Buying A New Car: A Smart Approach To Auto Ownership

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Before taking the plunge and buying a new car, it is important that you carefully assess your requirements, realistically determine the size of your budget that you have to spend, and do your homework. If you can look for cars knowing all of this information already, then it not only means that you have a greater chance of finding the best car for your needs but that you won’t overspend and you won’t miss out on any deals that give you access to the best car.

Determine Your Budget

Always know your budget before you start shopping, or before you even start researching cars. You should remember to budget for everything that might be required, including tax and insurance, as well as any repairs or upgrades. Budget a small amount as a contingency, as well, in case you see the perfect vehicle but it needs a little more work, or is slightly higher than your planned budget allows.

Choose New Or Used

There are arguments for buying both new or used cars. Brand new cars are expensive, although they tend to require less maintenance and have fewer ongoing bills. However, while used and nearly new cars do not require the same initial investment, they may attract additional costs. Parts are more likely to have suffered wear and tear for example. Primarily, the decision of whether you want a new or nearly new car will usually come down to a question of finances and how much you want to invest in your new car.

Research Your Options

New models of car are being released by global manufacturers every few months. Whether you are looking for a Ford in California or a Nissan in Mexico, you should ensure that you know at least the type of car you are looking for. If you need something to ferry the kids to school and something to take yourself and your partner to work, then you’re unlikely to be considering a sports car. Do your research to determine typical insurance costs, typical repairs and problems with models of car that you interested in, and even take a look at the best second hand car models that are available.

Determine Your Car Value For Trade-In

If you are looking to trade your own vehicle in, usually as part exchange against your new vehicle, then you should have a reasonable idea of its value before you visit showrooms or start shopping online. Although you are unlikely to receive the book value for your car, if you know how much it is worth then you will know whether to accept a trade-in price when you are offered one. You can always sell your vehicle yourself if you can’t get enough of a trade-in.

Negotiate On Price, If Possible

Many showrooms and garages have some leeway when it comes to the amount they will accept for cars, although this may not always be the case. Try to be flexible with regards to the amount of deposit you are willing to pay, and also the method that you pay for the car. Some dealers may have a preference and they may be willing to listen to offers if you’re willing to meet their preferences. Use this, the value of your trade-in, and any other factors to help you negotiate on price. Even if you only get a small amount knocked off the price, or you get a full tank of gas for nothing, it is better in your pocket.

Check Dealer Financing Is A Cost Effective Solution

If you’re considering buying a car and using dealer financing to pay for it, ensure that you aren’t paying too high a price simply for the convenience of not having to sort out a loan separately. It may take you a little longer, but even if you can get a few months’ interest free, or a 1% reduction in APR by taking out a separate loan, this could amount to several hundred dollars over the lifetime of the repayments.

Be Prepared To Be A Little Flexible

You might know that you want a 2.5L Ford, in red, manufactured on the East Coast in 2008, but if you stick rigidly to your requirements then you are narrowing the potential pool of cars that you have access to when it is time to make a purchase. The bigger the pool, the more likely you are to find the perfect deal, so be prepared to be a little flexible. Consider cars that are slightly older or a slightly different trim to the one that you would ideally drive away in.

For most of us, a car is more than a luxury; it has become a necessity. Rather than simply rushing in and buying the first acceptable car you see, take your time to do your research and to help ensure that you buy the best and most appropriate car for you and your needs.

Erik Hervas is a Marketing expert at Seminuevos.com, a company that publishes car listings in Mexico. We provide a friendly platform to help users sell their cars. And we bring buyers by promoting the listings through many channels. Erik has worked for many companies in marketing and he is currently seeking to succeed with Seminuevos.com.