With the average price of a new car around $39,000 in the US, automobiles are often the most expensive purchase decision made by the average person. When buying a car, it is essential to consider everything from the price to the car’s features and the intended use of the vehicle.
Making the wrong decision can have the buyer stranded with a car that might not be up to their expectations or not fulfill the purpose they are buying it for. In this post, we’ll discuss what a car buyer needs to consider before they go and purchase a new car.
Figure Out the Budget
As mentioned earlier, buying a car is one of the most significant financial decisions for an average person,especially for a parent as you want to set an example for your children, so the first thing that a car buyer needs to consider is the price of the car. This is also the stage where you need to decide whether you buy the vehicle or lease it. Luckily, even if you have a low income and a bad credit score, you can get financing for a car.
However, you need to carefully weigh all the factors and determine whether or not you can afford to pay a certain premium for a car. If you are confused about how much a car would cost you on a monthly basis, you can use an online calculator to find that out. Keep in mind that you can get a car that’s more expensive than you can afford, but doing so will put you under financial strain for many years.
Consider Selling an Old Car
This, again, is your own decision, but selling your old car can ease the entire process. If you have no use for your old car, you can sell it and use that money to pay for the new car; that’s a no-brainer. The point to understand here is that the more you pay upfront for a vehicle, the lower the interest you’ll have to pay on the remaining amount.
So, suppose your old car is going to sit in the driveway and be destroyed by rust. In that case, it is better that you sell it and use that money to decrease the new car’s financial burden.
Of course, if you’re in the market for a second car, you may be considering a title loan to pay for the new vehicle. A title loan is a type of secured loan that allows you to borrow money against the value of your car. Rules for title loans vary from state to state so you want to do some research into the rules in your area. For example, if you live in Maine, you could search online for information on title loans. However, it might be better if you look for a company that specializes in title loans in Maine to help you. The main benefit of title loans is that they can be easier to qualify for than other types of loans, such as personal loans or traditional auto loans.
Determine What You Need
The thing about the auto market is that the unlimited choice makes it difficult to choose a car. You select one and then notice that you can get a very cool feature just by paying a few thousand dollars more. If you take this approach, you’ll end up spending way more on the car than you need to.
The correct approach is to make a list of features that you reasonably need in a car. This needs to be done before you look for cars online or go to a dealer. Make a thorough list and then use that as a guide. Look for the vehicles that have those features and start the narrowing-down procedure from there. That way, you’ll select a car you need, with all the features that are a necessity and nothing more.
Research the Competitors
Once you have a list of features that you need in a car, start your search. You’ll find that many vehicles from several different manufacturers and brands have what you want in a vehicle. Make a list of all the cars with the required features.
Now, the most critical step of the process starts. This is where you need to find out everything about the cars you have shortlisted. Start from the official websites of the automakers and extend your research to user forums and YouTube reviews. Making a spreadsheet can help. After you have all the information for all the cars you have shortlisted, compare the pros and cons of all of them. This will help you narrow down the list to the level of 3-4 cars. After that, it is a matter of which brand you are more comfortable with and which one is available for you.
Maintenance and Parts
Another important thing that you need to be mindful of when shopping for a car is the availability of the parts, the maintenance cost, and other expenses of a vehicle. Many cars, mostly exotics, might be cheaper to buy. However, you’ll face a hard time finding parts for them, and the maintenance of such vehicles is also expensive.
Going for a cheaper car that costs a lot in maintenance and parts down the line of ownership is not a good purchase decision.
Established Names
If you are buying a car for regular use and it will be the only car you’ll have, avoid buying one from a new company or even a new model of an established brand. You might get more features for a better price in such cars, but new things are always risky, and no one knows what kind of problems they might cause as they age. Even if you want to take such a risk, make sure you get a warranty and that the warranty covers anything that can go wrong with the car.
Choose the Right Dealer
You might be surprised at this, but not all dealers offer the same car for the same price. There is often a considerable difference in the price of the same make, model, and variant of a car at different dealers. Also, different dealers offer different things like complimentary service and other perks, so weigh all those factors and choose the best dealer.
Conclusion
Buying a car is a substantial financial decision and needs to be made the right way. You need to list the things you want from a car and then find a car that fulfills your requirements. Do proper research on the model you’ve selected before you seal the deal with the dealership that offers the best price and terms.