When shopping for a new car there is so much information, not to mention temptation, that it can be a little overwhelming. To make sure you drive off the lot with the best vehicle for you, here are five tips for buying a new car:
Mileage
Cars today are made with fuel efficiency in mind. However not all vehicles get the same mileage. In most cases compact cars tend to be the most fuel-efficient, but it still pays to do your homework. Have a list of cars in which you are the most interested and then compare them based on mileage so you know what kind of fuel costs you can expect.
Buy or Lease
Buying is always said to be better as you will have another asset under your belt. As well in a few years you won’t have to make payments which will save you money for years to come. However, a few good points about leasing include lower monthly costs, sometimes better warranties, and getting a new model at the end of the lease. When it comes to leases be certain you will not exceed the mileage as this can cost you money when the lease ends.
Financing
When buying a car you will be faced with some confusing options. The more cash you can put down, the better off you will be financially. Many dealers offer zero down, zero percent financing, but this is usually restricted to those with exceptional credit. A good option is to speak to your bank to understand what they can offer and then ask advice about what the dealers is offering. Be wary of those offering credit to “anyone” as these companies tend to have very high interest rates.
Walk Away
Be prepared to walk away if you are not getting what you want. Buying a car can be one of the biggest purchases you will make. There are many dealers that will not want to lose a sale and be willing to haggle for a better price. Be wary of things they offer to “throw in” as they might not have as much value as dealers would have you believe.
Auto Insurance Coverage
Discuss insurance premiums with your broker to see what your auto insurance will cost before you purchase or lease a vehicle. This will allow you to better plan the total cost of the new vehicle. Insurance rates on vehicles vary widely, and are based on the safety rating of the vehicle, likelihood of theft, cost to repair, and a person’s driving history just to name a few. Choosing a good insurance plan through an insurance broker is a must to ensure you have the best possible auto insurance coverage.
Following these tips can help you make the right choice for your vehicle.