Top 10 Things To Know Before Buying A Car

Buying a Car

If you’re currently thinking about buying a car, start planning and managing your finances. Buying a car is costly; usually the second most expensive purchase that most Americans make after their homes. To avoid making a wrong decision, follow these 10 tips for buying a car.

See Which Car Is In Your Budget : Setting your sights on a certain car would not be of any help unless you can’t afford it. Use Bank rate’s home budget calculator to help you determine your monthly bills and necessary savings.

Always Research: Of course this is a hoary bit of advice, but it holds true every time. Decide on the type of vehicle you need, narrow the list to three, any one of which you could live with.

The New Or The Old: Used cars have been in high demand for a couple of years now, increasing the prices overall, while there is a wider array than ever of inexpensive new cars.

Research the Dealers: Buying from a cooperative and fair dealer will save you money and headaches. There are a number of websites that allow people to post reviews of dealerships, but their coverage is spotty and incomplete. If you can’t find online reviews of the dealer you are considering, just talk to people. Your friends and neighbors purchase cars and should be honest with you about whether they were happy with their car or dealer.

Check Your Credit History: Most people who shop for cars will need a loan. How much that loan costs will depend on your credit history, and knowing your credit history will give you a better idea what to expect from lenders.

Do Not Buy a Car on Your First Visit: Use the first visit to look at and test-drive the cars you are interested in. Gather your information and then leave, and be adamant that you will not be buying a car today. This will communicate to the dealer that you are not going to be bullied.

Things Not to Say When Buying a Car:“I’m trying to keep my monthly payments down.”“Honey, what do you think?”,“I have a car to trade in; how does that affect the deal?”,“Here’s how much I have to spend.”These are some of the common mistakes people make when they enter a showroom. Avoid tipping your hand right when you walk in the door. You have no idea how much the salesperson is willing to deal, but if you blurt out your target price, you can be sure that he’s not going to offer you anything lower than that.

Get the best interest rate: While you may be drawn to a certain car or brand because of an ad for a low interest rate, it’s of no use unless you qualify, and only about 10 percent of car buyers qualify for the zero-percent and low-interest-rate deals automakers offer. Even then, you may be better off financially by taking the cash rebate offered and getting financing elsewhere. Don’t visit a dealership until you’ve researched the best interest rate you can get.

First-of-the month purchases: Sometimes this can be the right call, sometimes not. Just know that as the month winds down and sales targets look tough to meet for certain dealers and manufacturers, richer deals often come out to play.

Control your emotions: Of course it’s exciting to buy a new car. Enjoy it. Relive it — after you’ve done the deal. Treat car buying like I treat emails that really aggravate me. I write my reply, then sit on it for 24 hours. Do the same with a new-car offer. Take it away and sit on it for 24 hours before you pull the trigger. You’ll thank yourself.