Did you know that this year, the global car and automobile sales industry is worth about 3.7 trillion dollars? Every day, many people choose to buy a new car. You may be one of the many looking at buying a new car right at this moment.
If you’re looking into buying a new car, there are some things you need to know – so it’s a good thing you’ve found this article!
We’ll tell you many important things you should know, such as when to buy a new car and how to negotiate with the dealer. By the time you’ve finished reading this article, you’ll know exactly how to go about buying a new car.
1. When to Buy a New Car
In terms of when you should buy a new car for yourself, the best time to buy a new car is always before you need one. Limping your current car along as long as you can sounds appealing, but will cause you trouble in the long run. Your car could easily break down right when you need it most.
If you’re thinking about the best time of year to buy a car, however, the answer is the last three months of the year. Car dealerships have sales quotas that break down into yearly, quarterly, and monthly sales goals. At the end of the year, car salesmen have extra incentive to see you leave in a new car.
In addition, manufacturers typically release new cars at the end of the year, making older models cheaper.
2. What Type of Car You Need
When deciding what type of car you need, you need to determine the factors that will give you your answer.
One of the most important things to consider is how many people you need to drive and how much cargo space you need. If you need more seats and less cargo space, you could get a minivan. If you need less seats and more cargo space, you could get a truck.
Another thing you should keep in mind is if you want an automatic or manual transmission. Manual transmissions are useful when living in a mountainous area, but an automatic transmission is easier to learn.
Lastly, consider your driving style. This will help you choose whether you need a fun car or a practical one.
3. Finance Your Car
If you don’t quite have the money to cover the cost of a new car, you’ll need to figure out how to finance it. This usually means getting an auto loan.
Luckily, you can still finance your auto even if you have bad credit. It may be trickier than it would be if you had good credit, but it’s still doable.
The most important thing you need to do is to provide a down payment. Few people realize how effective a down payment is. If you pay a larger down payment, then it’s likely that any financers will pay less attention to your credit score.
You can also find car loan approval by visiting places in person. If they can’t help you, they can usually point you to other opportunities.
4. Where Your Credit Is At
Knowing whether you have good or bad credit is important when it comes to buying a car, as it determines what type of loans you can get. You can still finance a loan with bad credit, but this form of financing has both advantages and disadvantages.
If you have bad credit, your loan can be more expensive. Pay attention to the financial terms of the loan agreement other than the monthly payment amounts. Paying only the minimum will make your loan far more expensive than it needs to be.
Your loan terms are also more unfavorable than they would be to others. This could come in the form of strict fees, such as an extreme fee for being late on a payment.
So while you can finance a loan with bad credit, it’s better to have good credit.
5. Knowing What You Can Afford
Many people don’t actually sit down and plan out their budget ahead of time to help them buy a car. This is a pretty serious mistake, because you don’t want to end up buying more than you can afford, even with an auto loan.
Before you ever arrive at the dealership, figure out what you can afford for a down payment on a new car. Then figure out how much you can afford to give towards owning a car each month. That should include maintenance, fuel costs, insurance, and your monthly payment.
Once you arrive at the dealership, make sure you go over the terms and fees to make sure you’re not agreeing to pay more than you’re able.
6. Do All the Research Possible
Research everything that you possibly can. You can never have too much knowledge.
Look for which type of cars you’re interested in and make sure they’re right for you. Examine their fuel consumption, keep an eye out for quirks that others noticed. Look at the safety ratings as well.
Go over reviews of dealerships in your area to make sure that you choose the right dealership. Make sure to read all kinds of reviews so you’re getting a balanced view of the dealership.
Ask your family, friends, or neighbors for recommendations on where to go. They may be able to point you towards a dealership, or a specific person at a dealership, who can help you get the best deal.
7. What Comparisons to Make
The worst mistake anyone could make when buying cars is to lock on to one vehicle right away. Look at other dealerships to see how their cars compare. Doing so can sometimes save you thousands of dollars.
Even if the other dealerships don’t have the same vehicle you had your eye on, they could have something else that will catch your eye just as much. Don’t set your heart on one specific make and model.
In addition, don’t be afraid to compare the car salesmen you work with as well. Work with a car salesman who sees you as a person, not just as someone to sell to. Working with the right person can change your entire car buying experience.
8. How to Inspect a Car
You want to have a mechanic thoroughly inspect any car you’re thinking about buying. Most reputable car dealerships will allow you to bring an independent mechanic for a pre-purchase inspection. It will cost you some money, but it is far better than having a car break down shortly after you buy it.
If a car dealership or a salesman won’t allow the inspection, you should consider working with a different car salesman or choosing a different vehicle. In some cases, you may want to go to a different dealership entirely.
Roadworthy certified pre-owned cars can have hidden problems you may not see at first. Even cars that are only a year old should be inspected, as it’s better safe than sorry.
9. Test Driving a Car
Try before you buy is something that anyone looking to buy a new car should do. This is one of the easiest ways to identify potential problems that the car might have.
You don’t need to be a mechanic to tell that the transmission isn’t shifting, that the brakes aren’t working right, or that there are sounds that shouldn’t be there.
When test-driving a car, you can get a feel for how it handles speed and corners. You can also decide if you would be comfortable driving that car all the time or if you should look at other ones.
In any case, you should always take the vehicle you’re looking at for a test drive before you make any final purchases.
10. How to Negotiate
Negotiating your new car purchase is tricky business, but it’s not impossible. Although a car salesman knows a lot, you can level the playing field by setting the ground rules before they can.
Get right down to business so that the discussion is on your terms instead of the car salesmen. Let them know you’ve done your research, and you know what the car is worth and about what the dealership paid for it. Then let them know what you would be willing to pay.
What typically happens is a back and forth where the car salesman submits your bids to the sales manager and gives counteroffers. Prepare for these offers to be much higher than your own, and be prepared to wait several minutes before each new offer.
Apply Now!
Now that you know when to buy a new car and other things to keep in mind, you’re ready to take the next step towards getting that new car. Apply for an auto loan from us now!
Applying for an auto loan is an easy, two minute process. Once your application has been approved, you’ll be able to shop for vehicles through us. We have access to 350 dealerships across the nation!
Applying for an auto loan from us will make your car shopping experience easier, so why wait? Go fill out your application today!