Buying a car is an important decision and an expensive purchase. You deserve to get all the helpful tips you need for buying a car this year. Here are 10 car buying tips for 2018:
*How Much Can You Afford?
The first step is to determine how much you can afford to pay for your new car. Calculate all your monthly expenses and ensure they are less than 25% of your monthly income. A good budgeting plan will help ensure you can make the necessary monthly payments and avoid any late payment penalties.
*Create a Short List of your Favorite Cars
Research all your favorite cars and review their features including the price. See if they fit in your budget. Then narrow down your choices to at least five. Use reputable automotive sites to give you accurate information for each car. Getting a car expert’s help may also be useful.
*Brand-new or Pre-owned?
There are several factors you need to consider when buying a car. The price is one. A brand-new car will cost you more than a used one. Determining your budget can help you decide whether you should buy a brand-new car or go with a used one in good condition.
If buying used, a rule of thumb: Thoroughly inspect the car you’re considering purchasing. This can help you avoid buying a car with underlying problems. If possible, get a car mechanic to help you.
Get accurate and detailed pricing for each of the cars on your list. Having all this information can help you negotiate better rates with the dealership. Apart from the price, also consider the features that are important to you in deciding what car to purchase.
*Shop Around for the Best Financing Option
Never rush into buying a car. It’s better to wait a few weeks to find a good deal then to buy the first car you see at a dealership. There are plenty of financing options you can explore. Find the one that gives out the best offer.
*Get Pre-Approved for Financing
Smart car buyers visit their banks or credit unions to acquire financing before heading out to a dealership. Why? Credit unions and banks generally offer lower interest rates. If you’re not a member of one, you may want to consider joining if you’re planning to purchase a car.
Having a pre-approved loan lessens the hassle of acquiring a car. It can also help you avoid the yo-yo scam. Additionally, you can better compare the bank/credit union’s financing offer with the dealership’s.
*Always Do Your Homework: Research
Use the internet to help you find possible discounts or better deals. Reading online reviews and forums can also be helpful. Talk to car owners to get vital information that may help you save money when purchasing a car.
*The Proper Test Drive
One of the most important steps during the buying process is the good-old test drive. Take your time testing the car. Do you feel comfortable driving it? Pay close attention to the little things. Are you hearing excessive road noises inside the car? Check if you’re comfortable parking the car too. Buying a car is a big purchase — don’t rush into it.
*Find Out the Value of Your Trade-in
If you’re planning on trading-in a car, don’t wait for the dealership to tell you how much your car is worth. Do your own research. Know the value ahead of time so you can get a better offer.
*Become a Smart Buyer
Find out everything you can about the market and the car buying process. This may provide you with better strategies for negotiating with lenders and dealerships.
Follow these 10 car buying tips so you’re prepared the next time you purchase a car.