Buying a new car is exciting, but it can also be a somewhat stressful process. It’s one of the most expensive purchases that people make, after all. Luckily, it’s easier than ever to confidently buy a car due to all the information that’s available online. The rise of sites like Carfax has publicized all the information you need to make an informed decision.
But how do you begin the car-buying process? It starts with understanding your own finances, determining the trade-in or selling value of your current vehicle, and working from there. Here’s a step-by-step process of how to purchase a new car.
Get Your Credit Report
If financing is a part of your plan, then it’s time to get a copy of your credit report and learn your credit score. Financing a new or used vehicle is going to be heavily dependent on what your credit score is, so there’s always a good reason to grab a copy of your credit report before deciding whether a new car is feasible for you. A new car will require a higher credit score. If you see a low credit rating, you’ve now encountered your first plan of action: get that credit score up! You can use loan consolidation, talk to a financial planner, or simply come up with a do it yourself plan of action to improve your credit score so that your new car is within reach.
Explore Trade-in Options
If you already have a car – most people do – then you can use your current vehicle for trade-in value. Your potential dealership will calculate the worth of your vehicle and give you that price for it, and then that price will shave dollars off the bottom line of your new car purchase. A trade-in is usually something people bring with them to the table when they buy a new vehicle, but it isn’t a necessity. Even if you don’t have a vehicle to trade into a dealership, you’re still in the game. However, don’t exclude any vehicle from a trade-in proposition. The fact is that most dealerships are very lax and will consider any vehicle in any condition as an incentive to sell you a new car.
You will want to assess your budget and decide how much you can afford to pay every month on a new vehicle. New Roads Auto Loans has a loan calculator that can help you determine exactly what you’ll be paying on your car loan. A new car payment is generally going to cost more than a used car payment, but it’s also going to give you all the benefits of owning a new car. You’re going to have this new vehicle for a long time, and you want to make sure that you get a monthly payment that suits your best interests. Use the calculator mentioned above to calculate your monthly loan payments and get an idea of how you can tweak your budget for the best.
Shopping for Models
Every maker has a lot of different models to choose from, so you’ve got your most pleasant work ahead of you. When you shop for new cars, you want to decide what kind of car you want. Are you in the mood for a sports car that has a lot of horsepowers? Would you prefer a brand new SUV that will give your family a nice, cozy home away from home? Perhaps it’s a pickup truck that you need to help you in your personal life or at work. Whatever your needs, shopping for the right model will be crucial to getting a deal that you’re happy with. If you buy the wrong model, you will certainly come to regret it over time. Things to look for while evaluating a model include horsepower, interior cargo space, passenger space, and tech amenities.
The Right Attitude
As with anything in life, taking the right attitude into the game of shopping for a new car will make all the difference in just how pleasant or unpleasant the whole experience is. If you’re shopping for a new car, chances are you might be a little more financially well off than some people out there who have to buy used. If that’s so, you already have a lot to celebrate and be happy about.
Now it’s time to take the positivity and apply it to every phase of the buying process. When you go into the dealership lot to buy your new vehicle, you’ll want to make sure that you bring your positivity with you. Do your homework beforehand so that you know which models you’re interested in.
Once you’ve nailed the precise vehicle you want to take home, it’s time to really study negotiating strategies that work best at today’s dealerships. Almost every dealership is ready and willing to barter with their customers, but they have a setlist of strategies beforehand, and it can be hard to break their code. They know everything about the vehicle and its value, and you don’t know quite as much. Despite this fact being a disadvantage, you can bet that by learning how to negotiate a little better, you’ll walk away with a better deal on that brand new model of yours. Research! There are many strategies you can use when negotiating the price of the new car you have your eye on.
Best of Luck
If you follow a few of these basics, buying a new car is going to be a lot less stressful. The more you know about your finances, budget, monthly car payment, and negotiation, the better off you’re going to be. At the end of all this, you’re going to drive away in a brand new vehicle that will serve you for many years to come. Don’t take any shortcuts with the process. Grab that credit score, negotiate your heart out, and finally, be happy with the car you go home in. Not only have you earned it because you’re paying for it, but because you did the work to get it for yourself.