Buying a car is both exciting and daunting. Especially if you are purchasing a car for the first time, it can mean freedom and independence.
You have a vision of yourself, and the kind of car you drive ties into that sense of identity. It also represents a considerable expense that you will have for a long time.
This can cause stress, especially if you don’t know a lot about cars. Feeling in control when you buy a vehicle can add to your enjoyment. Here are some ways that you can be proactive when buying a car.
The biggest mistake that most people make is to do their financing through the dealership where they buy the car. This is a route you can take, but the interest rates will likely be much higher than if you went through a bank or credit union.
Your bank is the best place to start because discounts for current members are possible.
Once you get a quote for pre-financing, you will need to get it in writing so you can show it to the dealership when you buy the car. Before getting financing, it is a good idea to know what your credit score is.
The higher your credit score, the better the financing you will get. It might even be worth your time to put off buying a new car and improve your credit score first if it is on the low side.
You know that you find the best deals for other things when you shop around, and this is true of buying a car too.
Don’t be afraid to visit several locations and find the best deals. It is well worth the investment of your time since it could save you a lot on your car.
Stick to a Budget
When you are approved for financing, you will be given a limit to spend. While this may be the maximum a bank thinks you can afford, it may not be what you can afford.
It is up to you to look over your finances and come up with an amount that you can reasonably afford, so there is not a strain put on your finances. Sales associates might try to convince you that for an excellent deal, you can stretch that number more, but stick to the budget you are comfortable spending.
New Vs. Used
Another thing you need to consider is whether to buy a new car or a used car. There are pros and cons to each way of doing it. A new car will have fewer expenses in the form of maintenance and upkeep. Its resale value is also higher.
You will also pay more for it, and the resale value won’t even out for you to sell for a while. A used car might have a problem you don’t know about or need more repairs sooner than a new car.
You’ll also pay less for it, and be able to sell it for a profit faster. If you want to get an idea of what these costs might be, visit Southern Commercial Sales.