Buying a new or used car is the second biggest decision you will make in your life. Most customers think that the hardest part about buying a car is simply setting a budget and making the decision to proceed with their purchase. However, that is only the beginning of what can be a stressful and costly process. You are already at a disadvantage because of your lack of knowledge about the buying process. Most customers are unaware that there are good dealers and bad dealers. Not to mention, the quality of the brand you select may play a large role in your daily life.
Let me peel the layers back and reveal what factors you should take into consideration before purchasing your next car. Ask yourself, do you keep your vehicles for a long time? If so, you are not a good candidate for a lease. You may need to pick a make and model that provides long-term value. I have seen customers purchase a new car without thinking about what they truly want or need and trade that vehicle in within weeks to get the right car. That error in judgement cost them thousands.
To prevent this from happening to you, we are listing exactly what you should consider before starting the buying process.
- Set a budget that is payment base if you are financing.
- Determine how long you want to have this payment. (No more than 72 months) Any longer, you can’t afford it.
- Review your personal credit and obtain your scores. (This will help you know if you qualify for financing at the best rates)
- How much down payment will you want to contribute to this new purchase.
- Days to first payment. (No more than 30 days – saves you a few dollars in interest)
- Time frame to drive home in your new car.
- Always shop a minimum of three dealerships.
The car buying process can be challenging, but if you have done your research, make a rational, emotion-free decision, and do not deviate from your action plan, you will get more value out of your car than what you pay the dealership in profit.
If you have additional questions, feel free to contact us.