You may have already decided that you want to buy a new car, but did you know that there are several things to take into consideration before making a solid commitment? That is why, in order to make the most informed decision, you should take the time to look into the following factors:
Available financing will certainly depend on your prior payment history, which means that you should learn your credit score before entering the dealership. If you have a higher score, you will be able to ask for a lower interest rate.
Knowing your score also gives you a chance to improve it before car shopping.
You may be surprised to learn that you have more options than financing from the dealer only. You can visit your bank or local credit union first to see if they are able to provide you with better interest rates.
Not only will this save you time at the dealership, but it will also give you an advantage during negotiations.
Take the time to understand all that goes into determining your monthly payments, such as all the terms and fees associated with your loan. You need to know exactly what you can afford. The key information to focus on here is the term and the annual percentage rate, or APR.
And, if you are able to, put a down payment on your new vehicle. This can substantially cut monthly payments going forward.
Buying vs. Leasing
You need to consider, based on your needs and lifestyle, whether buying or leasing a new vehicle is the best choice for you. After all, the one you choose will determine things such as what you’re going to pay and for how long.
For example, let’s say you go to the Hyundai dealership and decide to finance the full cost of a new vehicle right there, minus a down payment or trade-in, if applicable. You will then own that particular car and are free to do with it as you please.
Leasing means that you are essentially renting a car from the dealership, and will pay for it throughout the duration that you use it. The payments are determined by subtracting the value of the car at the end of the lease from the current value at the start and dividing that figure by the number of months that the lease is for.
Type of Vehicle
Now that you know what you can afford, you can narrow down the type of automobile you should get. What is it that you need? Are you looking for a car with great mileage for commuting, or are you searching for a family vehicle with an excellent safety record?
Once you know what you need, and what is within your budget, you can research which makes and models are best for your needs.
In conclusion, a lot of preparation should go into buying a car before you ever enter a showroom or take a test drive. Armed with that knowledge, you should be better able to shop wisely and choose how you want to go about purchasing a new car.