While driving a new car is a lot of fun, shopping for one can be a pain. Throw in a tight credit market due to the unstable economy, and that makes looking for a new car even more frustrating.
But it really is possible to get into a car you will love at payments you can afford. First of all, you need to know how big a payment really fits into your budget. When you are budgeting for you car, don't forget you also have to pay for insurance, fuel, taxes, repairs, maintenance, tax, license, and registration. But once you know how much you can afford to pay, you can move on to step number two.
Second, think about how you will use your vehicle. Will you be doing a lot of city driving? Highway driving? Do you need room for several passengers or room to haul luggage or equipment? Your budget and needs will determine what kind of car you should shop for.
Next, decide on whether you want to purchase a new car or a used car. In the past, many people would buy new cars because used cars were considered unreliable. However, with improvements in technology, cars are better and lasting longer, making used cars a worthy choice. If you do decide to go the used car route, make sure you have access to the vehicle?s repair and maintenance history. You don?t want to purchase a used car that has had major repairs that have not been disclosed.
Then decide whether to buy or lease. If you trade cars every two or three years, then leasing may be for you. It costs less per month and requires a lower down payment. But if you drive your cars for five, seven, even ten years or more, there is no doubt you will be better off buying them outright. That's also true if you drive a lot of miles per year, such as driving from your suburban home to a job in the city every day or using your car in outside sales. If you lease a car, you are limited to a preset number of miles per year without having to pay a stiff penalty. Drive it too much, and you may have to spend a small fortune to pay off your lease.
Regardless of whether you buy or lease, be prepared to negotiate. Get bids on cars from several dealers. Shop around for sales and specials, especially if you are buying a car at the end of the year. Dealers often want to get rid of cars at the end of the year in order to make room for new models. The internet makes it easier than ever to negotiate and shop around for good car deals.
Finally, if you plan to finance, have your loan approved even before you go to the dealer. Having that preapproval makes you a much more attractive customer to the dealership, and makes it much more likely they will negotiate with you and give you the best deal.
But it really is possible to get into a car you will love at payments you can afford. First of all, you need to know how big a payment really fits into your budget. When you are budgeting for you car, don't forget you also have to pay for insurance, fuel, taxes, repairs, maintenance, tax, license, and registration. But once you know how much you can afford to pay, you can move on to step number two.
Second, think about how you will use your vehicle. Will you be doing a lot of city driving? Highway driving? Do you need room for several passengers or room to haul luggage or equipment? Your budget and needs will determine what kind of car you should shop for.
Next, decide on whether you want to purchase a new car or a used car. In the past, many people would buy new cars because used cars were considered unreliable. However, with improvements in technology, cars are better and lasting longer, making used cars a worthy choice. If you do decide to go the used car route, make sure you have access to the vehicle?s repair and maintenance history. You don?t want to purchase a used car that has had major repairs that have not been disclosed.
Then decide whether to buy or lease. If you trade cars every two or three years, then leasing may be for you. It costs less per month and requires a lower down payment. But if you drive your cars for five, seven, even ten years or more, there is no doubt you will be better off buying them outright. That's also true if you drive a lot of miles per year, such as driving from your suburban home to a job in the city every day or using your car in outside sales. If you lease a car, you are limited to a preset number of miles per year without having to pay a stiff penalty. Drive it too much, and you may have to spend a small fortune to pay off your lease.
Regardless of whether you buy or lease, be prepared to negotiate. Get bids on cars from several dealers. Shop around for sales and specials, especially if you are buying a car at the end of the year. Dealers often want to get rid of cars at the end of the year in order to make room for new models. The internet makes it easier than ever to negotiate and shop around for good car deals.
Finally, if you plan to finance, have your loan approved even before you go to the dealer. Having that preapproval makes you a much more attractive customer to the dealership, and makes it much more likely they will negotiate with you and give you the best deal.
About the Author:
Tom Martens is the content syndication coordinator for Carinsurancesa.co.za. South Arica?s leading car insurance portal.
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