This is it — you’re buying a new car.
And no, it’s not a happy adventure at all. It can be grueling and exhausting. You can encounter a pushy car salesman, do endless test drives and get your auto loan application rejected— the list goes on.
But it doesn’t have to be difficult all the time.
Once you do your research and prepare yourself, you can buy a new car without a hitch. In this post, we listed tips that can help you find the best car deals, score a good auto loan and more.
- Improve your Score
Before you shop for a new car, you need to know your credit score. Whenever you apply for a loan and credit, this score will always be a part of the equation. If your credit report is not good, take the time to fix it.
- Work Out your Budget
Start your car hunting by determining your budget. Always have a firm number in mind. Don’t hesitate to walk out if the car you want exceeds your budget.
Remember, a car is an investment. It is best to leave your emotions out of it. Treat this as a business transaction as it has a significant effect on your finance.
- Figure Out How you’ll Pay
Before you shop for your new car, remember to prepare your financing. Will you pay with cash, finance it or lease it?
When purchasing with cash, you can get it with no interest and no fees. Plus, if you pay the whole cost upfront, the car is yours and you can modify it any way you want.
With leasing, the cost is less expensive, but it comes with restrictions. You have to be extra careful when using the car and of course, you can’t customize it.
On the other hand, financing is a double-edged sword. Applying for one can be relatively easy, especially if you have good credit. Ahead is a list of the way you can finance your car:
- Personal loans -You can get an auto loan through a lender, which you will pay back over an agreed period.
- Dealer financing – This offers cars deals in one stop. You can take care of the whole transaction in one visit, considering you understand correctly the terms and conditions provided. It also caters to high-risk accounts.
- Bank auto loan – Bank loan offers low rates compared to dealership financing. As long as you have good credit and a sizable downpayment, you can get a low-interest loan through banks.
TIP: When taking an auto loan, always keep in mind the option of refinancing in the future. This process lessens your financial burden and lowers the interest rate of your car loan. When you take on a new loan to pay off the balance of your existing car loan, make sure to check best options out there. Thankfully, Crediful provided an extensive list of Auto Refinance Lenders to help you compare rates and terms.
- Learn the Art of Haggling
Nowadays, it’s best to get a quote from agents via phone or e-mail. This way, you have your conversation recorded.
When going to the dealership, remember to be firm but polite in your negotiation. Allow them to introduce the car but never take the bait of signing right away the deal.
- Do a Test Drive
Once you narrow down your choices, remember to take a test drive. It will determine if the car is as good as it looks. Ahead is a list of things you should watch out in a test drive:
- Comfortable driving position
- Working brake
- Clutch function
- Doors and boot
- Passenger space
- Boot space
- Engine power
- Read the Fine Print
Once you finally pick a car, make sure to read the contract thoroughly. You can ask a professional to double check it for you. The bottom line is you need to understand all the conditions and terms included in the print before you sign it.