Buying a new car is an important decision. In many cases, a car is the biggest purchase a person will make other than their home. You want ensure you make the right choice and get the best deal you can. Here are some tips to keep in mind during the process to keep it as straightforward as possible and help you get a car you love:
Set a budget.
If you plan to finance or lease a vehicle, the budget for you vehicle, including expenses such as gas, maintenance and insurance, should be no more than 20% of your take-home income. Be realistic about what you can comfortably afford. Even if you are buying a vehicle in cash, consider the lifetime cost of the vehicle and whether you can comfortably fit it into your lifestyle.
Do your research.
With the wealth of information available online at your fingertips, there is no reason to walk into a dealership without any idea of what you want. You can easily narrow down the choice of models based on the options and features you want and your lifestyle.
Go for a thorough test drive.
It’s easy to get wrapped up in the excitement of driving a new car. Take it for a minimum of 20 minutes through roads you would normally drive to gage your comfort with it. Take your family along if you have children to see how they all fit. Get familiar with all the features and make note of what you did and didn’t like.
Focus on the total price rather than the monthly payments.
If you plan to finance or lease your new car, the figure you should be most concerned with is the total price including all taxes and fees. If your monthly budget is $400, an additional $20 per month on top of that may not seem like much of a difference. However, you may be paying hundreds or thousands of dollars more over time.
Get pre-approved for a loan.
Unless you are paying cash for your new car, the interest rate will significantly affect your total amount paid. Find out what you qualify for beforehand by applying for a loan online or visiting your financial institution in person. Armed with this information, you can compare it to what the dealership offers. Focus on the annual percentage rate and keep the length of the loan as short as possible.
Check for manufacturer incentives.
Any discounts that the dealership offers should be in addition to the manufacturer’s incentives.
Trade-in vs. Private Sale
While you can get more for your current vehicle in a private sale (depending on the model, condition and mileage), trading it in eliminates the investment of time and effort required for selling it yourself. You’ll likely be able to get an idea of the market value of your current vehicle online. Compare that with the trade-in value to see if the difference is worth going through the process of a private sale.
Visit dealerships out of town.
Different locations may have different offers on their inventory. You can always go out of town to buy your vehicle and get it serviced at locations close by.
Take time to review the contract.
Before you finalize the contract, review it carefully and ensure you understand all charges or fees. Once you sign, you are locked into the commitment.
Let the dealer give you a tour of the new car.
Although most people are eager to get out of the dealership once they have bought, it’s worth taking the extra bit of time to have the dealer walk you through all of the car’s features and technology. You could end up spending way more time figuring it out on your own and miss some useful aspects of the vehicle.
Contact a DriveSure.ca broker about new car replacement insurance.
As you know, the value of any car you purchase will begin depreciating the moment you drive it off the lot. In the unfortunate event that you suffer a total loss, your settlement could be thousands below what you paid. New car replacement insurance will cover the difference between the value of your car at the time it was written off and the cost to buy your car brand new in the latest model.