Shopping for a new car is down right exhausting! But once you take the keys to your new car, you suddenly forget all the hassle that went into it. To make sure we aren’t getting caught up in the moment of buying a new car (even if it’s used), let’s take a moment to make sure you’re taking everything into account so that the car you do end up getting isn’t going to break the bank or be too big of a leap for your budget to handle.
- The Loan Amount. How much is your loan going to be based on interest and number of months. How does that compare to what you are paying now?
- Cost of Insurance. You can get quotes on the car you’re looking to buy to get an idea of what it’ll cost. Whether you pay monthly, or for the premium all at once, how does it compare to what you’re paying now? Do you need to get quotes from other providers?
- Gas. How much more on gas will you spend each month? You’ll need to know roughly how much you drive each month to calculate this. Simple math: Miles driven each month (Divided by) Combined gas mileage (Multiplied by) Average price per gallon of gas in your area. How does that compare to now?
- Parking. Depending on where you live or work, will you have to start paying for parking somewhere or will the cost of parking remain the same?
- Maintenance & Repairs. This I feel is a little harder to determine, but doing a search on the type of car you’re wanting to buy should hopefully give you results on what kind of problems others are experiencing with the car. Are you going to need to fix anything (transmission, brakes, tires, etc) while you plan on owning the car? If you are, figure out a mini-savings plan to account for these things you can save for each month.
What should I know before buying a new car?
The more you know before you go, the better you’ll be able to negotiate the price on your next car. Being educated on how much you qualify for a loan is great to know. How much is your trade-in worth? Are other people selling the same car for less?
It’s a lot of work, but your chances of getting a really great deal on something you want will increase significantly. Don’t fall into the trap of giving into whatever the dealer is telling you or being so exhausted by the process that you don’t care what it costs, you just want it over with.
Getting a great deal on a car will take time and a lot of research to make sure that no one is trying to pull the wool over your eyes.
Before you walk into a dealership, you need to have a lot of your mind made up on what you’re looking for and what you’re willing to pay. If they meet your criteria, be willing to walk away.
Is it worth buying a new car?
The answer to this question truly depends on your lifestyle and view towards cars. If you plan on keeping the car for 10+ years or until the wheels fall off, then buying a brand new car would make a ton of sense because you’re going to keep it. You’re not bothered by having the same car for a really long time. It’s a means to an end basically.
If you’re not one to keep a car for a while or you’re on a tight tight budget, then getting a used car is the best way to way go. They say the best “deal” on a car is when it’s 3 years old. You’re getting into a lease return vehicle that has low or average miles and the brunt of the depreciation has already happened.