Buying a vehicle is a huge deal. It’s a large purchase that requires a lot of research and forethought. To ensure you’re getting the best price on your new car, consider these tips before you make any decisions.
Establish a Target Price
The first thing you should do is come up with a budget. Figure out exactly how much money per month you can dedicate to this new purchase. Consider the costs of owning a vehicle. Routine care, maintenance and gas can add up over time. It’s important to understand every aspect of your financial commitment when creating your budget. Once you determine the amount you can spend on a vehicle per month, you can figure out your budget and start looking into vehicles in your price range.
You Don’t Need a New Car
Go ahead and take your eye off that brand new vehicle. Did you know that a new car will depreciate in value anywhere from 20-30% after the first year? Buying a new car is a really easy way to get upside down in your financing by owing more on your vehicle than its worth. Don’t fall prey to sale tactics that make you feel like you need the latest and greatest thing. There are cool features to be found in almost any vehicle you’ll test drive these days. Ask yourself if all the extra amenities justify the higher price.
Look Up Trade-In Values
When looking for a vehicle, you’ll want to do some research on which cars have the highest trade-in values. In the event you ever trade in or sell your car, you want to make sure you’ll get a decent price for it. That’s where resources like autotrader.com and kellybluebook.com come in handy. These are just a couple websites you can look into that will tell you the resell value of your car based on mileage, year and overall condition. This information can also ensure that you’re not grossly overpaying for a vehicle you’re interested in buying.
Research Low Interest Loans
The ideal scenario would obviously be that you pay cash for your new vehicle. If you can’t do this, it is crucial that you research lenders who will be able to give you the lowest interest rate possible. Look into Credit Unions in your area. If you’re looking for a vehicle at a dealership or a Carmax, look into their financing options as well. Depending on the time of year, dealerships may have incentives such as no interest for an extended period of time or money off the sticker price. Knowledge is power in this particular situation. A car loan is a large commitment. You want to make sure you secure yourself the best deal possible.
With time, research and preparation you will be able to find a reliable vehicle that wont break the bank. Use these tips to find and negotiate the purchase of the vehicle that’s right for you.