So, you are looking to buy a new car. With so many different makes and models to choose from, and so many different places whereby you can purchase a vehicle, there is a lot to take into consideration. Until just a few years, Japanese brands were considered by most, the most reliable for their prices. Today, American car makers have made a lot of changes and the gap in quality and reliability is closing. I recently bought a Chevrolet and it has served me well so far. However, it took a lot digging around to find the best credible reviews. I was very surprised by its ratings.
When buying a new vehicle, the car itself is just one of many components of the transactions. There are many other factors to consider, including finances, durability, value, etc. Among the unlimited amount of advices you may get from your friends, family and of course the web, here are a few Do’s and Don’ts.
Don’t…
– Show your hand to the dealer straight away – Unless you haven’t figured it out, the salesman’s job is to get you in a car on your way out. That’s their ultimate goal. Yes, there are some who honestly want you to have the best car for your needs but rare. One of the biggest mistakes you can make is showing your hand to the dealer right away. This is a transaction and you want to come out the winner. If you plan on negotiating, play it cool. Otherwise, you will make it harder to negotiate. Instead, keep your cards close to your chest.
– Forget the total cost of ownership and maintenance – Another error that a lot of people make is simply considering the price of purchasing the car, without looking into the cost of the total ownership of the car. You need to find out whether the vehicle is efficient to run, and you need to look into insurance as well. The cost of maintaining a 4×4 diesel truck is obviously higher than a 4-cylinder sedan. You may be able to purchase the pick-up truck today but will you afford the expenses down the road? This choice is a tricky one especially when buying used cars. You may be able to buy a used BMW today but remember that it is a luxury car and on average, they cost more to maintain.
– Try to keep up with the Joneses – Don’t buy a car simply for the sake of trying to impress others or because you want to keep up with what your friends have. You need to choose something that satisfies your needs, whether this means a car with a lot of storage or a vehicle that is inexpensive to maintain.
Do…
– Research beforehand – You won’t be able to negotiate effectively if you are not armed with all of the information you need about the vehicle you are considering and the auto market in general. Doing your research will put you in the best position for securing a top quality deal. My go-to is consumerreports.org. You may also visit YouTube channels or any other credible reviews website.
– Consider the used market – The used car market is certainly not to be frowned upon. You can pick up some great bargains, cars that will still last a long time. Moreover this market often gives you value for money. After all, if you buy a new car it is only going to lose its value the moment you drive it out of the showroom.
– Consider all of your financing options – Last but not least, before you sign on the dotted line, make sure you consider all of your financial options. Do not simply assume that financing through the dealership is the only option. In my book, I mentioned that smaller lenders such as credit unions usually have better rates (when you have a good credit score). Your research should also include financing options. Compare your options through platforms such as auto.loan. Everyone is different so it is important to find what works for your situation.
So there you have it: some important dos and don’ts when buying a new vehicle. If you take note of the advice that has been provided above, you should have no issue finding the perfect car for you!
Money-Smart Millennials 