(Newswire.net — June 21, 2018) –Buying a new car is a major investment; it could be one of the biggest purchases you make and the costs don’t stop once you’ve driven it off the lot. In addition to being responsible for monthly payments, you’ll also be on the hook for gas, insurance, maintenance and repairs. So before you hand over your hard-earned money to the dealer, ask yourself these five questions about your new car.
Am I getting the best price possible?
Even if you don’t know much about cars, there are a few ways to make sure you’re getting the best price. First, collect online quotes for your vehicle from any dealership within reasonable driving distance. You might be surprised to find some dealers are offering lower prices than others, especially in smaller communities. Next, online research can help you determine the difference between the listed price of your vehicle and the invoice price (how much the dealer was invoiced for your car). Finally, check out if there are any factory rebates on your vehicle that could help lower the cost – something you can also research online. Once you have all this information at hand, you’ll be in a better position to negotiate a great deal.
How quickly can I pay off my loan?
Don’t buy a more expensive car by agreeing to a loan with a term of six years or more. Long-term car loans have a few serious drawbacks. First, unless you secure zero percent financing, you’ll be paying more in interest over the long-run, further increasing the cost of your vehicle. In addition, because new cars depreciate in value so quickly, committing to a long-term car loan increases your risk of having negative equity in your car – meaning you’ll soon owe more on your loan than your car is even worth. Instead, choose a vehicle that you can pay off as quickly as possible. Once you’re done with monthly payments, you can save money for that pricier car you have your eyes on.
How will a new car affect my insurance?
The make and model of your car are major factors in determining your car insurance rate. For example, cars that have a higher safety rating will lower your premium, and cars that are expensive to repair or replace will increase your premium. You can ask your current insurance provider how much it will cost to insure your new vehicle – but don’t stop there. Your insurer might not offer the best price on your insurance; compare competing quotes online to find the best and most affordable plan for your new car.
How easily will I be able to repair and maintain this car?
Some cars will be more expensive to repair and maintain, so you’ll want to factor that information into your purchasing decision. For example, does your car require premium gas – meaning it will cost you more at the pump? Also, some luxury cars might not be easily serviced by your local auto body shop – meaning you’ll be paying more for maintenance. Again, doing research before buying a car can give you a good idea of the average maintenance cost for your chosen vehicle.
Do I like driving this car?
Once you’ve crunched your numbers to make sure you can afford your loan, insurance and maintenance, it’s time to answer one last question: do I like driving this car? The only way to find out is to take it for a test drive. To get a true feeling for the car, drive it on the highway as well as the streets around the dealership. Ask yourself, do you like how it accelerates and decelerates? Is it too noisy for you? Can you get comfortable in the seat and reach everything you need? Can you easily get in and out? And are there any intangible reasons that you love or hate driving this car?
Taking a moment to pause and ask yourself these important questions will help you make a more responsible decision about your big purchase. Once you’ve signed the paperwork, you can take your car for a celebratory spin knowing it’s the right vehicle for you.