There are few things in life as exciting as buying a brand new car. The car means freedom, and mobility so it’s easy to get caught up in the excitement when everything is shiny and new. The concern here is making sure that you not only get the car you want, but get the car you can afford, and also a car that you actually want to pay for. We’ve all been there at the dealership and had to compromise because we couldn’t get approved for quite enough of a loan on a new vehicle. Here are a five car buying tips for 2017 that can help you get exactly what you want the first time with minimal surprises down the line.
Know what you want before walking onto the lot.
You have a lot of cars to choose from so do some looking before you talk to a salesman. Check out their website or even do a walkthrough of the lot without actually speaking with anyone. Knowing what you want saves a great deal of time and effort when you…
Do your research.
Know what features your chosen car has and how they compare to other models. Know roughly how much the vehicle you want is selling for in other locations. If you can find it cheaper somewhere else, let your local lot know and they will usually work with you. Know which features are must-have for you and what things you can do without. Remember that each extra feature adds something to the price
Know how much you can afford.
So while financing can be a complicated process, luckily for the average buyer there are some great calculators available online so that you can check out how much your monthly payments will be before you fall in love with something that will break your bank. The general rule of thumb is that your monthly payment shouldn’t exceed 10%-15% of your gross monthly income
Contact your insurance agent.
Make sure you can afford not only the payment but also the insurance premium especially if you’re switching from strict liability to full coverage.
Don’t trade in a vehicle that is worth less than what you owe on it.
Most of us have been underwater on a loan before and it’s never fun. The sad fact is that in the long run it is better for you to pay off the loan rather than doing a trade in when you have negative equity. This is because when you let the dealership trade in the underwater vehicle they add then negative equity to the amount of your loan meaning that you are now paying interest on that negative equity along with the rest of your car loan.