A new car is a big investment for most people. When you begin searching for a car, you need to make sure that you are in search of out an investment that will last for a while, or at least until your car loan is paid in full! Here are a few tips for helping you decide on that new car:
Tip #1. Figure out your budget! Unless you are paying cash for your new car, and most people are not – you are probably going to need a few thousand dollars for a down payment. Then, figure in your monthly loan payment into your new expenses. According to Kelley Blue Book, most cars lost 20% of their value the first year. Consider this when you are negotiating your loan.
Tip #2. Pay a fair price. Car prices can change drastically depending on the seller or the auto dealership. Ask around. With social media, amplify your question by asking your Facebook family and friends where they buy their cars. And then shop around and take your time. It’s better to work with a trusted dealership than be stuck paying for a “lemon” for 5 or more years.
Tip #3. Consider alternatives. Do you need a new car? Many times you can purchase a “demo” car with a few miles on it for a cheaper price. Can you settle for a used car and rent cars for road trips or business?
Maybe you need a new car or maybe you don’t. The point is do your homework before making a large purchase or buying something you may regret later.