Buying a car may be the most difficult purchase anyone will ever make in their lives, next to buying a house. After all, the average price of a new car costs at least $33,560. And if you are an average American citizen with an average household income, that price is not something you would like to mess around with.
Because getting a new car may prove to be a minefield, here are five tips to keep in mind before you choose to close in on an offer.
1. Know what you want, and what you need
Before setting out to look for your dream car, you first need to know what it is exactly that you need in a car. If you are the average American, then you travel more than 15,000 miles a year. Getting a car of your own may save you more money compared to your daily commute.
Besides practical reasons, you need to know what additional features you need, such as traction control, or 12-volt power outlets. Can you afford an adjustable steering wheel? These are just some of the things you need to consider.
2. Research, research, research
Nothing beats an informed decision. If you are buying a new car, especially a recently released model, look out for firsthand reviews. Although rare, there have been some instances where new models are recalled due to a bug. That’s an expensive mistake you don’t want to make.
Meanwhile, if you are buying a used car, one of the first things you need to find out is the actual value of the car, so you can be sure that you are not being ripped off.
A car is something that you will be paying for the next few years, especially if you are planning to purchase a new one. While most car dealerships in Layton, Utah, Seattle, Lost Angeles, and other major American cities offer reasonable prices, learning how to negotiate a car loan will save you tons.
4. Keep an eye on the purchase price
A common trick that salespeople do is offering a handsome monthly payment. To the uninformed eye, it might look like an excellent deal, but do not be misled: these low-cost monthly payments are usually tied up with a three-year loan agreement, which gives salespeople plenty of ways to insert hidden charges in the guise of interest.
Instead, make a decision to buy a car based on the purchase price, or the original price. That way, you will really know what you are dealing with and where your money goes.
5. Know whether to buy a new or a used car
Depending on the circumstances, buying a new car can have several disadvantages, ranging from unforeseen glitches, car depreciation, and costly maintenance fees. However, used cars may also be disadvantageous as they may be less reliable and be as pricey as a new one because of repair costs.
Choosing between a new and a used car mainly depends on what you can afford and what you really need. Do you want that newly released model or do you simply need something that can take you and the kids to and from school and work?
With these tips in mind, you will definitely find the best deal for your car, save a lot of money, and be confident in your decision.