There's nothing quite as intoxicating as the smell of a new car. It invites you to sit inside and go for a quick spin around the block. That being said, buying a vehicle is a big undertaking that will typically result in years of debt payments. It's important to approach the venture much like an investment. Asking a few simple questions at the beginning of the process can save you a lot of money as the years go by.
Can You Afford It?
This question is not as straightforward as it may seem. Not only should the car payments and insurance be included in the monthly expense calculation, but you should also allot for fuel consumption and maintenance. Another consideration for most newer cars is the purchase of an extended warranty. Typically, these will cost around $2,000, depending on the model of car purchased, and can be added to the financed payment. They cover the vehicle up to 100,000 miles from bumper to bumper. While not a necessity, these extra coverages often pay for themselves and can save the owner considerable amounts of money.
What Is Your Trade-in Really Worth?
It may be the best car you've ever owned, but to the dealer, it's just another used car. Do your homework ahead of time. Know the vehicle's history and any defects. Make sure the vehicle is clean of all clutter. Most importantly, bring documentation to prove its value.
Negotiate the trade-in price and the sales price of the new car separately. Salesmen will often try to confuse buyers by combining the two prices together. With lots of numbers flying around the buyer can easily get lost. Slow down. First negotiate a price for the new vehicle that you are comfortable with. Then after the new car price is settled, begin to negotiate the trade-in price. This tactic can save thousands of dollars.
How Safe Is The Car?
Every auto manufacturer on the planet claims they have the safest cars around. It's important to do some research on these claims. The safety features vary by manufacture year. Sometimes new features can be added in the middle of a manufacture year as car makers work out the bugs in the upcoming models. Ask about the number and location of airbags. Does the vehicle have rear parking assist or special driver alert devices? Lastly, does the vehicle have an integrated hands-free mobile device?
Does the Car Meet Your Needs?
Unfortunately, not all vehicles meet the needs of all people. While you may think the latest Camero is the best-looking car on the road today, it probably won't meet your needs for a family car. Likewise, a minivan won't work well on a construction site. It's important to be realistic about what your needs for the vehicle will be. Is space an issue? Will you be taking long trips? Will you use the vehicle to transport large items? Be realistic about your needs and be very wary of salesmen who might try to talk you into a vehicle that doesn't match those needs.
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