The process of shopping for a car can be a time-consuming and intimidating one, but with a little preparation, you can approach this major purchase confidently. Here to help you are our 7 favorite tips for buying a new or used car.
Important Steps to Take Before You Go Car Shopping
1. Know your credit score. It's important to know your credit score before you even walk onto the car lot. Your credit score will impact the amount of your loan and will determine what kind of interest rate you'll be offered. Your credit report shows whether you've paid your debts on time, information that will influence any decisions your lender makes about your loan.
2. Decide on your down payment. Look over your budget and decide what you can afford to spend on your down payment. You will have a much better chance of negotiating a good deal on the car you select if you are able to put down an adequate amount. If your credit score is low, it would be wise to save for a larger down payment before heading out to shop.
3. Know how much car you can afford. When faced with a major purchase, such as a car, it seems the most important question to ask is “How much can I afford to pay for a new car?” Many times our car selection is based on cost. Go over your finances and decide what price range fits you, and what size monthly payments won’t break the bank for you. You may be pleasantly surprised at how many vehicles fit your needs, as well as your budget.
4. Research your loan options. Check with your financial institution for car loan rates before you head to the dealer. Many times, your local dealer will offer competitive rates that may be lower than what your bank is offering.
5. Focus on a small list of models. With so many models available to you, it may be difficult to decide which vehicle you really want. To save time and focus on the best car to buy, narrow down your list to include only those vehicles that will meet the needs of your family, lifestyle and recreational activities.
6. Get your own report. If you choose to purchase a newer used car, it’s always a smart idea to request a history report on the vehicle you select. This can be supplied by the dealer, or you can purchase the report yourself online. This report will provide you with invaluable information, such as registrations, emissions inspections, damage from accidents, odometer readings, any title issues and whether the car was ever used as a rental car.
7. Make your test drive work for you. Once you’re ready to take a test drive, there’s no need to rush. Take your time and be sure to drive on both the highway and the city or neighborhood streets to get a feel for how the car handles on each. You’ll want to pay attention to these key things: comfort and road handling, noise level, ease of acceleration, smooth braking and ease of maneuvering.
