Many people dream of purchasing a new car for themselves because it hasn’t been driven by anyone else yet. Since cars tend to be personal possessions, a new car makes it feel even more personal to the owner.
So, why don’t more people purchase new cars then? The simple truth is that new cars cost more money than used cars. Not only that, but the value of a new car depreciates as soon as you drive it out of the dealership. That is why you need to educate yourself on how to purchase a new car for the best price possible. In addition, you’ll want to make sure the car has all the technology features you require too.
Don’t be someone who doesn’t do their homework and then lets the salesperson take advantage of them. This can easily happen if you’re not careful.
5 Tips for Buying Your New Car
Below are the top 5 tips for buying a new car. If you follow each of these tips carefully, then you should save a lot more money on your purchase.
#1) Research New Cars Online
The number one thing you should do is research new cars online. The internet gives you an easy-to-use research platform for finding new cars and their prices at various dealerships throughout your area. When you visit a car dealership, they purposely overprice their vehicles because they’re hoping you haven’t done your research. But if you can show them printouts of cheaper deals offered online at other dealerships, then you might be able to persuade them to lower their prices.
#2) Get a Pre-approved Car Loan
Most people don’t get pre-approval for a car loan before they visit a car dealership. Instead, they use the lender in which the dealership recommends. What they don’t tell you is the dealership usually gets a commission from the lender for referring you to them. More importantly, their lender will charge you a much higher interest rate.
For this reason, you need to seek preapproval for a car loan from other lenders online prior to going to the dealership. These lenders will likely offer you a much lower interest rate. Remember that you are under no obligation to use the dealership’s lender. As long as they get paid, they’re happy.
#3) Have Patience
Patience is a virtue when it comes to buying a new car. Don’t feel pressured to make a deal during your first visit to the dealership. This is a big purchase, so it requires a lot of planning and researching. If a salesperson tries to push you into making a purchase and you’re not ready yet, then walk away. They obviously cannot be trusted if they’re not willing to consider your wishes.
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#4) Get an Auto Insurance Quote
The auto insurance coverage for a new car is usually higher than on a used car. This makes sense because new cars have a much higher value than used cars. To make sure your budget can afford this, get an auto insurance quote on the new car that you’re thinking about purchasing. Find out the estimated monthly premium of the insurance and add that cost to the estimated monthly loan payment. The total amount is what you’ll need to spend each month on insurance and to repay your car loan. If that’s within your budget, then consider proceeding with the purchase of the car. If not, then look at cheaper model vehicles.
#5) Look for Discounts and Special Offers
Dealerships will periodically offer special discounts on their new cars. Check out their prices during holidays and other special occasions. You might be able to land a good deal if you go to the dealership on Christmas, Thanksgiving, Easter, or the Fourth of July.