Like any big financial commitment, buying a new car takes a lot of thought and consideration. Car dealers are savvy and will try to get you to buy what they want at the highest price so it’s imperative to be in the know and do your research before you visit a dealership and start taking test drives. Here are four quick tips that will keep you on your toes and ensure that you get the most for your money when it comes to buying a new car.
1. Decide Your Budget
Owning a car is an expensive regular pay-out, often on a monthly basis. This means that it’s important you have a budget in place to handle the frequent outgoings of finance repayments, maintenance, road tax, and car insurance. Many financial services recommend spending around 15 to 20 percent of your monthly income on your new car so that it is manageable.
2. Research Different Dealers
Avoid any dodgy dealers by doing your research first online and by asking people you know. Check out websites where people can post reviews about their dealership experience and shop around for the model you’re looking for to calculate an average, reasonable price. It’s also a good idea to call the dealership prior to your visit to check if they have the car that you’re looking for.
3. Insurance Costs
Remember to consider insurance costs for the particular car you’re going to purchase. Higher performance cars will cost more to insure but companies also check your record, age, and living situation so it’s crucial to get quotes from reliable companies like Autoline for a good deal. Your insurance premium can also be significantly affected by the number of effective safety features that a car has such as airbags, anti-lock brakes, and warning systems so it’s important to inspect these too.
4. Resale Value
Despite the fact that you’re probably focusing more on actually buying the car right now, it’s important that you keep in mind how re-sellable it is in the long run as you won’t want to keep it forever, no matter how good it seems when you buy it. Gauge the value on a five-year basis and bear in mind that new models don’t mean they will automatically stay desirable. Instead look for cars with “green” features such as hybrid drive trains and energy saving features as these will be increasingly important in the future.
Remember those car salespeople are on commission so they’d love to sell you a car the day that you walk into the dealership, stand firm and don’t feel pressured to rush your decision. Inspect the vehicles thoroughly and take different models on test drives until you come to a calculated decision.