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Buying a car can be exciting as well as a bit daunting. There are a number of things to consider such as your budget and of course, which vehicle and what options. You will feel better about whatever choices you make if you take the time to do a little research and planning before you buy.
It is a good idea to start with a thorough review of your budget. There are a number of auto loan calculators (www.bankrate.com is one example) that can help you determine how much car you can comfortably afford. These calculators can approximate your monthly payments based on estimated loan amount, length of loan and interest rate.
Before you make a loan application you should review your credit report for any errors. Understanding the strength of your credit standing will also give you some idea of the rate and terms you should expect. Protect your credit rating by limiting all inquiries and applications to a two week period as they will be lumped together to count as one. Excessive inquiries can lower your credit score.
When planning your purchase, be mindful that your new car expense will include more than the monthly payment. You will need to also be sure that your budget can accommodate costs for insurance, registration, maintenance and maybe even warranties.
Learn about the cars that interest you before you approach a dealer. Of course it is important to find an affordable car that is visually appealing, but you should also look for something that is dependable, offers good gas mileage and resale value. Whether you are seeking a new or used vehicle you can begin your search on the Internet. This is a great tool that allows you to cast a wide net and investigate your final choices without any dealer pressure. The World Wide Web can also save you cash. Many dealers offer Internet only prices that are thousands of dollars cheaper than those available to consumers walking in off of the street (don’t forget to print and bring your coupon complete with the confirmation code).
If you choose to purchase a pre-owned vehicle you will want to review the Carfax report, which details the history of the car including information about the title, odometer and warranties. You can save about twenty dollars if this report is available through the dealer or on the site you are searching.
Have firm figures in your head before you approach the dealer. You should not be surprised by the sticker price on your dream car. Yes, it can be tempting to get swept away in the excitement of so many shiny cars, but hold back. You need to be prepared to walk away if the figures you are quoted do not match the figures your research led you to expect.
The bottom line: Don’t approach the dealer until you have a clue or they will see you coming a mile away.