If you are in the market for buying a new car, it can be a very daunting experience. Odds are when you make a new car purchase, you intend to own the vehicle for a long time, and so you not only want to pick a style you like but something which is going to be reliable for the foreseeable future.
However, some things could slip through the cracks if you are not careful enough, and you could be holding the bad end of a used car purchase deal. So here are seven pointers for you to choose from when purchasing a new car.
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Know what you want & what you need
When it is about buying new cars, it can be quite exciting, as many people look at it as the perfect opportunity to pick out that car they fell in love with on the road or on the internet. But buying a coupe may not be ideal for a family of five, and a mini-van is possibly not the best choice if you are single or married without kids.
Understand the pricing and know your budget
A lot of people may see the car they want to buy but not realize the drain it may take on their family budget. While there is an initial purchase price, you must factor in the cost to finance a car, the taxes, the dealer and registration fees, and any additional warranties. These can add up significantly, so make sure you are purchasing well within your budget.
Look at multiple cars.
Some people believe that there’s only one car model for them, and it should not even be a choice. However, you should still look at several different cars and offers, as you may find yourself thinking your dream car may not be the best to choose from. Look at different styles and compare different prices to get a feel for what might ultimately be best for you to choose from.
Taking the test drive
While car buying has shifted a lot towards online purchasing, there is still value in visiting a dealership and doing a test drive. A car may look stylish and appear to have amazing specifications, but you may find once you get behind the wheel, it is just not a satisfying experience. And odds are if you don’t like for a test drive, you will not be enjoying it for the next several years.
Know your negotiating strategy
Once you figure out what type of car you want, you should always do your research to know if the dealer is offering you a fair price. Understand what the Manufacturer Suggested Retail Price (MSRP) is and consider if the interest rate is reasonable. If you’re planning to buy a car in cash, do not tell the dealer up front that is what you intend to do, as they are likely to give you a better offer if they believe you will finance the vehicle.
Know your credit score
Just because a dealer may advertise a low-interest rate does not mean that’s the rate you will get. A lot of dealers will check your credit history before quoting you an interest rate. If this is the case, know ahead of time where your score is so you don’t be surprised if they quote you a higher price.
Read the contract carefully.
It may seem like once the handshake deal is made the stress is over with. But with a new car purchase comes a lot of contracts and signatures laying out obligations, liabilities, and terms. Make sure to read the fine print to know what you are signing off on, so later down the line, you do not find yourself yelling at the dealer for not holding up their end on a maintenance deal.