Buying a new car? 6 Things You Need to Consider Before You Do
Buying a new car is a vital decision. As such, you want to make sure you consider all aspects of the purchase. Many considerations are overlooked when buying a new car, so read on to find out six things one must take into consideration before purchasing a new car.
1. Know the actual cost of your car
The car you are about to buy costs a lot more than the price tag on the window. Think about the horror you might face if you brought a car, but could not afford the insurance on top of the car note? Then there is maintenance and taxes. Sit down and figure out the costs before you sign on the dotted line.
2. Don’t take the first finance offer you see
Financing a car is, unfortunately, the new necessary evil. As such, there are many companies out there willing to sign you up at exuberant rates of interest. In an ideal world, you might find 1.9% car finance deals or even interest-free loans, but those are rare. Make sure you have a couple of offers so you can negotiate finance and the interest rate. Also, consider the timing of the loan. It is standard for most companies to offer 60 months to pay back, but you may not be able to afford the note based on that time frame.
3. Assess your budget before you look for a car
When thinking about the purchase of a new car, you need to consider your current income and outgoings. Sit down and work up a budget. If you can not afford the extra expense, then you need to reconsider the purchase.
4. Does the car come with a warranty?
We have discussed buying new cars, but the car may be new to you, but used. So, if you find yourself buying a used, or brand new car, you still want to have some warranty on it. Especially if you are going to have a large note that will likely take up any disposable income you have. Make sure the warranty is ironclad and not one that barely covers a new tire. You are about to make a large investment, and you need to be protected.
Don’t be afraid to haggle. The dealership is looking to gauge you for as much as they can, but you are the customer, not them, so turn their persuasive nature against them and be ready to do some tough negotiating. You can take your money to any dealership, they know it, but sometimes they need reminding.
6. Do you need a new car?
Rampant consumerism is a growing issue. With people wanting the latest and greatest, it is often tempting to buy things we do not need. Just because your car has 120,000 miles on it, doesn’t mean it is for the scrap heap. It is important to sit down and consider the reasons you are looking for a new car. If you have not had any issues with the car in the past six months, why do you need a new one?
Buying a new car is a vital decision that some people enter into far too lightly. It is one of the most significant financial commitments you will face other than rent or mortgage so it is important to consider all aspects and make sure you get the best deal possible so that you can rest easy and enjoy your brand new car.