Full Article
When buying a car, there are several important factors to consider. Doing your research BEFORE deciding on what kind of car, and how to purchase it, can be critical in making a good purchase. Some key points you should review:
• Budget
Determine your budget for the car, including the purchase price and ongoing expenses like insurance, fuel costs, maintenance, and potential financing payments if you plan to take out a loan. Once you come up with an amount, compare this number to what you would need to not affect other essential expenses or savings goals.
• Needs and Lifestyle
Consider your specific needs and lifestyle requirements. Think about the number of passengers you typically transport, cargo space requirements, your driving habits (city or highway), and any specific features or technologies you desire.
• Research
You probably have an idea of what kind of car you want. Doing thorough research on just a few different car models, their reliability, safety ratings, fuel efficiency, and consumer reviews can help you narrow in on the right car for you. If you can, bring your research with you to the dealership...you never know when it could come in handy.
• Ownership Costs
Consider the long-term ownership costs of the car, including fuel efficiency, insurance rates, maintenance and repair costs, and the availability and cost of spare parts. Some car brands and models have higher maintenance or insurance costs than others.
• Insurance
Research the insurance rates for the car or cars you're considering. Different cars have varying insurance costs based on factors such as their safety features, the primary area where they will be driven (generally your home zip code), repair costs, and historical accident rates.
• New or Used
Decide whether you want to buy a new or used car. New cars offer the latest features, warranties, and the knowledge that you're the first owner. Used cars can provide better value for money and potentially lower insurance costs, but generally maintenance costs will be higher with a used car so that can affect your cost of ownership. Consider your budget and preferences in making this decision.
• Safety Features
Consider the safety features available in the car such as airbags, anti-lock braking system (ABS), stability control, blind-spot monitoring, lane departure warning, and automatic emergency braking. Independent safety testing companies and customer reviews can be very helpful regarding safety features. Ideally you want to look for vehicles with high safety ratings.
• Resale Value
Research the expected resale value of the car you're considering. Some brands and models retain their value better than others, which can impact your overall ownership costs.
• Vehicle History
If you're considering a used car, obtain a vehicle history report using the vehicle identification number (VIN). This report provides information about the car's past accidents, repairs, mileage, and ownership history.
• Warranty
Check the warranty offered by the manufacturer. Understand the coverage, duration, and any limitations. Consider purchasing extended warranties for added peace of mind, particularly for used cars.
• Financing Options
Explore your financing options if you're planning to take out a loan. Check interest rates, loan terms, and any other applicable fees. In general it's good to get pre-approved for a loan before you go shopping so that you know your budget and you can be better prepared for negotiations with dealers.
• Dealerships and Sellers
Choose reputable dealerships or sellers known for their reliability and good customer service. Read customer and independent reviews, ask for referrals or recommendations, and consider the dealership's after-sales service and warranty support.
• Test Drive
Schedule test drives to get a firsthand experience of the cars you're considering. In today's world of online car shopping, it's hard to replace the feeling of how a car drives before you make a purchase. Characteristics of each car like handling, braking and comfort can be important things to be familiar with before you buy.
Feeling prepared about buying a car can be difficult. It isn't just about the purchase price, but also understanding the different potential costs after purchase is extremely important. Doing your research, setting a budget, and understanding the car-buying process will generally make the experience smoother.
It can be important to be patient and cautious, especially when dealing with significant purchases like buying a car. There's one more thing to think about when considering an auto purchase:
Be honest with yourself
A common occurance associated with buying a car is that people don't realize just how much total ownership costs really are. Once you have a clear idea of your total ownership costs for each car you're considering, be honest about your budget and what you can afford. Purchasing a new car can be exciting, but if you're not prepared it can also become a burden very quickly.
More Information
back to top