Save Time, Money and Headaches.
Next to buying a home, a vehicle is normally the second largest purchase a person will make in their lifetime. It’s easy to get excited, but first, take a deep breath and ask yourself a few questions to make the car buying process a lot more enjoyable.
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There is no lack of choices when it comes to buying a new car. It can also be very dangerous to walk into a dealership and not have a good idea, and understanding, of what you want to buy. You can narrow down your choices with a bid of soul-searching.
Before you jump in the car and head to the closest dealership, ask yourself these 12 questions, and you’ll be on your way to buying your dream car.
Sometimes people get so emotionally wrapped up in the euphoria of the car buying process, they tend to make some really bad decisions. Dealers and their salesmen are well aware of this, and will prey on this weakness to pad their pockets.
If you ever catch yourself justifying something or rearranging your personal finances to buy a car, it’s time to step back, take a deep breath, or even walk away if you need to. The car will still be there tomorrow and if it’s not, I promise – The manufacturer will make more!
Before you decide to go to a car dealership and let some smooth talking car salesman like myself talk you out of your hard earned cash. Slow down and ask yourself a few questions first.
Most financial advisors and experts in the field say that your car payment should be no more than 10% of your gross monthly income on a 48 month term after putting down at least 20% of the purchase price.
An example would be if you make $3,500 a month (before taxes), your max payment would be $350. Your total purchase price before taxes, interest, and money down would be $16,800.
Most lenders on the other hand will take 20% of your gross monthly income to determine how much car payment you can afford. This means if you make $3,500 a month, your max payment can be no more than $700. As you can see, this can be very dangerous for your financial well being.
My advice is to make a personal budget of all your expenses and determine what you can comfortably afford with some money left over for you to enjoy. Once you have a max payment, and have saved a little cash down, pick a vehicle that fits within or below your budgeted amount.
Buying a new car will bring some added expenses to your budget, especially if you don’t currently own one. You should take time to budget these into your ownership costs, some of these costs include:
Taking these additional car ownership costs into consideration will allow you to enjoy your new car without stressing over how you’re going to pay for it.
The vehicle choices out there are almost overwhelming. There are so many different manufacturers, makes, and models to choose from, where do you start?
First ask yourself what your driving needs are, and more importantly, what do you like? If you’re single with no plans to get married and like to go fast, you may want to go the sports car route. Understand that insurance and fuel cost may be higher but that’s just part of the costs of ownership.
Will you be towing a boat or trailer? You may want to look into the towing capacity of pickups. I’ve seen many people buy vehicles only to find out later it’s not rated to tow what they need. Continuing to tow or haul too much weight you’re guaranteed to mess up a vehicle quickly.
There are several free online consumer automotive services that allow you to research and compare vehicles online. Using these websites will help you narrow down your search without wasting time driving all over town and having to haggle with pushy salespeople.
If you’re just testing the waters, pre-shopping or seriously wanting to buy a new car, the automotive websites above are the best of the best. They’ll provide you with valuable information to help you do reliable research so you can make a good car buying decision. You can also use them to request free, no-obligation price quotes from dealers in your local area to get a feel of what the market is on the vehicle you’re considering.
Once you find a vehicle you’d like to buy, use trusted online car buying websites such as Ryde Shopper, Edmunds, Cars Direct and MotorTrend to acquire free price quotes and learn how to start a new car price bidding war online between dealers to guarantee you pay the lowest price.
RydeShopper has one of the largest new car dealership networks in the world. Select the make and model you’re interested in and they will instantly search clearance pricing within your local area. Don’t forget to select as many dealers as possible to increase your chances for the greatest discounts and savings.
Edmunds is one of the oldest and best new car research and review sites on the internet. Their huge dealer network allows you to shop, research and compare millions of new cars so you can find the exact vehicle you're looking for.
MotorTrend is one of the best kept secrets on the Internet. Best known for their automobile magazine, MotorTrend has a vast dealer network across the nation. Their referral service is 100% free and there’s no obligation to purchase. Just pick the vehicle you’re interested in, select local dealers, and receive discount pricing.
CarsDirect has been in online vehicle research business since 1998 and has all the right tools to help you find your next car, truck or SUV. They offer a no-hassle experience from configuring a car to making the final purchase. You’ll find your next car quickly and easily.
Take the guesswork out of trading your car.
This may sound like a funny question to ask yourself but it does happen occasionally. It’s one of those OMG moments and by the time you find out, it’s too late.
The Ford Excursion made a lot of people upset once people found out they couldn’t fit it in their garage after already buying it. If you’re in the market for a large truck or SUV, make sure you take some measurements if you plan to park it inside.
The above principle applies to towing capacity. If you plan on towing something, make sure you buy a vehicle that’s rated to tow or haul or you could end up destroying the vehicle over time.
