Buying a new car can be a daunting endeavor. With a little prep work, though, you can make the experience less stressful and even enjoyable.
At Beck, we are here to help you. Our staff is knowledgeable and can assist you during each step of the car buying process. Having a new car is exciting, so do not let the buying experience cloud it over.
The more time you give yourself before purchasing the vehicle, the more prepared you can be. If you need a new car immediately, you can at least keep some information in mind to help you make any tough decisions.
Determine Your Budget
If you start looking at cars before you know your budget, you will either end up in severe debt or be disappointed when you cannot afford what you want. Determining your car-buying budget does not have to be complicated.
Start with your monthly take-home income, which is the amount that you get on your paycheck. From that, subtract any monthly expenses such as:
- Rent/Mortgage
- Bills
- Groceries
- Gas
The amount remaining is an estimate of what you can afford. Depending on what that number is, consider reducing it by 10% or more so that you have money in case of an unexpected expense.
Figure Out Financing
Unless you have a large amount of cash sitting around, you will need to take out a car loan. There are several options for a loan:
- Private Bank or Credit Union
- Car Dealership
- Car Manufacturer
Each institute will have different incentives. Take some time to shop around so that you can find the best loan for you.
A big factor to consider is the interest rate. The lower your monthly payment is, the more you will have to pay in interest, making the total car cost even higher.
Try to get a loan that has the highest monthly payment you can afford with the lowest interest rate. Your credit score will be a determining factor in the interest rate you receive. Checking your credit score before looking into loans will give you a good idea of what to expect.
Think About Your Needs
If this car is a dream car and you have the money to get what you want, then you have much more freedom when it comes to choosing your vehicle. If you are on a budget or need the vehicle for a specific reason, consider what you need versus what you want.
A few things to think about when picking out a vehicle are:
- Will the size of your family be changing?
- Is the vehicle for commuting?
- Would a hybrid work for you?
- How important are tech and safety features?
Knowing what you need will help you narrow down the variety of makes and models to the one that will best suit you.
Make Plans for the Old Car
If you currently have a car and the new one will be replacing it, you need to figure out what to do with the old one. Driving home in a shiny new car is much less fun when there is a junker sitting in its parking spot.
A few options for getting rid of an old car are:
- Trade it in at the dealership
- Donate it to a charity or non-profit
- Sell it to a used-car dealership or privately
- Scrap it for cash
Always Test Drive
Once you select a make and model that you think is perfect, be sure to take it for a test drive. What looks great on paper may have annoying blind spots or a feel you do not like.
As you test drive it, ask the sales representative questions about its features and maintenance. The more you know about it, the better it will feel to buy.
If you have any hesitations or concerns, you can always walk away and come back again. Thinking about it overnight can help you decide if it really is the car you want.
Talk to Your Insurance Agent
A new car, even if it’s a new-to-you used car, will probably cause your insurance rates to go up. After you decide what you want, talk to your agent. Get an idea of what additional insurance coverage you should get and what the new cost will be.
Get Your Questions Answered
When it comes to the actual sale, go into it with confidence. Ask questions about warranties and discounts. You do not want to have buyer’s remorse, so ask any questions that are nagging at your brain.
At Beck, we take pride in our customer service and want you to enjoy buying a car. You can start by looking at our inventory online and then call, text, or chat with us about taking the next step.
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