5 things to keep in mind before buying a new car

If you’re searching the market for a brand-new ride, you know you’ve got a long journey ahead of you. Buying a car – a shiny new one – is by no means a small investment, so you’ll want to get the best deal for your money. We all know those movie-like scenarios where you just happen to walk by a dealership or a showroom and all of a sudden you see the car of your dream and that’s it. You enter, have a quick word with the salesman and then, cutting to the next scene, you’re behind the wheel, happily driving your amazing car. If things were that easy, you wouldn’t be reading this. 

Getting back to the real world, the process is a bit more complicated. Assuming you’re not a multi-millionaire who can afford any car your heart desires, you must come prepared with a plan of attack and nerves of steel. If you’re a first-time car buyer, this is not going to be a smooth ride for you. You’ll have to take your time, do your homework and seal the deal only after you’re 100% sure you’ve found what you were looking for. 

Assess your budget

It all starts and ends with your budget. You’ve worked hard for your money, so you’ll obviously want to spend it wisely. When you’re searching for a new vehicle, it takes more than looking at the price tag and deciding if it fits into your price range. You’ll have to think about all the expenses buying a new car involves. There’s the down payment that you’ll have to take into consideration and the amount of money you’ve put aside for it (if you had the possibility or the foresight to do it). Then there’s the challenge of finding the best interest rates, not to mention the fees and licensing costs that also add up to the final bill. 

It’s worth having an overall view of your budget to decide how you can include monthly car payments in the equation. Trading in your old car if you have one, can also help you expand your budget, allowing you to pay more money up front and reduce monthly installments. When you do the math, don’t forget to calculate all the other smaller expenses like taxes and fees, or the extras that you’re interested in such as extended car warranty, alarms systems etc. 

What you want vs what you need

More often than not, the car that you want and the car that you need are not one and the same thing. You can dream about driving a high-performance sports car, but if what you really need is a safe and spacious family car, it’s pretty clear which one you should buy. The point is, your car must match your lifestyle. People in their 20’s have completely different needs than those who have a large family or those who live a nomadic life and travel from place to place all year round. 

If you want to buy the right car for you, the best way to start your search is by making a list with all the necessary features your future vehicle must have and another one with the options that you would like it to have but you could live without. When the time comes to choose between one model or another, keep these lists with you to help you decide which one fits the bill. 

If in the end you reach the conclusion that you can’t afford any of the cars you wanted, you can reconsider your plan entirely. Sometimes compromises have to be made, and if you realize it’s not the right time to buy a new car, you can always opt for purchasing a used vehicle.  

Do your research

After you’re done with budget evaluation and introspection, you can start looking at the brands and models that might suit your needs. You should start your investigation online and search for all relevant information on the models that caught your attention. Compare prices and read reviews from other buyers or people with knowledge in the field to understand if these cars are really what you’re looking for. 

While researching online is a great starting point, you must also conduct in person assessments. Get ready to visit dealerships in your region and talk to sales representatives to find out all the details that can influence your decision. Ask all the questions you have in mind, even the ones that might sound ridiculous. This process will help you narrow down your options. Then you can take the finalists out for a spin. If you can, book the cars for 24 hours so you can test them properly. Getting behind the wheel is the best way to find out if a car is right for you or not.   

Think long-term 

Once you’ve found the one, it’s time to think about the future. Even if the car fits into your budget, you must also take into account future expenses. Maintenance costs are not to be ignored, because in time they can put a lot of strain on your finances. The type of fuel the car uses is important for calculating long-term costs. Car warranty is another aspect that can influence your budget. A brand-new car won’t require servicing very often, but after a while wear and tear will come into play and that’s when having a good car warranty comes in handy. Many manufacturers now provide warranties up to five years, so you might want to ask your dealer about this as well. 

Learn to negotiate 

You’ve gone through all the steps above and you’re finally ready to purchase the car that you’ve been dreaming for so long. But don’t be too hasty to sign on the dotted line. You can’ t just accept the first price that your dealer offers. You must do some good old-fashioned negotiation first and see if you can get a better price – as a word of encouragement, in most cases it works. The more thorough your research and the more you know about the car you want to buy, the greater the chances of walking away with a better deal. So, come prepared, adopt a firm attitude and put your negotiation skills to work.