You see a sweet new Porshe at Cars and Co, you like it, so you research online to find out if it is a good deal. It turns out that the car has great reviews and you can afford the lease payment. Considering how hard you worked during winter and all the bonuses you have got, you decide to purchase it. Now that you feel so sure about making the purchase, it is important to consider these factors.
- Determine your budget
When shopping for a new ride, you ought to determine how much you can spend on it. You might be having enough money to buy the vehicle, but you need to figure how much cash you will have left for basic needs, utilities and other expenses such as a mortgage. Extra tip- do not extend a car loan beyond six months because you risk owing more than the car’s worth.
- Buy or lease?
Buying is considered the better option as compared to leasing. Once you purchase a car, you are assured of several years’ worth of service after paying for it. As for rental, one has to keep making payments, probably forever. When purchasing a vehicle, the terms of the purchase and the amount payable are clear. Lease terms are confusing, and it is hard to tell what you are paying for in fees and interests. Unless you have a good reason for renting such as tax, it is more advisable to buy.
- Find out the dealer’s price
If you have been checking for the car’s price online, it is recommended that you visit the dealer in person. This is because the sites online might be selling it for a higher price than that of the dealer. You can request to know the seller’s price and the manufacturer’s suggested price.
- Arrange for financing in advance
Before hopping on the driver’s seat and hitting the road, determine the funding option you prefer. You might want to consider cash, loan or lease. If you choose a lease or loan, arrange for financing in advance. Compare rates offered by various banks and go for the one that suits you best.
- Do not make rushed decisions
Take your time shopping for a new vehicle. Remember that the salesperson is paid on commission while the dealer is in business struggling to make profits. Therefore, the buyer ought to shop around for prices from many dealers. Do not just settle for the first offer you get. Keep looking around until you get the best deal.
- Go for more than one test drive
A test drive is the best way of determining how suitable the car is. You will get to know better how the car feels and drives if you get behind the wheel. It is advisable to bring a friend or a family member. Consider having more than one test drive, since after the first one you might be overwhelmed with excitement and fail to notice the shortcomings.
You are about to get a new ride. You are on the right track, but consider following this checklist. Making the right car purchasing decisions is critical in ensuring you enjoy your car peacefully.