If you’re in the market for a new car you might be tempted to just go out and buy the first one you see. But before you do there are a few things you should know.
For one don’t buy a car just because it’s a good deal. You might think you’re getting a great deal on a car that’s been heavily discounted but in reality you might be getting a lemon. Do your research and make sure you’re getting a quality car before you sign on the dotted line.
Secondly don’t buy a car unless you can afford it. Just because you can get financing for a car doesn’t mean you should. If you can’t comfortably make the monthly payments you’ll end up regretting your purchase down the road.
Finally don’t buy a car without taking it for a test drive first. Even if you think you’ve found the perfect car you won’t really know until you’ve taken it for a spin. So before you make your purchase make sure to take the car for a test drive and make sure it’s the right fit for you.
What are the pros and cons of buying a car?
The pros of buying a car are that you have transportation and can go where you want when you want.
The cons are that you have to pay for gas insurance and maintenance.
Is it better to buy or lease a car?
If you plan on keeping the car for a long time then it is usually better to buy.
If you only need the car for a short time or do not have the money for a down payment then it is better to lease.
How much should you spend on a car?
Experts say that you should spend no more than 10-15% of your monthly income on a car payment.
How do you know if a car is a good deal?
You can research the MSRP (manufacturer’s suggested retail price) and the invoice price (what the dealer pays) of the car you’re interested in to see if the price is fair.
You can also look up the car’s history to see if it has been in any accidents or had any major repairs.
Should you buy a new or used car?
If you can afford it and don’t mind the risk buying a new car can be a good idea.
New cars generally have lower interest rates and come with warranties.
Used cars are typically cheaper and can be a good option if you’re on a budget.
How do you negotiate when buying a car?
Start by research the MSRP and invoice price of the car you’re interested in as well as the Kelley Blue Book value.
Then make an offer that is below the invoice price but above the Kelley Blue Book value.
Be prepared to negotiate and be willing to walk away if you don’t get the price you want.
How do you pay for a car?
Most people finance their cars by taking out a loan.
You can also pay cash or lease a car.
How do car loans work?
Car loans are typically for 36 or 60 months.
You will make monthly payments and the interest will be accruing during the loan.
At the end of the loan the car will be yours.
How much is a down payment on a car?
The down payment is typically 20% of the purchase price of the car.
How do you choose the right car for you?
Consider your needs and wants such as the size of the car the type of car the price the mileage etc.
Test drive the car and make sure you’re comfortable with it.
Research the car’s safety features and reviews.
What are the hidden costs of owning a car?
In addition to the monthly car payment and insurance you will also have to pay for gas maintenance and repairs.
What is gap insurance?
Gap insurance is insurance that covers the difference between what you owe on your car loan and what your car is worth in the event of a total loss.
What is extended warranty?
An extended warranty is a type of insurance that covers repairs after the manufacturer’s warranty has expired.
How do you take care of a car?
You should get your car regularly serviced and tuned up.
You should also wash and wax it to protect the paint.
What are the consequences of not taking care of a car?
If you don’t take care of your car it will break down more often and won’t last as long.