If you are planning to purchase a car, start budgeting now. Car purchasing is costly, usually the second most expensive purchase you will make after your home. To ensure that you make a good decision, consider the following tips.
Determine what you Can Afford
Planning to purchase a specific vehicle that you cannot afford makes no sense. Being able to allocate at least 20% of what you make every month for all the cars in your house is a great rule of thumb when buying a car. Such number must include not just your monthly payment for ca loans but also their operational costs including car insurance and gasoline costs.
Decide Between Used or New Car
Second-Hand or used cars are highly in demand making prices higher overall, although there is an array of affordable new cars. Because of this, you may wish to get new and second-hand cars which fit within your budget. Each has trade-offs. Purchasing used car means that you get a cheaper vehicle for your money; however, the trade-offs include having a shorter warranty period, higher interest rate and not knowing the history of the car. Meanwhile, purchasing a new car signifies that you will get less car features for your money; however, you enjoy the full warranty benefits along with roadside assistance, lower interest rates and free maintenance.
Narrow Down your Choices
Get the list of cars you see at a local auto show or while you drive around town and begin doing research online. Check out independent automotive information sites and automaker websites to evaluate the features of the car which are necessary to you and obtain ideas of available inventory in your area.
Evaluate the Total Ownership Cost
After having some car types in mind, know if you can afford them by having an estimate of ownership costs for all. You can get help from independent auto information to determine this figure. However, keep in mind that such number tends to vary depending on your specific situation. Make use of these figures for getting the best calculation but make sure you do your own gas calculation according to the number of miles that you drive every year and for insurance by contacting your insurance agent to obtain a quote.
Have the Perfect Interest Rate
Perhaps you are attracted to a specific brand or car like the Toyota rav 4 2015 due to a low interest rate or advertisement. However, there is no way you can own this car if you will not qualify and just around 10% of car buyers can qualify for the low-interest or zero-percent deals offered by automakers. Even then, consider taking the offered cash rebate and get financing elsewhere.
Be a Good Negotiator
After doing all research, you are probably ready to go to dealerships. Contact them and request to make a test drive appointment with the fleet manager. With this you can be sure that you will not work with someone who may not strong-arm you into your purchase if you are ready to make one. As you begin talking about the price, consider all the discounts you have researched and trade in your old car later. Surely, it will be easier to obtain the best price if you negotiate your new car’s price separately from the trade-in-value of your old car.