If you are ready to buy your first new car, this can be quite the exciting time. But, even if you have a general idea of the type of car you want, and your budget, the choices can still be pretty plentiful, and deciding amongst them can seem a bit daunting. But, with a bit of forethought, you can go into this endeavor with confidence, minimizing the risk of buyer’s remorse. Here are just a few important points to keep in mind.
Figure Out What You Can Spend
In a perfect world, you could walk into the dealer and cut a check in full for the car you want, but most of us don’t have that kind of cash just lying around our bank accounts. So, if you are like most people in your position, you will be financing your purchase. It is important you give some thought to what sort of payment you can truly afford. Surprisingly, a lot of people don’t really do this. They just kind of know what constitutes way too expensive, but don’t take the time to really crunch those numbers.
Figure out your monthly budget, and what you have left over to put towards a car. Be careful about putting all of it towards it. At first, getting the nicest car possible may seem peachy, but the shine will eventually wear off, and the payments are here to stay.
Bone Up on Your Financing Options
If your credit history is non-existent, or marginal, you may have a harder time securing an optimal interest rate. The fact that you may have to pay more for the same car than someone with a more solid credit history is just something you have to accept, as unfair as it may seem. In your case, it may be a good idea to try and line up financing from a third party source, such as a bank, credit union or online lender. You won’t be obligated to use these avenues if the dealer happens to offer something better. You just don’t want to go into the game thinking this is your only option to fund your purchase.
Do Your Research
Before you begin car shopping, do your homework. With the abundance of information available on the internet, there is no excuse for being an uninformed consumer. This knowledge is particularly important when it comes to large purchases like a car. Think about what you want and need in a car, and familiarize yourself with the vehicles that fit the bill. The more you know going in, the better off you will be at the dealership. You will stand a better chance against skilled salesmen who can easily steer you towards a car that is really not the best choice for you if you have a firm idea of what type of car is most suitable for you.
Don’t Buy Your First Time Out
Resist the urge to buy a car the first time you head out to the dealership, unless you are 1,000 percent sure about the type of car you want, you have done all your homework, and are ready to play some hardball with the negotiation. Otherwise, you may end up paying more than you should because you won’t get the benefit of comparison with other dealers, or not getting the best car for your needs.