When you are in the market for a new car there is a lot to think about. You have to think about what goes into what makes the ideal new car for you. It also takes understanding the car buying process. A car is a major purchase and you shouldn’t go into the process lightly. It takes time to make sure that you are prepared and will end up with the right car and at the right price.
If you go into the process unprepared then you can end up with the wrong car and overpaying for what you do get even if it turns out to be the right one. Since you should plan to be driving the car well beyond the loan terms the car should be one that fits all of your needs and is a pleasure to drive. Otherwise, you will have an expensive frustration on your hands.
In this article, we will go over how you should approach the process of buying a new car before you head to a dealer like this Nissan dealership in Waxahachie TX.
1 – Set the budget
There are two ways to look at your budget for a new car. The first is to decide the purchase price and make sure that it is what you are willing to pay for your car. Both for the upper limit and lower. The second way is to think about what you want to pay per month for your loan.
It is more important for the total price of the car to be the right price, but it also needs to make sense financially to be able to make the payments every month. The idea of what you are willing to pay may look good until you calculate how much it will cost you per month for the premium and interest.
You’ll also need to make sure that you have enough for a down payment if one is needed so the cost of the car is going to factor into how much you will need to put down. 20% is a good rule of thumb when it comes to how much you will need in advance.
It is very tempting to decide that you want a particular car and then fall in love with it which causes you to throw your budget out of the window. Stick with the numbers that are going to make sense and you will find the right car that you will be happy with regardless.
It’s a good idea to get a preapproval from a lending institution to make sure that you are going to get the car you can best afford. It helps to narrow down the choices so it is easier to get the right information about specific cars that fall within your pre-approved budget.
2 – Think about ownership costs
It’s great to think about how much you want to spend to buy the car, but you should also think about the ongoing costs you’re likely to face when you have a new car. Some cost more than others to repair, for instance.
There are things like the cost of parts for the car when you do need repairs, for instance. Some cars require expensive or hard-to-find parts and this will add to the cost of repairing and even maintaining your car.
Insurance is also a factor as some cars cost more to insure than others. Check out some quotes before you decide on the car so you understand exactly what you’ll be spending every month.
3 – Know what you need
Before you hit the car lots, you should know which cars you should put on your list. Find the right car based on your budget and how much it costs to own. What you need should be considered so you can make the list to bring to the dealer.
Think about what your lifestyle is like and how the car you buy will fit into that. For example, if you love to camp and need cargo space, a compact car with limited trunk space is likely not going to cut it. Look into station wagons or SUVs that fit into your budget to zero in on the right car.
Also, think about how the car will be used. Do you need to tow a boat or camper? Then it has to have a certain amount of torque and horsepower. On the other hand, if you only plan to commute to work on the highway then you need something that is small but big enough and is good on gas.
When you have these things worked out then look into the cars that fit that criteria and have a list ready.
4 – Time it right
When you plan to buy will factor heavily into how much of a deal you get. For instance, at the end of the year, many dealers are looking to unload their old stock to make room for next year’s models. This means you can likely get a great deal on a new car if you don’t mind one from the previous year.
The longer a car sits on the lot, the more it costs the dealer. They have a financial incentive to give you thousands of the price. You should know this, too, so you can drive a hard bargain and push for the best price they can give you.
You may have to forgo trading in a car if you are looking for an end of year purchase, or settle for not much for your old one since they want to have a cash purchase to get rid of the cars they have and not deal with having to sell your old one at auction.
Buying a new car can be exhilarating or frustrating depending on your approach and how prepared you are. Arm yourself with these tips and you’ll get a great bargain. Remember that you can always walk away if you don’t get what you want.