Buying a car can be an exciting and anticipated moment for many of us. Before you sign the papers and make the decision of purchasing a car, you need to consider a few things beyond the car’s design, aesthetics, and year of manufacture. To make things a bit easier, we’ve compiled a list of useful tips you can implement when buying your car. Let’s check them out and learn more!
Do Your Research
Whether you will take a loan or use your long-term savings for purchasing a car, it’s important to compare car loans and sign up for those with more benefits. Do your research well because knowledge is power. You won’t be lost at the car salon not knowing what are you looking for. You can find out anything you want about a car within a couple of clicks. If you are considering buying a new car, your goal will be to find the “invoice” which is what the dealer paid to the manufacturer for the car instead of the MSRP. Or, if you are thinking of purchasing a used car, research the resale prices for the specific car model and then make your decision. In the different cases where you’d like to exchange your current car, research the market values for your type of car before you accept any deal from potential buyers.
While many people obtain their finances through car dealerships, you can research your options and see whether you can use a loan or a car dealership for your car. Dealership interest rates are higher than the loan rates. To obtain multiple financing quotes, you can use an aggregator that compares five competing quotes all at once.
Copyright: Unsplash I License: CC0 Public Domain
Get Preapproved for a Loan
The best advice you can get from this article is to get preapproved for a car loan from a credit union, your bank, or an online lender. Philip Reed, the author of the NerdWallet site proposes this principle because you’ll be prompted to think about the important question of what type of car you can afford. Getting preapproved for a loan can reveal any problems you might have with your credit score, so before car shopping, make sure you build up your credit score. When all of that is getting taken care of, you can shop for the best interest rates because people are charged more for interest rates than they should be. One word of caution, be careful of shady lending options that are working online. It’s always safer to go with a mainstream bank or a credit union rather than any other option.
Do not Buy Add-ons at the Dealership
If you buy a car at the dealership, you need to focus on one thing at a time. This is kind of a game, so don’t reveal too much to the salesperson. Start with the price of the vehicle you’ll be buying and do not answer the questions about whether you are looking to get a loan through the dealership or trade in your car. You can negotiate a good price for the car and reduce the interest rates. They will try to sell you extended warranties, paint protection plans, tire protection plans or gap insurance. Do not fall for all of this stuff since dealerships make a lot of money on it. Investigate your options before sighing any deal. You can always buy later any extended warranty or gap insurance.
Inform Yourself About the Long-term Loan Terms
Another rule when purchasing a car the smart way is to be informed about any long-term loan terms and conditions. Since most loans have interest rates, paying more interest compared with the principal in the first couple of years is not reasonable.
Copyright: Unsplash I License: CC0 Public Domain
Explore the Car Specs
The specifications of each car can be different. This is why you need to decide which specs are important to you. For example, for some people speed is relevant, while for others security and safety are on the top of the list. Some prefer sedans, while others SUVs. When looking for a new car, narrow down your list to see what suits you best. Even if you are interested in the exterior and interior aesthetics of a model, you can overlook all of this if safety is your main aspect.
Discover Latest Features
With today’s advancements in technology and top-notch features, new features are must-haves in any car. Having up-to-date specs and technologies contributes to a smoother driving experience, enhances your safety while on the road, and complements the beautiful aesthetics. We would suggest searching for a new car which includes GPS, Bluetooth options and a backup camera. This way you can have an Internet connection while road tripping and you can check for any internet down errors or device malfunctioning.
