When you purchase a car, you are purchasing something you are going to use on a regular basis and that you are going to spend hundreds of hours inside. You may also have to make monthly payments for three to six years in order to pay off the new vehicle you purchase.
Tip #1: Start Shopping Before You Need a Car
When it comes to purchasing a car, you should start shopping before you need a car. Don't wait until your old car will not start anymore. Start shopping when you know you want a new vehicle but you don't have to have one yet.
This will give you time to research and find the right vehicle with the best possible financing. When you are not in a rush, you will not feel pressure to make a quick decision. Instead, you will have time to make the best possible decision for yourself.
Tip #2: Get Pre-Approved for a Loan
Once you have an idea of the type of car you want to purchase, take the time to get pre-approved for a loan. You can get pre-approved for a loan through your bank, your credit union, or an online lender. Being pre-approved will give you a better idea of how much you can borrow and what type of financing you qualify for.
You don't have to use the first loan you are pre-approved for. If the dealership offers better financing terms, you can use those instead. Getting pre-approved gives you a reference point for what you can borrow and what type of terms you can expect.
You can also use your pre-approved terms to help negotiate better loan terms with the dealership as well.
Tip #3: Investigate the Warranty
When purchasing a new car, always take the time to investigate the warranty that is offered. A good warranty can provide you with a lot of value. A good warranty can provide you with access to free service for your vehicle.
A new car warranty can provide you with benefits such as free oil changes and free repairs on various components on your vehicle. Always carefully look at the warranty offered with a new vehicle, as it can offer you a lot of value.
Tip #4: Know What You Need
Finally, make sure you know what you need out of a new vehicle. Do you live somewhere with cold weather and park your car outside? Then you may want a car with remote start and heated seats. Do you commute on a regular basis? Then you may want a car with auto-drive. Do you spend a lot of time in the vehicle? You need a comfortable seat.
Create a shortlist of features you need, and make sure any vehicle you seriously consider purchasing meets your needs.
When shopping for a new vehicle, start shopping before you need a car so you have the time to make a smart decision. Know what you need from a vehicle. Look into the warranty and make sure it provides you with value. Get pre-approved for a loan so you know how much you can borrow and so you have an important negotiating tool. Reach out to dealers of new cars in your area to get started.
