Some people love buying new cars while others despise the entire process. Buying a car can be confusing, especially if dealership sales people talk fast and act pushy. Whether you love or hate car buying, doing your homework before you walk through the dealership doors saves time, money and peace of mind.
What You Can Afford
Examine your finances to determine how much you're willing and able to spend an a car. You might decide that you don't have enough funds to buy a car outright, in that case you'll need to take out an auto loan requiring monthly loan payments. Many dealerships will finance your loan, but banks and other institutions also offer auto loans. If you decide that a loan is your best option, consider what monthly payment amount falls within your budget. Banks or dealerships may only be willing to finance up to a certain amount, based on your income and credit history. Consider setting up a loan counseling meeting with your lender before you begin researching cars so that you can easily determine the price range available to you.
Decide on New or Used
Both types of cars have benefits and drawbacks. New cars cost more, but are less likely to need repairs. Used cars cost less, but they have had wear and tear that could equal an unappealing appearance. Used cars will also need more maintenance than newer counterparts. If you decide on a used car, ask the dealer for a history report of the vehicle. This report tells you about any accidents or major repairs in the car's past.
Research Cars
Online information, such as car prices, features and dealership locations is a valuable resource for car shoppers. Kelley Blue Book's Used Car Retail Values is an often used industry standard for used car prices. Consumer Reports magazine lists the pros and cons of newer cars in its annual new car buying issue released in April. The United States Government's Federal Trade Commission website lists laws concerning car buying and advises how to avoid used car fraud.
Choose a Dealership
You can choose a car dealership in several ways. Through research you might discover the exact model of car that you want and find a dealership that carries that model car. Your bank might steer you towards a dealership that accepts its loan financing. Or, you might choose a dealership that can finance your auto loan itself.
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