family. However, if most of the time, it would be just you driving alone, do you really need all that space? What kind of terrain will you be driving in most of the time? Do you need a car with two-wheel or four-wheel drive? I’d recommend you to go through some car magazines and consumer reports to get a clear picture of the world of cars today.
1. Work on your finances to determine how much you can spend on transportation each month. It is suggest not buying a car that costs more than 10% of your net pay per month. If the cost of the car is more, consider leasing instead of buying a car.
2. Before finalizing anything, you should find out what the target price. With almost every make, four figure discounts are available. You just need to find the best deals.
3. Avoid signing an arbitration clause or blank financial forms. Try to get finance from a separate source (a bank or another financial institution).
4. The car market is extremely competitive be sure to check a good number of different dealers to find the best deal.
5. Try to ensure a relatively large down payment. Otherwise, you need to take out a big loan.
6. Find out about the buying incentives that are currently on offer. Buying incentives can vary from expensive audio systems to cash back offers.
7. If you are considering a trade in, make sure to get your old car evaluated independently. Pay attention to cost of change (the difference between what the car costs and what the old car is worth).
8. Find out the cost of warranties, taxes, and insurance.
9. Make sure to read through the contract. Read the fine print, read everything. Make sure that there are no penalties fo paying off the loan before time.
10. Make sure to test drive the car before you make the deal. Also, if you are not buying a brand new car, get an experienced mechanic to take at the car to make sure there isn’t anything wrong with it.